Page 14 - AsiaElec Week 40 2021

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COAL plans.” The current energy squeeze has led to record
Cambodia’s current strategy was set high prices for coal and liquefied natural gas
Cambodia counts the cost after it suffered major energy shortages (LNG), but what happens once the short-term
crisis is over will depend on how importing
during a drought in 2019, which affected the
of its push to expand coal- hydroelectric plants that produce more than countries choose to respond, especially those
in Asia, Reutere reported.
40% of the country’s power.
fired power government has fast-tracked approval for options, namely to increase investments in
At a basic level, energy importers have two
Seeing coal as more reliable, the
The potential cost of Cambodia’s push to two new coal plants inside the country fossil fuels in order to ensure that they always
boost its reliance on coal power has increased and effectively underwritten two more in have sufficient supplies, or go down a path of
sharply since it began to ramp up two years neighboring Laos with a promise to import boosting investment in renewables and energy
ago, prompting calls for the government to power from them. storage in order to reduce reliance on foreign
rethink and promote renewable energy. Analysts say Cambodia is locking in long- fuels.
As world leaders, banks and companies term coal contracts at a time when power How governments, utilities and the wider
push to cut carbon emissions by shifting from solar and wind is surpassing coal in public in countries suffering fuel shortages
toward cleaner power, Cambodia has been terms of affordability. view the experience is likely to shape their
moving in the opposite direction, with plans Taking into account transmission and future response.
for new generation capacity and imports that distribution losses, large-scale hydro and If the prevailing view becomes that fossil
will take fossil fuels from 56% of its grid to coal-fired generation plants in Cambodia fuels are still the bedrock of energy and
almost 75% within the next decade. provide power for between 8 and 11 US cents therefore supplies must be secured over
International companies warned last per kilowatt-hour, according to a report by the long term, then the response will be
year they could scale back manufacturing in Phnom Penh-based consultancy Mekong investment in new coal mines and power
Cambodia to avoid breaching climate pledges, Strategic Partners in 2016. plants, as well as spending on natural gas
with potentially damaging consequences for exploration, liquefaction, re-gasification
the economy. And in recent weeks the price terminals and gas-fired power generators.
of thermal coal has soared to a 13-year high, If the other view gains prominence,
piling on new costs. POLICY then investment should switch massively to
Bridget McIntosh, country director of renewables such as wind and solar, backed up
EnergyLab Cambodia, said there was still an Asia’s energy crunch by battery storage, pumped hydro and even
opportunity to change course. gas-fired peaking plants designed to operate
“Cambodia can take existing coal and boosts coal and LNG, but only during brief power shortages.
hydro and build the rest out with solar, wind,” The response to the current crisis is
she said. “Balancing the analysis shows this threatens their future unlikely to be uniform across Asia, for
will be reliable and cheaper than current example China and India, the two biggest

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