Version du 1er Mars 2003

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An important component of the RET project is promotion of renewable energy technologies (RETs) to reach the electricity services to those rural areas which


    The Royal Government of Cambodia

    Nation ? Religion ? King

    Commitments towards

    Renewable Energy-based Rural Electrification in


    Presented at the

    International Conference for Renewable Energies,

    Bonn, Germany - June 2004

    Phnom Penh

    December 2003

1. Introduction

Cambodia has recovered peace and stability since 1999. However, Cambodia remains

    one of the most economically disadvantaged countries in the region. It has the lowest per

    capita consumption of electricity (around 50 kWh) in Asia. Only about 13 % of the rural

    population has access to grid quality electricity. In absence of adequate, efficient

    infrastructure and regulation, rural people have to pay very high prices, one of the highest

    in the region, for electricity supplied by private diesel set operators and battery charging


The Royal Government of Cambodia (RGC) in its pursuit to reduce poverty, improve the

    standard of living and foster economic development of the rural areas takes cognizance of

    the need to meet the basic infrastructure requirements of its marginalized rural people.

    And access to reliable, affordable and sustainable energy is an integral part of this


2. Objectives

The RGC is embarking on a Rural Electrification and Transmission (RE&T) project wit

    the assistance of the World Bank. An important component of the RET project is

    promotion of renewable energy technologies (RETs) to reach the electricity services to

    those rural areas which are not likely to be covered by grid extension in the near future.

    In order to accomplish this, the Ministry of Industry, Mines and Energy (MIME) has

    taken a series of steps with assistance from World Bank’s RET project. This started with

    the production of a Renewable Electricity Action Plan (REAP) and also a National Policy

    and Strategy for Renewable Energy based Rural Electrification in Cambodia.

The general objective of the RE strategy is to initiate the process to maximize the use of

    local natural resources to provide least-cost options in the power sector, and thus create

    equitable access to electricity services and associated opportunities for increased social

    welfare, education, health and economic uplift through income generating activities. This

    will be achieved through the following activities:

    i) Widely expand the access for electricity services to the rural population

    through development of appropriate programs and action plans to promote the


    ii) Expand the supply base for renewable energy services by motivating and

    promoting the participation of private entrepreneurs so as to provide efficient

    and cost-effective services, which will benefit the whole community;

    iii) Facilitate systematic market and institutional development in renewable

    electricity sector by creating a comprehensive legal and regulatory framework

    to enable effective participation of government, private and community based

    entities in providing electricity services to the rural consumers;

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    iv) Ensure a wide and equitable access of electricity services to all sections of the

    rural population by developing appropriate tariff policies and instituting a

    rational tariff regime;

    v) Promote environmentally sustainable small power technologies including

    RETs in on-grid and/or off-grid mode in order to create wide access for rural

    consumers to affordable electricity services; and

    vi) Contribute to empowerment of the rural poor by creating economic

    opportunities and uplifting standards of living through electricity services, and

    through involving them in planning, operation, maintenance and management

    of programs providing those services.

3. RE-based Electrification Targets

The overall goal of the RGC is to achieve 70% coverage in grid quality rural

    electrification by year 2030 from the 1998 level of 6.3%..The current overall RE target

    determined for the World Bank-supported Rural Electrification and Transmission (RET)

    project is:

    ? 45 000 new electricity services by REEs including RETs

The target for renewable electricity program is to add at least 5% of the total electricity

    generation in the rural areas. In the short run, under the donor-assisted program, the

    following targets will be achieved:

    ? 3 hydropower mini-grid projects (up to 6 MW)

    ? 5000 to 10,000 solar home systems

    ? 3 viable renewable energy businesses

    ? 50-100 trained renewable energy personnel

The total capital requirement is around US$ 10 million, which will be sought from donors

    and private equity. An additional US$ 4 million will be required for technical assistance.

The RGC will ensure the establishment and effective operation of a Rural Electrification

    Fund (REF) in order to facilitate the necessary investment, capacity building and market

    transformation to achieve the above targets. This REF is funded by the World Bank as

    part of the RE&T project.

4. Conclusion

The Royal Government of Cambodia is committed to the reduction of poverty, and will

    promote the use of Renewable Energy based Rural Electrification as a means for

    achieving this. Consequently Cambodia takes this opportunity, at the International

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Conference for Renewable Energies, Bonn 2004, to make the above commitments to the

    international community. These commitments are made in the spirit of international

    cooperation to find solutions for poverty and sustainable development.

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