ADB Approves $52.7 Million Loan to Expand Cambodia’s Grid for Clean Energy

The Asian Development Bank (ADB) has approved a $52.72 million loan to finance Cambodia’s Grid Expansion Project, a critical step toward modernizing the country’s electricity transmission infrastructure. The project will expand transmission capacity, reduce reliance on imports, and enable greater integration of renewable energy sources such as solar and wind.

Cambodia’s Rising Energy Independence

Cambodia has made remarkable progress in recent years in building domestic energy capacity. Between 2020 and 2024, electricity generation more than doubled—from 8.68 terawatt hours (TWh) to 17.85 TWh. Over the same period, the country successfully cut electricity imports from 3.06 TWh to 1.57 TWh, reflecting both improved energy self-reliance and a growing role for local renewable sources.

This growth underscores the potential of clean energy to support Cambodia’s development goals, while also improving affordability and long-term sustainability.

Strengthening Transmission for Renewable Energy Integration

The Cambodian grid was originally designed around conventional power sources and now requires expansion to effectively harness renewable energy. The Grid Expansion Project will include:

• Construction of 55 kilometers of 230-kilovolt transmission lines connecting Pursat and Kampong Chhnang provinces

• Upgrading nine substations nationwide to enhance load capacity and reliability

These investments will provide the infrastructure needed to deliver renewable energy to demand centers, improve power stability, and attract additional private investment in Cambodia’s energy sector.

Clean Energy as the Backbone of Growth

ADB Country Director for Cambodia, Jyotsana Varma, highlighted the broader significance of the project:

“Reliable and affordable electricity is the backbone of Cambodia’s growth story. This project is about more than building transmission lines—it is about connecting people, schools, hospitals, and businesses to a cleaner and more resilient energy future. By bringing more renewable energy into the grid, Cambodia can power opportunities for its people while protecting the environment for generations to come.”

Alignment with National Energy Policies

The project is fully aligned with Cambodia’s Power Development Master Plan (2022–2040) and National Energy Efficiency Policy (2022–2030). By expanding transmission networks and reducing losses, it will:

• Support Cambodia’s long-term energy security

• Reduce carbon emissions from the power sector

• Facilitate private-sector participation in renewable energy investment

• Ensure electricity remains affordable while demand continues to rise

Toward a Resilient, Sustainable Future

Cambodia’s energy transition is central to its economic and environmental future. With ADB’s backing, the Grid Expansion Project will not only expand the country’s transmission network but also unlock the potential of renewable energy to fuel inclusive growth.

As Cambodia continues to scale up solar and wind energy, modern transmission lines and upgraded substations will ensure that clean, locally generated electricity can reliably reach households, businesses, and industries across the nation—paving the way toward a greener, more resilient power sector.