Cambodia’s Hydro Plans Carry Steep Costs

 newspaper interview  Comments Off on Cambodia’s Hydro Plans Carry Steep Costs
Aug 202012
 

By Lawrence Del Gigante, IPS News

A fisherman on the Si Phan Don riverine archipelago of the Mekong River. Credit: Courtesy of Suthep Kritsanavarin/OxfamA fisherman on the Si Phan Don riverine archipelago of the Mekong River. Credit: Courtesy of Suthep Kritsanavarin/Oxfam

NEW YORK, Aug 18 2012 (IPS) – The Cambodian government has committed to the construction of five dams along the Mekong River in order to meet a huge demand for electricity, but environmental groups warn that severe repercussions loom for this strategy. (…)

Hydroelectricity, even if a successful venture, will not solve the country’s electrification problems, other analysts say. “Right now it is relatively catastrophic, the power situation in the country,” Alexander Ochs, the director of climate and energy at the Washington-based Worldwatch Institute, told IPS. Cambodia has one of the lowest electrification rates in Southeast Asia, estimated at only 24 percent, according to the Asian Development Bank (ADB).

The government aims to raise the national electrification rate to 70 percent by 2020, according to the ADB, by expanding the grid and sourcing more than half of the needed electricity from the Mekong River. A large complication is transmitting the electricity, with only the major cities and surrounding areas having access to power lines, meaning people in rural areas will not benefit from the hydro.

“The number of people that are really connected to a grid as we know it, a modern power service or energy line, in rural areas is as little as seven percent of the population. Overall, nationwide, it’s about 15 percent,” said Ochs. Biomass is very popular for heating and cooking, predominantly burning wood for fires and stoves. “Everything else comes from off-grid or micro-grid diesel generators and this is very inefficient and very costly, a very expensive, very dirty way to produce electricity,” said Ochs.

Currently, 91 percent of Cambodia’s power plants are fuelled by imported light diesel and heavy fuel oil, not including the diesel it takes to fuel stand-alone generators. “All of this happens in a country where you have incredible renewable energy potential. It has amazing potential for wind, very, very good potential for solar,” said Ochs. Importantly, the solar potential in Cambodia is very high where it’s needed, including in the populated areas, meaning solar technologies can be installed domestically, such as solar panels on the roofs of houses, according to Ochs.

Continue reading »

Value of Fossil Fuel Subsidies Declines; National Bans Emerging

 academic article/report  Comments Off on Value of Fossil Fuel Subsidies Declines; National Bans Emerging
May 012011
 

 By Alexander Ochs and Annette Knödler  |  Vital Signs, May 11, 2011

Gobal fossil fuel consumption subsidies fell to $312 billion in 2009 from $558 billion in 2008, a decline of 44.1 percent.[i] The reduction is due primarily to changes in international energy prices as well as in domestic pricing policies and demand, rather than because the subsidies themselves were curtailed. The number also does not include fossil fuel production subsidies that aim at fostering domestic supply, which are estimated at an additional $100 billion globally per year.[ii]

Fossil fuel consumption subsidies include public aid that directly or indirectly lowers the price for consumers below market price. The International Energy Agency (IEA) defines energy subsidies as “any government action directed primarily at the energy sector that lowers the cost of energy production, raises the price received by energy producers or lowers the price paid by energy consumers.”[i] Common means of subsidizing energy include trade instruments, regulations, tax breaks, credits, direct financial transfers like grants to producers or consumers, and energy-related services provided by the government, such as investments in energy infrastructure or public research.[ii] Many observers believe that fossil fuel subsidies should be phased out because they reduce the competitiveness and use of cleaner, alternative energy sources .

Please find the full article [here].