The European Chamber of Commerce in Cambodia (EuroCham) is encouraging the industrial sector to implement effective renewable energy (RE) policies and calling on the government to remove capacity charges on solar energy and fully embrace renewable sources.
In its “Position Paper on Renewable Energy in Cambodia” released on September 2, EuroCham pointed out that “ensuring reliable, affordable and improved energy security is a priority for the Royal Government of Cambodia [RGC], as stated in the Power Development Plan [PDP] 2040”.
“However, for international manufacturers and investors in higher quality production, those with high carbon neutrality targets, and those who consider investing into sustainable production in attractive markets, [RE] is the most important factor for the continued, renewed, or initial investment into a market, followed by affordability and reliability,” it said.
As Germany’s GIZ notes, the state-run utility Electricite du Cambodge (EdC) levies a monthly “capacity charge” based on the demand contracted with customers that connect at higher voltage levels, although this only applies to solar systems at present. “All other technologies [are] charged a simple, one-part, per-kWh [kilowatt-hour] tariff.”
EuroCham adds: “Capacity charges are too high. The penalty for solar electricity is about $0.07/kWh for larger solar systems and $0.84/kWh for smaller systems. This cannot be the intent of the solar regulation and makes the investment economically unattractive and unviable.
“The implementation of solar rooftops could push Cambodia towards an energy transition and also help to meet the growing demand.”
EuroCham chairman Tassilo Brinzer said: “A full endorsement and support of rooftop solar by the Cambodian government would be a huge step towards modernising Cambodia’s manufacturing base, to green the image of the country and to become more competitive while better integrating itself into regional economies.
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Author: May Kunmakara
Source: The Phnom Penh Post
Publication date: 04 September 2022