, Singapore
3 views

Cambodia moves to reduce hydropower reliance with $830m electricity projects

The country faced shortages in 2019 due to droughts and low water levels.

Cambodia has signalled its intention to shift away from hydropower to meet its electricity demands, with its latest 10-year development plan focused on coal and solar PV as sources of new generation capacity.

The country, which relies heavily on hydropower, has witnessed power shortages due to reduced hydropower generation owing to draughts and lower water levels in the dams, noted data and analytics firm GlobalData in a recent report.

Also Read: Droughts threaten Cambodia's hydropower generation

Around 83% of the new generation capacity built between 2020 to 2030 will be from coal (56%) and solar PV (27%) whilst hydropower (8%) and Oil (9%) are likely to account for the remaining new capacity, the firm posits.

Cambodia recent approval of more than $830m worth electricity infrastructure projects, including a 150MW hydro project, 265MW coal-fired plant and three transmission lines, clearly draws the line for lower hydropower development and focus on alternative sources, GlobalData said.

“The country looks to build a sustainable generation mix that will support the expansion of the national grid and trim the electricity prices with lower imports,” noted Ankit Mathur, practice head for power at GlobalData.

“The increased expansions of the coal-based power plants and LNG suggest that the country is significantly reliant on imported fuel and electricity and it will continue to do so until the lined-up infrastructural projects materialize completely,” Mathur added.

Cambodia had predominantly looked at hydropower for meeting its power needs. Hydropower accounted for nearly 58% of the generation in 2018, but it fell to approximately 45% by 2019.

Droughts in 2019 had brought down the share of hydropower in the nation’s generation mix significantly, compelling Cambodia to seek alternative sources to support the generation mix and avoid such unforeseen circumstances.

Whilst the Mekong river provides a strong potential for the development of hydropower in the country, any development has found strong opposition from the environmentalists for a potential harm to the fisheries and farmlands next to the basin.

Also Read: Cambodia ditches plans for Mekong hydropower plants

Meanwhile, the government is keen to invest in the expansion and upgradation of the electricity infrastructure, noted GlobalData. It is estimated that the current transmission and distribution network is likely to expand at a compound annual growth rate (CAGR) of 11.8% until 2025, almost doubling the transmission line length from the present.

Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Get Asian Power in your inbox

Danish energy company Ørsted launches expansion in Vietnam

This comes on the back of Vietnam increasing renewable energy to 30% by 2030

South Korea launches its largest 2 GW solar capacity tender

The country is expected to allocate 4 GW of solar capacity in 2021 across two tenders.

ACWA to build largest wind power plant in Central Asia

The company will construct the 1500 MW wind power project in Uzbekistan.

India’s Tata Power contemplating $473m IPO for renewable energy business

It initially planned to seek a partner to invest in its green assets.

China’s solar capacity installation crashes by 82% QoQ in Q1 2021

But increased by 35% YoY compared to Q1 2020.

India’s JSPL sells coal-fired power business for $400m to Worldone

This move aims to reduce the company’s debt and carbon footprint by almost half.

Japan authorizes operations of three ageing nuclear reactors

This is the first time reactors older than 40 years are approved to restart.

India’s NTPC launches tender for 600MW of wind and solar projects

Developers can compete for at least 50 MW to 600 MW in 10 MW multiples.

Here’s why the last dirty fuel project in Japan was scrapped 

The country recently pledged to cut down greenhouse gas emissions by 46% before 2030.

Singapore's Sunseap eyes expansion in Japan after latest Series E funding

The company earned an undisclosed amount from several new Japanese investors.