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 Utility-Scale Battery Energy Storage Project will help integrate more renewable energy into Cambodia’s power system, improve grid stability, and strengthen the country’s energy security. The project includes the construction of a 250-megawatt/500-megawatt-hour battery energy storage system at the Takeo substation.
The new facility will store excess renewable energy and release it back into the electricity grid when needed. This will help manage peak demand, balance power fluctuations, and support the growing electricity needs of industrial areas, agricultural facilities, and urban communities in southern Cambodia.
The project is expected to strengthen Cambodia’s renewable energy capacity and support the country’s goal of achieving 70% renewable energy capacity by 2030. It will also contribute to regional electricity cooperation and improve power connectivity with neighboring countries, including Viet Nam.
ADB said the investment will help Cambodia reduce dependence on imported fuels, protect against energy price changes, and create a more reliable electricity system. Once operational, the battery storage project is expected to prevent up to 27,700 tons of greenhouse gas emissions annually.
The initiative will also support Cambodia’s state-owned electricity utility, Electricité du Cambodge, by improving its ability to manage advanced energy technologies. Additional efforts will focus on developing battery storage regulations and building technical skills, including increasing opportunities for women in the energy sector.
The financing includes support from ADB’s Asian Development Fund, along with contributions from the Green Climate Fund and the United Kingdom through the ASEAN Catalytic Green Finance Facility.
Through this project, Cambodia is taking a major step toward a cleaner, more resilient energy system while supporting sustainable economic growth and long-term regional energy cooperation.
