Forum for Development Studies

ISSN: 0803-9410 (Print) 1891-1765 (Online) Journal homepage: http://www.tandfonline.com/loi/sfds20

Scales and Fields of Electricity Production:

Sustainability Discourses of Electricity Production
in Cambodia and Laos

Jyrki Luukkanen , Visa Tuominen & Jarmo Vehmas

To cite this article: Jyrki Luukkanen , Visa Tuominen & Jarmo Vehmas (2012) Scales and Fields
of Electricity Production: Sustainability Discourses of Electricity Production in Cambodia and Laos,
Forum for Development Studies, 39:2, 209-230, DOI: 10.1080/08039410.2012.666671

To link to this article: https://doi.org/10.1080/08039410.2012.666671

Published online: 19 Apr 2012.

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Forum for Development Studies
Vol. 39, No. 2, June 2012, 209 –230

Scales and Fields of Electricity Production: Sustainability

Discourses of Electricity Production in Cambodia and Laos
Jyrki Luukkanen, Visa Tuominen and Jarmo Vehmas

Finland Futures Research Centre, University of Turku, Pinninkatu 47, 33100 Tampere,
Finland

The article deals with different scales of electricity production in Laos and Cambodia
affecting the sustainability discourse. The discourse of local small-scale production
emphasising the environmental and social aspects often conflicts with the techno-
economic discourse of larger scale and economic efficiency. The article analyses
different cases of power production with renewable energy in Laos and Cambodia
in off-grid or mini grid situations and the electrification process. The analysis
looks at different elements related to social, technical, economic, environmental,
political and health aspects of electricity production in different scales of
electrification from household level to village level, multiple village level and
national level. The aim is to integrate different dimensions of sustainability into a
single framework and to deepen the analysis with the use of the STEEPV (social,
technical, economic, environmental, political, value) approach.
Keywords: electricity; environment; discourse; renewable energy; scale

1. Introduction
Discussion on electricity production and electrification in developing countries varies con-
siderably concerning the mode and scale of production as well as the prioritisation of elec-
trification. Because of the climate change, renewable energy today has such a discursive
domination that it is seen as almost the only alternative in new capacity building even
though most electricity is still produced with fossil fuels. Opinions vary on which form
of renewable sources are most suitable. This is also linked to the issue of scale of pro-
duction: Is large-scale production acceptable or not and is small-scale production a
viable option? In these issues the opinions seem to vary depending whether the discussants
emphasise, e.g. economic, environmental, technical or political aspects.
The objective of the article is to carry out a theoretical exercise which aims at high-
lighting aspects related to different scales of energy production and electrification
drawing from the case studies in Cambodia and Laos. The aim is to integrate different
dimensions of sustainability into a single framework and to deepen the analysis with the
use of the STEEPV (social, technical, economic, environmental, political, value)
approach. In this article we use a slightly modified version of the STEEPV approach
ISSN 0803-9410 print/ISSN 1891-1765 online
# 2012 Norwegian Institute of International Affairs (NUPI)
http://dx.doi.org/10.1080/08039410.2012.666671
http://www.tandfonline.com
210 Jyrki Luukkanen et al.

as we have integrated the value dimension with social factors. In addition we have
added a health dimension into the framework.
This article analyses electricity production and electrification in Laos and Cambo-
dia. The idea is to look at what type of discourses connected to the electricity pro-
duction are found and to analyse their relation to the scale of production. The
prioritisation question of electricity use is closely linked to the idea of development.
What kind of development is wanted? Development theories provide the background
for understanding the development processes, but very often the discussions of elec-
tricity production and electrification of rural areas do not explicitly rely on any theor-
etical background but rather on more general ideas of development. In the article, we
discuss generally the different aspects of development and the discourses that support
alternative views. Concerning the scale of production we should try to find out
whether ‘small is beautiful’ (Schumacher, 1973) or whether ‘small is stupid’ (Becker-
man, 1995).
The scale of issues can be analysed in different fields in societies. These fields, such
as political field or economic field, are overlapping and it is not possible to limit a
process on one scale. It is, however, useful to analyse the scales of operations and to
see how the scale affects the processes in different fields.
The scale issue seems to be closely connected to the different discourses in the field
of energy and environment. The 2 main discourses analysed in the article see the scale
of electricity production very differently; one emphasises small-scale local production
while the other sees efficiency of larger scale systems to be beneficial.
The article concentrates on the analysis of electrification systems that are based on
renewable energy sources. A significant part of electricity production in developing
countries’ rural areas outside of the national grid is based on diesel production with con-
siderably reliable technology, cheap investment, high fuel costs and large CO2 emissions.
Electricity production based on renewable sources is often linked to high investment costs,
low operation costs and sometimes to technological problems of operation. In this article
we do not deal with power production for industrial purposes, where potential demand for
heat could be considered using combined heat and power production.
The situation concerning electrification in Laos and Cambodia is quite different. In
Laos, the number of households connected to the grid has increased rapidly during the
last years and in 2011 about 72 per cent of households were connected to the grid. In
Cambodia the electrification rate is still very low below 30 per cent (21 per cent in 2007,
Pagnarith, 2010). The Cambodian government target is quite demanding with all vil-
lages having access to electricity in some form by 2020, and by 2030, 70 per cent of
households should be connected to the grid.

2. Methodological approach
Scaling starts from the idea that processes in nature and society have their characteristic
spatial and temporal domains. We could specify different issue areas where the scales
 Forum for Development Studies 211

can be different; it is often discussed about ecological scales, and social and political
scales (Meadowcroft, 2002). According to Delaney and Leitner (1997) geographic
scale refers to the nested hierarchy of bounded spaces of differing size, such as the
local, regional, national and global and this type of scale is a familiar and taken-for-
granted concept for political geographers and political analysts.
With increasing integration of global production systems, high capital mobility, and
growing international trade, even the most powerful states find their room for
manoeuvre circumscribed and over past decades the continued elaboration of structures
of international governance has further delimited the parameters within which individ-
ual states may act. Many organisations (ranging from multi-national companies to
churches, labour unions, and environmental groups and other NGOs) find themselves
acting in political ‘spaces’ which cut across conventional boundaries. (Meadowcroft,
2002, p. 171)
It can be said that scale is shaped by the understanding of actors, and is likely to be
an on-going, dynamic, economic and political process (Delaney and Leitner, 1997;
Lebel et al., 2005). This means that scale can be interpreted as a discourse and we
can analyse the struggle for hegemony in these discourses.
In the field of electricity production the opening of the electricity markets has been
one important phenomenon which has affected the political scale of production. The
plans of opening the Mekong Region electricity markets for open competition in the
future will naturally also shape the future markets inside the countries. Is this respect
the Asian Development Bank (ADB) Master Plans for Greater Mekong Subregion
(GMS) power interconnection is important (see about the discussion in, e.g. ADB,
2003; BothEnds, 2011; ECA, 2010; IRN, 2006; Nguyen, 2003; Zhai, 2010).
In the Mekong Region especially the discussion about large-scale hydro power con-
struction has been an example of the crosscutting scales. The upstream hydro power
development will unquestionably affect the downstream environment and in this way
mediate social and economic impacts downstream. According to Meadowcroft
(2002, p. 172) societal impacts and impact-scales are mediated through culture,
economy and politics, and are constructed and re-constructed through conflict. In the
case of the Mekong River hydro project these societal impacts are mediated also
trough the physical changes in river flow and water quality.
The scale of environmental problems can be conceptualised in various ways. In the
first place, there is the scale of the physical impacts of a given activity on natural pro-
cesses – the effects of a particular disturbance, and how these are distributed in space
and time. Impacts may be confined to a relatively small area or widely dispersed. They
may be of short duration or persistent. As time passes, additional consequences of an
original impact may emerge, the spatial distribution of effects may alter, or a gradually
accumulating burden may provoke an abrupt change in the environmental state
(Meadowcroft, 2002, p. 172).
In addition to political and ecological scales we can also speak of economic scales
and technological scales. The economic scale often refers to the economic benefits of
212 Jyrki Luukkanen et al.

mass production, but it is a complicated issue when we discuss electricity production

and distribution. In industrialised countries the trend of the scale of electricity pro-
duction has been increasing and the new power plants have been getting bigger and
bigger. This is partly connected to the increase of electricity transmission which has
enabled larger power plants. The mass production of small-scale micro turbines has
not yet affected the electricity sector except in the case of some pico hydro installations
in China, Vietnam and Laos. In this case the mass production has reduced the price of
the equipment so that electricity production has been competitive in the market. There
have been, however, some technology related problems which have hindered the spread
of the technology (Smits, 2008).
The technological scale refers to the constraints set by the technological aspects of
the systems. In the case of electricity production and distribution the issues that have an
impact on the technological scale are complicated and intertwined with the economic
scale issues. One central aspect is the high price of electricity storage, which means
that in practice the electricity production has to follow the variations in consumption.
This makes larger scale systems more economic due to the levelling effect on consump-
tion of larger number of consumers. This issue is discussed in more detail later.
These different scales of processes overlap and crosscut each other. The changes in
entangled complex systems have impacts in different scales and that is why analysis of
one scale does not provide relevant results.
The scales can be interpreted to be discourses which are connected to the general
discussion of development and the different development theoretical standpoints.
When analysing these discourse of scale the language is seen as an integral part of
reality, as a specific communicative practice, which influences the perception of inter-
ests and preferences. In this approach interests are intersubjectively constituted through
discourse (see Hajer, 1995). On the other hand the discursive approach focuses on the
level of the discursive interaction and argues that discursive interaction can create new
meanings and new identities, i.e. it may alter cognitive patterns and create new cogni-
tions and new positionings (Hajer, 1995, p. 59).
The approach conceives politics as a struggle for discursive hegemony in which
actors try to secure support for their definition of reality. Different actors operate at
the discursive field and interpret the perceived reality in different ways. Discourse
can be defined as a specific ensemble of ideas, concepts, and categorisations that is pro-
duced, reproduced, and transformed in a particular set of practices and through which
meaning is given to physical and social realities (Hajer, 1995). In this case the scale can
be interpreted as a concept. We can also speak of the condition of discourse structura-
tion if the credibility of actors in a given domain requires them to draw on the ideas,
concepts, and categories of a given discourse. This can easily be seen in the discussion
of scale as is shown later. We can also speak of discourse institutionalisation if a given
discourse is translated into institutional arrangements. It can be said that there exist
different institutional arrangements that are linked to the discussion of scale in electri-
city production and distribution as is shown later. If these 2 conditions, structuration
 Forum for Development Studies 213

and institutionalisation, are satisfied, a discourse can be said to be hegemonic in a given

domain or in a weaker form we could speak of discursive domination (Hajer, 1995).
The interpretative process of discursive closure, where complex issues are sim-
plified, is a central element in the regulation process, which depends on the loss
of meaning and the multi-interpretability of language. In many cases the regulation
of conflict over inter-discursive problems depends on and is determined by the
effects of certain story-lines. Story-lines are narratives of social reality through
which elements from many different domains are combined and that provide
actors with a set of symbolic reference that suggest a common understanding.
Story-lines are essential political devices that allow the overcoming of fragmentation
and the achievement of discursive closure (Hajer, 1995). Related to the discourses of
scale and electrification we can identify this type of discursive closure and formation
of story-lines.
Argumentative discourse analysis holds that the power of story-lines is essentially
based on the idea that it sounds right. Whether something sounds right is not only influ-
enced by the plausibility of the argument itself, but also by the trust that people have in
the author that utters the argument and the practice in which it is produced and is also
influenced by the acceptability of a story-line for their own discursive identity (Hajer,
1995). The story-lines of development and electrification scales are clearly dependent
on the trust that those uttering them have among different audiences.
In the struggle for discursive hegemony actors can form discursive coalitions to
strengthen their position. According to Hajer (1995) discursive coalitions are defined
as the ensemble of (1) a set of story-lines; (2) the actors who utter these story-lines;
and (3) the practices in which this discursive activity is based. Story-lines are seen
as the discursive cement that keeps a discourse-coalition together. The reproduction
of a discursive order is then found in the routinisation of the cognitive commitments
that are implicit in these story-lines. This types of discursive coalitions can be identified
also within the electrification discourses.

3. Discourses of environmental policies and electrification

The discourses of electrification represent different perspectives of development and
views on how environmental and other problems can be solved. These different dis-
courses can be seen as narratives or story-lines, which simplify the complex phenomena
and processes. In order to link the argumentation used in electrification discussions to
development theoretical discourses we present 2 main discourses presented by Adger
et al. (2001) who analyses different narratives and storylines connected to global
environmental problems (deforestation, desertification, biodiversity use and climate
change). Two main discourses, neo-Malthusian discourse and populist discourse
with attached narratives identified by Adger can be compared to the discourses of
development analysed, e.g. by Blaikie (2000), who differentiates post-, anti- and popu-
list development discourses.
214 Jyrki Luukkanen et al.

In the case of deforestation the neo-Malthusian discourse, analysed by Adger et al.

(2001), sees the spiral of over-population and consumption, linked to poverty, environ-
mental degradation, and government and market failures, as inevitable leading to forest
cover loss and hence to global environmental crisis. The populist discourse presents
small farmers and land managers not as active agents of change but rather as victims
driven to destructive practices, the real culprits being logging companies and the
trans-national interests that finance and fuel their operations. Local actors and
particularly indigenous forest dwellers are forced to abandon their environmentally
benign ‘traditional’ land use practices and are displaced by logging companies, cattle ran-
chers, and cash crop plantation operators who push aside these disempowered forest
users as they convert the rich ‘pristine’ forest to feed their greed (Adger et al. 2001).
The neo-Malthusian based Global Environmental Management is the dominant dis-
course in the debates of the environmental problems at the international level. The com-
peting populist discourses are often constituted by NGOs and in alliance with particular
state or sectoral interest groups. Adger et al. (2001) find that these discourses have
shortcomings when looking at the local level development in developing countries.
Their conclusions point to striking discrepancies between discursive simplifications
and the diversity of situations within local contexts.
When looking at the development in Cambodia after the 1993 elections Nee and
McCallum (2009) differentiate 3 development paradigms. The Washington Consensus,
with the emphasis on economic notions of effectiveness and efficiency and organised
mainly through western multilateral lending agencies, such as the World Bank, the
ADB and International Monetary Fund, has exported these ideas mainly through assist-
ance to roads, hospitals and schools (Nee and McCallum, 2009, pp. 6, 12). This neo-
liberal development paradigm is close to the neo-Malthusian discourse explained
above by Adger. In the case of electrification discourses this means priority on larger
scale systems (like the above mentioned GMS grid development) with modern technol-
ogy emphasising the energy efficiency.
Nee and McCallum (2009, p. 6) call neo-populist a series of development approaches
central to many Western NGOs. Themes expressed in these concepts include:
. Respect for local diversity and agendas;
. A belief that ‘reality’ is negotiable and contested by the interpretations of differ-
ent actors:
. A focus on community level operations;
. Expression and insertion of local voices into development;
. Recognition of development as a process rather than an outcome.

This approach is quite similar to the populist approach described by Adger.

According to Nee and McCallum (2009, p. 7) the emergent balance between
neo-populist and neo-liberal development approaches has come under pressure from
new forces linked to the bilateral financing from countries such as China. This new
‘Beijing Consensus’ has been characterised by development investment with limited
 Forum for Development Studies 215

concern for transparency and human and environmental impacts. According to Nee and
McCallum (2009, p. 7) this has included ‘rolling back’ of many controls established
over the lending practices of western bilateral agencies and an erosion of the role
and influence of neo-populist development agencies. An example of the new trend is
the Kamchay Hydropower project, which was originally scheduled for financing by
a Canadian investment company, but the company withdrew from the project following
protests in Cambodia and abroad over the scheme’s anticipated human and environ-
mental impacts. Later the project was financed by China with a Chinese company car-
rying out the construction work.
The neo-populist development approach has focused on participatory arrangements
centred on the concept of community with diverse nomenclature based on the community
motif, with terms such as community forestry, community-based health care, community
natural resource management, community fisheries and community development. This
emphasis on the capacity of communities to contribute the development process has
been challenged on numerous levels (Nee and McCallum, 2009, p. 19):

. The notion of community has been accused of having only metaphoric qualities,
with no or little reality on the ground. In Cambodia it has been argued that the
term has no direct relevance and that it is the ‘household’ that is the most signifi-
cant local social unit.
. Community-based processes have been accused of relying on negotiation tech-
niques that omit a range of demographies (e.g. poor, sick, women).
. Negotiation processes between local people, developers and authorities are
seldom equal in the way that power is distributed, including the way that knowl-
edge and information are treated.
. Community facilitators struggle to penetrate local and cultuandral differences, at
the expense of the development process.
. Elements said to adhere within communities and claimed to support develop-
ment, such as social capital, may not exist or be as beneficial as expected.
In their study of development projects in Sre Ambel in Southwest Cambodia Nee and
McCallum (2009) distinguish seven different development models, or roads, as
follows: The economic growth road; the human rights road; the local livelihood
road; the community development road; the environment conservation road; the com-
munity-based natural resource management road; and the Buddhism in development
road. These roads reflect aspects of different development concepts discussed above.
At least five follow the neo-populist paradigm although there are significant differences
and tensions between them. According to the analysis the economic development road
reflects the neo-liberal paradigm resembling the emergent Beijing Consensus rather that
the formerly dominant Washington Consensus, with an emphasis on economic growth
over democratic considerations (Nee and McCallum, 2009, p. 37).
In the field of energy policy and rural electrification in developing countries it is
possible to find similar types of storylines and narratives as those mentioned by
216 Jyrki Luukkanen et al.

Adger et al. (2001). These storylines and narratives can also be connected to the differ-
ent scales of electricity production and distribution. We could distinguish the populist
discourse which emphasises small-scale local production of electricity. In some cases,
among this discourse, the need for electricity production is also questioned or at least it
is not seen as a priority. The neo-Malthusian discourse emphasises techno-economic
efficiency and larger scale production in order to minimise the environmental
impacts per kWh of production. This discourse also sees electricity as an important
means of production and a component in reducing poverty.
The small-scale local production discourse sees that electricity production must be
locally controlled and adjusted to the social, cultural and environmental conditions of
the rural areas. Local production means that the energy sources for electricity pro-
duction should be local. This means that fossil-based production is not accepted. In
addition, transmission of electricity with high voltage lines is not seen to be preferable
since it separates the production-related environmental and social impacts from the
benefits of consumption. Local production can be seen to offer possibilities for other
local production such as local biomass (e.g. jatropha, woody biomass) for electricity
production (see e.g. Ryder, 2009 of the discussion). Within this discourse soft technol-
ogy is sometimes referred to (Lovins, 1977). According to Jin (2003) soft technology
refers to technology derived from outside of natural science disciplines and from
outside of conventional science.
Power is reflected in, and reproduced by, the capacity to control and capture resources
from different levels. The scale (and levels) at which a problem is experienced, analysed,
and discussed, or ‘scale of meaning’, may not correspond to the scale of the decision-
making bodies. Empowerment may necessitate acquiring the capacity to work across
multiple scales. There is often a large gap between small geographical areas where
environmental and social injustices take place and the larger administrative or jurisdic-
tional levels where they can be addressed politically (Lebel et al., 2005).
It is seen that local production with local environmental impacts will be directed
towards more sustainable production since the impacts are directly experienced by the
local people. This is also seen to apply to social, economic and cultural impacts and
that is why it is seen that only local societies can make decisions of such activities.
This local discourse is today included also in the reasoning of the UN actions as can
be seen in the UNDP website:

Achieving the Millennium Development Goals (MDGs) can only happen through action at
the local level – in villages and towns, provinces and regions (UNDP). Local actors – com-
munity leaders, local government officials, civil society activists, farmers and entrepreneurs –
know best what does and does not work within their communities and they should have the
voice and support they need to work their way towards a better quality of life.

The emphasis on local development can be seen also in World Bank website:
Local Economic Development (LED) offers local government, the private sector, the not-
for-profit sectors and the local community the opportunity to work together to improve the
 Forum for Development Studies 217

local economy. It aims to enhance competitiveness and thus encourage sustainable growth
that is inclusive. (World Bank, 2011).

Within the discourse of small-scale local production the large-scale production, e.g.
in hydro power is not acceptable. It is seen to cause large environmental and social
impacts, e.g. due to large hydro reservoirs, which flood areas of environmental value
and often require resettlement of a considerable number of local residents. Local
society is often seen as homogeneous and local power relations are not often con-
sidered. In practice, however, all societies have power relations which define how
costs and benefits from different activities are distributed.
It is often seen that local societies and their decisions have only minor impacts on
larger societies and the optimisation of the local decisions can also bring larger scale
optimisation. This is also one argument for decentralisation of decision making. This
is, however, questionable. Local decisions always have an effect on larger scale
systems and the optimisation of a small-scale sub-system does not lead to optimisation
of the larger system. This can easily be seen, e.g. in the use of water resources of a river,
where optimisation of upper river water use easily reduces the possibilities of down-
stream water utilisation.
The discourse of the Techno-economic efficiency often emphasises that technical
efficiency also reduces the use of scarce natural resources when the power production is
carried out using the most efficient available technology (neo-Malthusian approach).
This also leads to reduced environmental impacts since in larger scale applications the
environmental impacts such as emissions are controlled through national or international
legislation which does not apply to smaller power plants. Also the emissions per produced
kWh of electricity are smaller in larger power plants due to better technology and emission
control.
The economic efficiency of larger scale systems is often seen to be the result of the
economics of scale, which is partly due to better technical efficiency. The economic
efficiency of larger scale power production is also partly due to the technological prop-
erties of the electricity system. Since electricity storage is considerably expensive the
electricity production should usually respond to the changes in electricity demand.
The distribution of different electricity consuming activities, such as lighting,
cooking, entertainment, productive activities, etc., at different points of time define
the load curve, which varies considerably in different locations. The temporal distri-
bution of the load curve is one factor which affects the economics of the different elec-
tricity production systems. Especially the share of investment costs and operation costs,
which is very different in different power production systems, determines the economic
performance of the power production. In larger scale systems the consumption is
usually distributed more evenly in time (due to larger number of consumers and pro-
ductive activities) which makes the systems more economic.
The reliability of power supply is often seen as an important factor in the system,
especially when productive activities depend on the power supply. The reliability is
218 Jyrki Luukkanen et al.

usually better in larger systems since the operation and maintenance of the system is
carried out by educated full time professionals, which are too expensive for small-
scale local systems. In addition, the redundancy in the supply and transmission
system increases reliability. This is seen to be important in the efficiency discourse,
because of the emphasis on productive activities. Blackouts are seen as detrimental
to production especially in cases where continuous supply of power is essential
(such as freezers and process industry).
It is often criticised that the construction of large-scale power production systems is
based on the idea of continuous growth of electricity consumption. This is related to the
modernisation of the societies and shift towards market economy of traditional subsis-
tence economies. The continuous growth of electricity consumption is seen to contra-
dict the limited resources and the sustainability of the system.
The construction of large-scale power production is also seen to contradict the local
decision making and democracy. Local people cannot often take part in the decision
making which is made at high level due to the scale and often strategic importance
of the investment. One reason for the criticism of large-scale power production is
that the impacts of the construction and production are felt locally, but the benefits
are enjoyed elsewhere since the produced electricity is usually transmitted even to
foreign countries. The large-scale power production is also seen to be detrimental to
local cultures and social systems since it brings along market-based modern culture
and related problems.
The concept of energy efficiency clusters the knowledge of a complex web of inter-
relations, a thorough understanding of which would require specific expert knowledge
in several fields ranging from power engineering to environmental science and econ-
omics. It is also related to the fields of politics and sociology. Energy efficiency also
positions actors because people using the term and basing their arguments on this
concept receive a certain techno-economic positioning in the discursive arena of elec-
tricity production as well as in energy and climate policy. There are different discourse-
coalitions in this specific discursive arena and the story line of energy efficiency acts as
the discursive cement keeping one of the discourse-coalitions together.
In a similar way the small-scale local production clusters the knowledge of complex
interrelations of local cultural, environmental and social aspects of life, production and
local decision making, which are related to local relations and traditions. Local small-
scale production also positions actors because people using this term and basing their
arguments on this concept receive a certain environmental and cultural positioning in
the discursive arena of the protection of environment and cultural heritage. Different
discourse-coalitions also exist in this discursive arena and here small-scale local pro-
duction acts as a discursive cement keeping the discourse-coalition together. The dis-
course of small-scale local production is mainly uttered by representatives of the
NGOs and local activists.
The energy efficiency discourse forms the basis of the main counter arguments
against the local production discourse. Economics of electricity production and the
 Forum for Development Studies 219

related reliability of supply have represented the dominating discourse defining the
argumentative categories and concepts based on which the discourses of energy
systems have to be based. Here we can see, however, discourse structuration when
the credibility of actors required them to apply concepts and categories emerging
from the competitive discourse. Concepts and categories of the environmental dis-
course and local context have become ‘obligatory’ in the discourses of ministries
and power companies also. The new emphasis on small-scale production can be seen
in the World Bank and ADB discourses as is shown in Kaisti and Käkönen (2011).

4. Sustainability and the fields and scales of action

In order to analyse the different sustainability aspects related to electrification in differ-
ent fields and scales we have collected information of different case studies. In addition,
material from literature and interviews has been used to cover the different scales and
fields in the analysis.
Analysis of the household scale electrification is based on literature and the analysis
of solar home systems (SHS) promoted by World Bank (Kaisti and Käkönen, 2011).
The analysis of village scale electrification is based on information collected from
the Anlong Tamey case in Cambodia and other material. The multiple village scale
electrification case study is based on information collected from Batt Daeng Electricity
Company in Cambodia (see Majanne et al., 2010). The national (or regional) scale elec-
trification case is based on literature information and interviews.
The different technologies that are taken into account in this analysis include: PV
(photo voltaic), pico hydro (in the scale of 100 W–2 kW), micro and mini hydro,
large hydro, biogas, biomass gasifier-based technology and biomass combustion-
based steam process electricity production.
Of these technologies solar PV is used mainly for SHS even though some larger
scale village level solar systems have been installed (e.g. hybrid biogas – solar PV
system in Chokar Dong, Cambodia). The investment costs of solar PV systems are con-
siderably high. SHS systems require batteries to store electricity for use in the evenings.
The batteries seem to have a short lifespan and their replacement requires additional
investment costs.
Pico hydro systems have become very popular in rural areas in Laos. The investment
costs of 200 W system is only 30–50 USD and they do not need any batteries for elec-
tricity storage. Pico hydro naturally requires a suitable stream or river nearby and often
there are problems with the seasonal variations of the water flow; in dry seasons there
may not be adequate flow or in rainy seasons the flow may be too strong or mud and float-
ing trees and branches can damage the equipment (Khanthaphat, 2011; Smits, 2008).
Micro and mini hydro installations are in use both in Laos and Cambodia. They
have either local grid or are connected to the larger grid. The maintenance problems
have sometimes been causing low utilisation rates or even shut down of these installa-
tions (Korkeakoski, 2009). Large scale hydro power offers a technically reliable and
220 Jyrki Luukkanen et al.

economically attractive source for electricity, but the social and environmental impacts
have raised a lot of controversial opinions about them.
Biogas technology utilises agricultural waste material for energy production. Biogas is
normally used for cooking, water heating and lighting. Most of the biogas systems installed
in Laos and Cambodia are of family size utilising, e.g. the manure of 2–3 cows. These are
not very well suited for electricity production due to the small amount of gas produced.
There are, however, some larger scale installations, e.g. pig farms, which use part of the
gas for electricity production. From the environmental point of view the biogas production
is beneficial, since the processed manure is excellent fertiliser and the smell problems will
be reduced. Destruction of pathogens can also provide health advantages.
Biomass gasification technology is used to some extent in Cambodia for electricity
production. SME Cambodia has installed more than 30 gasifiers, which use rice husk,
wood or corn cobs as the source of energy. Most of the gasifiers are installed in rice
mills, where the gas is used to replace part of the diesel used to run the mill. There
are also installations for electricity production companies (see Majanne et al., 2010).
Biomass gasification provides means for using different agricultural residues for
energy production and replacing diesel use. There have been some technical problems
with the maintenance of smaller gasifier systems due to the lack of adequately educated
staff. The larger systems seem to operate considerably reliably even though longer term
experiences are still lacking. The environmental impacts of gasification technologies
are quite small if the waste water is handled properly.
Biomass combustion-based steam processes for electricity production are, at the
moment, not in use in Laos and Cambodia. Biomass combustion technologies, especially
those based on fluidised bed boilers, is a mature technology in many western countries
producing considerable amount of energy, e.g. in Finland. These systems are normally
quite large scale ranging from 30 MW thermal capacity up to 500 MW. There are
some technology development project going on in order to develop smaller scale
systems based on the stirling engine and wankel motor, but these technologies are not
yet commercialised. The larger scale biomass combustion technologies using fluidised
bed boilers are environmentally friendly, when the flue gas emissions are considered,
due to the accurately controlled combustion process. The fuel supply for larger plants
and the related logistics may cause environmental problems if not properly controlled.
To analyse the scales of electrification in developing countries we can separate
different fields of action in order to have a more detailed analysis of sustainability.
For the different fields we can use the so called STEEPV differentiation (Vinnari,
2008) in order to identify and clarify different fields: Social field, Technological
field, Economic field, Environmental field, Political field, and Value field. Since the
fields overlap in practice many aspects of the actions and processes related to electricity
production and electrification relate to several fields of the STEEPV distinction. In this
research we use socio-cultural field as one area of discussion in order to emphasise the
changes that are often taking place in the electrification process. Here we also add the
value field in the socio-cultural context. In addition to the normal STEEPV categories
 Forum for Development Studies 221

we also use health as one important field when discussing energy production impacts.
The STEEPV differentiation can be seen in the context of sustainable development dis-
cussion, which normally contains 3 (or 4) dimensions; environmental, social (and cul-
tural) and economic. In this respect the STEEPV approach is more distinctive including
the technological and political aspects of sustainability as well as the health aspects in
our case. We could call this a STEPHE approach.
For the analysis of scale we can separate household level, village level, multiple village
and national level electrification and assess the processes in the different fields of sustain-
ability. In this article, we analyse only systems with renewable energy sources. This analy-
sis of the aspects related to the electrification in different fields and scales is based on the
above mentioned case studies and other material from different cases.

4.1 Socio-cultural field

Electricity production and electrification in developing countries is closely connected to
changes in the socio-cultural field. Electrification brings along huge changes in the life of
people by enabling for instance the introduction of TV to villages. In addition to the enter-
tainment function of TV or radio the information distribution function affects the socio-
cultural field in the village. The possibility to use mobile phones for communication and
the spread of the Internet, enabled by electricity, are other important factors changing the
life of people. In addition to entertainment also changes related to comfort (different
equipment, air conditioning, etc.), safety (electric light, hazards), health care, education,
etc. are aspects of socio-cultural change. The availability of electric power in some
locations can be a pulling force for migration due to the different socio-cultural issues.
Also the negative aspects such as reduction of communality, homogenisation of
culture, foreign influences, mcdonaldisation, etc. can be connected to the changes in
the socio-cultural field due to electrification. Next some differentiation is carried out
related to the impacts of the scale of electrification in the socio-cultural field.
Household level electrification can support the social understanding of the electri-
fication and its impacts. It can strengthen ownership, but can cause social segregation
when some people have access but not all.
Village level electrification can integrate people in the village community and
through cooperatives it can create a feeling of ownership of the system.
Multiple village level electrification can diminish the ownership of the electrifica-
tion process due to the larger distance from the activities.
National level electrification can help in national integration and, when reaching all
villages, in equity building among different regions.

4.2 Technological field

There are several different aspects related to the technological field of electrification. These
are related to the different technologies used and their properties as well as to the
222 Jyrki Luukkanen et al.

consumption patterns (load curve), safety issues, control systems, fuel supply systems, etc.
The different technologies determine what type of electrification can be applied in different
scales. With present technology it is possible to have single house pico hydro plants as well
as 1000 MW scale hydro plants, but, e.g. biomass combustion-based electricity production
is not available at the household level so far. The economic features of different technol-
ogies also determine the practical usefulness of the technology at a certain scale. The differ-
ent technological properties also determine how the system can respond to changes in the
temporal scale and the related need for electricity storages.
Household level electrification seems not to be a very viable technological option
since the maintenance and durability easily become problems. Maintenance would
require technical expertise and especially the battery systems seem to last only a
couple of years. The available power supply is not enough for productive activities.
Village level electrification has been problematic mainly due to the maintenance pro-
blems. Often enough technological expertise is not available to keep the system running
and spare parts are not easily available. If production runs only some of the time (usually
in the evenings) the possibilities to create productive activities based on electricity will be
reduced. Inadequate maintenance reduces the lifetime of the system.
Multiple village level electrification seems to work technologically quite reliably in
the Batt Daeng case study. This is partly due to the availability of enough personnel for
the operation and maintenance of the system. The availability of established technology
of this scale is one important reason for technological reliability. The increased scale of
production and consumption provides possibilities of full time operation and the
increase of power output can enable the use of electricity for productive activities.
National level electrification is technologically the most reliable option since
several sources of production increase the redundancy of the system. The maturity of
this scale technology is another reason for the reliability of supply. The availability
of high and reliable power supply can support income generating activities.
However, long transmission lines can sometimes reduce the reliability of supply due
to natural or other disasters.

4.3 Economic field

The economic field seems to be decisive for the selection of the system in many cases in
developing countries due to restricted financial opportunities. Different subsidy
systems, which are quite common in rural electrification, can, however, affect the situ-
ation and lead to the selection of the subsidised system. Electrification can also have
considerable economic impacts. Very often it is seen as a driving force for economic
activities through the productive use of electricity. Possibilities for productive use of
electricity, and hence for job creation, depend on the technical properties of the electric
system (enough of power available), but also on the socio-economic factors such as
available resources (human, capital, natural, social) and other contextual factors
(markets, logistics, communication, etc.). Electricity production can, as such, provide
 Forum for Development Studies 223

possibilities for job creation in the form of fuel supply (growing wood or oil plants for
fuel, fuel handling and transport, etc.), operation and maintenance. One important
aspect related to fuel production is the possible competition of productive land with
food production.
One important economic impact of different energy production systems is their
impact on the trade balance. Most of the investment equipment in electricity production
is imported to Laos and Cambodia. Biogas technology can in this respect be an excep-
tion since the production of digester can be carried out with domestic materials.
However, the motor-generator system is imported in these cases, too. Biomass gasifier
construction has started in Cambodia, so it can be a sign of development of new dom-
estic production capacity. Since the investment equipment is mainly imported the
required investments per produced kWh is one measure of the economic impact.
Large-scale electricity export from Laos is an example of positive economic impact
on the trade balance. In the Lao case this has a considerable impact on GDP and related
indirect economic impacts.
Household level electrification is normally economically the most expensive alterna-
tive. There is a lot of technological development in this type of small-scale systems,
especially solar photo voltage systems, which can reduce the costs in the future and
offer the benefits of mass production, but the electricity storage systems (batteries)
seem to remain considerably expensive. SHSs do not offer possibilities for productive
use of electricity, and hence poverty reduction, due to low power supply. The high invest-
ment and maintenance costs of the technology can affect poverty reduction negatively by
increasing costs without providing possibilities for income generation. Pico hydro seems
to provide an economically competitive alternative in locations where suitable rivers or
streams are available throughout the year due to its low investment costs.
Village level electrification is considerably expensive because the high investments
are standing idle most of the time due to low and interrupted demand. The power supply
can offer possibilities of very small-scale business activities, such as bars for entertain-
ment and cool drinks or the use of sewing machines. However, the interruptions in
power supply restrict the possibilities of productive uses of electricity. Village-level
systems can provide possibilities for growing or collecting fuel (biomass, such as
wood, rice husk, agricultural waste, jatropha) for the production system providing a
source for income earning.
Multiple village level electrification with renewable sources can provide consider-
ably cheap electricity, if the demand allows 24/7 operation of the system. The continu-
ous power supply can provide possibilities for small-scale industrial or service sector
activities and related labour demand and in this way have an effect on poverty
reduction. At this scale, the possibilities for growing or collecting fuel can also
provide alternatives for income earning.
National level electrification normally provides the cheapest electricity even though
the connection and metering fees can be substantial. The reliability of supply and pos-
sibilities for higher power requirements make this option the most applicable for
224 Jyrki Luukkanen et al.

productive use of electricity even at the industrial scale. The related economic possibi-
lities offer ways for poverty reduction. Larger scale systems do not often provide pos-
sibilities for income earning for individual consumers as fuel suppliers, if the fuel
supply is not connected to provision of, e.g. wood products to industry.

4.4 Environmental field

The environmental impacts of electricity production and electrification as well as
impacts of possible reduction of other energy use are diverse. The direct impacts of
combustion processes, which are often related to electricity production, are the pro-
duction of different emissions like CO2, CO, SOx, NOx, and small particles. The
impacts of hydro power production are related to flooding of the hydro reservoir, emis-
sions from the reservoir, changes in water flow and possible related floods and changes
in quality of water (e.g. sediment content). Construction of power plants and power
lines has landscape and land use change impacts with possible related indirect impacts.
Household level electrification. Environmental impacts are directly experienced and
hence they can be taken into account and balanced against the benefits felt from the
electrification.
Village level electrification. Direct environmental impacts are experienced directly
in the village and hence they can be taken into account. The indirect impacts, such as
impacts in the production of solar cells or waste management of used batteries is not
taken into account.
Multiple village level. The environmental impacts can be experienced in the multiple
village scale if they are considerably large. Normally in this type of case, where energy is
produced with combustion-based system, the environmental impacts are limited to quite
a small area close to the power production area and are not felt in other villages.
National level electrification. Environmental impacts and benefits from the pro-
duction are separated from each other. The impacts are felt locally at the place of the
power production or, in the case of large hydro production, downstream possibly thou-
sands of kilometres from the power plant. Large-scale systems are normally more effi-
cient and technologically advanced reducing the total environmental impacts especially
in combustion plants.

4.5 Political field

Energy policy related to electricity production and distribution has several different aspects
related to the political field. The different energy policy measures have direct impacts on
the energy system. The policy measures include aspects like norm regulation (e.g. technical
norms, emission norms, safety norms, etc.), economic regulation including subsidies, taxa-
tion, fees, etc. and information guidance. The politicisation of the energy issues can be seen
in the formation of several different competing discourses in this field. The politicisation of
energy is naturally related to issues like different economic interests of the stakeholders and
trusteeship. Energy policy is closely related to areas like regional policy, economic policy
 Forum for Development Studies 225

(e.g. export earnings from electricity and import expenditure on petroleum products),
industrial policy, agricultural policy, fiscal policy and foreign policy. The practical political
work is carried out through the development of legislation.
Household level electrification is based on decentralised, individual decision
making within the household.
Village level electrification. Village level electrification refers to village level decen-
tralised decision making. Local power relations in the village have an important effect
on the decision making.
Multiple village level electrification. In multiple village level electrification, there
is more centralised decision making, where local power relations have an
important effect. There may be requirements to pay a License fee for registration (e.g. to
the Electricity Authority of Cambodia to be registered as the Rural Electricity Enterprise).
National level electrification. In national level electrification, there is centralised
decision making, which is normally based on expert knowledge. National level electri-
fication is usually a political target at the national level political decision making.

4.6 Health field

Energy infrastructure construction, fuel supply system, electricity production and elec-
tricity use have different direct and indirect health related risks and impacts. The con-
struction of power plants or power transmission and distribution systems include
several health risk possibilities ranging from construction work accidents to spreading
of AIDS with the involvement of external or foreign workforce in local entertainment
economy.
Energy production phase involves different health risks such as risks of being
exposed to harmful emissions or hazards related to inadequate safety or unfamiliarity
of power installations. Transport related to energy production (e.g. in fuel supply
system) can have different health impacts ranging from road accidents to exhaust gas
emissions.
Electricity use can also involve health risks but it can also positively affect the
health through, e.g. more safe lighting, possibilities for cold storage of food and vac-
cines, etc.
Household level electrification. At the household level systems the lack of infor-
mation of safety issues related to pico hydro production have caused several accidents
in Laos. Biogas production, if used for electricity production, can have positive health
impacts through destruction of pathogens in manure.
Village level electrification. Village level systems may suffer from inadequate fol-
lowing of norms in electricity installations especially if there is lack of technical
capacity.
Multiple village level electrification. At multiple level village systems the 24/7
power production can provide possibilities for use of refrigerators and freezers for
improved food hygiene and vaccine storage having positive effects on health.
226 Jyrki Luukkanen et al.

National level electrification. Large-scale electricity production systems also have

direct and indirect health impacts. For instance large-scale hydro production can increase
diseases such as Malaria, Dengue Fever, Schistosomiasis and Fasciolopsiasis due to the
lowered oxygen levels in reservoirs caused by biomass decomposition. Health impacts of
large-scale combustion plants can also be considerable even though, when calculated per
produced kilowatt hours, the large-scale systems cause usually much less health risks due
to better technology, maintenance and professional operation.

5. Conclusions
Analysis of the discourses in the STEEPV framework indicates that the approach in
developing electricity production and electrification systems do not cover all fields of
action with similar emphasis. Local small-scale discourse mainly emphasise social
and environmental field while the energy efficiency discourse emphasises technological
and economic fields.
If we analyse the main discourses related to electricity production and electrifying
rural areas in the STEEPV framework we can find that the discourses usually concen-
trate on and emphasise only few aspects. The small local production discourse relying
mainly on the populist approach normally emphasises the social and environmental
aspects. In some cases the political field is also emphasised when decentralisation is
seen as an important component. The scale issue in this discourse seems to concentrate
on the idea that local small-scale systems do not have larger scale impacts. This can,
however, be questioned in several cases, where the cumulative impacts of small dis-
persed projects can be considerable.
Within the energy efficiency discourse the emphasis is often on technological
aspects, but economic aspects are also seen to be important. Due to discourse struc-
turation the environmental aspects have been taken into account in this discourse and
often they seem to form the main argumentative tool emphasising low emission and
efficiency. In this discourse the social aspects are not so much dealt with even though
the poverty reduction component is, naturally, always mentioned. The political field
is usually not emphasised although in some cases, e.g. the regional development in
ASEAN, it is used as an argument. The scale issue is often not discussed and
especially the multi-location impacts/benefits are not thoroughly analysed. These
can be of great importance especially when the systems are large scale with possible
impacts in foreign countries as can be seen in the large hydro dam projects in the
Mekong Region.
The co-existence of different scale electricity production and distribution system will
be the practice in many developing countries in the near future. The target of the political
decision makers at the national level both in Laos and Cambodia is to have grid-level
electricity for all the households at a certain point of time. This means that the grid con-
struction, including both high voltage transmission and low voltage distribution, will be
an important target in the future. The trend seems to be towards larger systems, where the
 Forum for Development Studies 227

whole country is connected to the same grid. The household level electrification and
small grid systems are planned to be connected to the central grid at some point of
time when the extension projects reach these installations. In the electrification
discourses the drivers behind this development are argued to be mainly technical and
economic. The impact of the discourse emphasising local small-scale production is
mainly seen in the fact that governments and donors are financing small-scale system
constructions, which are, however, mainly seen to be a solution only for the transition
phase.
It can be concluded that the energy efficiency discourse emphasising mainly the
techno-economic factors in the electrification process seems to be the dominant dis-
course, but there is clear structuration of this discourse, where some elements from
the competing discourse of local small-scale production have been absorbed.
In this article we have successfully carried out a theoretical exercise which high-
lighted various aspects related to different scales of energy production and electrifica-
tion. We were able to integrate different dimensions of sustainability into a single
framework while deepening the analysis with the use of the STEEPV approach.
However, more case studies are clearly needed in order to be able to have a broader
understanding of the whole spectrum of factors and their interlinkages, which influence
different dimensions of sustainability.

Notes on contributors
Jyrki Luukkanen has a PhD from Tampere University of Technology in 1994. He works
as a senior researcher in Finland Futures Research Centre in the University of Turku,
Finland. He has been a leader of several research, development and training projects
and carried out fieldwork in Laos and Cambodia.
Visa Tuominen holds a MSocSc in international relations. He has been working at
Finland Futures Research Centre since 2010 on issues relating to energy, climate
change and development cooperation focusing on Cambodia and Laos.
Jarmo Vehmas has a PhD in admin sciences from the University of Tampere. He has
been working at Finland Futures Research Centre for 10 years. He has been a leader
of several research projects on issues relating to energy, indicators and sustainable
development.

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APPENDIX 1
Case 1: Anlong Tamey village level electrification

Anlong Tamey village in Battambang Province, Cambodia, was electrified in 2 phases in 2005
and 2006. The capacity of the first power plant was 7 kWe and the second 20 kWe. Both of the
power plants are based on gasification of biomass and running the engine of the generator with
the producer gas. The biomass for the gasification has been mainly farmed Leucaena trees and
corn cobs. The first phase was funded by the Canada Fund and the second phase by UNDP GEF/
SGP with an additional loan from E+Co.
Community Electricity Cooperative (CEC) in Anlong Tamey is a member owned system
and had 239 households from 4 villages connected to the grid. The grid length was about
2 km and the electricity fee was 1500 riel/kWh (0.375 USD/kWh). Electricity is mainly used
for lighting, TV and other entertainment equipment and fan. Many still use batteries and kero-
sene lamps when the gasifier is not working.
Local villagers grow the Leucaena trees and sell them to the CEC. Cows can eat the leaves of
the tree and as a nitrogen fixing plant it improves the fertility of the soil. According to the inter-
views of the villagers (by Pia Pyykko) there were several benefits from the electricity: The life
continues after dark; Possibility to cook in the evening; Business hours continue after the dark;
Children can study in the evening; People can relax with TV; New information, ideas and under-
standing from TV programs; Income from selling Leucaena; Some cows are fatter when they eat
the leaves.
According to the interviews: ‘Anlong Tamey is a happy village; because we have now cheap
electricity and lights in the evening and street lights as well; People come to spend their time
along the road because of the lights and TVs and shops staying open; lighting and TV are
230 Jyrki Luukkanen et al.

also good for relaxing, they are good for your mental health; They are good for loneliness and
good after a hard working day’.
There were also some difficulties according to the interviews. The demand for electricity
was higher than the available supply during the evenings. The electricity was not available
for the whole day (and night), which made it difficult to start business that would require con-
stant supply. There were also quite often technical problems with the gasifier, which caused a lot
of interrupts in the power supply. The village grid was installed only along the road which means
that houses situated more that 50 m from the road were not connected causing some discord in
the villages. Villagers earned some income by selling Leucaena trees to the power producing
cooperative but there was not enough of land in the village for growing trees.
In addition, according to the interview in the company which installed the gasifier (Decem-
ber 2009), one problem with the system is that there has not been any daytime load (and no night
time load). This means that the expensive investment is standing idle most of the time. An irri-
gation system based on daytime pumping for vegetable growing was planned to have electricity
load during the daytime. The irrigation project was financed by GEF Small Grants Programme
(see UNDP, 2011). The irrigation project was, however, not successful due to low participation
by the local farmers.
According to an economic analysis of the Anlong Tamey case the CEC cannot produce
enough of income to pay the investment and operation costs. This is mainly due to the low
level of load factor of the power plant, which does not have daytime and night-time load.

APPENDIX 2
Case 2: Electrifiction in Batt Daeng, multiple village level electrification

The case study area, where Batt Daeng Electricity Company supplies electricity is situated in
Odong district, Kampong Speu province, about 50 km from Phnom Penh. The company pro-
vides electricity for 17 villages. About 80 per cent of the households in the villages, altogether
950 households, are connected to the local grid. Also some local enterprises are connected to the
grid. These include a bakery, a mobile phone base station and a window manufacturing
company.
The generation plant consists of 200 kWth biomass gasifier and 3 diesel engine driven gen-
erator gensets. The producer gas is mixed with the combustion air and 10 –15 per cent of the total
fuel amount is diesel oil injected into the cylinders as in normal diesel operation (dual fuel
mode). The household connection fee to the local grid is 45 USD including metering. Electricity
price for the households is about 0.55 USD/kWh. The transmission and distribution grid consists
of 5 km of 22 kV lines and 20 km of 220 V grid.
Batt Daeng company buys rice husk for gasification from close by rice mils. The gen-sets are
running on diesel during the night-time and in dual fuel mode during the 18 h of daytime. The
diesel costs have reduced due to the rice husk use from 10,000 USD to 3500 USD per month.
According to the economic analysis the Batt Daeng Electricity Company seems to be profitable
with the considerably high electricity price of 0.55 USD per kWh (see Majanne et al., 2010).
For the economics of the system it is of crucial importance that there is 24 h/7 day consumption
of electricity. The night-time and daytime electricity consumption mainly comes from the enter-
prises. The mobile phone base station is an important provider of base load during the night-
time. In addition to the investment costs, the operation costs of the plant are crucial. The use of
rice husk as a primary fuel has required the increase of workforce from previous 5 workers to
11 workers to run the generation plant and to maintain the plant and the distribution grid.