SOLAR ELECTRICITY SERVICE COMPANY IN THE PROVINCE OF KAMPONG CHAM, CAMBODIA

The province of Kampong Cham is characterized by numerous private initiatives for supplying electricity. These Independent power providers (or Rural Electricity Entrepreneurs) make use of diesel generators and distribute electricity to their clients with mini-grids. But only 1% to 5% of the population can afford to pay the expensive price proposed for this service due to the increasing price of oil. 70% of households use recharge batteries, which do not fully respond to the service they want.
In order to offer good electricity service based on renewable energy sources, a new approach (cf. general approach), combining public and private involvement, is proposed to create an economic sector around a solar electricity service supplier.
The Delta PRO RES partners propose a project that implies cooperation between private and public sectors for financing, and allow the company in charge of the operation (the operator), in cooperation with existing rural electricity stakeholders, to make small profits to reinvest and, in this way, increase the number of beneficiaries.

During the seminar, the project was presented and a specific session was dedicated to the Kampong Cham project.

The presentation of the project and the minutes of the session are on line.

EXCUTIVE SUMMARY OF KAMPONG CHAM PROJECT

Stakeholders of the project:



MARKET DESCRIPTION

Context:

The population targeted by this project lives in rural areas. The concerned houses are mainly stretched along the Mekong River. The zone selected for implementing the project consists of 65 000 households.

Less than 5% of these households have access to energy through diesel generator powered mini-grid systems, while nearly 70% use small batteries that are brought to charging stations to be recharged.

The number of clients aimed at by the project is as follows:


TECHNOLOGY : Solar Home Systems

SERVICES OFFER


PRICING


EXPECTED MARKET SEGMENTATION

"REFERENCE" SCENARIO

Completion time: 5 years to install the 19 682 initial systems

Discount rate: 14%

FINANCIAL DATA

AVERAGE COST PER CUSTOMER:

Investment / nb clients: 325 USD

Contacts:

Participants in discussion during the "Cambodian session"

Households in a straight line along the roadside