Cambodia’s rapid expansion of renewable energy is increasingly becoming part of the country’s broader strategy to strengthen energy security, lower exposure to imported fossil fuels and improve industrial competitiveness.
From having less than 10% electricity access nationwide in the early 1990s, Cambodia has expanded electricity access to more than 99% of its villages. Renewable energy now accounts for more than 63% of total installed power capacity, putting the country on track to reach its target of at least 70% renewable energy by 2030.
The transition is also being positioned as an economic strategy, with the government linking reliable and affordable clean electricity to industrial development, foreign investment, export competitiveness and long-term climate resilience.
Key Facts
| Indicator | Details |
|---|---|
| Electricity access | More than 99% of villages |
| Renewable share of installed capacity | More than 63% |
| 2030 renewable energy target | At least 70% |
| Total installed power capacity in 2025 | 5,932 MW |
| Planned solar capacity in one cluster by end-2026 | More than 1,100 MW |
| Planned battery storage with solar cluster | 500 MW |
| Kampong Chhnang battery project | 250 MW / 500 MWh |
| Upper Tatay pumped storage project | 1,000 MW |
| Long-term carbon neutrality target | 2050 |
| Cambodia Climate Financing Facility initial capitalisation | $100 million |
From Limited Electricity Access to a Diversified Power System
Cambodia entered the 1990s with a fragmented electricity system and less than 10% nationwide electricity access following decades of conflict and infrastructure destruction.
Over the following three decades, long-term electrification programmes, public-private partnerships and investment in generation and transmission infrastructure transformed the country's power system.
Electricity access has now expanded to more than 99% of villages, while the national power mix has become increasingly diversified.
Hydropower and solar power have become major components of the renewable-energy system, reducing Cambodia's historical dependence on imported fossil fuels.
Renewable energy currently represents more than 63% of total installed power capacity, according to figures cited by Minister of Mines and Energy Keo Rottanak.
Cambodia Expands Generation and Storage Capacity
Cambodia's total installed electricity generation capacity reached 5,932 MW in 2025, creating a larger power base for households, businesses, rural development and industrial zones.
But increasing electricity demand is also putting pressure on the national grid.
The next stage of development therefore involves more than adding generation capacity. Cambodia is also investing in transmission networks, battery storage and technologies that can provide greater flexibility as variable renewable energy becomes a larger part of the system.
Cambodian companies are on course to deliver more than 1,100 MW of solar power in a single cluster by the end of 2026, accompanied by 500 MW of battery storage, Rottanak said.
The country is also advancing major storage projects, including a 250 MW/500 MWh battery energy storage system in Kampong Chhnang province, which has received financing approval from the Asian Development Bank.
Construction has also begun on the 1,000 MW Upper Tatay Pumped Storage project.
Major Clean Energy Capacity
| Project or development | Capacity |
|---|---|
| Solar cluster targeted by end-2026 | >1,100 MW |
| Battery storage accompanying solar cluster | 500 MW |
| Kampong Chhnang battery storage | 250 MW / 500 MWh |
| Upper Tatay Pumped Storage | 1,000 MW |
These projects are intended to help balance renewable generation and maintain reliable electricity supply as Cambodia increases the share of solar and other variable renewable sources.
Energy Security Becomes a Strategic Priority
Cambodia's electricity system still includes hydropower and coal alongside solar, fuel oil and biomass. Electricity imports from neighbouring countries have also played an important role, particularly during periods of higher demand and the dry season.
The suspension of electricity imports from Thailand in mid-2025 amid escalating border tensions highlighted the importance of domestic generation and energy security.
The broader volatility in international energy markets has reinforced the economic risks associated with dependence on imported fuels.
Higher fuel prices can affect transportation, household spending, agriculture and business operating costs. During periods of energy shortages and market disruption, these effects can extend well beyond the electricity sector.
Rottanak said the recent volatility in international fuel markets demonstrated why continued investment in domestic clean energy, storage and grid infrastructure is important.
EnergyLab Asia Regional Director of Energy and Economics Natharoun Ngo Son similarly argued that greater electrification combined with expanded renewable generation can reduce Cambodia's exposure to imported fossil-fuel price shocks.
Clean Electricity and Industrial Competitiveness
Cambodia's clean-energy transition is increasingly being linked to its ability to attract foreign investment and remain competitive in international markets.
For multinational companies, electricity is no longer considered only in terms of availability and price. The reliability and carbon intensity of electricity used in factories and supply chains are also becoming increasingly relevant as companies pursue lower-emission operations.
Cambodian officials have therefore highlighted clean energy as an increasingly important factor for investment, particularly in manufacturing sectors such as garments, footwear and electronics.
Rottanak said investors and international buyers are increasingly examining the reliability, cost and carbon intensity of electricity used across operations and supply chains.
He added that expanding access to clean and affordable electricity for transportation, businesses and industry could help Cambodia improve competitiveness, attract investment, create jobs and strengthen livelihoods.
Renewable Energy Certificates Could Support Exporters
The government is also preparing a framework for Renewable Energy Certificates (RECs).
The system is intended to allow businesses to credibly account for their use of renewable electricity and respond to changing expectations in international markets.
For export-oriented companies, such a framework could provide a mechanism for documenting renewable electricity consumption as international buyers increasingly examine environmental performance across their supply chains.
The development of the framework therefore connects Cambodia's domestic energy policy with the requirements of international trade and investment.
Green Finance to Mobilise Private Investment
The scale of Cambodia's energy transition requires significant investment beyond government spending.
To support this, Cambodia has established a Green Finance Working Group, chaired by the National Bank of Cambodia, to coordinate policies, strategies and measures aimed at developing a broader green finance ecosystem.
The government has also launched the Cambodia Climate Financing Facility (CCFF), described in the source as Asia's first national climate-blended finance facility for the private sector.
The facility has an initial capitalisation of $100 million and aims to mobilise at least three times that amount in additional green investment, including renewable energy and energy-efficiency projects.
This financing approach is intended to help bridge the gap between the scale of investment required for the clean-energy transition and the funding available through conventional public resources.
Australia Supports Cambodia’s Clean Energy Transition
Australia is also supporting Cambodia's efforts to strengthen its clean-energy system.
Australian Ambassador to Cambodia Derek Yip said Australia is working with the Cambodian government to strengthen technical capacity and improve forecasting systems to support the integration of more solar, wind and hydropower into the national grid.
Through EnergyLab Asia, Australia is also supporting the development of Cambodia's first building energy code, as well as analysis of how clean energy can contribute to economic growth.
The cooperation reflects the technical challenges involved in integrating increasing volumes of renewable electricity into a national grid.
Generation capacity alone does not guarantee reliable supply. Cambodia will also need sufficient transmission infrastructure, forecasting, storage and grid-management capabilities.
Clean Energy and Climate Resilience
Renewable energy is also part of Cambodia's response to climate-related risks.
The government has positioned the clean-energy transition within a broader strategy to strengthen resilience while reducing reliance on fossil fuels.
Nathalie Andre, Country Representative of the Global Green Growth Institute Cambodia, said Cambodia's progress in renewable energy demonstrates the importance of maintaining momentum.
She also cautioned against complacency and emphasised the need to continue the transition rather than increase dependence on fossil fuels.
For Cambodia, the challenge is therefore increasingly about the quality and resilience of the power system rather than simply the amount of renewable generation.
The Grid Is the Next Critical Challenge
As renewable energy accounts for a larger share of Cambodia's installed capacity, the country's electricity infrastructure will need to become more flexible.
Solar and other variable renewable sources can produce electricity depending on weather and time of day. This makes storage, transmission and system management increasingly important.
The government is therefore moving forward with battery storage and pumped-storage hydropower while continuing to expand transmission infrastructure.
The next phase of the energy transition will require continued investment in:
Battery energy storage
Pumped-storage hydropower
Transmission lines
Grid connections
Smart-grid technologies
Energy forecasting
System flexibility and management
The objective is to ensure that increasing renewable generation translates into reliable and affordable electricity for households and industry.
Cambodia’s 2030 and 2050 Energy Goals
Cambodia's current energy roadmap is supported by the Power Development Master Plan 2022–2040, which provides a framework for new generation projects and expansion of the national electricity system.
The government is pursuing a target of at least 70% renewable energy by 2030, compared with the current level of more than 63% of installed capacity.
Cambodia has also established a longer-term ambition of achieving carbon neutrality by 2050.
The government's clean-energy strategy is therefore extending beyond electricity generation to broader economic objectives, including investment attraction, sustainable tourism, employment and industrial development.
Angkor Times Analysis
Cambodia's clean-energy transition is increasingly becoming an industrial competitiveness strategy, not simply an environmental programme.
The country's progress over the past three decades has created a substantially larger and more diversified electricity system. The next challenge is to make that system more resilient while ensuring that growing industrial and urban demand can be met at competitive prices.
The expansion of solar power, battery storage and pumped-storage hydropower is particularly important because Cambodia's renewable-energy target requires the country to manage a growing share of variable generation.
The investment case also extends beyond electricity supply. International manufacturers and exporters are increasingly paying attention to the carbon intensity of their operations and supply chains. Cambodia's ability to demonstrate access to reliable, affordable and lower-carbon electricity could therefore become increasingly relevant when competing for new investment.
The development of Renewable Energy Certificates could further connect Cambodia's electricity system with international supply-chain requirements by giving businesses a mechanism to document renewable electricity use.
At the same time, the transition has important financial and infrastructure requirements. Cambodia will need continued investment in generation, transmission, storage, grid management and green finance to ensure that renewable capacity translates into reliable power.
The country's progress toward the 70% renewable target by 2030 will therefore be measured not only by installed renewable capacity, but also by whether households, manufacturers and other businesses can consistently access electricity that is reliable, affordable and increasingly low-carbon.
Frequently Asked Questions
What percentage of Cambodia's installed power capacity is renewable?
Renewable energy accounts for more than 63% of Cambodia's total installed power capacity.
What is Cambodia's renewable energy target for 2030?
The government is targeting at least 70% renewable energy by 2030.
How much electricity capacity did Cambodia have in 2025?
Total installed power capacity reached 5,932 MW in 2025.
What major battery storage projects are being developed?
A 250 MW/500 MWh battery energy storage system is being developed in Kampong Chhnang province. Cambodia is also planning 500 MW of battery storage alongside a solar cluster expected to exceed 1,100 MW.
What is the Upper Tatay Pumped Storage project?
The Upper Tatay Pumped Storage project has a planned capacity of 1,000 MW and is intended to strengthen electricity storage and system flexibility.
Why is clean energy important for Cambodia's manufacturers?
Reliable, affordable and lower-carbon electricity can help manufacturers manage operating costs, reduce exposure to fossil-fuel price volatility and respond to growing environmental expectations from international buyers and supply chains.
What is Cambodia's long-term climate target?
Cambodia has set a long-term ambition of achieving carbon neutrality by 2050.
Conclusion
Cambodia's electricity system has undergone a major transformation from limited nationwide access in the early 1990s to more than 99% village-level access today.
With renewable energy already accounting for more than 63% of installed capacity, the country is entering a new stage in which clean electricity is increasingly connected to industrial competitiveness, investment attraction, energy security and climate resilience.
The next phase will require Cambodia to expand not only renewable generation but also storage, transmission, grid flexibility and green finance.
If these elements develop together, the clean-energy transition can become an important foundation for Cambodia's efforts to build a more resilient, competitive and diversified economy through 2030 and beyond.
Sources
Ministry of Mines and Energy, information and statements cited in the source article.
EnergyLab Asia, statements cited in the source article.