The Asian Development Bank (ADB) has approved a $63.44 million financing package to support Cambodia’s renewable energy transition through a large-scale battery energy storage project. The initiative aims to improve grid stability, strengthen energy security, and expand the country’s ability to integrate clean energy.
The Utility-Scale Battery Energy Storage Project will support the construction of a 250-megawatt/500-megawatt-hour battery storage system at the Takeo substation. The facility will store excess renewable energy and release it when needed, helping balance electricity supply, manage peak demand, and reduce power fluctuations.
The project is expected to support Cambodia’s growing electricity needs as industrial zones, agricultural processing facilities, and urban areas continue to expand. It will also strengthen regional electricity cooperation by supporting cross-border power trade and grid connections with Viet Nam as part of wider Southeast Asian energy integration efforts.
Cambodia has made progress in expanding renewable energy capacity but remains dependent on imported fuels, leaving the country vulnerable to global price changes and supply disruptions. The new battery storage system will help increase the use of solar and other renewable sources while improving the reliability of electricity networks.
The project supports Cambodia’s goal of achieving 70% renewable energy capacity by 2030. Once operational, it is expected to prevent up to 27,700 tons of greenhouse gas emissions each year while supporting a cleaner and more resilient energy system.
ADB’s financing will also help strengthen the capacity of Cambodia’s national electricity utility, support the development of battery storage regulations, and promote technical skills development. Special attention will be given to increasing opportunities for women in the energy sector.
Through this investment, ADB and its partners are helping Cambodia build a more sustainable power system that supports economic growth, regional cooperation, and long-term climate goals.
