Conclusiones Generales

Natural gas is an important fuel for decentralized generation, whether for high efficiency cogeneration applications or for new technologies such as gas-powered cooling systems. Bringing natural gas onshore requires a distribution network of pipelines and compressor stations, which could be readily installed and financed by any number of rep- utable gas companies in the region and internationally, through a competitive bidding process.

Cambodia is believed to have abundant natural gas reserves offshore but exploration and development has been stalled for years due to political disputes and the absence of a credible legal and regulatory framework to enable the development of a domestic gas industry. Natural gas is less expensive and cleaner burning than coal and pro- duces no ash or heavy metals. Due to its low carbon content, natural gas produces 30 percent less carbon dioxide per unit of energy than oil does, and 43 percent less than coal, which means less harmful emissions in the atmosphere. Natural gas is also relatively easy to process compared to oil, and less expensive to transport via pipeline

than coal by rail or ship.131

Thailandʼs Pattani basin has been reliably producing natural gas for years, fuelling Thailandʼs fleet of modern combined cycle power plants and its rapid industrialization. About 70 percent of Thailandʼs power supply comes from natural gas-fired combined cycle and cogeneration plants. Similarly, about 40 percent of Vietnamʼs power supply comes from a single complex of large gas-fired combined cycle plants that run on natural gas brought onshore in the south over the

last 20 years.132

Cambodia, meanwhile, lags behind. Natural gas is absent from the countryʼs power development plan (2007 ‒ 2022) until 2020 at the earliest. Without access to natural gas, Cambodians are missing out on the new generation of flexible and smaller-scale gas-fired com- bined cycle plants and microturbines that could dramatically lower consumersʼ electricity costs and stimulate much-needed business development.

According to the industry journal, Oil and Gas, Phnom Penh authori- ties are holding out for a 60-40 share of gas found in a disputed 27,000-square kilometre block of ocean, an increase from the 50-50 split of resources agreed to by Thailand and Cambodia six years ago.133

Renewable energy companies in Cambodia

Several companies are deploying decentralized renewable energy technologies in Cambodia. As of 2008, SME Renewables Cambodia (BOX 3) had 30 small-scale biomass gasifiers in various stages of commercial development as a cheaper, cleaner alternative to using

diesel for powering rice mills and other rural businesses.134

Another company, KC Solar, has been selling household-scale solar power sys- tems and water heaters since 2006. To date, the company has sold

about 2,000 solar home systems at a cost of US$1,200 each.135

More recently, the Lao-based solar technology distributor, Sunlabob (BOX 5), and the Phnom Penh-based engineering firm, Comin Khmere, formed a new joint venture called the Clean Energy Group (BOX 4), which distributes and installs the latest renewable energy technolo-

gies, including solar water pumps and power systems.136

A Natural Gas Separation Plant in Rayong, Thailand.

84 powering 21st

BOX 5: Sunlabob (Lao PDR)

www.sunlabob.com

Sunlabob was established in 2001 as a private energy system and service provider developing solutions for villages in rural Lao PDR where there is no grid and may not be grid extension for many year to come. Sunlabob specializes in solar equipment and hybrid village grids.

Rental solar systems

Sunlabob buys solar equipment then installs and rents the equip- ment to rural customers. The rent covers all costs, including replacement and operating/servicing costs. Villagers prefer this approach because they donʼt have to bear the financial and techni- cal risks. If the system breaks down, customers are not required to make payments until the system is fixed. To ensure that rental pay- ments are reliably collected, Sunlabob rents equipment to a village committee which is responsible for rent collection and repayment to Sunlabob. So that Sunlabob can guarantee fast and reliable serv- icing, it established a network of trained service agents.

Hybrid village grids (HVG)

Sunlabob provides hybrid village grids that run on multiple resources (solar, hydro, and diesel). The company setup its first HVG in 2007, using an abandoned dam. The grid typically uses solar energy, which is available in the daytime, and diesel genera- tors when hydro output is low due to low water flow levels at dif- ferent times of the year.

The hybrid village grids provide electricity for households and local industries, powering machinery such as rice mills, water pumps, woodworking machines, and food processing equipment. In this way, the system goes beyond improving living conditions at the household level to increase villagersʼ incomes.

Solar Panels in Kampot Province Used to Run a Solar Pump, which Fills the Water Tower in the Background. Photo courtesy of Clean Energy

Group.

To provide these systems, Sunlabob has partnered with a number of global technology suppliers: for hydro, Entec AG, a Swiss compa- ny specializing in small hydro systems globally; for diesel genera- tors, Comin Khmere (Cambodia). Although Lao PDR has limited wind resources, Sunlabob has also established contact with three wind turbine manufacturers and suppliers, Bergey Windpower, Fortis, and Southwest Windpower.

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century cambodia