Dim Prospects
NGO Forum on Cambodia’s CSO Campaign on ADB’s National Solar Park Project
The recently concluded COP28 arrived at several commitments from governments and multilateral institutions in order to accelerate action towards addressing climate change. One of the main pillars of the negotiations is to fast-track a just, orderly and equitable energy transition, which is manifested in the Global Renewables and Energy Efficiency Pledge . This pledge is signed by 130 governments committing to triple the world’s renewable energy capacity by 2030. According to the signatories, this pledge highlights their commitment to the Paris Agreement and the energy transition, with their provision of financial support, cooperation on technical support and capacity building.
This pledge comes at a crucial time where developing countries in the region have been pursuing decarbonization and energy transition initiatives, often without sufficient financing and technical support. Furthermore, renewable energy projects pursued in the global South have been marred by increasing corporate influence and false solutions, which worsen the climate crisis rather than abate it. Communities and civil society from the global South have made their demands at COP28 heard , highlighting the corporate capture of the energy transition and the privileging of false, market-based solutions over people-powered climate action.
Enkindling the energy transition
Energy security and accessibility remains a challenge for Cambodia, as its electrification rate is the second lowest and has the highest tariff in the Southeast Asian region. The country’s heavy reliance on expensive and unsustainable energy supplies such as imported heavy fuel oil, diesel, and coal has presented significant challenges in terms of diversifying and further developing its power sources. Consequently, this has led to high electricity prices and inefficient power distribution . With this, the government seeks to provide electricity access to all villages by 2020 and guarantee grid-quality electricity to 70% of households by 2030. It is in this context the National Solar Park Project is being pursued by the ADB.
Landmark renewable energy project in Cambodia?
The National Solar Park Project (NSP) in Cambodia is a groundbreaking solar photovoltaic (PV) power generation initiative. It involves a 100-megawatt solar power park situated in Kampong Chhnang province.
According to the ADB report , the NSP aims to: (i) expand low-cost power generation; (ii) diversify the power generation mix and increase the percentage of clean energy in its generation mix in line with its stated greenhouse gas emissions reduction targets; and (iii) expand the use of competitive tenders and other global best practices in the sector.
The project has been promoted as a milestone project, with President Asakawa relaying how “ADB is pleased to have supported the establishment of the National Solar Park, which is a landmark project not only for Cambodia but for all of Southeast Asia.” The bank claims that through ADB’s support towards Cambodia’s energy transition, they were able to increase household access to grid electricity from 17% in 2008 to nearly 90% in 2021 and have likewise reduced electricity costs nationwide.
The Asian Development Bank (ADB) has recently signed a mandate agreement with Electricité du Cambodge (EDC), the national power utility of Cambodia, to support the development of the NSP. The bank has approved a USD 7.64 million loan for the construction of the NSP. The package also includes a USD 11 million loan and a USD 3 million grant from the Strategic Climate Fund, specifically through the Scaling Up Renewable Energy Program.
Additionally, a USD 500,000 technical assistance grant has been provided by the Republic of Korea's e-Asia and Knowledge Partnership Fund to support the capacity development of EDC and the Electricity Authority of Cambodia in solar photovoltaic technology and solar park planning. The NSP is to be developed and operated by Thailand-based Prime Road Alternative and is scheduled for completion in 2023.
Project Financing for the National Solar Park Project.
Sparking people's demands
While renewable energy projects contribute to decarbonization initiatives of developing countries, these must be pursued in a manner that does not adversely impact peoples’ lives, livelihoods and development. Large-scale energy projects, such as solar parks and hydropower dams, have often led to displacement of communities, wide-scale clearing of agricultural lands, health risks, and hazardous waste.
Given this context, the NGO Forum on Cambodia organized a CSO Campaign on the National Solar Park Project, which started with consultation with affected communities and CSOs. This meeting was held to validate the key findings and recommendations in NGO Forum’s Study. The recommendations encompassed potential environmental and social impacts, tackling adequate compensation for displaced households, proper waste management, mitigation of adverse environmental impacts, energy access, meaningful and inclusive consultations with local stakeholders.
These recommendations include:
The ADB should ensure careful site selection that does not massively impact agricultural lands and provide timely, adequate compensation for displaced households. Compensation should also be given to workers, farmers and business owners, with the disruptions and loss of livelihood the project would cause.
Nearby communities must be informed of the potential social, environmental and health hazards brought about by the construction and operation of the powerplant. The bank and government should provide avenues to mitigate and address these hazards and risks. These include risks of electrocution, lightning strike, exposure to electric and magnetic fields, water pollution, loss of biodiversity, ecosystem degradation, among others.
Large-scale energy projects would normally create tons of waste and these should be discarded properly to avoid pollution and harm. Hazardous wastes such as biodegradable waste, construction debris, leaks and spills should be effectively managed. Lithium-ion batteries should be effectively and carefully controlled at the end of their life span. Solar panels at the end of their life span should be effectively managed and recycled.
As the NSP is connected to the national grid, it does not secure energy access for the affected communities. Local communities should benefit from the energy being produced from their land and homes that have been converted to powerplant sites. Renewable energy projects pursued by the ADB should contribute in building energy independence and security, ensuring access for far-flung communities and marginalized populations. It should consider other sources of renewable energy to facilitate the transition.
Development actors must put people and environment at the core of a just and equitable energy transition. The ADB should establish mechanisms and processes that would safeguard people’s rights, protect the environment, and facilitate inclusive, meaningful engagement of affected peoples.
In this manner, community awareness and information sharing with local residents and authorities should be intermittently conducted across all stages. Local stakeholder engagement must also be conducted, with members of civil society, government and the private sector. The ADB and Cambodian government should be transparent and accountable, broadly sharing relevant documents like project information and impact assessments, to the public.
This meeting also served as a space to refine their recommendations for the proper construction, operation and implementation of the NSP that they will bring to their dialogue and engagement with the bank. This was followed by a dialogue with the ADB Country Office in Cambodia and continued engagement with the bank during its 56th Annual Meeting in Incheon, Korea. NGO Forum on Cambodia continued to bring people’s demands to these spaces, especially in relation to the energy transition and the National Solar Park Project.
