ADB, EDC Sign Mandate for Solar and Battery Storage Power Program in Cambodia

The Asian Development Bank (ADB) signed a transaction advisory services mandate with Cambodia’s national utility company Électricité du Cambodge (EDC) to support the development of 2 gigawatts (GW) of solar power in Cambodia.

The development of 2 gigawatts of solar power is in line with the strategy of the Cambodian government to meet its growing energy demand by maximizing the adoption of renewable energy and energy efficiency. And the agreement will help the country in its aspiration to achieve its goal of carbon neutrality by 2050.

Key to this strategy will be harnessing Cambodia’s abundant solar resources, whose share in the installed capacity increased from practically nothing in 2016 to around 12% at the end of 2021.

Under the mandate, ADB will help EDC conduct a nationwide study on opportunities for additional solar power capacity in combination with a Battery Energy Storage System (BESS), to be implemented from this year through 2030.

ADB will also assist EDC in bidding out a 100-megawatt pilot project identified under the study to the private sector, which will build, finance, and operate the project. The pilot project is expected to mobilize up to $100 million of investments and serve as a model to replicate fast and efficient procurement of affordable renewable power in Cambodia.

“This program will be Cambodia’s most ambitious yet in the renewable sector,” said Head of ADB’s Office of Public–Private Partnership F. Cleo Kawawaki. “It will lower electricity costs and improve energy security by taking advantage of domestic resources.”

Cambodia’s new Power Development Masterplan recognizes the potential to further expand the capacity of solar PV, which is expected to exceed 3 GW in 2040. As the share of solar increases, there is a need to improve grid stability through the adoption of BESS.

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