- ADB has signed transaction advisory services mandate with Cambodian utility EDC
- It will help the utility develop 2 GW solar power capacity along with energy storage
- A pilot project of 100 MW will be bid out to mobilize up to $100 million through private sector
Cambodian national electricity utility Électricité du Cambodge (EDC) will get Asian Development Bank’s support to develop 2 GW of solar power capacity with battery energy storage system (BESS) to help the country achieve carbon neutrality goal by 2050.
Under a transaction advisory services mandate signed, the bank will support EDC to conduct a study to explore additional solar power capacity in combination with an energy storage system which will be implemented between 2022 to 2030.
The utility will also carry out a competitive selection process for a private sector company to build, finance and operate a 100 MW pilot project. Through this, they aim to mobilize up to $100 million. It will also act as a model to replicate fast and efficient procurement of affordable renewable power in the country.
Calling it the country’s most ambitious program in the renewable sector to date, head of ADB’s Office of Public-Private Partnership F. Cleo Kawawaki said, “It will lower electricity costs and improve energy security by taking advantage of domestic resources. We hope to contribute to this effort by supporting a well-planned pipeline for transparent bids that attract active competition to optimize the efficiency, innovation, and capital of the private sector to benefit the people of Cambodia.”
This support of the ADB builds upon the association for Cambodia’s 1st National Solar Park with 100 MW capacity in Kampong Chhnang. In 2019, 60 MW out of this 100 MW, attracted $0.03877 per kWh bid that the bank termed as the lowest power purchase tariff for a solar project in Southeast Asia back then (see SE Asia’s ‘Lowest’ Solar Bid Of $0.0387/kWh In Cambodia).
Under its new Power Development Masterplan, Cambodia aims to expand its solar power capacity to exceed 3 GW in 2040. At the end of 2021, its total installed renewable energy capacity was 1.8 GW, according to the International Renewable Energy Agency (IRENA) comprising an estimated 428 MW solar PV capacity.