ADB Approves US$ 52.7 Mn Loan To Boost Cambodia’s Renewable Energy Grid
The Asian Development Bank (ADB) has approved a US$ 52.72 million loan to support Cambodia’s Grid Expansion Project, aimed at strengthening the national transmission network and integrating more renewable energy into the power system. The project will help meet rising electricity demand with cleaner, locally generated power.
Cambodia has rapidly expanded domestic electricity generation, doubling output from 8.68 terawatt-hours (TWh) in 2020 to 17.85 TWh in 2024, while reducing dependence on imported electricity from 3.06 TWh to 1.57 TWh over the same period. These gains reflect the country’s growing energy self-reliance and the potential of renewable energy to support its development goals.
“Reliable and affordable electricity is the backbone of Cambodia’s growth story,” said Jyotsana Varma, ADB Country Director for Cambodia. “This project goes beyond building transmission lines—it will connect people, schools, hospitals and businesses to a cleaner, more resilient energy future. By bringing more renewable energy into the grid, Cambodia can power opportunities while protecting the environment for generations to come.”
The Grid Expansion Project will construct 55 kilometres of 230-kilovolt transmission lines between Pursat and Kampong Chhnang and upgrade nine substations nationwide. These enhancements will increase transmission capacity to deliver renewable energy to demand centres, improve reliability, reduce losses and encourage private investment.
The project aligns with Cambodia’s Power Development Master Plan (2022–2040) and the National Energy Efficiency Policy (2022–2030), supporting the country’s transition to a more sustainable and secure energy system.
ADB, established in 1966 and owned by 69 members, 50 from the region, continues to support inclusive, resilient and sustainable growth across Asia and the Pacific through innovative financing, strategic partnerships and quality infrastructure investments.
