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Cambodia¡¯s 60MW solar auction draws record-low bid
TIME£º2019-09-09    VIEWNUM£º106    SOURCE£ºPV-TECH

By Cecilia Keating    Sep 06, 2019 11:37 AM BST

Cambodia¡¯s only large-scale solar farm is Singapore construction firm Sunseap¡¯s 10MW project in Bavet. Source: Sunseap

The auction of a 60MW solar project in Cambodia has resulted in the lowest PV power purchase tariff reportedly seen in Southeast Asia to date, at US$38.77 per MWh.

Thai developer Prime Road submitted the record-breaking bid at a tender conducted by national electricity utility Electricit¨¦ du Cambodge. Twenty-six companies bid in total, and the Asian Development Bank (ADB) acted as the transaction advisor.

The 60MW output will be generated by Cambodia's so-called National Solar Park, a 100MW project planned northwest of capital Phnom Penh in Kampong Chhnang province. It is a private-public partnership backed by the ADB, which approved a US$7.64 million loan to support the project in May.

Together with US$14 million in loan and grant money from the World Bank¡¯s SREP programme, the ADB¡¯s backing will help build the solar park, roads into the site, drainage extensions, fencing and a transmission line linking the project to Cambodia¡¯s national grid.

Upon completion, the park will supply power to EDC under a long-term power purchase agreement (PPA).

Siddharta Shah, director of public-private partnerships at ADB, said in a statement that the record-low prices heralded ¡°a new era for renewable energy development in Cambodia and the region, and particularly for solar power generation [¡­] We believe more governments in the region will adopt auctions as a strategy to procure renewable energy generation capacity, and this structure and tariff will serve as a benchmark for future projects.¡±

The solar park¡¯s 100MW will mark a sizeable jump for Cambodia¡¯s solar industry, which had a mere 28MW installed in 2018, according to IRENA statistics.

Cambodia¡¯s only large-scale solar farm is Singapore construction firm Sunseap¡¯s 10MW project in Bavet, near the border with Vietnam, also backed by the ADB.