The Asian Development Bank (ADB) has greenlit a US$63.44 million (AU$95.4 million) financing package to accelerate the integration of renewable energy into Cambodia’s power grid, enhancing energy security and boosting cross-border electricity trade.
The initiative, known as the Utility-Scale Battery Energy Storage Project, will fund the construction of a massive 250-megawatt/500-megawatt-hour battery energy storage system at the Takeo substation in southern Cambodia.
The grid-scale facility is designed to store surplus renewable energy and dispatch it during peak demand periods, effectively stabilising fluctuations on the national network.
This increased capacity will power rapidly expanding industrial zones, agro-processing facilities, and urban areas.
Furthermore, the project will drive interconnectivity and electricity trade with neighbouring Vietnam, supporting the broader ASEAN Power Grid objective of achieving a fully integrated regional electricity network by 2045.
“Amid the global energy crisis, this project further reinforces Cambodia’s commitment toward clean energy transition,” ADB Country Director for Cambodia Yasmin Siddiqi said.
“By strengthening the power grid with advanced battery storage, we are helping the country unlock more renewable energy while ensuring that families, farmers, and businesses benefit from safe, stable, and affordable electricity.”
Cambodia currently relies heavily on imported fossil fuels, leaving the nation exposed to global price volatility and supply shocks.
The new battery project directly supports Cambodia’s ambitious national target to reach 70 per cent renewable energy capacity by 2030. Once fully operational, the system is expected to abate up to 27,700 tonnes of greenhouse gas emissions annually.
The project will also upskill personnel at state-owned utility Electricité du Cambodge (EDC) and develop battery storage regulations, with a specific focus on boosting female participation in technical and leadership roles.
The comprehensive funding package comprises a US$40 million concessional loan and a US$5 million grant from the ADB, alongside US$18.44 million in co-financing from the Green Climate Fund and the United Kingdom.
