Why are Cambodians switching to solar power?
Cambodia is at a crucial juncture in its energy sector, as it shifts its focus toward clean and sustainable power sources. Solar power, in particular, is gaining immense popularity in the Kingdom, driven by a combination of governmental support, technological advances, and the country’s geographical advantages.
This blog post explores in detail why solar power has become so popular in Cambodia, breaking down the reasons with data and highlighting key projects and investments, including recent developments involving Chinese firms in the sector.
The Rising Popularity of Solar Power in Cambodia
As Cambodia continues to industrialize, its energy demand is surging. According to the Ministry of Mines and Energy, Cambodia’s energy consumption grew by approximately 10% annually over the past decade. Solar energy is being viewed as an essential solution to meet this growing demand while aligning with global sustainable development goals (SDGs).
The Cambodian government has also approved several projects aimed at boosting renewable energy, including solar power. The push for solar energy stems from both environmental concerns and the desire for energy independence. By 2023, Cambodia had approved 23 energy projects, with 12 of them centered around solar power, marking a pivotal shift towards renewable energy.
But what exactly makes solar power so popular in Cambodia? Let’s break it down into seven major reasons.
1. Cambodia’s Geographical Advantage
Cambodia’s geographical location is highly conducive to solar power generation. The country receives abundant sunshine throughout the year, with an average solar irradiance of about 5 kWh/m²/day, one of the highest in Southeast Asia. This makes solar power not only viable but also highly efficient in the Cambodian context.
According to a report by the International Renewable Energy Agency (IRENA), Cambodia has significant potential to generate solar energy, especially during its dry season, which spans from November to April. The country’s long exposure to sunlight makes solar power a practical solution to meet its growing energy needs. Additionally, remote and rural areas that are not connected to the national grid can benefit immensely from off-grid solar solutions, allowing for decentralized power generation.
2. Governmental Support and Policy Framework
The Cambodian government is actively encouraging investments in renewable energy, particularly solar power. A key element of this support is the approval of policies that facilitate investment in clean energy. The Cambodia National Energy Policy, for example, aims to promote renewable energy by offering incentives, reducing bureaucratic hurdles, and creating a conducive environment for foreign and domestic investment.
The government’s Cambodia Energy Strategy 2040 also outlines a clear roadmap for integrating more renewable energy into the country’s energy mix. Solar power is expected to play a central role in achieving the government’s goal of increasing the share of renewables in Cambodia’s energy grid to 30% by 2030. This ambitious target demonstrates the government’s commitment to reducing the country’s reliance on imported fossil fuels while promoting green energy solutions.
In addition, Cambodia has benefited from global partnerships and funding aimed at increasing its renewable energy capacity. The Asian Development Bank (ADB), for example, has been instrumental in funding solar projects across Cambodia, further accelerating the transition to clean energy.
3. Chinese Investment in the Solar Sector
Chinese firms have played a critical role in Cambodia’s energy sector, and their recent interest in solar energy investment marks a significant development. In a meeting between the Cambodian government and a delegation of six Chinese companies—including Zhongjian Yongfeng New Energy Resources Technology Co., Ltd and China National Energy Group Longyuan Power Overseas Investment Company—the companies expressed strong interest in co-investing in Cambodia’s solar energy sector.
The Chinese firms sought to sign a memorandum of understanding (MoU) with the Cambodian government to launch joint projects, marking another step forward in the bilateral economic cooperation between the two nations. Chinese investment in Cambodia has surged over the past decade, contributing to the rapid industrialization of the country. With Chinese firms now exploring solar power projects, the future of Cambodia’s renewable energy looks even more promising.
According to the Council for the Development of Cambodia (CDC), China remains the largest foreign investor in the country, accounting for a significant portion of the $5.79 billion in energy investments approved in 2023 and 2024. The inclusion of solar projects in this investment portfolio highlights the growing role of solar power in Cambodia’s energy landscape.
4. Economic Growth and Rising Energy Demand
Cambodia has experienced rapid economic growth, with its GDP increasing by an average of 7% per year over the last decade. This growth has translated into a higher demand for electricity to power new industries, homes, and infrastructure projects. Traditional energy sources, such as hydropower and coal, have long dominated Cambodia’s energy mix, but they come with challenges such as fluctuating water levels and high greenhouse gas emissions.
Solar energy offers a clean, reliable, and increasingly affordable alternative. The cost of solar photovoltaic (PV) technology has dropped significantly over the past decade, making it a competitive option for Cambodia’s growing energy needs.
The Cambodian government is keen on diversifying its energy sources to reduce dependency on fossil fuels and avoid energy shortages. As Cambodia’s industrial sector expands, solar power provides an efficient and scalable solution to meet rising energy demand without the environmental costs associated with fossil fuels.
5. Sustainability and Environmental Concerns
One of the most compelling reasons for the popularity of solar power in Cambodia is the global and local shift towards sustainability. As part of its commitment to the Paris Agreement and the United Nations Sustainable Development Goals, Cambodia is actively working to reduce its carbon emissions. Solar power is a key component of this strategy, as it allows the country to produce clean energy without relying on polluting sources like coal or oil.
The environmental benefits of solar energy are substantial. Solar power produces zero emissions and requires minimal water for operation, making it a sustainable choice for Cambodia, a country that faces seasonal water shortages. Furthermore, the adoption of solar energy contributes to preserving Cambodia’s rich biodiversity, which is under threat from deforestation and climate change.
The Cambodian government has approved 21 electricity generation projects with a total capacity of 3,950 MW, predominantly from clean energy sources, including solar and wind. These projects represent a significant step toward meeting Cambodia’s renewable energy targets and reducing its carbon footprint.
6. Technological Advancements and Affordability
The rapid advancement of solar technology has made it more affordable and accessible to both consumers and businesses in Cambodia. Solar panels are becoming increasingly efficient at converting sunlight into electricity, and the costs associated with installation and maintenance have decreased considerably.
According to a report by Bloomberg New Energy Finance (BNEF), the cost of solar photovoltaic (PV) modules has dropped by nearly 90% since 2010. This trend has made solar power one of the most cost-effective energy solutions in Cambodia, where high electricity costs have traditionally been a barrier to development.
In addition, innovations in battery storage systems have made it possible to store solar energy for use during the night or cloudy days, further increasing the reliability and attractiveness of solar power. As these technologies continue to improve, solar energy will become an even more viable option for Cambodia’s energy needs.
7. Energy Independence and Security
Cambodia currently imports a significant portion of its energy from neighboring countries such as Vietnam, Laos, and Thailand. This reliance on energy imports makes the country vulnerable to fluctuations in energy prices and supply disruptions. Solar power offers a way to reduce this dependency and increase energy security.
By investing in solar energy infrastructure, Cambodia can produce its own clean electricity, reducing the need for imported energy and enhancing national energy security. Solar power can be generated locally, even in remote areas that are not connected to the national grid, providing a decentralized energy solution that empowers local communities.
This move towards energy independence aligns with the Cambodian government’s long-term vision of achieving energy security while also promoting sustainable development.
Chinese Firms Mulling Solar Power Investment in Cambodia
In recent developments, a group of six Chinese companies has shown strong interest in investing in Cambodia’s solar power sector. These companies are seeking support from the Cambodian government to co-invest in solar energy projects, signaling a growing confidence in Cambodia’s renewable energy potential. The companies involved include Zhongjian Yongfeng New Energy Resources Technology Co., Ltd and China National Energy Group Longyuan Power Overseas Investment Company, both of which have a proven track record in the energy sector.
During a meeting between Chea Vuthy, Secretary General of the Council for the Development of Cambodia (CDC), and a delegation of companies, the Chinese firms expressed their desire to sign a memorandum of understanding (MoU) to formalize their investment in Cambodia’s solar energy projects. The delegation also included representatives from the Xinyang Chamber of Commerce, Henan Province, China, which invests in energy, industry, and international trade.
The proposed investment projects come at a time when Cambodia is actively seeking foreign investment to boost its renewable energy capacity. The involvement of Chinese companies, known for their expertise and technological advancements in solar power, is expected to significantly accelerate Cambodia’s transition to clean energy.
Solar Power as the Future of Cambodia’s Energy
In conclusion, solar power is becoming increasingly popular in Cambodia due to a combination of factors including geographical advantages, governmental support, technological advancements, and foreign investment. Solar energy not only offers an environmentally sustainable solution to Cambodia’s growing energy needs but also provides a pathway to energy independence and economic growth.
With significant investments from Chinese firms and the Cambodian government’s commitment to renewable energy, the future of solar power in Cambodia looks bright. The transition to solar energy will play a crucial role in shaping the country’s energy landscape in the years to come.
Share Your Thoughts!
What do you think about the rise of solar power in Cambodia? Do you believe it will become the dominant energy source in the country? Share your thoughts in the comments below!