CAMBODIA: Cambodia Basic Energy Plan

Meta Data
Draft: 
No
Revision of previous policy?: 
No
Effective Start Year: 
2019
Scope: 
National
Document Type: 
Plan/Strategy, Government Report
Economic Sector: 
Energy, Power
Energy Types: 
Power, Gas, Renewable, Bioenergy, Hydropower, Solar, Wind, Other
Issued by: 
General Department of Energy
Source: 
Economic Research Institute for ASEAN and East Asia
File: 
Cambodia Basic Energy Plan
Overall Summary: 
The Cambodia Basic Energy Plan aims to set numerical targets for each energy issue covered by the plan, and the targets should be achievable. The basic objective of the plan is to seek an energy supply for Cambodia with the following conditions: affordability, accessibility, security (sustainable security), safety, and transparency in the energy market. Recognising the current energy issues in Cambodia, the basic plan covers the following six energy fields: (i) oil, (ii) electricity supply, (iii) renewable energy, (iv) energy efficiency, (v) energy security, and (vi) the energy outlook brought by the BEPC.
Access
Energy access priorities: 
(2) Resilience of the transmission and distribution networks will bring improvement of transmission and distribution losses (13% in 2016 to 8% in 2030), decrease the System Average Interruption Duration Index and System Average Interruption Frequency Index to less than 620 minutes and 7.3 times, respectively, and increase the household electrification ratio from the current 70% to 95% in 2030 through connecting to the national grid. This will contribute to accessibility, security, and safety.
Clean cooking solutions: 
(1) Traditional biomass will be phased out and replaced by LPG for its use for cooking in rural areas. However, highly efficient biomass cooking stoves are recommended. A biomass supply chain might be established to supply fabricated biomass such as wood chips to final users in rural areas.
Efficiency
EE targets: 
(1) The major use of gasoline and diesel oil as well as LPG is transportation (vehicle), so that Cambodia can shift to highly efficient vehicles under the appropriate regulations (reduction by 10% from the business-as-usual [BAU] scenario). (2) Petroleum products are convenient and useful, and they are used across the industry, transport, residential, and commercial sectors. If a petroleum supply disruption occurs, Cambodia will face serious damage on both the economic and social aspects. Therefore, appropriate stockpiling volumes, including commercial stocks, will be needed (at least 30 days until 2030). (1) Apply the same energy saving target, a 10% reduction from the BAU, across sectors until 2030.
EE labeling: 
(2) Apply a standards and labelling system to appliances used by households. An inspection laboratory will need to be set up in Cambodia.
Energy Service Companies (ESCOs): 
(3) The MME has to grow local energy managers and invite energy service companies, both local and foreign companies, for engaging in engineering EEC activities in the industry (factories) and commercial (buildings) sectors. In this regard, an association of energy managers or energy service companies, such as the Cambodia Chapter of the American Society of Heating, Refrigerating and Air-conditioning Engineers, will be established.
EE public awareness/promotional programmes: 
(4) Education and campaigns on EEC are important and will contribute to making Cambodian people aware of EEC.
Renewable Energy
RE targets: 
(2) Another biomass use will be power generation to be applied in isolated areas (with no national grid). Its target will be 6.5% of total power generation in 2030. (3) There are several policies to promote solar/PV systems, such as feed-in tariffs, Renewable Portfolio Standards, and net metering. However, the BEPC recommends not to apply these policies for the penetration of solar/PV. The MME will open the power generation market to local and foreign entities such as the Asian Development Bank and private companies to install solar/PV in Cambodia for supplying electricity to subscribers. Its target will be 3.5% in 2030.
Biofuels obligation/mandate: 
(3) Biofuel, especially bioethanol, is one of the options for reducing imports of gasoline. In addition, biofuel affects the economic growth of Cambodia, such as through agriculture and industry activities and reductions in CO2 emissions. The General Department of Petroleum is seeking business opportunities for biofuel (E3 gasoline will be possible by 2025).
Pricing
Energy pricing: 
(3) Reforms of electricity tariffs, such as time-of-use and cross-subsidy systems, have to contribute to the levelisation of electricity demand and elimination of the price gap between urban and rural areas and maintain affordability and transparency.
Energy Supply and Infrastructure
Energy mix: 
(1) The power generation mix in 2030 will be coal (35%), hydro (55%), and renewable energy (10%), consisting of biomass and solar/photovoltaics (PV). This mix will maintain affordability and security.
Trade
Bi- and multi-lateral energy agreements: 
(2) Cambodia has imported electricity from Viet Nam and Thailand historically and will import it from Lao PDR soon. As such, Cambodia has already joined a grid interconnection network amongst the countries, but this is on a bilateral basis. According to the BEPC, 60% of power generation will come from hydropower plants, and this will depend on the volume of water flow, which is usually affected by climate conditions. In order to secure electricity supply in Cambodia, a power trade system on a multilateral basis is recommended.
Governance
Energy institutional structures: 
(1) EPR [emergency preparedness and response] is a plan or procedure for when Cambodia faces an emergency. EPR clearly specifies three measures: short term, medium term, and long term. The shortterm measure emphasises how to reduce energy consumption quickly, while the medium and long-term measures mention the diversity of energy supply sources, promotion of EEC, and stockpiling. The establishment of the National Emergency Supply Organization (NESO) is also very important. NESO consists of several ministries (energy, industry, commerce, transport) and large energy supply and consumption companies, and is headed by the prime minister. NESO works on the coordination, harmonisation, and prioritisation of a limited energy supply to final users under an emergency.