Singapore-listed industrial automation firm ISDN Holdings Limited (ISDN) has collaborated with Tokyo-listed eREX Co Ltd and Cambodian firm Asia Energy Power Co Ltd to build an 80-megawatt hydroelectric power plant in Pursat Province, Cambodia.
The hydroelectric power plant, which already received confirmation and guarantee from the government for the business rights for the construction, also features a large-scale water storage capacity.
The power generated from the plant will be sold at a fixed price to the Cambodia Electric Power Corporation, according to the announcement.
The joint venture company, called SPHP Co Pte Ltd, is incorporated in Singapore with ISDN Energy, eREX, and Asia Energy having ownership of 33 per cent, 34 per cent, and 33 per cent, respectively. ISDN will inject US$500,000 as equity and another US$2.5 million as shareholder loan during the initial development phase of the project.
At the end of 35 years from the start of operations for the project, SPHP will transfer operating rights of the project to the Cambodia Electric Power Corporation.
“This project is critical as one of the Cambodian Government’s new initiatives set to ease the strain on the country’s electricity grid,” ISDN said in a statement.
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On the back of rapid population growth and industry expansion, the Asia Development Bank has projected Cambodia’s peak electricity demand to more than double to 2,401 MW between 2015 and 2025. The country’s electricity demand is expected to increase by 7.5 times from 2015 to 204, according to the Economic Research Institute for ASEAN and East Asia.
ISDN is also on track to begin production for its first two mini-hydropower plants towards the end of 2019 and the third to start in financial year 2020, bringing the total capacity to 24.2 MW of power. All three are located in North Sumatra, Indonesia, with the group looking to develop a further 60 MW of capacity post-completion, according to the announcement. – BusinessNewsAsia.com