Germany invests €47.5m modernise transmission lines and strengthen the national grid in Cambodia
Cambodia has secured a major boost to its energy infrastructure after Germany agreed a €47.5 million investment to modernise transmission lines and strengthen the national grid. The deal, signed with the Ministry of Economy and Finance in Phnom Penh, is part of a wider push to improve efficiency and stability across the country’s power network.
Christina Laun, head of division for Southeast Asia at Germany’s Federal Ministry for Economic Cooperation and Development, described the agreement as “a strong signal of our close partnership with Cambodia” following two days of intensive negotiations.
The investment will also introduce battery storage technology, designed to make the energy system more resilient for households and businesses. In a video posted by the German Embassy in Phnom Penh, officials highlighted the innovation as a step towards a more reliable and sustainable energy supply.
German ambassador Steffan Messerer said the project was “not just about infrastructure” but a milestone in Cambodia’s journey towards a modern energy future. “It’s a shared commitment to a sustainable and reliable energy system, and a clear sign of what we can achieve together,” Laun added.
The funding forms part of Cambodia’s rural electrification programme, now entering its second and third phases. The scheme aims to extend access to power while reducing reliance on outdated systems.
The announcement comes as Cambodia’s Mines and Energy Minister, Keo Rottanak, unveiled plans for a wind battery storage project in Kampong Chhnang. The initiative will complement existing solar and hydropower facilities, reinforcing the country’s renewable energy mix.
Rottanak said the project places Cambodia ahead of its ASEAN neighbours in wind power development, underlining the government’s ambition to lead the region in green energy.
With demand for electricity rising rapidly, the German-backed investment is expected to play a crucial role in stabilising supply and supporting economic growth. For Cambodia, it marks both a practical upgrade to its grid and a symbolic step towards a cleaner, more sustainable energy future.
Source: https://aseannow.com/topic/1379456-germany-invests-%E2%82%AC475m-in-cambodia%E2%80%99s-energy-future/
