Power generation boom likely to leave Cambodia with excess capacity to export electricity to Vietnam

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  • Thursday, February 16, 2012
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  • PHNOM PENH (Herald) - Power generation in Cambodia is expected to boom by an annual average of 42 percent between 2011 and 2016, leaving the country with enough excess capacity to start exporting to Vietnam, according to a report by international research firm Business Monitor International (BMI).

    Moreover, with growth in net generation significantly exceeding the underlying demand trend, "Cambodia should develop a large supply surplus that provides the basis for sustainable power exports." 

    Research and Markets, a Dublin-based market research company, began distributing the report earlier this week, noting that the major players in the Asian power-supply sector were "clamoring to invest in Cambodia" as it expands its network.

    "Huge expansion of capacity can be expected from around 2015 onwards, as hydro, gas and coal-based schemes are brought into play," a statement said. "This will leave the country with plentiful spare generation, even if there are several years of 8-10% annual average demand growth. 

    "Neighboring Vietnam, which will finance a number of power projects, plans to make use of Cambodia's export capability."

    In addition to hydropower expansion already underway in Cambodia, the report noted a "long queue of potential projects with strong regional backing. Several are set to proceed, with a surge in hydro-based supply likely from around 2016. 

    "Domestic gas resources could contribute additional capacity, while the use of renewables is set to rise rapidly from a low base. New coal-fired stations are also in the planning stage, with Cambodia keeping a long-term eye on the possible use of nuclear energy."

    Overall, the report found that 2GW of power generating capacity is planned to be added to the network with new transmission and distribution infrastructure being built between 2011 and 2019. BMI, which is based in London, said its outlook for the sector was based on average annual GDP growth of 6.9 percent between 2011 and 2021. 



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