The Asian Development Bank (ADB) has approved a $7.64 million loan to support the construction of a 100 MW solar park in Cambodia.
This loan is in support of the ‘National Solar Park Project’ which will help the country develop renewable energy resources, diversify its energy mix, and improve the competitiveness of its economy.
In addition to ADB’s loan, the financing package for the project includes an $11 million loan and a $3 million grant from the Strategic Climate Fund, specifically through the Scaling Up Renewable Energy Program.
Also included in it is a $500,000 technical assistance grant provided by the Republic of Korea e-Asia and Knowledge Partnership Fund to support the capacity development of Electricite du Cambodge (EDC), Cambodia’s national electricity utility, as well as the Electricity Authority of Cambodia, the national electricity regulator, in solar PV technology and solar park planning.
The project was prepared with the help of grants from the governments of Canada and Singapore. The National Solar Park Project will enable EDC to construct a 100 MW solar power park and other related facilities, including access roads, fencing, and drainage systems, in Kampong Chhnang Province. The project will also build a transmission system connecting to the main grid near Phnom Penh, which will allow the project to supply power to the national grid.
The solar power projects that will be part of the 100 MW solar park will be bid out to independent power producers in two phases, with the first phase aimed at a capacity of 60 MW. ADB’s Office of Public-Private Partnership is working as a transaction advisor to assist EDC to design and conduct an open and competitive bidding process.
“Having reliable, sustainable, and affordable energy sources is crucial for the economic development of a rapidly expanding country such as Cambodia,” said ADB Principal Climate Change Specialist Pradeep Tharakan.
“ADB’s assistance will not only help diversify Cambodia’s energy mix through solar power development but also help the country meet its greenhouse gas emissions reductions target, as per the Paris climate agreement,” added Tharakan.
Despite having an abundance of solar radiation, the current solar generation capacity in the country is only 10 MW. ADB’s studies show that Cambodia can add about 200 MW of solar power to the grid by 2021, using available technology and without disrupting the grid.
In February 2019, Electricite du Cambodge invited bids to implement a 60 MW solar project in the country’s Kampong Chhnang province through an international competitive bidding process. The same month, Mercom also reported that Cleantech Solar would develop 10 MW of hybrid floating and rooftop solar power project for Chip Mong Insee Cement Corporation (CMIC) facility at Kampo, Cambodia.
Image credit: Sunseap Group
Saumy is a senior staff reporter with MercomIndia.com covering business and energy news since 2016. Prior to Mercom, Saumy was a copy editor at Thomson Reuters. Saumy earned his Bachelors Degree in Journalism & Mass Communication from the Manipal Institute of Communication at Manipal University. More articles from Saumy Prateek.