With Cambodia’s energy demand rising each year, the country is increasingly turning to renewable energy, transitioning away from traditional forms of power and piquing investors’ interest.Â
In 2024, the Kingdom’s total electricity consumption reached 19,419 gigawatt hours (GWh), up from just over 16,800 GWh the previous year, according to the Electricity Authority of Cambodia. The energy mix is diverse, with hydropower (1,331 MW) and coal-fired plants (1,025 MW) being the dominant sources, but despite its reliance on traditional energy sources, Cambodia has been making steady progress toward integrating more renewable energy into its grid.
In 2022, clean energy sources accounted for more than 62% of the country’s total energy consumption, Minister of Mines and Energy Keo Rattanak said during a forum on “Mines and Energy Policy in Cambodia”. Although solar energy’s share is still relatively small, the government has ambitious plans to expand its role in the energy sector.
Cambodia’s solar industry has been growing rapidly, according to the ASEAN+3 Macroeconomic Research Office. The institution noted that the country’s installed solar power capacity reached 437 MW in 2022, and there are plans to increase this figure significantly. The country’s solar panel exports have also surged, it said, reaching $1 billion in 2022 and doubling to $2.1 billion in 2023. Interestingly, solar panels now account for 4.6% of Cambodia’s total exports, up from just 1.4% in the previous year.
And the solar sector is projected to be Cambodia’s fastest-growing power source, with an annual growth rate of 14.34% in electricity generation, the Economic Research Institute for Asean and East Asia has reported, with its growth being driven by government initiatives to promote renewable energy, investment incentives for solar projects, and the declining costs of solar technology.
With Cambodia’s energy demand continuing to rise, the country’s push toward renewable energy, particularly solar, demonstrates a strong commitment to sustainability and energy security. As investments in solar infrastructure grow and technology advances, Cambodia is well-positioned to become a regional leader in solar energy production and exports.
