Cambodia Investment Review
The Asian Development Bank (ADB) has approved a $52.72 million loan to support Cambodia’s Grid Expansion Project, aiming to strengthen the country’s transmission network and integrate more renewable energy sources into the national grid.
The project comes as Cambodia’s power demand continues to rise alongside rapid economic growth. Between 2020 and 2024, domestic electricity output more than doubled from 8.68 terawatt hours (TWh) to 17.85 TWh, while reliance on imports dropped by nearly half to 1.57 TWh. The shift underscores Cambodia’s progress toward greater energy self-reliance and its efforts to diversify supply with cleaner, locally generated power.
Expanding Infrastructure To Meet Rising Demand
The initiative will include the construction of 55 kilometers of 230-kilovolt transmission lines linking Pursat and Kampong Chhnang provinces, along with upgrades to nine substations across the country. These measures are designed to improve reliability, reduce transmission losses, and enable the grid to handle a growing share of solar and wind energy.
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“Reliable and affordable electricity is the backbone of Cambodia’s growth story,” said Jyotsana Varma, ADB’s Country Director for Cambodia. “This project is about more than building transmission lines—it is about connecting people, schools, hospitals, and businesses to a cleaner and more resilient energy future.”
Aligned With National Energy Goals
The Grid Expansion Project is aligned with Cambodia’s Power Development Master Plan (2022–2040) and the National Energy Efficiency Policy (2022–2030). Both strategies emphasize expanding renewable generation and improving efficiency as the country balances development with environmental sustainability.
ADB noted that the project is also expected to encourage greater private investment in Cambodia’s energy sector by modernizing infrastructure and lowering system risks.
ADB’s Broader Role
ADB has been a key partner in Cambodia’s development agenda, particularly in infrastructure and sustainability. Founded in 1966 and owned by 69 member countries, the Manila-based institution works with governments and private sector partners across Asia-Pacific to drive inclusive and resilient growth.
