AsiaLIFE

Cambodia has a power problem. Large swathes of the country lack access to electricity, while the price of electricity for those that do have power is high. Although hydropower is being developed to meet the needs of the nation, other renewable energy options are also available. In a country full of sunlight, solar power may be just the right thing. Words by Nora Lindstrom.

“Previously I used a kerosene lamp and I was always worrying about things catching fire,” says Calian Malis, a 30-year-old shopkeeper. Last year, she participated in trial runs for a new solar powered lantern, the MoonLight. Now a regular user, the lantern provides her and her children with brighter and safer light.

“MoonLight changed my life,” she says.

Malis’s situation, before she started using solar power, is repeated across rural Cambodia. With no national grid and outdated machinery, the Kingdom has a power problem.

Power is costly. The World Bank acknowledges that electricity prices in Cambodia are some of the highest in the region, significantly higher than those of neighbours Thailand and Vietnam. According to the Electricity Authority of Cambodia, tariffs in Phnom Penh start at 720 riel per kilowatt hour (kWh) for consumption over 100kWh per month. In the countryside, power from private suppliers can cost over 3,000 riel per kWh.

Not only is power expensive, it is also scarce. Some three quarters of the country remains unelectrified, relying on rechargeable batteries and kerosene for their power and lighting needs, and wood and charcoal for cooking.

Leoung Keosela recognises that the provision of electricity poses a challenge for Cambodia. As head of the Rural Electrification Fund (REF), a World Bank supported public institution, he is in charge of accelerating access to power in rural areas. As part of its efforts, the REF recently announced a plan to purchase 12,000 solar panel systems for rural homes.

“The electrification rate is about 26 percent in Cambodia,” says Leoung. “Solar power is a good option.”

Richard Vaillant agrees that solar power could prove viable in Cambodia.

As manager of the power and renewable energy division at Comin Khmere, he is in a position to know. “There is enough sunlight in almost all of Cambodia to have good output from solar PV,” he says. “There are no physical obstacles to its spread.”

Despite the global recession, production and consumption of renewable energy has grown in recent years. The Renewable Energy Policy Network for the 21st Century (REN21) reports that 18 percent of global energy supply came from renewable sources in 2009, with the amount of grid-connected solar photovoltaics (PV) having grown by an average of 60 percent every year for the past decade.

Germany, followed by Japan and Spain, are leaders in the solar field in terms of grid-connected PV solar systems. Smaller scale, off-grid PV systems are being increasingly used in developing countries, including Bangladesh, Sri Lanka, Kenya, and South Africa, while China dominates the market for solar powered water heaters.

Countries in Southeast Asia are also waking up to the possibilities of solar power.

In March this year, the ADB announced it is lending US$70 million for the development of a 73-megawatt solar power plant in central Thailand. When completed, it is likely to be one of the largest solar photovoltaic projects in the world, and central to Thailand's Alternative Energy Development Plan that aims to generate 20.4 percent of primary commercial energy from renewable sources by 2022.

Embracing the Sun

Though current use is limited, solar power could be at least part of the solution to Cambodia’s energy problem.

“There’s natural potential, and natural need,” says Vaillant.

Jeroen Vershelling, director of local social enterprise Kamworks, has no doubts about the opportunities solar power can provide for Cambodia.

Through Kamworks, he is at the helm of solar developments. “We’re a think tank on all things solar,” he says. “We’re crazy about solar power and this country needs it–there are no other viable sources of power.”

No alternative, but also “absolutely no incentive,” cautions Vaillant.

The bottom line is that solar power, despite producing virtually free energy, requires a substantial initial investment.

Current solar power markets are “not natural”, according to Vaillant.

Instead, political will expressed through a variety of government schemes and subsidies is required. This has allowed even countries with a relatively low amount of sunlight to develop their markets over the past decade. After all, Germany gets far less sun than Cambodia.

In Thailand, the government has played an important role in spreading the use of solar power, as well as in encouraging the development of an industry producing solar panels.

“The Cambodian context is different,” says Vaillant. He claims that the country remains at a stage where political will is yet to be translated into action. On the positive side, there has at least been some governmental encouragement.

“Last year a significant effort was made when the import duty on materials needed to build solar plants was removed,” he says. Given that there is no current domestic production of solar panels in Cambodia, the measure marks an important step towards embracing solar power in the Kingdom.

Through bringing down costs, recent technological breakthroughs are also making solar power an increasingly viable alternative. “Solar power has been affordable only for a few years really,” says Verschelling.

The arrival of LED lights transformed the sector by providing a more efficient light source than regular incandescent lights, thus lowering the amount of energy needed to power them. The rise of China as a producer of solar systems further means that the market is moving, he says.

Whether or not Cambodia needs solar power is a moot question if there is no demand. According to Vaillant, the market is there.

In broad strokes, consumers of solar power can be divided into three categories.

There are well-off Cambodian individuals who buy cheap, often low quality products, with limited assistance from solar power specialists. A number of ecolodges and hotels for whom projecting a green image is important, might consider an investment in solar panels worthwhile. The main market however remains large international organisations and institutions, as well as, to a lesser extent, smaller NGOs. These were also the first to bring solar power into the country.

“Those most concerned about renewable and green energy are westerners,” says Vaillant. “Apart from Japan, there is not so much concern in Asia.”

Investing in the Sun

The growing interest in the possibilities provided by solar technology is evidenced by the recent spike in the number of companies importing solar systems to Cambodia. Telecoms in particular have taken advantage of the possibility to power rural repeater stations using solar panels.

Many in the sector note that it is important to ensure consumers are buying quality products and also have access to professional maintenance and advice. Inferior products have the potential of spoiling the reputation of the solar power before it has even made its mark on the market.

“Maintenance is definitely a concern,” says Leoung, noting that all households participating in REF’s scheme receive regular maintenance assistance during the period of loan repayment.

While solar panels themselves seldom require extensive looking after, the batteries that store the energy produced need to be taken good care of.

“The longevity of a battery can be reduced by several years through incorrect use,” says Mira Weber, director of the Pico Sol Solar Campus.

A close partner of Kamwork’s, Pico Sol is a local NGO that works to build a professional solar power sector in Cambodia. To this end, the organisation runs a vocational training centre called the Solar Campus, providing both basic and more advanced training about solar power to Cambodians.

By harvesting its own energy from the sun, the campus demonstrates the potential of solar power. A state-of-the-art machine shows both how much energy is consumed at any one time, as well as how much sun is captured by the panels.

Weber’s own home on the rural outskirts of Phnom Penh is also solar powered.

Designed and positioned for maximum cooling, it has no need for air conditioners, which in any case are too power intensive to be used with solar energy. Weber states that investigating ways of reducing power consumption should come before investment in renewables.

“Start with saving energy, it’s better than buying solar power for inefficient use,” she says.

Powering the Countryside

For people in the Cambodian countryside, the question is not about saving energy. For rural Khmers, it is about having any power at all.

“Solar power is most useful for people with low revenue,” says Vaillant, “but for them it is still expensive.”

This is where the REF hopes to come in.

To be eligible for an REF subsidised solar home systems, participating households need to be located in areas not likely to be connected to a wider grid in the next three to five years.

“The systems will be sold to rural households in remote areas,” says Leoung. “They will have to pay for some of it upfront, and the rest over three to five years in monthly instalments.” The overall cost of one system is projected to be around US$250.

Pico Sol also focuses its work on rural communities, putting second hand solar panels donated from the Netherlands to good use. “We want the villagers to see the benefits of solar energy,” says Weber. “But the community also has to provide support–we don’t want to spoil the market.”

Common projects include powering communal spaces such as pagodas, schools and community water pumps. “There is more demand than we can meet,” she says.

With a slightly more market-bent orientation, Kamworks has paired up with microfinance organisation Centre International du Credit Mutuel to create a pioneering one-stop-shop for solar loans and systems.

“For the poor, solar power is not affordable,” says Sen Leap Ly, Project Manager at Kamworks. “That’s why we are providing a solution through microfinance.”

Located in Kandal Province, the shop provides small start-up loans for basic solar powered lighting, as well as credit for larger solar home systems, giving rural customers a chance to move up the energy ladder. Going solar can cost as little as US$25 for Kamworks’ own product the MoonLight, while a system that can power lights and a radio or black and white TV costs US$570 with a discount of US$15 if the buyer takes part in a solar training course.

A large part of promoting solar power in rural Cambodia is about educating people about its potential claims Hul KunnakVuth, executive director of the Electricity Authority of Cambodia.

“We need to increase people’s confidence in the system,” he says. “The systems can last for 20 years, but how can people trust that?” He adds that many Cambodians are suspicious of schemes claiming to bring a long term return on a high investment.

The Grid Question

Despite the REF’s promotion of solar home systems, Leoung admits to not being entirely convinced of merits of solar power. “If we’re talking about the quality and sustainability of the supply of energy, then the grid is much better than solar power,” he claims.

Vaillant highlights that the debate between solar power and the extension of the grid is part of a wider debate over centralised versus decentralised power production.

“Decentralised power production is a different way to think energy,” he says. “But I don’t think the grid will ever cover 100 per cent of Cambodian households.”

Hul agrees.

“Extension of the grid depends on the density of the population in a particular area, so if population is scarce, then it is not affordable,” he says. “I think the best option for the electrification of rural areas is a combination of alternative forms of power provision.”

He maintains that while solar power is one solution to the electrification of rural areas, there are others as well.

The development of hydropower over the next few years is going to reduce power costs and make electricity more accessible, he claims.

Developing wind power could also be an option in Sihanoukville and Mondulkiri. “Wind power can produce more electricity than solar power,” he says.

Reliance on imported solar systems presents another hurdle for solar power.

Kamworks is currently the only producer of solar technology in Cambodia, and despite ongoing research and development, their output is limited. In contrast, a significant solar industry has developed in Thailand following government incentives in the sector.

Hul says this is another area in which government action is needed. Removing import duties on materials needed to build solar plants is certainly a step, but Hul calls for a complete removal on all import taxes as well as VAT on ready-made solar systems too.

Cambodia could also start operating feed-in systems where households and establishments are able to sell solar energy back to the national grid. “But that too depends on the government,” he says.

“In Thailand, the equivalent of the EdC buys the electricity at a higher rate, that’s why it’s profitable to produce solar energy there,” notes Vaillant.

“This environment does not exist in Cambodia. But we don’t have to wait for political will. The market is already finding a solution,” he continues, noting that international demand is constantly bringing prices down, and that micro-finance is one way in which to make solar systems more accessible to Cambodians.

The Forecast

While the weather in Cambodia is likely to remain sunny, and the cost of solar technology is steadily decreasing, solar power currently remains a costly option for Cambodia.

Unlikely to be the golden solution to Cambodia’s power problem, it nevertheless has the potential of making a sound contribution to powering the nation.

While policymakers weigh their options, people like Calian Malis are convinced of the sun’s potential. The made-in-Cambodia MoonLight is now sought after by her neighbours too.

“It is very easy to use,” she says. “I am very happy I have one.