Cambodia is at crossroads on many fronts, starting with its graduation from the least developed country (LDC) status to post-pandemic economic recovery, according to the latest UNDP research.
The country has drafted the Power Development Plan (2021–40) to respond to the anticipated power demand. It was based on the principles of affordability of electricity supply by embracing least cost generation mix and reliability with adequate generation and transmission.
As ASEAN countries are looking for energy security through greater use of domestic resources, countries such as Cambodia are increasing external sources, including the import of electricity from neighbouring countries.
The government could work out a plan even to shift investment from coal towards renewable and avoid externality costs and potentially stranded assets.
Tassilo Brinzer, Chairman of the European Chamber of Commerce in Cambodia, said, “The Royal Government’s full approval and support for the use of solar panels on roofs is a significant step. Cambodia has gained a reputation as a green and more competitive environment, as well as for better integration into the regional economy.”
Brinzer said it would push Cambodia to become an investment destination as investing in renewable energy can be supported as a qualified investment project under the new investment law and attract producers with clean energy goals.
Yet Cambodia has an opportunity to go beyond its renewable energy strategies and benefit from its unique location between the two leading Greater Mekong sub-region economies and position itself as a leader in green business, the report said. It would enable the Cambodian industry to better integrate into fast, modern, sustainable regional supply chains, it added.
One of the other major benefits, in addition to reducing carbon emissions, is the potential for creating new industries that guarantee a better sustainable energy future, led by the development of solar technology.
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Author: Sok Sithika
Source: Khmer Times
October 27, 2022
