Energy Use and Trends in Cambodia: A 2025 Perspective
Cambodia is undergoing a significant transformation in its energy sector, balancing economic growth with sustainability. The government is implementing energy efficiency policies, expanding renewable energy sources, and modernizing infrastructure to reduce electricity costs and improve accessibility. With ambitious plans set for 2030, 2025 stands as a crucial year in shaping Cambodia’s energy future.
Energy Efficiency Standards and Policy Shifts
In early 2025, the Minister of Mines and Energy, Keo Rottanak, announced a new policy to prohibit the import of energy-inefficient appliances, such as outdated air conditioners and incandescent light bulbs. This initiative aims to save 1,500 megawatts of electricity by 2030, equivalent to over 50% of Cambodia’s current consumption.
The policy will be enforced through the Ministry of Economy and Finance, working alongside customs and tax departments to regulate imports. By setting clear electrical efficiency standards, Cambodia aims to minimize wasteful energy consumption, potentially eliminating the need for additional power plants.
The State of Electricity Supply in Cambodia
Electricity in Cambodia remains among the most expensive in the region due to a lack of integrated high-voltage transmission systems and dependency on imported fossil fuels. The government has made substantial progress, with 88.4% of households gaining access to quality electricity by the end of 2022. However, some rural villages still rely on generators or off-grid solutions due to geographical challenges.
Currently, Cambodia has two types of electricity licensees:
- Independent Power Producers (IPP): These companies generate and sell electricity to suppliers or industries through Power Purchase Agreements (PPA).
- Consolidated Licensees: These entities handle generation, transmission, and distribution, selling power directly to consumers.
Cambodia’s Power Generation and Energy Mix
As of 2023, Cambodia’s total installed capacity stood at 4,945 megawatts (MW), sourced from a combination of:
- Hydropower (1,331 MW)
- Coal-fired plants (1,025 MW)
- Oil-powered plants (642 MW)
- Solar energy (437 MW)
- Imported electricity (1,030 MW) from Thailand, Vietnam, and Laos
The government has pledged to cease new coal power plant investments after 2024 and prioritize renewable energy, aligning with its Power Development Master Plan (PDP) 2022-2040. In March 2023, Cambodia launched the Principles for Permitting the Use of Rooftop Solar Power, ensuring transparency and accountability in solar energy adoption.
FACT
Cambodia’s total installed electricity capacity amounted to 5,044 megawatts (MW) last year, up 8.5 percent from 4,649 MW in 2023, a report from the Electricity Authority of Cambodia (EAC) showed on Monday.
The amount of energy consumed from electricity sources increased from 16,804 million kilowatt-hours in 2023 to 19,419 million kilowatt-hours in 2024, said the source, stating that the report was released in the EAC’s annual meeting to review work achievements in 2024 and set forth new work direction for 2025.
The meeting was presided over by H.E. Keo Rottanak, Minister of Mines and Energy, and EAC Chairman H.E Yim Piseth, with the participation of representatives from relevant ministries and institutions, Rural Electricity Association, local authorities, consumers and electricity providers.
The main sources of renewable energy in the Kingdom are hydropower, solar energy and biomass energy. The country also buys electricity from neighbouring countries, especially during the dry season.
As of last year, 99.15 percent of the total 14,168 villages nationwide have access to electricity, the report pointed out.
Based on the Power Development Master Plan (PDP) 2022-2040, the Royal Government of Cambodia (RGC) announced that there would no more investment of coal power plants after 2024, and renewable energy would play a significant role towards Cambodia’s transition to clean energy.
The RGC approved on Sept. 23 last year power investment projects worth in total US$5.79 billion for 2024-2029, aiming at addressing the energy shortage.
The projects will increase Cambodia’s share of clean energy generation capacity to 70 percent by 2030 from more than 62 percent at present, according to the ministry.
Source: akp.gov.kh
Digital Transformation in the Energy Sector
To enhance customer experience and reduce inefficiencies, Cambodia’s Electricity Authority and Electricité du Cambodge (EDC) are embracing digital solutions:
- 95% of electricity bill payments will transition to online banking systems by the end of 2025.
- New electricity connections will be processed through the EDC app – Andriod and IOS.
- Automated customer service will replace manual phone calls, integrating social communication apps.
- Eliminating unofficial service charges, ensuring fair pricing and adherence to regulations.
The Future of Renewable Energy in Cambodia
Renewable energy is set to play a vital role in Cambodia’s energy transition. Several large-scale projects are in progress, focusing on:
- Solar farms expanding across provinces.
- Wind energy pilot projects exploring Cambodia’s potential for wind power.
- Hydropower modernization, reducing environmental impact while improving efficiency.
- Battery storage investments, ensuring stability in renewable energy supply.
By 2030, Cambodia plans for renewables to constitute a significant share of its energy mix, reducing dependency on imported fossil fuels.
Investment and Infrastructure Development
Cambodia requires an estimated $9 billion investment to develop new power plants and expand the national grid. Between 2022 and 2025, $2.5 billion has already been approved for key energy projects. Opportunities for investment include:
- Power generation and transmission equipment
- Diesel generator sales for rural areas
- Smart grid technologies to enhance distribution efficiency
International development banks such as the World Bank and Asian Development Bank (ADB) continue to support Cambodia’s energy transition through funding and technical assistance.
Challenges and Opportunities Ahead
Despite progress, Cambodia faces challenges in achieving its energy goals:
- High electricity costs due to transmission inefficiencies and fossil fuel dependency.
- Limited rural access, requiring innovative off-grid solutions.
- Environmental concerns over hydropower projects impacting ecosystems.
- Regulatory hurdles in implementing solar power at a large scale.
Opportunities, however, are abundant. Cambodia’s push for energy efficiency, digital transformation, and renewable energy adoption creates a dynamic landscape for growth, investment, and innovation.
Conclusion
2025 marks a pivotal year in Cambodia’s energy transition, with bold policy measures and infrastructure investments shaping the sector’s future. The government’s energy efficiency standards, combined with advancements in renewable energy and digital services, will pave the way for a more sustainable, affordable, and reliable electricity supply. As Cambodia progresses toward its 2030 goals, continued investment and innovation will be crucial in ensuring an energy-secure future for the Kingdom.
Resources:
https://www.khmertimeskh.com/501633790/mptc-calls-to-enhance-digital-security-for-new-businesses/
https://energytracker.asia/electricity-in-cambodia/
https://chatgpt.com/c/67a17e42-9290-8011-b365-b5052f7d68bd
https://www.trade.gov/country-commercial-guides/cambodia-energy-power-generation-equipment