Four solar projects, representing a total output of 140 megawatts, were approved during a plenary session of the National Assembly yesterday.
Each solar farm will be built in a different province – Banteay Meanchey, Battambang, Pursat, and Svay Rieng.
Yesterday, the National Assembly approved a draft law on payment guarantees on the projects.
“To increase investor confidence that all obligations surrounding the projects will be fulfilled, the financial institutions must issue guarantee letters on behalf of the government,” the National Assembly said in a statement.
Green Sustainable Ventures Co Ltd is investing $17.5 million on a 20-MW solar project that will occupy 30 hectares in Svay Rieng province’s Bavet town. The plant will be able to produce 34.67 million kilowatt-hours per year.
Ray Power Supply Co Ltd will invest $28.8 million on a 30-MW solar project in Banteay Meanchey province’s Sereysophon district. The project will generate 50 million kWh per year.
Risen Energy Co Lte will build a 60-MW solar farm on 80 hectares in Battambang province’s Thmor Kol district. With an investment of $57.2 million, the farm will produce 107 million kWh per year.
Finally, SchneiTec Infinite Co Ltd is planning to invest $29 million on a 30-MW solar plant in Pursat province’s Kroko district. It will produce 48 million kWh per year.
All projects will be developed as build-own-operation (BOO) schemes. They are all are scheduled to come online by the end of 2020.
The power generated at these facilities will be sold to Electricity of Cambodia (EDC) at a rate of $0.076 per kWh, according to the Ministry of Mines and Energy.
“These solar projects will give Cambodia clean energy. They will help fight power shortages,” said Suy Sem, the Minister of Mines and Energy.
Mr Sem said the new facilities will help meet energy demand during the dry season, when hydropower dams operate at a lower capacity due to lower water levels.
There are two solar farms supplying energy to the national grid. One in Svay Rieng’s Bavet town and one in Kampong Speu province. Together they generate 90 MW.
The Council of the Ministers this year approved 7 solar projects with a capacity to produce a combined 320 MW.
Last year, Cambodia consumed 2,650 MW, a 15 percent increase compared with a year earlier. 442 MW were imported from Thailand, Vietnam and Laos.