Cambodia Country Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in cambodia, prepared by at U.S. Embassies worldwide by Commerce Department, State Department and other U.S. agencies’ professionals
Select Country Guide
Energy; Power Generation Equipment
Last published date:

Overview

Electricity prices in Cambodia are among the most expensive in the region due to a shortage of integrated high-voltage transmission systems and the high cost of imported diesel fuel. Power in provincial cities is more expensive and less reliable than the supply in Phnom Penh. In very remote rural areas, the only source of electricity may be a small portable generator. The Government of Cambodia set a goal of electrifying all villages by 2020 and connecting at least 90 percent of all households to grid-quality electricity by 2030. At the end of 2024, 120 villages, or 0.85 percent of the total villages remain to be electrified due to geographical difficulties, and about 88.4 percent of households had access to electricity.

There are two types of licensees in Cambodia: (1) Independent Power Producers are licenses granted to companies to generate and sell electricity to suppliers or industries according to Power Purchase Agreements with that supplier or industry; while (2) Consolidated Licensees have generation licenses to transmit, dispatch, distribute, and sell electric power to consumers.

Major sources of local power generation are hydro and coal. Other sources include solar, fuel oil, and biomass. In addition to local power generation, Cambodia also buys electricity from neighboring countries, especially during the dry season. In 2024, Cambodia’s total installed capacity amounted to 5,044 megawatts (MW), while 672 MW of power was imported from Thailand, Vietnam, and Laos. The Electricity Authority of Cambodia (EAC) predicts that the total installed capacity will increase to 6,044 MW of electricity in 2025. Cambodia generated 1,796 MW from hydropower plants, 1,300 MW from coal-fired plants, 400MW of its energy from fuel oil, and 827 MW from solar.

In its Power Development Master Plan (PDP) 2022-2040, Cambodia announced that there would no more investment in coal power plants after 2024, and renewable energy (domestic and imported) would play a significant role towards Cambodia’s transition to clean energy. In March 2023, Cambodia launched the “Principles for Permitting the Use of Rooftop Solar Power,” to regulate rooftop solar installations which was later updated in 2024. The rooftop solar installation quota for 2025 is 30,000 kWac (30 MW), with a tiered compensation tariff structure based on system size. Small systems below 10 kWac have no compensation tariff applied. The compensation tariff for medium (10 kWac to 100 kWac) and large (100 kWac and above) systems range from $0.037/kWh to $0.060/kWh.

Cambodia aims to increase renewable energy’s share of its national energy mix to 70 percent by 2030, up from its current level of over 62 percent. In September 2024, the Cambodian Council of Ministers approved 23 power sector investment projects, totaling $5.79 billion, for implementation between 2024 and 2029. These initiatives include 12 solar power plants, six wind farms, a combined biomass and solar facility, an LNG power generation plant, a hydropower project, and two energy storage stations. Energy storage has been identified as a strategic priority by the government, with approved storage projects, a battery storage system, and a pumped hydro facility expected to deliver a combined capacity of 2,000 MW.

Leading Sub-Sector

There is tremendous demand in Cambodia for diesel generators as backup power, on-site power plants, and power generation in rural areas not served by public utilities. As with other types of infrastructure development, the government has only limited funding for power generation projects, but U.S. suppliers should check the state-run utility Electricité du Cambodge (EDC), World Bank, and Asian Development Bank (ADB) websites regularly for potential new projects in the energy sector. The Cambodian government has stated in its PDP that it will need $9 billion of investment to develop new power plants and expand the national grid, of which $2.5 billion has been approved between 2022 and 2025.

Opportunities

Opportunities exist for power generation, transmission equipment, energy storage solutions, energy efficiency solutions, and off-grid solar systems and appliances. The Cambodian government encourages use of solar energy technologies, but U.S. companies are advised to review new regulations that might impact their business practices.

Resources

  • Ministry of Mines and Energy

  • Electricité du Cambodge

  • Electricity Authority of Cambodia