Cambodia’s rural electrification fund is planning of 12,000 solar panel systems next month to help spread green power to rural villagers who are not connected to the national grid, local media reported on Friday.

The REF – a World Bank-supported public institution aiming to provide electricity to every Cambodian village by 2020 – plans to sell the solar panels to rural households on a monthly payment basis, executive director Loeung Keosela was quoted by the Phnom Penh Post as saying.

Foreign and domestic vendors will be invited to submit bids next month to supply the REF with 12,000 sets of solar panels, batteries and wiring, he said, which will then be sold individually to rural Cambodian households.

“If we procure in bulk sizes, hopefully the cost of individual systems will come down,” he added.

The project is funded by the World Bank’s 67.92 million U.S. dollars Rural Electrification and Transmission project loan, which is set to expire on January 31, 2012.

The REF previously experimented with grants directly subsidising the cost of solar panels for households, he said, but the plan had limited success. “Only about 90 systems were sold.”

“Over the last decade, it seems demand for solar home systems are growing,” Mao Sangat, director of privately owned supplier Solar Energy of Cambodia said.

At the first Asian Solar Energy Forum held in Manila earlier this week, Asian Development Bank (ADB) officials said Asia’s developing nations were in a perfect position to harvest power from the sun, and added that assistance from development institutions was crucial to growing the industry, the post reported.

By Xinhua