Solar energy in Cambodia is becoming an increasingly important part of the country’s long-term energy and climate change mitigation strategy. Solar power in Cambodia currently only makes up around 7% of the country’s energy mix, significantly lagging behind hydropower and non-renewable sources. However, considering the country’s historical energy mix, the existing solar capacity appears positive. As of 2011, Cambodia had no solar power plants, and solar energy was not a part of the country’s energy mix.
Cambodia’s current installed solar capacity is slightly over 400 MW, but the country is targeting 3.1 GW by 2040. This projected growth in solar power production reflects not only ongoing technological advancements but also a growing recognition of Cambodia’s vast solar energy potential. Only a small fraction of the country’s solar energy potential is currently being harnessed, an opportunity for future expansion.
Cambodia’s geographical location and climate conditions position it as a solar power hotspot with potential that surpasses many of its regional neighbours. Studies show that the country receives a daily solar irradiance of 5 kWh per square m and an average of eight hours of sunlight daily. Furthermore, the central portion of the country receives the highest rate of solar irradiance at 5.6 kWh per square m. Neighbouring Vietnam gets 4-5 kWh per square m, Thailand receives 4.9 kWh per square m, and Laos gets 3.6-5.5 kWh per square m.
Solar energy in Cambodia is the country’s second most promising clean energy source behind hydropower. Hydropower remains Cambodia’s most developed renewable energy source but also has its own challenges – such as yearly variability due to droughts and floods. In response, the Cambodian government is working to diversify the country’s renewable energy resources, with solar being the primary focus.
One of the promising traits of solar energy in Cambodia is its cost. The average electricity price for solar power is around USD 0.03 per kW, significantly lower than that of coal, which is USD 7.7 per kW. This price disparity positions solar as a great alternative to existing non-renewable capacity and will play a significant role in incentivising solar growth.
The primary drivers of the low cost of solar energy are solar panels price decline and technological improvements. Since 2010, global solar panel prices have fallen by 60-80%, and solar panel efficiency has increased by 30%. The global average levelised cost of electricity for solar energy is now cheaper than fossil fuel options.
Not only does solar energy help Cambodia achieve its 2050 net-zero emissions target, but it will also help the country overcome several major challenges that its current energy system faces. First, the country’s rapid economic and population growth over the past 15 years has significantly increased energy demand. This has led to energy demand exceeding the existing supply. Meanwhile, the robust growth of the solar energy sector can help fill this gap.
Second, the existing energy infrastructure and network in the country are ageing, which leads to unreliable energy access and stability issues. Solar development will increase investment in modernising the existing energy infrastructure. Plus, off-grid solar and micro-grids will help electrify rural regions that often face the largest energy access issues.
Finally, Cambodia’s energy prices are some of the highest in the ASEAN. A combination of poor government policy and expensive energy sources drives this. Solar energy, along with other renewable energy technologies, is a viable, low-cost alternative to help reduce regional energy prices.
With these opportunities in mind, the government has set ambitious targets for expanding solar energy in Cambodia, aiming to inject 2 GW of solar energy into the grid by 2030. This goal is supported by a range of policies designed to facilitate the growth of the solar sector, including incentives for investment and development. Furthermore, Cambodia is actively working to secure outside funding.
Such policies reflect the government’s commitment to making solar energy the fastest-growing power source in the country, with projections indicating an 800% increase over the coming decade.
The combination of Cambodia’s solar energy potential, decreasing costs, and increasing number of supportive government policies presents a promising outlook for the country’s green energy landscape. By capitalising on the opportunities from solar power, Cambodia is poised to meet its energy needs sustainably, paving the way for an environmentally and economically resilient future.
Cambodia''s economy is growing fast, and so is its demand for energy. Decisions made today regarding sources of fuel and power generation will determine whether or not this ASEAN (Association of Southeast Asian Nations) member country will set itself on a path of sustainable energy and development, or increase its greenhouse gas (GHG) emissions and exacerbate climate change.
Twenty-six bidders submitted proposals to develop a 60 megawatt (MW) solar power project to state-owned Electricite du Cambodge (EDC) in September. The average bid price set a record low for Southeast Asia, which should persuade neighboring governments to embrace auctions, according to the Asian Development Bank (ADB). Thailand private equity company Prime Road Alternative Co. Ltd. reportedly submitted the lowest bid.
This is a new era for renewable energy development in Cambodia and the region, and particularly for solar power generation. This is good news for EDC and the people of Cambodia. We believe more governments in the region will adopt auctions as a strategy to procure renewable energy generation capacity and this structure and tariff will serve as a benchmark for future projects.
That said, Cambodia has been slow to embrace solar and renewable energy, as has been the case for ASEAN members generally. In addition to hydroelectric power generation, which accounts for well above half of national power capacity, Cambodia relies heavily on coal and other fossil fuels, increasingly liquid natural gas, for electricity generation and continues to subsidize exploration, production and consumption. Just two solar power plants are up and running in Cambodia at present, one a 10-MW plant developed by Singapore''s Sunseap and another, 60-MW facility in Kampong Speu.
Cambodia consumed a total of 2,650 megawatts of electricity in 2018, an increase of about 15% compared to 2017, according to the Ministry of Mines and Energy. Eighty-three percent of rural areas had access to grid power as of the most recent, publicly disclosed figures, leaving nearly 5 million Cambodians without access to electricity.
Daily blackouts became an increasingly common occurrence in Cambodia and across the Mekong region early this year as the region was affected by the El Niňo weather pattern. The national grid operator by and large has been struggling to keep up with power shortages, fast-growing demand for electricity and the government''s industrialization and economic development agenda, posing a chronic challenge for national development plans.
Searching for alternative options, Cambodia joins a growing list of national governments who have come around to seeing solar and other distributed, emissions-free renewable energy resources as a cost-effective means of achieving national electrification, as well as national and international climate change and renewable energy, goals.
The government should take this lesson learned into consideration and should find other alternative options that will generate less impacts on social and environmental in order to reduce dependency on hydropower.
Cambodia relies on three main sources for electricity: hydroelectric power plants for more than half, a total maximum capacity of 1,329 MW as of last year, coal power stations of 538 MW, and solar energy of 64.77 MW, according to the ministry.
The government and fledgling, strictly regulated private sector continue to increase their investments in hydroelectric power generation despite warnings from scientists and environmental groups of over-exploitation of these natural resources, particularly in the Mekong River region, due to changing seasonal weather patterns that have increased the variability and lead to drops in output due to drought and other extreme weather. The government also continues to increase its reliance on coal power generation.
Longstanding Premier Samdech Techo Hun Sen in June said the Royal Government has been taking action to address the energy shortage problem. The premier highlighted that the government negotiated the purchase of 1,700 MW of electricity generated by hydroelectric and coal-fired power plants in Laos. He also noted that he requested Japan''s assistance during a recent visit, more specifically by building high-voltage transmission lines that would transport electricity from neighboring Laos to Cambodia.
"Next year, Phnom Penh capital will not face the electricity shortage problem anymore. Phnom Penh needs some 400 megawatts. We will increase the energy generation capacity by coal-fired power plants," the Premier was quoted in news reports.
Solar power capacity has been on a sharp ascent in Cambodia recently, increasing at a 10% annual rate from less than 1% of national generation capacity, however. Some 400-MW of solar-fueled power capacity is now connected to the national grid, according to the Department of Mines and Energy. Cambodian households and businesses are also increasingly investing in behind-the-meter (BTM) solar energy systems as they''re much easier and faster to deploy and costs are lower than utility grid rates, market analysts highlight.
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