The Cambodian Research Centre for Development (CRCD) © 2004 PO Box 2515 Phnom Penh Kingdom of Cambodia http://www.camdev.org [email protected] The authors retain all rights to this document. The ideas and opinions expressed in this book are those of the authors and do not necessarily represent the views of the Institute for Global Environmental Strategies of Japan (IGES) or of the Ministry of Environment of Cambodia. This document may be reproduced for educational and not-for-profit purposes providing appropriate acknowledgements of the authors are made. Front cover illustrations (from left to right, top-down): opening ceremony of the IGES/MoE Workshop on the Clean Development Mechanism by So Puthea; solar panels at the NEDO-funded hybrid PV and biogas project near Sihanoukville, CRCD team testing wind turbine by Tin Ponlok; a group of REEs visiting the JICA-funded diesel power plant in Siem Reap Province by Thanakvaro De Lopez; cooking in Angkor times at Bayon Temple's bas-relief by Tin Ponlok; power grid in Phnom Penh by Noelle O'Brien; used truck engine converted to a rice mill motor drive in Battambang by Tin Ponlok; charcoal transported to Phnom Penh by Noelle O'Brien; power house of the NEDO-funded solar PV-mini hydro project in Kampong Cham Province, locally reassembled truck by Tin Ponlok; smoke from a Phnom Penh power station by Sao Phan; a pile of rubber tree fuelwood at a brick kiln by Tin Ponlok. Back Cover Illustrations (from left to right, top-down): workers uploading finished bricks from a kiln in Kandal Province, preparation before wind turbine testing, wind turbine for water pumping in Kampong Cham, motorbike transport in Kandal Province, a stack of rice husk in Battambang Province, children collecting rice husk for cooking in Battambang Province, diesel water pumping in Kandal Province by Tin Ponlok; workers chopping fuelwood by Noelle O'Brien; cattle farm providing manure for biogas production near Sihanoukville, diesel engine drive for a mini rice mill, fuelwood collected from the Mekong River during the flooding season, a mini rice mill in Kampong Speu Province, skylights in front of the Cambodian Climate Change Office children collecting fuelwood in Kandal Province by Tin Ponlok. FOREWORD The Cambodian Research Centre for Development is an independent, non-political, non-partisan and not for profit research organisation. The activities of CRCD focus on research in the areas of development, with the goal of improving the activities of national and international organisations involved in the development of the Kingdom of Cambodia. CRCD aims to provide a broad public, knowledge for sustainable development, through academically rigorous, non-partisan and independent research. CRCD may undertake sponsored research for other organisations or sponsors under the following conditions: Results are freely and broadly published and disseminated; Sponsors do not attempt to influence research towards any predetermined conclusions. 1 2 CONTENTS FOREWORD................................................................................................................1 CONTENTS..................................................................................................................3 LIST OF FIGURES .....................................................................................................5 LIST OF TABLES .......................................................................................................6 LIST OF PICTURES...................................................................................................7 ABBREVIATIONS AND ACRONYMS....................................................................8 UNITS OF MEASUREMENT....................................................................................9 ABSTRACT AND POLICY BRIEF ........................................................................10 ACKNOWLEDGEMENTS ......................................................................................11 SECTION ONE: INTRODUCTION........................................................................12 1.1 BACKGROUND...............................................................................................12 1.2 SCOPE AND OBJECTIVES ...............................................................................12 1.3 AVAILABLE DATA AND INFORMATION ..........................................................12 SECTION TWO: COUNTRY BACKGROUND....................................................14 2.1 GEOGRAPHY .................................................................................................14 2.2 RECENT HISTORY AND POLITICS...................................................................15 2.3 ECONOMY .....................................................................................................15 2.4 ENERGY SECTOR...........................................................................................15 2.5 ELECTRICITY SUPPLY....................................................................................16 2.6 RURAL ELECTRICITY ENTERPRISES...............................................................17 2.7 OTHER RELEVANT SUSTAINABLE ENERGY ACTIVITIES ................................18 2.7.1 Rural Electrification and Transmission Project ...................................18 2.7.2 Rural Electrification Fund....................................................................19 2.7.3 Five-Year Renewable Energy Action Plan..........................................20 2.7.4 ASEAN Energy Policy and Systems Analysis Project........................20 2.7.5 Technical Standards for Electricity......................................................20 2.7.6 Planning Strategy for Energy Cropping...............................................21 SECTION THREE: STATUS AND POTENTIAL OF SUSTAINABLE ENERGY IN CAMBODIA....................................................22 3.1 HYDROPOWER...............................................................................................23 3.1.1 Technical Potential for Hydropower....................................................24 3.1.2 Current Status of Hydropower Projects ...............................................24 3.1.3 Identified Potential Hydropower Projects............................................25 3.2 BIOMASS.......................................................................................................26 3.2.1 Technical Potential for Biomass Energy..............................................27 3.2.2 Current Status of Biomass Energy Projects.........................................28 3.2.3 Identified Potential Biomass Projects ..................................................29 3.3 SOLAR POWER ..............................................................................................30 3.3.1 Technical Potential for Solar Power ....................................................30 3.3.2 Current Status of Solar Power Projects................................................32 3 3.4 WIND POWER................................................................................................33 3.4.1 Technical Potential for Wind Power....................................................33 3.4.2 Current Status of Wind Power Projects ...............................................35 3.4.3 Identified Potential Wind Power Projects............................................35 3.5 GEOTHERMAL ...............................................................................................35 3.6 WAVE OR TIDAL ...........................................................................................36 3.7 ENERGY EFFICIENCY.....................................................................................36 3.7.1 Technical Potential for Energy Efficiency Improvements...................36 3.7.2 Current Status of Energy Efficiency Projects ......................................39 SECTION FOUR: POTENTIAL FOR CDM INVESTMENT .............................41 IN SUSTAINABLE ENERGY PROJECTS............................................................41 4.1 CDM ELIGIBILITY REQUIREMENTS AND BARRIERS ......................................41 4.1.1 Host Country Institutional Arrangements............................................41 4.1.2 Additionality ........................................................................................42 4.1.3 Sustainable Development Criteria .......................................................42 4.1.4 Transfer of Technology and Know-how..............................................42 4.1.5 Transaction Costs and Administration Fees ........................................43 4.1.6 Diversion of Overseas Development Assistance .................................43 4.1.7 Project Claim Period............................................................................44 4.1.8 Risk Management ................................................................................44 CONCLUSIONS AND RECOMMENDATIONS...................................................45 REFERENCES...........................................................................................................46 STATISTICAL TABLES..........................................................................................52 APPENDIX A: ASSUMPTIONS AND CALCULATIONS FOR ENERGY ESTIMATES ............52 APPENDIX B: SUMMARY TABLE OF PROJECT STATUS...............................................63 4 LIST OF FIGURES Figure 1: Map of Cambodia........................................................................................14 Figure 2: Map