Cambodia Sustainable Energy for All Rapid Assessment and Gap Analysis July 2013 1 | P a g e Table of Contents List of abbreviations ............................................................................................................................. 5 Executive Summary ............................................................................................................................. 7 1 Objective and methodology ......................................................................................................... 8 1.1 Objective of the rapid assessment and gap analysis .............................................................. 8 1.2 Methodology ......................................................................................................................... 8 2 Introduction .................................................................................................................................. 9 2.1 Country overview .................................................................................................................. 9 2.2 Energy situation ................................................................................................................... 11 2.2.1 Energy use .................................................................................................................... 11 2.2.2 Energy demand growth ................................................................................................ 13 2.2.3 Energy and Economic Development ............................................................................ 14 3 Current situation with regard to SE4All goals ........................................................................... 15 3.1 Energy Strategy and Relevant Targets ................................................................................ 15 3.2 Energy access ...................................................................................................................... 16 3.2.1 Overview and assessment ............................................................................................ 16 3.2.2 Modern energy for thermal applications ...................................................................... 17 3.2.3 Access to Electricity ..................................................................................................... 20 3.2.4 Modern energy for productive uses ............................................................................. 25 3.2.5 Summary of challenges to meeting energy access goals ............................................. 27 3.3 Energy efficiency ................................................................................................................ 27 3.3.1 Overview and assessment ............................................................................................ 27 3.3.2 Energy savings potential in households ....................................................................... 28 3.3.3 Energy savings potential in industry ............................................................................ 28 3.3.4 Summary of challenges to meeting energy efficiency goals ........................................ 28 3.4 Renewable energy ............................................................................................................... 29 3.4.1 Overview and Assessment ........................................................................................... 29 3.4.2 Renewable Energy Potential and Status of Development ............................................ 29 3.4.3 Renewable Energy Strategy and relevant targets ......................................................... 33 3.4.4 Summary of challenges to meeting renewable energy goals ....................................... 33 4 Institutional framework for Achieving SE4ALL Goals ............................................................. 33 4.1 Institutional and policy framework for the power sector .................................................... 33 4.2 Institutional and policy framework for non-power subsector ............................................. 35 4.3 Program and financing ........................................................................................................ 36 2 | P a g e 4.3.1 Financing thermal energy ............................................................................................. 36 4.3.2 Financing the power sector .......................................................................................... 37 4.3.3 Private financing of domestic energy ........................................................................... 40 4.4 Private investment and enabling business environment ...................................................... 41 4.4.1 Private investments in the power sector ....................................................................... 41 4.4.2 Financial flows to the energy sector............................................................................. 41 4.5 Petroleum and gas ............................................................................................................... 44 5 Summary of gap and barriers to achieving SE4ALL Goals ....................................................... 45 5.1.1 Thermal energy for households .................................................................................... 45 5.1.2 Power sector ................................................................................................................. 45 5.1.3 Renewable energy ........................................................................................................ 46 5.1.4 Productive uses, businesses, and private investments .................................................. 46 5.1.5 Energy efficiency ......................................................................................................... 46 6 Conclusions and next steps ........................................................................................................ 46 7 Appendices ................................................................................................................................. 53 Appendix 1: List of Interviewees and their institutions ............................................................. 53 Appendix 2: List of attendees of the Gap analysis and investment readiness consultation workshop .................................................................................................................................... 53 Appendix 3: Indicative electricity tariffs for different customer categories in different provinces .................................................................................................................................... 56 Table of Figures Figure 1: Cambodia’s energy mix ...................................................................................................... 11 Figure 2: Energy consumption by sector in 2009 .............................................................................. 12 Figure 3: Power development plan, 2008-2020 ................................................................................. 13 Figure 4: Electricity demand growth projections ............................................................................... 13 Figure 5: Changing demand for various energy sources .................................................................... 14 Figure 6: Subsidies for South East Asian Countries in 2008 ............................................................. 15 Figure 7: Trends in access to electricity in households in Cambodia ................................................ 17 Figure 8: Indicative prices of LPG per kg in five South East Asian countries .................................. 20 Figure 9: Power quality 2008 to 2011 ................................................................................................ 21 Figure 10: Duration of power supply problems ................................................................................. 21 Figure 11: Carbon performance of selected South East Asian economies ........................................ 24 Figure 12: Institutional power sector map ......................................................................................... 34 Figure 13: Electricity and gas distribution GFCF∞ ............................................................................ 36 Figure 14: How Cambodia and other South East Asian economies rank on the ease of doing business .............................................................................................................................................. 42 Figure 15: ODA and FDI flows to Cambodia 2000 to 2010 .............................................................. 43 Figure 16: Fixed assets of approval investments ............................................................................... 43 3 | P a g e List of Tables Table 1: Cambodia socio-economic characteristics ........................................................................... 10 Table 2: Capital costs subsidies provided by the Rural Electrification Fund .................................... 17 Table 3: Cooking fuels in households in Cambodia .......................................................................... 18 Table 4: EAP Region: Yearly Premature Deaths Attributed to Air Pollution from Cooking with Solid Fuels, 2007 ...............................................................................................................................