Prime Road Alternative Company Limited won construction rights to a 60MW solar farm project at an auction, according to the Asian Development Bank (ADB).
An ADB press release released last week shows that the auction, which was conducted by Electricite du Cambodge (EdC), ended with Prime Road Alternative’s lowest bid of $0.3877 per kilowatt-hour.
The 60MW project is part of a 100MW national solar park in Kampong Chhnang province, which is structured as a public-private partnership.
EdC launched a tender offer for construction rights to the 60MW solar farm project in February on a build-own-operate basis.
The project, which is supported by the ADB, drew 26 bidders, including several global companies, and has achieved the lowest power purchase tariff for a solar project so far recorded in Southeast Asia, according to the release.
ADB office of public-private partnerships director Siddharta Shah said the record low prices show the power of competition.
This is a new era for renewable energy development in Cambodia and the region, particularly for solar power generation, he said, adding that this is good news for the EdC and Cambodians.
“We believe more governments in the region will adopt auctions as a strategy to procure renewable energy generation capacity, and this structure and tariff will serve as a benchmark for future projects,” he said.
The project preparation work was carried out by ADB with the support of the Canadian and Singapore governments.
ADB principal climate change specialist Pradeep Tharakan said ADB is working toward the long-term development of the Kingdom’s energy sector.
“Expanding solar generation is aligned with the country’s goal of increasing access to affordable and reliable sources of electricity,” he said.
ADB’s other ongoing forms of support for the Kingdom’s energy sector includes financing for 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, said the release.
EdC director-general Keo Rattanak declined to comment on Sunday. However, he said in July that the government will prioritise renewable energy development rather than hydroelectric power.
He said Cambodia will expand its solar energy investment by 12 per cent by the end of next year and increase it up to 20 per cent over the next three years.