Kampot wind energy farm project has met an EDC price hurdle

Cambodia Compass report, 23rd June - According to a Ministry of Mines and Energy senior official, the Blue Circle's 80MW wind power investment project in Kampot province has come to a halt because its proposed $0.068 per kWh national grid tariff rate exceeds what state-run energy supplier Electricite du Cambodge (EDC) is willing to pay.

The Blue Circle, situated in Singapore, specializes in wind farms and is Southeast Asia's largest renewable energy provider. The company is currently active in a number of ASEAN countries, the most notable of which is Vietnam.

On May 17, Victor Jona, director-general of the ministry's General Department of Energy, said the company had been negotiating a power purchase agreement with EDC for "more than a year," the final step before securing a formal deal to build the wind power station on Kampot's Bokor Mountain.

Because power rates have been reduced every year since 2015 as a result of government policy, Jona believes EdC has to charge a price lower than the $0.068 per kWh it already charges to give consumers with more cheap electricity.

“The Blue Circle has yet to begin construction, as the company is still waiting for a successful price negotiation with Electricite du Cambodge,” depending on the outcome of talks with EDC, the firm will submit proposals and technical specifications to the government for assessment before beginning construction, he said.

While Jona states that the ministry "actively supports" renewable and other green energy projects, he also emphasizes that the ministry insists on low-cost and stable electricity sources in the benefit of consumers.

Two businesses have been eyeing wind power projects in the Kingdom, he added, but none has broken ground on wind turbines or related infrastructure.

A $200 million onshore wind power project in Mondulkiri province is being developed by Xinglan Maritime Energy Co Ltd (XME), a joint venture between the local Maritime Group and a Chinese enterprise.

The collaborative technical team – made up of local and Chinese professionals – has been working closely with key institutions in their study and to ensure that they meet technological standards and criteria, according to Maritime Group chief operating officer Kong Vara.

They've also collaborated to find viable sites in Sen Monorom town and the neighboring O'Raing district using satellite and GPS surveys to ensure the project's success, he said.

According to him, after completing a feasibility study, the company delivered study papers to appropriate ministry organizations and responded to their follow-up questions.

According to Vara, each turbine will produce 2.5MW, hence the project's 100MW promise will require 40 turbines.

The Electricity Authority of Cambodia (EAC) stated that total national electricity capacity reached 2,916.02MW at the end of 2020, increasing 22.92 percent from 2,372.22MW the previous year.

It added that non-renewable energy sources – coal and oil – accounted for 1,318.95MW, while renewable energy sources – hydropower, solar, and biomass – accounted for 1,597.07MW.

Source: Cambodia Compass comprehensive arrangement

Editor: Malinda         Chief Editor: Sunnie         General in Chief/Executive Producer: Nicole

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