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The project is aligned with the following impact: adequate and reliable power supply from environmentally sustainable energy sources ensured. The project will have the following outcome: transmission network capacity and stability improved.
Output 1: 115-kilovolt and 230-kilovolt grid infrastructure expanded and reinforced. The project will support the construction of four 115 kV-230 kV overhead and underground transmission lines and 10 substations in Phnom Penh, Kampong Chhnang, Kampong Cham, and Takeo provinces. It will add 13 circuit-kilometers of 230 kV transmission lines; 36.7 circuit-kilometers of 115 kV transmission lines; 1,475 megavolt-amperes of 230 kV-115 kV-22 kV substation transformer capacity; and 350 megavolt-amperes of 115 kV-22 kV substation transformer capacity.
Energy / Electricity transmission and distribution - Energy efficiency and conservation
The project is aligned with the following impact: adequate and reliable power supply from environmentally sustainable energy sources ensured. The project will have the following outcome: transmission network capacity and stability improved.
Output 2: First utility-scale energy storage system provided. The project will support EDC in designing, procuring, and operating the first utility-scale BESS in Cambodia, capable of storing 16 megawatt-hours, and in analyzing its performance. This is a desirable size to support multiple applications - a standard feature of BESS installations - such as (i) smoothing output at 80% from the phase 1, 60-megawatt (MW) ADB solar park in Kampong Chhnang Province; (ii) providing 0.5 hours of curtailment reserve to address daily power outages; (iii) providing primary frequency control; and (iv) providing congestion relief, which allows to defer upgrades in transformer capacity at Grid Substation 6 (a substation near the ADB solar park site).
Project implementation consultants will complement EDC staff to ensure a high degree of project management efficiency and provide on-the-job training to strengthen transparency and accountability. In addition, EDC will undertake activities that (i) promote inclusion and gender equality in the workplace, (ii) dismantle gender-based stereotypes related to women''s participation in energy sector activities and employment, and (iii) inform communities about the safe use of electricity.
Cambodia has achieved sustained economic progress. Cambodia''s per capita gross national income grew on average by 7.1% per annum from $950 in 2013 to $1,390 in 2018. Strong economic growth was driven mainly by urban-based industries such as garment exports and tourism, and, more recently, construction and real estate.
However, COVID-19 pandemic threatens to undermine progress. Whereas Cambodia''s economy was projected to grow by 6.8% before the coronavirus disease (COVID-19) pandemic, it is now expected to contract by 5.5% in 2020. It risks pushing an additional 1.3 million people into poverty. The government is implementing an assistance program to mitigate the adverse social and economic impacts. Moreover, financing and constructing needed infrastructure, including those that enables the provision of reliable and sustainable electricity supply, is important to create employment and support the country''s post COVID-19 economic recovery. Cambodia aspires to attain middle-income status by 2030.
Government prioritizes energy sector development. In its Socio-Economic Policy Agenda, 2018-2023, the government recognizes the importance of developing the energy sector to increase competitiveness, ensure sustained economic growth, and thereby continue to reduce poverty. Its key policy objectives call for (i) extending the coverage of power supply, (ii) stepping up power reliability by expanding and upgrading the transmission network infrastructure, (iii) further lowering systemwide costs to enable a tariff reduction, and (iv) providing access to electricity from 74.8% in 2019 to 95% of all households by 2030.
More robust electricity supply will enhance economic productivity. Electricity supply increased on average 19.1% annually from 2,515 gigawatt-hours (GWh) in 2010 to 12,015 GWh in 2019. Large investments in power generation help address rapidly growing demand for electricity that propels economic growth. Most (86.5%) of electricity is generated domestically from hydro (50.2%), coal (32.3%), renewable energy (0.7%), and diesel fuel (3.3%). In 2019, 98.5% of power generated domestically was provided by independent power producers. Power imports from neighboring countries contributed 13.5% to electricity supply.
Improvements in sector planning and efficiency. Substantial increases in transmission investment can cause small tariff increases, unless they are wholly offset by savings from low-cost generation, fewer transmission and distribution losses, and congestion cost control. EDC and the Ministry of Mines and Energy (MME) are making progress in strengthening sector development planning with direct support from ADB. This includes technical assistance (TA) for project readiness, procurement, and financial management to improve probity, efficiency, and adequate service delivery, and avoid excessive costs. Concessional financing from development partners will also help minimize the impact of the substantial transmission investments on end-user tariffs.
Adequate and reliable power supply from environmentally sustainable energy sources ensured
(Rectangular Strategy for Employment, Equity and Efficiency, Phase, IV: Building the Foundation toward Realizing the Cambodia Vision 2050)
Transmission network capacity and stability improved
115 kV and 230 kV grid infrastructure expanded and reinforced
First utility-scale energy storage system provided
Public consultation and information disclosure which were initiated during the project preparation stage, will be carried out on an ongoing basis throughout project implementation.
The Asian Development Bank (ADB) is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. It assists its members and partners by providing loans, technical assistance, grants, and equity investments to promote social and economic development.
The Asian Development Bank (ADB) has signed a transaction advisory service mandate with Cambodian utility Électricité du Cambodge (EDC) to support the development of 2GW of solar power in Cambodia.
Under the mandate ADB will help EDC conduct a study on opportunities for solar power capacity addition co-located with battery energy storage system (BESS) to be implemented from 2022 until 2030.
Moreover, the ADB will also assist EDC in bidding out a 100MW pilot project to the private sector which is expected to mobilise US$100 million of investments and could serve as a model to be replicated for faster growth of renewables in Cambodia.
With the development of 2GW of solar power, Cambodia will fast track its solar output which was at less than 450MW (see chart below) in 2021, according to data from the International Renewable Energy Agency (IRENA), and was almost marginal in 2015 with 12.2MW of net installed capacity.
The country''s new ‘Power Development Masterplan’ aims to increase solar PV capacity in Cambodia to more than 3GW in 2040, with a need to improve grid stability through the adoption of BESS.
Cleo Kawawaki, head of ADB''s office of public–private partnership, said: "We hope to contribute to this effort by supporting a well-planned pipeline for transparent bids that attract active competition to optimise the efficiency, innovation, and capital of the private sector to benefit the people of Cambodia."
Furthermore, the programme will help lower electricity costs and improve its energy security, according to Kawawaki, adding that the programme is Cambodia''s "most ambitious yet in the renewable sector".
ADB continues its support in Cambodia''s solar sector with its largest mandate yet, after financing a 100MW solar park in the Kampong Chhnang province.
Recently the ADB helped finance Bhutan''s first utility-scale solar PV plant that will have a minimum capacity of 17.38MWp.
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