Chapter 16 - Energy Sector

Summary

Overview

The provision of energy is a major dimension in development; it is a household necessity in a modern society and is a production factor the cost of which directly affects the competitiveness of a range of goods and services where it is a direct or indirect input. The energy potential of Cambodia is still not fully known. A thorough exploration and mapping of the geographical distribution of all available sources of energy is needed for Cambodia to enable a more systematic development of the energy sector. The availability of reasonably priced power is a key ingredient of rural development, particularly in such activities as irrigation, processing of agricultural products, and SME development. The high cost of rural electricity is an important reason for the slow development of the Cambodian rural economy.

16.1.1. Power Sector Strategy

Cambodian's Power Sector Strategy (2001-2005) sets out the priorities and a major investment program to lower tariffs and bring reliable electricity supplies to considerably more Cambodians. The investment program includes: (1) the development of a generation and transmission grid to link large electricity generation units to Phnom Penh and the provincial capitals; (2) rehabilitation of distribution systems in provincial towns; and (3) the development and implementation of rural electrification plan. Rehabilitation and expansion of Phnom Penh's electricity supply system is being continued. Generation capacity is also being expanded with an interconnection from Viet Nam and over the next five years from a new thermal plant in the coastal area. These improvements will enable a more reliable and secure electricity supply to the regions outside of Phnom Penh, which will help deconcentrate the development of industry.

The program to establish the National Generation and Transmission Grid commenced in 2000. The first stage of this program is the construction of transmission line between Viet Nam and Phnom Penh through Takeo Province. The second stage is the construction of transmission line from Sihanoukville to Kampot province.