Arya News - The 100-megawatt facility began contributing to lower electricity costs and reduced reliance on imported energy when it began full-scale operations in late 2024.
PHNOM PENH – Cambodia’s ambition to strengthen energy security and accelerate its transition toward clean power took a major step forward with the National Solar Park in Kampong Chhnang province, a 100-megawatt facility that began contributing to lower electricity costs and reduced reliance on imported energy when it began full-scale operations in late 2024.
The project marked Cambodia’s first large-scale competitive solar tender and represents a landmark partnership between the public and private sectors, with the support of the Asian Development Bank (ADB).
“One fourth of Phnom Penh’s power is supplied from this solar park,” said Praing Chulasa, managing director of Electricite du Cambodge (EDC), as he guided a February 18 tour of the facility.
Yasmin Siddiqi, ADB country director for Cambodia, described the project as emblematic of Cambodia’s broader transformation in power generation.
“This is the most exemplary project you see of Cambodia fast-forwarding on its agenda for development and economic diversification with inclusion of the private sector,” she said, during a site visit.
Cambodia’s electricity landscape has shifted dramatically over the past decade. In 2011, the country relied on imports for 64 per cent of its electricity supply. That dependency has steadily declined, now standing at around 10 per cent, according to Siddiqi.
The giant batteries powered by the 100-hectare solar park in Kampong Chhnang province. Hong Raksmey
The addition of 100MW of domestically generated solar power directly displaces imported electricity and fossil fuel-based generation, helping diversify the country’s energy mix.
Solar photovoltaic power now joins hydropower as a leading renewable source, reducing exposure to price volatility and seasonal variability.
“We understand that the EDC will continue leading the transition here, and we remain in close dialogue with both the EDC and the government of Cambodia to sustain our partnership over the longer term,” said Siddiqi.
“Through this collaboration, we aim to add value by contributing our knowledge, sharing logistical experience, and carrying out joint technical assessments with EDC,” she continued.
The solar park was structured with two investment components — public and private — in what ADB describes as its first project in Cambodia combining sovereign and non-sovereign operations.
Siddiqi said the public component financed critical infrastructure including a pooling substation, a 40-kilometre transmission line to the main grid, access roads, a bridge, fencing and drainage systems.
The total public project cost amounted to $26.71 million, comprising a $7.64 million concessional loan from ADB, a $3 million grant from the Strategic Climate Fund (SCF), $11 million in SCF co-financing loans and approximately $5 million in government contributions.
The private sector investment was mobilised through competitive international tenders for two phases — 60MW and 40MW solar photovoltaic plants. For the first 60MW phase alone, 26 bidders participated in the transparent bidding process.
A bird’s-eye view of the National Solar Park, a 100-megawatt facility that is already contributing to lower electricity costs and reduced reliance on imported energy. Supplied
Joao Aleluia, ADB energy specialist, said the high level of competition led to record-breaking efficiency.
“The project resulted in the lowest tariff for grid-connected solar PV in the whole region, at 3.87 US cents per kilowatt-hour,” he said.
That competitive pricing has translated into measurable savings for consumers. While household electricity tariffs averaged $0.185 per kWh in 2019, by 2024 they had fallen to $0.172 per kWh.
Industrial and agricultural users saw rates decline from $0.147 to $0.137 per kWh over the same period.
Aleluia stressed that the project’s success lies not only in cost reduction but also in institutional design.
“The project will serve as a blueprint,” he said, citing clear risk allocation between public and private actors.
“Land acquisition and grid connection were handled by the public institution, while construction and operation risks were taken by the private sector.”
A bankable Power Purchase Agreement (PPA) was also critical to attracting investors and ensuring financial viability.
Beyond economics, the solar park plays a significant role in Cambodia’s climate strategy.
Siddiqi stated the facility is expected to avoid at least 148,650 tonnes of carbon dioxide equivalent annually, or approximately 3.86 million tonnes over its 25-year lifespan.
Yasmin Siddiqi (right), ADB Country Director for Cambodia, and Praing Chulasa, managing director of Electricite du Cambodge, visit the solar park. PHOTO: THE PHNOM PENH POST
The project aligns with Cambodia’s Power Development Masterplan (2022–2040) and the national target of achieving 70 per cent renewable energy by 2030.
It also supports commitments under Cambodia’s Nationally Determined Contribution (NDC) to the Paris Agreement.
Aleluia emphasised that while Cambodia continues to reduce its dependency on imports, complete self-sufficiency is not necessarily the goal.
“Higher regional power integration in ASEAN can significantly enhance energy security,” he said, noting that cross-border interconnection allows countries to optimise generation resources and manage seasonal fluctuations, particularly during dry seasons when hydropower output declines.
The project aligns with Cambodia’s Power Development Masterplan (2022–2040) and the national target of achieving 70 percent renewable energy by 2030. Supplied
The solar park’s infrastructure, including a modernised substation and strengthened transmission network, enhances grid stability and prepares Cambodia for integrating higher shares of intermittent renewable energy.
ADB is also working with Electricité du Cambodge (EDC) on future tenders combining solar photovoltaic systems with battery energy storage, expected to be launched this year.
Capacity building has been another key outcome. A total of 524 participants — 56 per cent of them women — received training on renewable integration and grid management, strengthening national technical expertise.
Solar power is not only a strategic investment in energy security but also a commitment to environmental protection, according to Chulasa.
He stressed that expanding solar generation reflects Cambodia’s determination to pursue cleaner growth while meeting rising electricity demand.
“Solar energy is one of the most eco-friendly sources we can develop,” he said.
“It produces no fuel emissions, reduces our carbon footprint, and allows Cambodia to grow its economy without sacrificing environmental sustainability for future generations,” he added.
Under its Planning Directions for 2026, the ADB is integrating climate resilience across all operations to help countries like Cambodia address escalating climate-related risks.
The bank aims to help developing member countries avoid economic losses, unlock growth potential and protect vulnerable communities while ensuring sustainable environmental management.
“That its investments in natural hazard risk reduction are demand-driven and aligned with national priorities, supporting economic growth, poverty reduction and job creation,” said Siddiqi.
As Cambodia’s electricity demand continues to grow alongside economic expansion, the National Solar Park stands as a strategic investment — lowering costs, strengthening supply security and positioning the country for a greener and more resilient energy future.