Duration: 1 hour
With stronger Due Diligence Requirements coming from the European Union, EuroCham campaigns for the establishment of Renewable Energy Certificates (RECs) to prove to European buyers that energy production is clean. It is of utmost importance for Cambodia to develop such certificates and labeling to attract foreign investments and position Cambodia as a preferred sourcing destination.
The Ministry of Mines and Energy (MME) is following this path. With the support of the UNDP, the MME is developing a Prakas on Renewable Energy Certificates and introduced some procedures on 25 December 2024.
Key highlights of the upcoming regulations:
- Eligible generation technologies: Initially included: Hydropower, Solar PV (Utility scale and Rooftop), Biomass, and Wind power. The renewable energy generation must be connected to the Cambodian national power system.
- Approaches for the development of the REC mechanism in Cambodia:
Single Buyer Model: Features an initial REC fee that is bundled by the Electricity Distribution Company (EDC) with the sale of electricity.
Hybrid Market Model: Establishes a Market Trading Platform for REC buyers and sellers to exchange RECs directly. The two mechanisms will follow different procedures.”