Cambodia is entering a pivotal moment in its energy history: in 2025, the country plans to add a massive 720 megawatts (MW) of solar power to its national grid — the largest annual solar capacity increase in the Kingdom’s history.
This ambitious move comes as part of a broader clean-energy transition under the national vision to raise the share of renewables to 70% by 2030, up from around 62% currently.
Such a big push raises many important questions — Why now? What does 720 MW really mean for energy supply and demand? How will households, businesses, and investors be affected? What challenges lie ahead, and what does this mean for Cambodia’s long-term green energy future?
In this article, we unpack the policy drivers behind the solar surge, break down the numbers, examine the economic, environmental and social impact, and offer a forward-looking view of Cambodia’s clean energy trajectory by 2030–2040.
Solar’s Leap: Why 2025 Is a Turning Point for Cambodia’s Energy Policy
The Policy Push: Clean Energy, No New Coal
The decision to ramp up solar in 2025 isn’t random — it aligns directly with government policy and long-term energy planning. Under the Power Development Master Plan 2022‑2040 (PDP), Cambodia committed to deepening its renewable energy mix, reducing reliance on fossil fuels, and phasing out new coal-fired power investments after 2024.
In line with that, in late 2024 the government approved 23 new energy projects — many of them solar, wind, hydro, or storage — with a total capacity of 5,950 MW slated for development by 2029.
Solar — with its becoming ever more cost-competitive — emerges as the backbone of the clean energy push. By adding 720 MW this year, Cambodia is making a statement: clean, renewable energy is no longer optional — it is central to the country’s energy future.
The Big Numbers: Installed Capacity & Energy Demand
As of 2024, Cambodia’s total installed electricity capacity reached 5,044 MW, up 8.5% from 2023.
That includes hydropower, solar, biomass, fossil-fuel and imported power. But solar still represents a relatively small share of total capacity. The 2025 solar addition will therefore raise the overall share of renewables, helping Cambodia move closer to its 70% clean-energy target by 2030.
From an energy planning perspective, this is critical: as electricity demand grows — driven by urbanization, industrial expansion, and rising living standards — Cambodia must scale up supply sustainably, and solar is the most scalable, modular, and relatively low-cost option available now.
What 720 MW Actually Means — Understanding the Numbers
Adding 720 MW of solar capacity is impressive — but what does it practically mean?
Rough Output and Share in the Grid
While MW is a measure of capacity (peak power), the real value lies in the electricity generated over time (kWh). Depending on sunlight hours, seasonality, and plant efficiency, a 720 MW solar capacity could generate several hundred to over a thousand gigawatt-hours (GWh) per year.
Given that in 2024 Cambodia consumed about 19,419 million kWh (≈19,419 GWh), the new solar power could meaningfully contribute to covering a growing portion of national electricity demand — especially during daytime peaks.
By increasing renewable generation, Cambodia reduces dependence on imported electricity or fossil-fuel–based power, helps stabilize energy costs, and improves energy security.
Renewable Energy Share & Future Capacity Targets
Under the PDP 2022-2040, Cambodia aims to have solar capacity of 1,005 MW by 2030, and scale up to 3,155 MW by 2040.
The 720 MW addition in 2025 thus represents a strong push to meet the 2030 target early. Once achieved, the solar contribution — alongside hydropower, biomass, and wind — will help deliver a robust renewable energy mix for decades to come.
Economic Impacts: Investment, Jobs, and Industrial Growth
A Magnet for Investors & Green Financing
The ambitious solar expansion and clean-energy commitment have attracted significant attention from investors. The 23-project approval (2024–2029) with 5,950 MW capacity demonstrates ambitious state commitment and regulatory clarity — both key signals for investors.
Solar farms, combined with supportive policy, make Cambodia an attractive destination for both local and foreign investors — especially those interested in building utility-scale solar plants, rooftop solar installations, or hybrid renewable energy + storage systems.
Moreover, as global ESG (Environmental, Social, Governance) and sustainability standards gain traction, investors looking for clean-energy assets may view Cambodia’s solar push as a long-term strategic opportunity.
Green Jobs and Economic Opportunities
Large-scale solar deployment is labor-intensive — from land acquisition, engineering, construction, installation, to ongoing operation and maintenance. This can translate into thousands of jobs, especially in rural provinces where many projects are planned.
Beyond direct employment, solar growth can stimulate ancillary sectors: logistics, energy storage, local component supply, service and maintenance, and even training/education programs in renewable energy — all contributing to economic development and Green-job creation.
Lower Energy Costs & Industrial Competitiveness
For businesses and factories — especially export-oriented manufacturing — reliable and cheaper electricity is a major competitive edge. As solar capacity increases and energy becomes greener and more affordable, Cambodia could become more attractive for both local and foreign manufacturers, potentially fueling industrial growth and increasing export competitiveness.
This is especially relevant given Cambodia’s historical growth in sectors like agro-processing, garments, and light manufacturing — sectors that consume significant energy.
Boosting Energy Security: Reducing Fossil Dependence & Imports
Less Reliance on Imports & Fossil Fuels
Currently, Cambodia supplements its own generation with electricity imports from neighboring countries and relies on hydropower, biomass, and some fossil fuel generation.
Expanding domestic solar generation helps reduce the need for imports, especially during peak demand. It supports energy independence and reduces exposure to external supply shocks or price volatility in fossil-fuel markets.
Cleaner Grid & Environmental Benefits
Increasing the share of solar and other renewables reduces greenhouse gas emissions, air pollution, and carbon footprint — critical for Cambodia’s environmental goals and for global climate commitments. With the solar push, Cambodia is not only providing power — it is building a cleaner, more sustainable energy system for future generations.
Improved Rural Electrification & Energy Access
Cambodia’s electricity coverage has already reached over 99% of villages by 2024.
Increased renewable energy capacity — especially with modular solar and potential off-grid or mini-grid systems — can improve reliability, support remote areas, and reduce dependency on fuel-based generators. This improves quality of life, supports rural development, and bridges urban-rural disparities in access and cost.
Challenges & Risks: What Cambodia Must Overcome
While the solar expansion is promising, it isn’t without challenges. Success depends on the government, private sector, and communities navigating a number of structural obstacles.
Grid Integration & Stability: The Intermittency Problem
Solar power, by its nature, is intermittent — production peaks during the day, and drops at night or during cloudy weather. Without adequate storage or grid balancing mechanisms, this can lead to instability, wasted capacity, or supply gaps.
To address this, the energy plan includes integration of Battery Energy Storage Systems (BESS), as well as reliance on hydropower and other sources.
However, building and financing storage, upgrading transmission and distribution infrastructure, and ensuring grid resilience will require significant investment and long-term planning.
Financing, Investment Risk & Project Execution
Large-scale solar and hybrid projects require upfront capital — land acquisition, construction, grid interconnection, operation. While Cambodia has approved numerous projects, execution remains critical. Delays, financing gaps, regulatory hurdles, or lack of technical capacity could hinder the plan.
Experts estimate that investment needs of about US$9 billion are required through 2040 to build new power plants and expand the grid.
Ensuring robust public-private partnerships, transparent regulations, and investor safeguards will be essential to attract and sustain investment.
Diversification Beyond Solar — Weather, Resource Limits, and Long-Term Balance
While solar is a central plank, relying solely on one source can pose risks. Seasonal variations, weather patterns, and resource limitations make diversification critical.
The PDP foresees a balanced mix — solar, hydropower, biomass, and possibly wind — to ensure stability.
If Cambodia neglects complementary sources (hydro, biomass, wind) or delays storage and grid upgrades, the benefits of solar expansion might not fully materialize.
Looking Ahead: Cambodia’s Renewable Energy Strategy (2030–2040 and Beyond)
Solar, Hydro, Biomass, Wind — A Diversified Renewable Mix
According to PDP 2022-2040, Cambodia plans to increase solar capacity to 1,005 MW by 2030, and eventually reach 3,155 MW by 2040. Hydropower, biomass, and potentially wind (as technology and investment allow) will complement solar in a diversified energy portfolio.
This diversified approach helps ensure energy reliability, reduce seasonal risk, and balance the grid across different weather conditions and demand cycles.
Big Investment Pipeline: The 5,950 MW Projects & Beyond
The 23 energy projects approved in 2024 total 5,950 MW capacity and cover solar, wind, hydro, storage, and hybrid projects.
If executed properly, this pipeline could reshape Cambodia’s power sector — delivering clean, reliable, and affordable electricity, stimulating economic growth, attracting FDI, and supporting green-job creation across the country.
Long-Term Benefits: Energy Independence, Sustainability & Competitiveness
By 2030 and beyond, Cambodia could emerge as a regional leader in clean energy adoption among ASEAN countries (excluding hydropower-dominant countries like Laos). Already, the government projects 70% clean energy share by 2030.
This will not only meet domestic demand but could attract energy-intensive industries (manufacturing, processing), reduce electricity costs, and support sustainable development goals.
What This Means for Stakeholders — Government, Investors, Businesses, and Citizens
For Policymakers & Regulators
- Continue to encourage and streamline investment — through transparent permitting, incentives, and supportive regulation.
- Prioritize grid upgrades, storage infrastructure, and integration planning to absorb intermittent renewables.
- Ensure rural access, affordability, and equitable energy distribution as growth happens.
For Investors & Developers
- The 2025 solar wave presents significant investment opportunities — solar farms, solar + storage, rooftop solar for commercial/industrial use, and hybrid renewables.
- Participation in the 23-project pipeline offers potential long-term returns.
- Consider ESG and sustainability positioning: clean energy investments can attract global green-finance funds.
For Businesses & Industries
- As electricity becomes cleaner and more reliable, manufacturing and energy-intensive industries stand to benefit — lower energy costs, green credentials, and supply-chain advantages.
- Potential to adopt on-site solar generation or renewable contracts, reducing reliance on grid imports.
For Citizens & Communities
- Better energy access, especially in rural or previously underserved areas.
- Cleaner air, reduced pollution, and contribution to climate change mitigation.
- Potential for employment in green energy projects (construction, maintenance, services).
Risks and What Could Go Wrong — Realistic Challenges Ahead
- Delays in project execution, financing, or permitting could stall capacity targets.
- Without adequate storage or grid upgrades, intermittent supply may lead to instability, especially during dry seasons or cloudy periods.
- Over-reliance on imported solar components or external financing could expose projects to global supply chain risks or price volatility.
- If demand growth outpaces supply — even with 720 MW solar addition — energy shortages or blackouts may persist.
- The need for long-term maintenance, skilled workforce, and regulatory oversight to ensure reliability, safety, and sustainability.
Conclusion: Cambodia’s Green Energy Future Looks Bright — But Success Requires Commitment
The planned addition of 720 MW of solar power in 2025 marks a bold and forward-looking step for Cambodia — demonstrating clear policy commitment, long-term vision, and an embrace of clean, sustainable energy.
If executed effectively, this expansion could reshape the country’s energy sector: delivering cheaper, cleaner electricity; powering economic development and investment; supporting rural electrification; and positioning Cambodia as a clean-energy leader in Southeast Asia.
However, achieving the full potential of this transition requires more than building solar farms. It demands strong regulatory frameworks, infrastructure upgrades, storage solutions, diversified renewable mix, robust financing, and inclusive planning that benefits all Cambodians.
For investors, businesses, and citizens alike — the 2025 solar push opens a window of opportunity. Engaging now could mean becoming part of Cambodia’s green-energy transformation.
Call to Action
- Investors & developers: Explore new solar, storage, or hybrid clean-energy opportunities under Cambodia’s 2025–2030 clean-energy roadmap.
- Business owners: Evaluate energy needs and consider switching to solar or renewables for long-term cost savings and sustainability.
- Policymakers & energy regulators: Prioritize grid upgrades, storage solutions, and transparent permitting to ensure stable renewable integration.
- Citizens & communities: Support green-energy initiatives, advocate for clean energy access in rural areas, and consider renewable options for homes and businesses.
Together, Cambodia’s solar expansion can help build a cleaner, greener, and more resilient future — one megawatt at a time.
References
Asian Development Bank (ADB). (2024). Cambodia Energy Sector Assessment, Strategy, and Roadmap.
Electricite du Cambodge (EDC). (2024). National Solar and Renewable Energy Development Updates.
International Energy Agency (IEA). (2023). Southeast Asia Energy Outlook.
Ministry of Mines and Energy (MME), Cambodia. (2024). Cambodia Power Development Master Plan (PDP) 2024–2040.
World Bank. (2024). Cambodia Economic Update: Energy Transition and Infrastructure Competitiveness.
United Nations Development Programme (UNDP). (2024). Sustainable Energy for All: Cambodia Progress Report.
Reuters. (2024). “Cambodia Plans 720 MW of New Solar Investments to Meet Growing Demand.”
Phnom Penh Post. (2024). “Government Greenlights Large-Scale Solar Projects for 2025 Rollout.”
Khmer Times. (2024). “Renewable Energy Push: Solar to Play a Bigger Role in Cambodia’s Grid Stability.”
ASEAN Centre for Energy (ACE). (2024). ASEAN Renewable Energy Statistics.
Global Solar Council. (2024). Asia-Pacific Clean Energy Investment Trends.