(Manila): The Asian Development Bank (ADB) has approved a USD 63.44 million financing package to accelerate the integration of renewable energy into Cambodia’s power system, strengthen grid stability and energy security, and bolster cross-border power trade.
The Utility-Scale Battery Energy Storage Project in Cambodia will support the construction of a 250-megawatt/500-megawatt-hour battery energy storage system at the Takeo substation. The facility will store excess renewable energy and dispatch it back to the grid to manage peak loads and stabilize fluctuations.
This will help meet growing electricity demand from rapidly expanding industrial zones, agro-processing facilities, and urban districts in southern Cambodia. It will also drive cross-border electricity trade and grid interconnectivity with Viet Nam, including Cambodia’s power imports, contributing to the ASEAN Power Grid’s goal to achieve fully integrated electricity grid operations across Southeast Asia by 2045.
“Amid the global energy crisis, this project further reinforces Cambodia’s commitment toward clean energy transition,” said ADB Country Director for Cambodia Yasmin Siddiqi. “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’s energy sector relies heavily on imported fuel for power generation. Despite significant progress in expanding generation capacity, access, and transmission infrastructure, the Southeast Asian nation remains exposed to external price volatility and supply disruptions caused by geopolitical tensions and other external shocks that threaten grid stability and sustainability.
The project supports Cambodia’s target to achieve 70% renewable energy capacity by 2030 enabling greater integration of solar and other renewables. Once operational, it is expected to avoid up to 27,700 tons of greenhouse gas emissions annually.
The project will strengthen the capacity of Electricité du Cambodge (EDC)—Cambodia’s state-owned power utility—to manage advanced energy systems. It will also support the development of battery energy storage regulations and promote skills development, particularly for women, to increase female participation in the energy sector and in technical and leadership roles.
The financing package includes a USD 40 million concessional loan and a USD 5 million grant from ADB through the Asian Development Fund, along with USD 18.44 million in cofinancing from the Green Climate Fund and the United Kingdom through the ASEAN Catalytic Green Finance Facility.
ADB is a leading multilateral development bank supporting sustainable, inclusive, and resilient growth across Asia and the Pacific. Working with its members and partners to solve complex challenges together, ADB harnesses innovative financial tools and strategic partnerships to transform lives, build quality infrastructure, and safeguard our planet. Founded in 1966, ADB is owned by 69 members—50 from the region.
=FRESH NEWS
