Munich Personal RePEc Archive

Electricity tariff structure and renewable energy in rural Cambodia

Klinge Jacobsen, Henrik (2006): Electricity tariff structure and renewable energy in rural Cambodia.

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Abstract

This paper examines small-scale rural energy projects in Cambodia and compare economic feasibility based on different tariff structure. With the isolated structure of distribution networks in Cambodia, this involves having very large differences in actual electricity prices at the moment. In a long term perspective this must be considered unfair and in direct contrast to distributional objectives of supplying electricity to poor households at affordable rates. This priority should be included in the long term objectives and implemented in also the renewable energy projects. However, this objective should not be a barrier to rural electricification and the implementation of renewable energy projects. The possibility of charging higher tariffs in isolated rural areas is one of the characteristics that would make the renewable energy projects viable (profitable).

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