State-owned utility Electricite du Cambodge has achieved the lowest energy bid of $3.877 per KW/h, the lowest energy tariff in the ASEAN region.
The utility signed a power purchase agreement (PPA) with Prime Road Alternative Company using energy generated at a 60MW solar photovoltaic system.
The utility had received 26 bidders for the PPA.
The solar facility is part of a 100MW National Solar Park which is being developed using funding from the Asian Development Bank, and from the public and private sectors.
ADB in partnership with the Canadian and Singaporean governments is funding the development of the plant's transmission line and substation through its Office of Public-Private Partnerships.
The funding of the solar facility is part of ADB's supportive efforts to boost the country's energy sector, and is funding the expansion and strengthening of the national grid, the development of a comprehensive power development plan through 2040; and the piloting of innovative technologies, including energy storage systems.
Director of ADB’s Office of Public-Private Partnerships Mr Siddharta Shah, said: “The record low energy tariff show the power of competition. This is a new era for renewable energy development in Cambodia and the region, and particularly for solar power generation. This is good news for EDC and the people of Cambodia,.
“We believe more governments in the region will adopt auction as a strategy to procure renewable energy generation capacity, and this structure and energy tariff will serve as a benchmark for future projects.”
“Expanding solar generation is aligned with the country’s goal of increasing access to affordable and reliable sources of electricity,” said ADB Principal Climate Change Specialist Mr. Pradeep Tharakan. “ADB, as a trusted development partner of the government, is working toward the long-term development of the energy sector in the country.”