ADB to loan Cambodia $52mn for power grid expansion
The Asian Development Bank (ADB) has approved a $52.72mn loan for Cambodia’s grid expansion project to help strengthen the country’s transmission capacity, the bank announced today.
The grid expansion project is aimed at strengthening the country’s transmission network to handle growing solar and wind power to be incorporated into the national power grid, and help meet rising power demand with cleaner, locally-generated electricity, said the ADB.
The project entails the construction of 55km of 230 kV transmission lines between Pursat and Kampong Chhnang, as well as the upgrading of nine substations across the country.
Cambodia’s domestic electricity generation has expanded rapidly, with output doubling from 8.68TWh in 2020 to 17.85TWh in 2024, the ADB said. Its electricity import reliance fell from 3.06TWh to 1.57TWh over the same period, indicating the country’s rising energy self-reliance.
The investments into expanding the grid will also “improve reliability and encourage greater private investment”, the bank said.
Rapid economic growth and electrification have led to Cambodia’s electricity demand growing by 16pc/yr since 2009, according to the Institute for Energy Economics and Financial Analysis.
Cambodia aims to achieve net zero by 2050. It submitted its latest climate plan, known as a nationally determined contribution, in August.
Under the plan, it aims to raise its share of renewable energy in installed capacity to 80pc by 2035 under a conditional scenario, or to 72pc by the same date unconditionally. The plan also includes “near-universal rural electrification”, which entails improved energy efficiency, grid modernisation and scaling up utility-scale solar, wind, biomass, hydro and pumped hydro storage, with wind and solar as a priority.
The share of coal in its power mix was 45pc in 2023, with hydropower representing 44pc, solar 5pc and imports from neighbouring countries making up the remaining 6pc.
Source: https://www.argusmedia.com/en/news-and-insights/latest-market-news/2733042-adb-to-loan-cambodia-52mn-for-power-grid-expansion
