SOLAR

 Background

From a purely technical perspective, and regardless of market considerations, Cambodia has excellent potential for photovoltaic power generation. NEDO (2002) has produced a solar radiation map for Cambodia, using data from NASA’s Langley Research Center (LaRC) and the US National Renewable Energy Laboratory (NREL). Solar radiation or “solar insolation” increases gradually from the northwest of the country with an average low of 4.11 kWh/m² to the southwest of the country with an average high of 5.23 kWh/m². The maximum fluctuation in solar radiation volume throughout the year is relatively low, and has been estimated at 17%. The NEDO solar radiation map shows that all of Cambodia has “extremely good potential” for photovoltaic power generation.

The use of PV systems in Cambodia began with a few installations donated by UNICEF, the Red Cross, La Fondation Énergies Pour Le Monde (FONDEM), NEDO, EBARA and other NGOs. Most of the applications were for health and rehabilitation centres, but solar home systems (SHSs) and lighting systems were also installed as demonstration units. Table 1 gives a list of the PV systems installed in Cambodia according to the different applications. To promote this technology in rural areas, where users have a low level of technical knowledge on PV, awareness raising, trained technicians, availability of accessories, etc are essential. Adaptive research is also required to reduce the high cost of PV systems, and to repair and maintain these systems in the long run.

Project/Program

The Government Cambodia's Renewable Electricity Action Plan provides framework supporting small-scale generation electricity local communities. Plan product major effort Cambodia's Department Energy Technique design decentralized system electricity supply based on innovative thinking latest renewable energy technologies.

Renewable energy technologies and off line community owned power grids are viable alternatives. Systems using technologies that transform locally available biomass into cheap electrical energy have been developed and perfected. These technologies can supply reliable and affordable electricity for irrigation water systems, household lighting and appliances, local industry needs and other public and private services.

-         Cambodia has not yet set up standard relating to PV system.

-         Cambodia doe not yet produce components/PV panels for the solar system. Also we do not yet any sophisticated laboratory or facilities to test such a PV system or components.

-         Under WB/ADB’s RE&T Project, we are doing the adaptation of the international best practices, which are recommended by these international institutions, by taking into account our local environment.

-         In order to allow new PV system products into the Cambodia market and in order to reduce the price, also at the time to protect the consumers by providing them with only reliable and well-proven equipment/technologies, these new products must provide certification of their products, acceptable to the WB recommendation/guidelines for example.

A Regional Research and Dissemination Programme, supported by the Swedish International Development Cooperation Agency (Sida) and coordinated by the Asian Institute of  Technology (AIT) was established. PV accessories were developed locally, allowing the reduction of the system cost and making the spare parts available within the country. Demonstration systems were installed to allow the potential users learned about the uses and benefits of PV systems, thus increasing awareness of the technology. Local persons were trained on operation, maintenance and management (OM&M) with an aim to establish after sales service available locally. Staffs from different organizations were trained both nationally and internationally to carry out research and dissemination activities effectively. Results and findings obtained from this program were disseminated by conducting workshops/seminars as well as articles published in conferences and workshops. For the technology package, the Ministry of Industry, Mines and Energy (MIME) developed the "charge controller" with automatic high and low voltage cut-off options. They were tested in laboratory and field to ensure its satisfactory performance. In addition, this ensured availability of spare parts and after-sales-service. The field technicians are able to repair the faulty controllers locally, which yielded better reliability of the systems to the users. The technology of charge controllers, developed under the programme was transferred to the Department of Energy Technique (MIME/DET), which manufactured them using this design and installed them in other demonstration projects (funded by the government) such as the 1.875 kWp installations at Prek Takouch bridge and two development centres in Pursat and Preah Vihear provinces, and other bridges in Cambodia.

PV installations in Cambodia during 1997–2004

MIME has installed 200 PV systems in health centres (powers light, pump, fan, radio telephone and refrigerator), bridges (powers street lights) school, development centres and pagodas (powers lights) in Cambodia. These demonstration systems allow potential users to get a good idea of the technology and its use. The use of PV systems in health centres also offers the rural population more reliable medical services. As well as using these practical, working examples, MIME developed and distributed brochures containing information about the technology, and published articles in national press. Seminars and workshops were also conducted, where government personnel, NGOs, international agencies, potential users and entrepreneurs were all invited. Many TV programmes on the subject of PV, including interviews with the users, and PV experts showing the practical use of PV systems were made.

According to the World Bank review of rural electrification experience in Asia, PV projects should be considered in the electrification planning process to arrive at a least-cost option; although grid electricity is preferable to users in terms of affordability and usefulness, national economic policy should direct a least-cost and sustainable path to energy service delivery. Since the implementation of the ‘RETs in Asia’ project, the Royal Government of Cambodia has shown great interest in rural PV electrification. The Government has established a working group to co-operate with Japan and certain NGOs in order to encourage the renewable energy development, especially solar, and a renewable energy development strategy is now included in the national energy policy. In the rural electrification action plan for ten years developed under the Rural Electrification Fund (REF), the Government plans to install 12,000 solar PV systems (40 Wp each). The participation of the private sector will be encouraged, and the scheme will subsidize all new renewable energy installations producing electricity. A draft plan to provide duty and tax exemptions for all imported renewable energy equipment is also under preparation. REF will also get funding from the national budget.

RENEWABLE ELECTRICITY ACTION PLAN

Cambodia’s Renewable Electricity Action Plan (REAP) has five guiding principles:

• Renewable energy technologies will be used when economically least cost
• The RGC will serve the role of market enabler
• Private sector firms will serve as market developers and suppliers
• Decision on renewable electricity development for the needs of the poor
• Subsidies and credit will be used carefully

The REAP long-term targets are:

• 5% of all new installed capacity, or about 6MW of mini hydro and 850 kW of village hydro, will be supplied by renewable electricity technologies and delivered to rural households or businesses.
• 50 000 new households connected by Rural Electricity Enterprises (REE) off-grid extension;
• 12,000 households will be served by solar photovoltaic.

• A sustainable market for renewable electricity system should be developed.

RURAL ELECTRIFICATION FUND

A key component for implementation of the REAP is the Rural Electrification Fund (REF) which is part of the Rural Electrification and Transmission (RE&T) project, funded by the World Bank and Asian Development Bank (ADB).

The REF will consist of approximately 25% of the total project investment and implement rural electrification solutions in particular nominated areas, consisting, for time being and in the initial pilot phase, of either:

a. New mini-grids based on generation from diesel, solar or hydropower generation. For diesel generation, only new household connections are eligible for REF grants.

b. Extension of an existing small grid systems to connect new households;

c. Solar Home Systems (SHS); or

d. Mini or Micro hydropower system.

Financing rural electrification investment projects can be a barrier due to banks' credit conditions: short term loan, high interest rate and large collateral. The RGC and the World Bank Group (WBG) are working to upgrade the banking system. In this context - and although the interest rate is still relatively high - there is an optimistic note concerning the "success story" of the Cambodian Micro Financing Institution, as reported in March 2005 by the WBG's Mekong Private Sector Development Facility.

The intended effects of the REF grant is to reduce the capital investment cost and thus reducing the retail cost of power in rural areas. And this, combined with an operating licence granted by the Electricity Authority of Cambodia (EAC), will enable the proponent to successfully obtain the remaining finance from a private finance institution. Technical assistance will be provided to further assist proponents to secure appropriate debt finance.

BARRIERS

□        High initial investment for biomass-electric power conversion technology,

□        Due to organizational and managerial barriers and also due to the lack of means, Cambodia cannot yet address properly the population basic needs;

□        Lack of basic socio-economic and technical data;

□        Low awareness due to lack of information;

□        Weakness in Financing, Banking and Credit systems.

□        To address these barriers, we need, to begin with, to have human resources, which are both competent and motivated. The market should be developed in order to reduce the cost, and subsidies are must.

INSTITUTIONAL SET UP AND FINANCE

The intended effects of the REF grant is to reduce the capital cost and thus the retail cost of power in rural areas and also, combined with an operating licence from the Electricity Authority of Cambodia (EAC), to enable the proponent to successfully obtain the remaining finance from a private finance institution.  Technical assistance will be provided to further assist proponents to secure appropriate debt finance.

For PV systems to be successful, it is very important to building institutional frameworks for their management. Experience shows that the involvement of the local community can help avoid problems such as non-payment, mishandling and irregular maintenance. In Cambodia, MIME established institutional arrangements according to local conditions. In the province of Pursat, for instance, 20 households each in the villages of Kandor Sar and Anlong were  selected for PV installations, including a leader from each village. These leaders were given responsibility for taking care of the systems installed in their villages, and were trained in maintenance and basic troubleshooting. To enhance in-house expertise, staff from MIME attended special courses at the Asian Institute of Technology (AIT) and at Solar Lab in Vietnam. These solar energy courses looked at design of systems such as inverters, charge controllers and other PV accessories. MIME trained 50 PV system users in efficient operation and basic troubleshooting, reducing the need for external maintenance. The training focused on the basic components of SHSs, installation, maintenance, common problems and  troubleshooting procedures. Booklets containing relevant information were distributed to the participants. The training helped users in remote areas to perform maintenance of their systems themselves, so they could carry out tasks such as replacing burnt fuses and tubes, and replenishing the battery’s supply of water when needed.

Poor economic conditions and the social inequality between urban and rural populations, financing expensive PV systems is a difficult and challenging task for the Royal Government of Cambodia. PV systems used by telecommunication companies, for instance, are technically and economically proven, because they are financed by the companies themselves, while most of the SHS installations have been donated by International Organizations and NGOs, such as Sida, NEDO, Fondation reconnue d’utilité publique (FONDEM), CDG, World Vision, so there are few cases of actual sales with cash payment. A credit system for household equipment (consumer items) is not yet well developed. With the Royal Government of Cambodia and World Bank and ADB rural Electrification and Transmission Projects, the private sector is now expected to participate in development, commercialisation and financing of all renewable energy in Cambodia. Under the Rural Electrification Fund, there will be a subsidy scheme with grants from donors and the Global Environment Facility (GEF) designed to encourage the use of PV systems, and mini hydro making them affordable to the rural population. Low-interest loans will be provided to entrepreneurs and micro-finance institutions dealing with sales, installations and maintenance of solar systems. Table 2 shows a summary of the proposed grants.

ADAPTIVE RESEARCH

In the PV system, PV module is the main component and batteries are imported, and the balance-of-system (BoS) components could be developed locally. Surveys carried out in Cambodia indicated that PV accessories such as lamps, charge controllers and DC–DC converters were not available. The imported items were expensive and posed various difficulties, including lack of spare parts and no after sales service; in most cases, any faulty devices had to be replaced with new ones. Ministry of Industry, Mines and Energy (MIME) addressed these issues by developing a 12V, 10A charge controller with automatic high- and low-voltage cut-off options. These controllers were subject to both laboratory and field tests to ensure their satisfactory performance. The charge controller also included an LED to indicate the status of the battery. The charge controller technology developed under the programme was transferred to the Department of Energy Technique (MIME/DET), which manufactured them using this design. These were installed in other demonstration projects (funded by the Government), such as the 1.9 kWp installations at Prek Takouch bridge, and two development centres in the provinces of Pursat and Preah Vihear.

Use of these charge controllers helped to reduce the price of PV systems, and it also ensured availability of spare parts and after-sales service. As local field technicians are able to repair the faulty controllers, users are more satisfied by system reliability.

SUPPLIERS

KHMER SOLAR Co.Ltd

#71, Norodom Blvd, Phnom Penh Cambodia

Tel: (855)23-212-212 or (855) 16-830-038

Renewable Equipment Supply, Spare Parts & Services

COMIN KHMERE Co.Ltd

#48 Samdech Pan (Str.214), Phnom Penh Cambodia

Tel: (855)23-426-056

Generators - Supply, Rental, Spare Parts & Services

Key Players

GOVERNMENT:

Ministry of Industry, Mines and Energy: Department of Energy Technique

PRIVATE SECORS:

1.      KHMER SOLAR Co.Ltd.

2.      METROFILE ENGINEERING

3.      COMIN KHMERE Co.Ltd

NON GOVERNMENT ORGANIZATION:

-     REPSA (Renewable Energy Private Sector Association), from KHMER SOLAR,

      Director, Jean-Pierre Mahé of Kosan-Gret, As Secretary General of REPSA.

-     CRCD (Cambodian Research Centre for Development)

ACADEMIC:

1.    Institute Technology of Cambodia (ITC)

DONORS, INTERNATIONAL INSTITUTIONS:

SIDA (Sweden), NEDO (Japan), FONDEM, CDG (Invent), The World Bank Group, Asian Development Bank

BANKS & MICRO FINANCING INSTITUTIONS (MFI):

ACLEDA, CANADIA,