Industrial Energy Efficiency-Cambodia (IEEC)

  1. Capacity building of relevant government departments to promote industrial energy efficiency: In addition to technical capacity building this component will also cover relevant transaction and contractual aspects - identification and fulfillment of the relevant contractual aspects between the various stakeholders such as the technology supplier, the technology recipient, financers, and the government (the latter will be particularly important in ensuring a viable business proposition between technology supplier and recipients). The National Cleaner Production Office-Cambodia (NCPO-C) in association with MIME will play an important role here in overcoming any hurdles related to IPR in particular.
  2. Companies are trained in preparation of bankable IEE project proposals: For the selected technology agreed for implementation by enterprise “bankable proposals” will be prepared, including full costing for all aspects like environmental costs and liabilities, social sustainability and risk mitigation, for potential financers of the technology.
  3. Capacity building of financial institutions to assess investment proposals in IEE: Financial institutions are key player in investment related EE technology implementation. Access to finance in Cambodia was ranked as the 2nd most severe constraint by the World Bank. In addition to other reasons accessing the credit worthiness of the proposed project is a bottleneck. Traditionally financial institutions assessment is based purely on economic criteria like Internal Rate of Return (IRR) for low investment projects, other factors like resource availability limitation, environmental aspects and related costs, potential liability, occupational health and safety (OHS) are often not accounted. Project will build capacity of financial institutions for total costing and also will attempt to use successful financial instruments like Mutual Credit Guaranteed Trust Fund (MCGTF) in India and Green Credit Line (GCL) of SECO in Vietnam and Columbia.

Project component 4: Up- scaling of industrial energy efficiency applications in Cambodia

Project component 4 is aimed at increased adoption by Cambodian enterprises of energy efficient practices and technologies as an integral part of their business practices and the creation of a national market for industrial energy efficiency products and services.
Under this component the project will work intensively with the Department of Industrial Techniques and Energy Techniques of Ministry of Industry, Mines and Energy, Climate Change Department (CCD) of Ministry Of Environment (MOE), academic institutions like ITC and RUPP and other relevant national institutions and private companies to upscale the energy efficiency implementation in Cambodia and deliver the following outputs:

  1. The results of the pilot projects and quick scans are widely disseminated. It is envisaged that 50 IEE projects for cumulative 60,000 TOEs of energy savings are developed and implemented by industrial enterprises as result of their participation in the capacity building program and results achieved by participating pilot companies of the project.
  2. Industry decision-makers understand their potential for energy efficiency gains both in term of economic and environmental aspects and undertake energy efficiency activities.
  3. Other stakeholders understand their role and associated benefits to promote industrial energy efficiency.

The component 4 of the GEF-UNIDO project will address the issue of sustained replicability by using an integrated approach that will combine the technical support in the implementation, commissioning and performance evaluation of the pilot demonstrations, with interventions at the institutional and policy levels and in the market place so as to assure the development and adoption of energy efficiency and renewable energy technologies. In addition to upgrade the existing technologies (significant part of IEE implementation) need for energy efficient and renewable energy technology transfer mechanism appropriate for a country like Cambodia is evident. The design of the project will therefore be based on five key elements for successful implementation of energy efficiency related techniques and technology:

(1) Technology need (gap analysis) and technology assessment for technical, financial and environmental aspects using existing tools like (environmentally technology assessment) EnTa of UNEP (also will be part of project component1);
(2) Technology information based on technically available economically viable and environmentally desirable technologies. Preference would be given to technologies available locally or in the region to enable better after sale service network and also to foster south-south co-operation in the GEF-UNIDO project.
(3) Enabling policy level environment: The project will assist RGOC to strengthen, or if necessary develop, policies and regulations that can support development of mechanism and financial incentives for scaling up of the adoption, development and transfer of energy efficiency technologies. One such area of policy that will be targeted, together with the Electrical Energy Authority of Cambodia, the national utility Électricité du Cambodge (EDC), and MIME, is the development of the rules allowing private generators of electricity using renewable resources to feed their surplus generation into their local grid at a fair price (this would make the investments more economically viable).