Logo of Phnom Penh Post newspaper Phnom Penh Post - ADB okays loan to expand power grid

ADB okays loan to expand power grid

Content image - Phnom Penh Post
The project will help the Electricite du Cambodge (EdC) strengthen its transmission infrastructure by financing the construction of four 115–230kV transmission lines and 10 substations in Phnom Penh and Kampong Chhnang, Kampong Cham and Takeo provinces. ADB

ADB okays loan to expand power grid

The Asian Development Bank (ADB) has approved a $127.8 million loan to help expand the Cambodian power grid at a time when the government is making significant progress in expanding lower-cost power generation, a press release said.

The loan is meant to support the construction of transmission lines and substations to help provide Phnom Penh and three other Cambodian provinces with a stable and reliable electricity supply.

The project will also pilot the first utility-scale battery energy storage system in Cambodia, which will be funded by a $6.7 million grant.

The amount includes $4.7 million from the Strategic Climate Fund under the Scaling Up Renewable Energy Programme in Low-Income Countries and $2 million from the Clean Energy Fund under the Clean Energy Financing Partnership Facility. Both funds are administered by the ADB.

ADB Cambodia country director Sunniya Durrani-Jamal said the grid reinforcement project, along with ADB’s ongoing assistance to Cambodia in power system planning, shows that an adequate, reliable, and environmentally sustainable power supply can be provided at a reasonable cost to support equitable development.

“The battery energy storage system will showcase how large-scale deployment of innovative technology applications can be used to operate Cambodia’s grid in the future and generate more renewable power,” she said.

The project will help the Electricite du Cambodge (EdC), Cambodia’s national electricity utility, strengthen its transmission infrastructure by financing the construction of four 115-230kV transmission lines and 10 substations in Phnom Penh and Kampong Chhnang, Kampong Cham and Takeo provinces.

The pilot battery energy storage project, located near the ADB-supported 100MW National Solar Park, will come with on-the-job training.

The government plans to increase solar photovoltaic generation capacity to 415MW by 2022 – up from 155MW in 2019.

The battery energy storage system supported by the project is capable of storing 16 megawatt-hours of electricity and providing services to help with renewable energy integration, transmission congestion relief, and balancing of supply and demand, among others.

The ADB release said: “The government has set energy sector development as a national priority, as a more robust electricity supply will boost economic productivity and quality of life.

“The government has made significant progress in expanding lower-cost power generation in the past 15 years, its existing transmission infrastructure is reaching capacity and needs to be expanded and reinforced to avoid supply interruptions.”

ADB Energy Specialist Daniela Schmidt said the project, by financing and constructing much-needed transmission infrastructure, will boost economic productivity, competitiveness, and diversification, create jobs, and support the country’s recovery from the Covid-19 pandemic.

“The project will create 1,300 direct jobs in construction, with spillover effects that will boost household incomes.

“It will also support the EdC’s effort to promote inclusion and gender equality at the workplace and encourage women’s participation in the energy sector,” Schmidt said.

The Covid-19 pandemic threatens to slow Cambodia’s economic growth, which averaged 7.1 per cent annually from 2010 to 2019.

The economy is projected to contract by 5.5 per cent in 2020, potentially pushing 1.3 million more people into poverty.

The government is implementing an assistance programme to mitigate the pandemic’s adverse social and economic impacts.

Since 1994, ADB has awarded nearly $200 million in loans and grants to Cambodia’s energy sector and provided $6 million in technical assistance.

Last year, ADB committed $7.64 million to support the construction of the solar park through public–private partnerships, along with a roadmap for solar energy development.

MOST VIEWED

  • Purging Sihanoukville’s past with a new masterplan

    Amid illicit activities, haphazard development and abandoned projects, the coastal city of Sihanouk province needs a reset to move forward. A new masterplan might be the answer to shake off its seemingly mucky image to become the Shenzhen of the south Gun toting, shootouts, police

  • Chinese may be first in tourism revival: PM

    Cambodia's tourism industry is gearing up to roll out the red carpet for Chinese travellers after Prime Minister Hun Sen on September 17 indicated that the Kingdom could soon throw open its doors to international holidaymakers vaccinated against Covid-19 – starting with guests from China. Cambodia Chinese

  • 'Pursue your goals, reach out to me': Young diplomat tapped as envoy to South Korea

    Chring Botum Rangsay was a secretary of state at the Ministry of Foreign Affairs and International Cooperation before being designated as the new Cambodian ambassador to South Korea. According to her official CV published on the foreign ministry’s website, she started her first government

  • Tourism concerns laid bare

    To ensure the success of plans to reopen the tourism market for international visitors, Cambodia must pay utmost attention to two primary determinants – the ongoing paradigm shift in domestic tourism services towards the ‘new normal’, and the factors influencing choices of destinations among foreign holidaymakers.

  • Covid jab drive for 6-11 age group to begin Sept 17

    Prime Minister Hun Sen has permitted Covid-19 vaccinations for over 1.8 million children aged 6-11 across the country from September 17 in order for them to return to school after a long hiatus. Hun Sen also hinted that vaccinations for the 3-6 age group will follow in

  • No ‘Crown Prince’ exists to buy France football club: ministry

    The Ministry of the Royal Palace has denied media reports that a Cambodian “Crown Prince” had purchased the AS Saint Etienne football club of France’s top-flight LIGUE 1 at the cost of €100 million ($117 million). In a press statement on September 19, the ministry stressed that Cambodia