Cambodia increases power import capacity in order to improve flexibility

Cambodia's energy minister said that the country plans to increase its capacity to import cleaner power from Laos and Vietnam, as well as Thailand, by more than 600 Megawatts. This is a 50% increase over current agreements.

Keo Rottanak noted that the move could boost interconnections in Southeast Asia and provide more options for diversifying power supply in the face of rising hydropower volatility due to weather-related interruptions.

He said that the imports would supplement the power supply "in areas where there are financial or environmental benefits" but that the majority of Cambodia's electricity will still be produced domestically. He said that the southeast Asian country recently approved 23 domestic energy projects worth $5.7billion.

Rottanak stated that Cambodia would import 300 MW solar and hydro power from Laos beginning in 2026. It is also in the final stages to approve a deal worth almost doubling a previous 300 MW agreement with Vietnam. And it could import 100 MW more from Thailand.

Rottanak said in an interview during Singapore International Energy Week that the 300 MW hydro-solar deal signed with Laos last week "will come to Cambodia by 2026".

According to the U.S. International Trade Administration (USTA), Cambodia has signed contracts with Thailand, Vietnam and Laos to import 1,030MW of electricity. This is nearly a quarter its total capacity.

He said that imports of goods from Vietnam will begin as soon as possible, as both the Cambodian national electric utilities and the Vietnamese national ones have completed their discussions and are awaiting final approvals by the government.

Rottanak stated that the full contracted capacity of imports may not be used, if the domestic supply meets Cambodia's requirements. He added that imports will not exceed 25 percent of total production at any time.

He said, "For instance, we are experiencing good rains now and imports have almost disappeared."

Since the 1970s, the Association of Southeast Asian Nations (10 members) has tried to create a regional power grid that would facilitate multilateral trade in electricity. However, progress has only been made through bilateral agreements.

Rottanak stated that he expected the regional grid to be a reality in 2035. He added that Cambodia's policy on energy was an example how grid interconnection could be beneficial. (Reporting and editing by Sharon Singleton, Jan Harvey, and Sudarshan Varadhan)

(source: Reuters)