SINGAPORE: Cambodia says its rapid expansion of renewable energy has helped shield its electricity consumers from the impact of the Strait of Hormuz crisis, even as rising oil and gas prices continue to weigh on households and businesses.
Speaking to CNA in Singapore on Thursday (Jun 11), Cambodia’s Minister of Mines and Energy Keo Rottanak said clean energy now accounts for nearly two-thirds of the Southeast Asian country’s installed power capacity, helping it keep electricity prices stable despite turmoil in global fuel markets.
He said deeper regional integration through the proposed Association of Southeast Asian Nations’ (ASEAN) Power Grid would be critical to strengthening long-term energy security across the region.
Global energy markets have been rattled since the escalation of the United States-Israel conflict with Iran at the end of February, with Tehran’s response disrupting traffic through the Strait of Hormuz, a critical artery for global oil and gas shipments.
“We are very exposed to this external shock, and that has raised prices for diesel, petrol and even LPG (liquefied petroleum gas) prices,” Mr Rottanak said.
He added that higher fuel costs have affected both households and the broader economy.
But electricity prices, at least, have been kept at “pre-Hormuz crisis levels”, thanks to hydro and solar power, said Mr Rottanak.
To further shield consumers from rising fuel costs, Cambodia has also reduced import duties on fuel, he said.
He added that duties on some electrical appliances, such as cooking stoves, have been removed to encourage households to switch from gas to electricity.
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