Suy Sem is the Minister of Mines and Energy for Cambodia. He was reinstated to this office in 2013, following the separation of the Ministry of Industry, Mines and Energy to establish two ministries: the Ministry of Mines and Energy, and the Ministry of Industry and Handicrafts. Prior to this, Suy Sem was the Minister of Industry, Mines and Energy, a role he held since his election to the National Assembly of Cambodia in 2003.
1. With demand for energy rising, how does Cambodia see its energy mix changing in the future?
In parallel with meeting the demand for electricity and keeping tariffs affordable, hydropower as one of the domestic resources should be first developed. However, hydropower cannot be operated at its full capacity during the dry season. Therefore, it is very important to develop thermal power using coal in the energy mixture as well.
Cambodia used to rely heavily on imported electricity and electricity generation derived from heavy fuel oil. Due to the recent development of hydro potentials throughout the country and the clean coal power plant in Sihanoukiville, most heavy fuel oil power generators have been gradually shut down. Together with the fast development of the national grid that reaches many towns and villages, we are able to lower the price electricity quite significantly. Besides the development of hydropower, the Royal Government of Cambodia also promotes renewable energy from its biomass and solar energy resources.
2. Cambodia plans to generate its own power from renewable sources such as biomass, solar and hydropower. Can you share more about these plans?
There are many plans to develop hydropower as a renewable energy source. The projects are one of the major components in our Electricity Master Plan. Essentially, we have 6 hydropower plants with a total installed capacity close to 900 MW in operations, one project is under construction and it will be in operation by 2017. We also have a number of projects in the pipeline that are still in the early stages of studies.
Regarding solar energy, like most other countries throughout ASEAN region, there is a lot of potential in Cambodia. However, the main obstacle is the high cost of implementing solar power. But I’m sure with the recent development and innovation in solar technology throughout the world, the price of installing a solar power plant will eventually come down. That’s why there are a number of companies that are interested in investing in solar as well as other renewable sources such as biomass for power generation from rice husks and other biomass resources such as trees, elephant/giant grasses, etc.
3. Sustainability is a key concern in meeting rising energy demand. What are some initiatives that can be taken to ensure sustainable development and green growth?
For the Royal Government of Cambodia as well as the Ministry of Mines and Energy of Cambodia, we take sustainability very seriously. Back in 2011, the former Ministry of Industry Mines and Energy developed the “Strategy and Plan for Development of Rural Electrification in Cambodia” which includes its support for the development of hydro, biomass and solar energy. As mentioned previously, Cambodia is developing its huge hydro potential. However, the ministry has to make sure that the hydro developments also gain the support and participation from the people in the local community. We must strive hard to strike a balance between economic development and the impacts on the social and natural environment.
4. With Cambodia being one of the fast-growing economies in Asia-Pacific, can you share some insights on the energy-specific investment opportunities?
Biomass and solar have huge potential in Cambodia, especially as solar and biomass can supply electricity during the dry season. Cambodia has abundant sunlight and the price of solar panels is drastically reducing and for that reason solar power is becoming more competitive to current grid prices. At the same time, Cambodia also has vast sources of biomass, such as rice husks and giant king grass, which is an ideal option to generate affordable power and steam. The ministry encourages investment opportunity in renewable energy, especially to the areas that are not yet connected to the national grid. We think that biomass could work very well in combination with solar, as biomass can provide a steady load over a 24-hour period while solar can provide for the peak-load in the daytime.
In short, the ministry welcomes investment opportunity in renewable energy. Ten years ago, less than 20% of Cambodia was connected to the grid, now we have improved this figure to almost 60%. With such a rapid growth rate, we expect to reach the 70% of the household goal set for 2030 perhaps in the next 5 to 7 years. Another opportunity is investing in the electricity distribution network and we welcome private sector participation.
5. Cambodia signed an MOU with Singapore at SIEW 2013 to facilitate the exchange of expertise and information areas such as energy efficiency, regulation, conservation and sustainability. What are some of key areas of collaboration between countries to tackle these energy challenges?
We are happy to inform you that the first Singapore-Cambodia joint-project under the MOU is the “Electrical Wiring and Safety Standards for Building and Households in Cambodia” project, that was launched in early 2014 and is set to conclude by April 2015.
With the rapid growth of the national grid, the increasing demand of industries, and the growing number of independent power producers of hydro, coal, and soon also biomass and solar, Cambodia needs a smart grid to optimize the supply and demand. EDC, our national electricity company has just launched a special off-peak tariff to increase the use of electricity during the off-peak hours, mainly at night. So we do need to manage this supply and demand even more carefully than before.
We also feel that Singapore has much experience with energy efficiency, so it would be very interesting if we can explore further collaboration and cooperation between our countries in this area.