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EDC launches tender offer for solar project

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A 10MW solar park project owned by 10MW project by Sunseap Asset (Cambodia) Co Ltd in Bavet town’s Chrak M’tes commune between Bat Sloek and Thlok villages. POR NIMOL VIA FACEBOOK

EDC launches tender offer for solar project

Cambodian national utility company Electricite du Cambodge (EDC) has launched a tender offer for construction rights to a 60MW solar project in Kampong Chhnang province on a build-own-operate basis.

The project is the initial phase of a 100MW National Solar Park – which is being supported in a technical capacity by the Asian Development Bank – and a transmission system interconnection to supply power to the national grid.

According to EDC’s invitation for bid, signed by its managing director Keo Rattanak last week and obtained by The Post on Wednesday, winning developers will be required to develop, design, finance, build, operate and maintain the 60MW project. Power generated by the plant will be purchased by the EDC under a long-term power purchase agreement (PPA).

“The tariff proposed by the developer shall be less than $0.076 per kWh and be fixed throughout the term of the PPA,” read the EDC’s invitation letter.

The deadline for submitting the bidding document for the development of the project is no later than 10am on May 17 this year. EDC expects that the project will help the country to expand low-cost power generation and diversify it with a higher percentage of clean energy.

The National Solar Park will be the Kingdom’s third solar power project. Up to now, Cambodia has only one operational solar park, a 10MW project by Singaporean-owned Sunseap Asset (Cambodia) Co Ltd in Bavet town, a special economic zone of Cambodia in Svay Rieng province, near the border with Vietnam.

SchneiTec Group, in a joint venture between Cambodian and Chinese investors, is installing panels in its Kampong Speu province farm to build a 60MW solar power plant. The plant is expected to begin operation later this year.

Ministry of Mines and Energy spokesman Victor Jona said it is a government policy to offer lower electricity prices to consumers and having more energy sources connecting to the national grid will help fulfil the government’s plan.

He added that SchneiTec was awarded the construction of the Kampong Speu province solar plant with the price of electricity proposed at $0.076 per kWh.

“The rights to the investment [on the National Solar Park] will be based on an auction,” he said.

“If [potential bidders] meet technical bid specifications and are able to offer the lowest price to the EDC, the firm will [obtain construction rights].”

According to a 2018 annual report by the Electricity Authority of Cambodia (EAC) – the Kingdom’s electricity regulator – Cambodia’s renewable energy supply remained very low at the end of last year.

The report showed that Cambodia’s power demand is currently supplied mainly by hydropower and coal power plants, which account for around 48 per cent and 34.5 per cent of generation respectively. Around 15 per cent was imported from neighbouring countries.

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