At a Glance
|Strategic Outcomes||SO1, SO2, SO4|
|Start Date||Q3 20190630|
|End Date||q3 20200630|
|Actual Budget (USD)||44,200|
|Actual Expenditure (USD)||30,923|
|GGGI Share (USD)||30,923|
|Poverty and Gender Policy Markers|
|Name of Client (Lead/Prime implementer if GGGI is part of a consortium)||National Council for Sustainable Development, Ministry of Industries|
|Participating Organization (Funding/donor)||Core funding|
|Name of consortium members, if any||UNIDO|
Project context, objectives and description
Cambodia has seen a rapid industrial sector growth of 8% between 2009-2016. Simultaneously, its energy usage between 2010-2015 has increased by 11%. Cost of electricity from the Cambodian national grid is the highest in South East Asia. Electricity accounts for a disproportionate share of manufacturing costs. Other cost drivers are the usage of old, inefficient machinery with high maintenance cost. GGGI’s 2018 audits of Small and Medium Sized Enterprises (SME) show that factories can achieve double-digit energy cost savings – with payback time often not more than a few months. Interventions to promote energy and resource efficiency and drive down production costs for industrial manufacturing translate into a significant potential for GHG emission reduction sector wide and a potential for creating over 500,000 jobs (GGGI, 2018). The lower production costs would boost the competitiveness of Cambodian manufacturing within the sub-region. GGGI Cambodia estimates it can access around 40 SMEs which under-used energy audits of this kind. GGGI Cambodia aims to use these audits to mobilize ESCO investments proximately 3-5 million USD for an aggregated demand from SMEs.
GGGI Cambodia aims to achieve the following deliverables: i.)Investment pipeline, business model and transaction structure of energy efficiency projects for manufacturing SMEs built ii.)Guarantee scheme designed iii.)Private investment of 2-3 million USD committed to energy efficiency projects in manufacturing SMEs through ESCO projects.
The objective of the project is to access these data and use these audits to mobilize ESCO investments for an aggregated demand from SMEs. As such, GGGI will bridge the cash flow gaps from SMEs for uptake of EE technology, and design guarantee to overcome investor reluctance to engage in the sector. This project is aligned with IO2. Increased green growth investment flows which enable partner governments to implement green growth policies.
Type of services provided, and results achieved
Impact: SMEs shift to clean energy production processes.
Project Outputs completed in 2019:
i. Green Growth Policies:N/A
ii. Green Investments:N/A
- Agreement with H&M signed to identify pipeline of opportunities in their supply chain
iii. Capacity Building and Knowledge Products
- Total of 1 capacity development activity in the form of training workshop on de-risking energy efficiency investments using ESCO approach.
- Total of 1 knowledge product delivered, an article on energy efficiency and ESCO approaches published for Clean Energy Week in South East Asian Globe.
Number of staff provided
Project Manager: Gulshan Vashistha
Jerome Fakhry, Karolien Casaer, Putheary Kuy, Sut Samedy
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