Cambodia is one of the poorest and most environmentally challenged countries in Asia, not exactly ideal conditions to launch a business striving towards a more sustainable future.

In spite of such challenges, that is exactly what Managing Director Rin Seyha has done with SME Renewable Energy Ltd. (SME RE), a successful business that sells bio-mass gasifer systems providing reliable, affordable and environmentally friendly electricity to Cambodia's critical rice, brick, textile and ice industries.

The absence of a robust and stable Cambodian electric grid has created an opportunity for SME RE's gasifers. The national grid is in reality a patchwork of highly inefficient regional grids that extend from the major cities out into the countryside.

Grid electricity in Cambodia is also some of the most expensive in Southeast Asia, with costs in excess of $0.20/kwh. This is a 20-160 percent respective premium on electric rates in neighboring Vietnam and Laos.

Despite the premium prices, Cambodian businesses are often plagued with blackouts, requiring the use of back-up diesel generators to maintain business operations. While diesel generated power can be less expensive than the grid, with costs between $0.13-$0.15/kwh, it remains highly vulnerable to fuel pricing and shortages in remote areas.

SME RE has been successful in Cambodia because its bio-mass gasifiers convert a widely available waste product, rice husks (pictured on next page) and other bio-mass, into a source of cheap, reliable and green energy.

The benefits to customers are considerable. Electricity generated by a gasifier can cost as little as half that of grid electricity. Business continuity is also improved as operators now have control of the bulk of their energy supply and are not forced to shut down during frequent blackouts.

The environmental benefits are also substantial. The 32 gasifiers installed by SME RE eliminate the need for over 3 million liters of diesel fuel and reduce carbon emissions by over 9,000 tons each year. If the Cambodian government begins to regulate emissions, as other Southeast Asian counties have, SME RE customers will increasingly value these environmental benefits.

Installing a gasifier requires an initial investment of $70,000. The substantial savings of independence from the grid can result in a payback period as short as two years.

However, many potential customers cannot afford the initial investment as they lack sufficient capital.

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