Cambodia Opens Up Rooftop PV Market

Cambodia recently issued a new policy to promote solar energy by abolishing capacity charges for rooftop PV and introducing a new way of calculating electricity tariffs. The change was made in response to demands from international buyers to reduce their carbon footprint and to improve electricity prices and grid stability for all consumers. The government has also introduced a quota system to promote rooftop PV installations. The exact timing of implementation has not yet been made public.

In the past, Cambodia has imposed strict restrictions on rooftop photovoltaic systems, limiting the capacity of solar arrays to no more than 50 per cent of the contracted load and charging a monthly capacity fee. However, according to a newly released document called Principles for Allowing Rooftop Solar Electricity in Cambodia, this policy is to be abolished and replaced with a new system of electricity tariffs based on a complex formula calculation.

The policy change is being driven by a Cambodian garment industry initiative to reduce the carbon footprint of goods and products to meet the demands of international buyers. The Government has stressed that large-scale solar power is the best way to lower electricity prices and reduce grid instability, and to this end has introduced the Rooftop Solar Variable Energy Compensation Tariff (RVEC) to achieve "tariff equity in all relevant aspects".

This policy change will bring new opportunities and challenges to the solar energy industry in Cambodia. It is hoped that Cambodia will further promote the development of renewable energy and achieve the goals of energy sustainability and environmental protection.