Sra Emm Bionergy Power Plant at Preah Vihear province of Cambodia, officially opened on 11th April 2018.

Dignitaries from the Ministry of Mines and Energy of Cambodia, Embassy of Finland in Hanoi & Bangkok, ADF, French Embassy Phnom Penh and the project developer IED Invest (France - Cambodia) together with EEP Mekong programme RCU staff, attended the official opening of the biomass gasification based power plant with a capacity of 1 MW. The grid connected power plant is selling electricity to the national grid of Cambodia since December 2017, contributing to grid stability and improved access to clean energy in the Preah Viahar region.

The inauguration ribbon was cut by representative of the donors and project developers, including, Mr Tun Lean, under Secretary of State, Ministry of Mines and Energy of Cambodia, Mr Marko Saarinen - Head, Development Cooperation, Embassy of Finland – Hanoi, Mr Raimo Pahkasalo, First Secretary, Embassy of Finland in Bangkok, MS Anjali Shanker from IED Invest, and Mr. Philippe Steinmetz from AFD.

The biomass (waste wood) based power plant was established by IED Invest Cambodia, with funding support from EEP Mekong programme of Euro 450,000. Capacity of the power plant is about 1.0 MW. The generated electricity, which is sold to the national grid of Cambodia, is about 25 - 30% cheaper as compared to the electricity produced previously using Diesel Generator (DG) sets.

At total project costs of Euro 1,935,000 and EEP Mekong funding support of Euro 450,000, the own financial contribution by the project developer (IED Invest Cambodia) is Euro 1,485,000.

IED-Invest Cambodia, the power plant owner, is selling its whole electricity production to the recently built EDC grid line, at a tariff approved by regulator EAC: 12.2 USC/kWh, which is based on an avoided cost calculation: cost of electricity import from Laos + taxes + losses.

Construction of the power plant started in May 2016 and was completed in February 2018, with two lines of biomass gasifier systems installed and commissioned.

During the first 5 years, the needed energy wood is available from the land clearing sites, while the sustainable medium and long-term wood supply are being prepared. This short-term approach relies on available energy wood from social (SLC) and economic land concession (ELC) natural forests, which are to be clearfelled by 2020. The most potential short-term energy wood sources have been

identified within a 100-kilometer transportation distance from the Sra Eam plant site. The current available energy wood supply capacity of these suppliers exceeds 3,500 m3 per month. This is more than enough to sustain operating the Sra Eam Power Plant at the installed capacity over the first 5 years. The sustainable energy wood supply approach in the long term is based on a

combination of the following main three options:

1) Large-scale contract plantations of energy wood on ELC / SLC concession lands,

2) Small-scale SLC agroforestry plantations and woodlots, and

3) Opportunistic fuelwood and agricultural residues purchases from local suppliers.

Social and Environmental Impacts:

Improved access to clean energy will allow more households in Sra Emm village to benefit from clean electricity and improve their quality of life. The additional energy produced by the biomass power plant facility will allow the local distributor to provide electricity to an increased number of local businesses, and thereby improving the economic and social conditions in the village. The project approach actively involves the communities in project implementation and operation of the biomass power plant, ensures that biomass used for electricity production does not contribute to deforestation. Collection of waste wood as biomass fuel is moreover an opportunity to create

employment for local people.

The use of waste wood as biomass fuel is CO2 neutral but reduces the use of diesel fuel for generation of electricity. It is estimated that the biomass power plant will reduce GHG emission of 2,160 t-CO2eq, calculated for the generation of 3,000 MWh until end of the EEP Mekong project funding by mid 2018.

Sustainability and Scaling Up:

The project will be useful for clean energy promotion related government agencies in their efforts to adapt feed-in tariffs for small independent power production and in the development of incentives for promotion of renewable energy in Cambodia. The project is seen as an opportunity to demonstrate the economic viability of a new business model for application of biomass gasification in decentralized power generation on a larger scale.

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