The Ministry of Mines and Energy has announced that starting in 2025, factories producing goods for export to international markets will be prioritised for applying for Renewable Energy Certificates (RECs) from Electricité du Cambodge (EDC). The initiative aims to enhance market opportunities, particularly in the US and EU.

In a video posted on the ministry’s official Facebook page last weekend, energy minister Keo Rattanak highlighted Cambodia’s progress in renewable energy. He noted that the country now generates more than 60% of its electricity from renewable sources, ranking second in the ASEAN region after Laos for clean energy production. 

He said the surplus energy in the country’s national grid is predominantly from renewable sources. The minister called this achievement a point of pride, with a vision to extend its benefits to all users.

“The REC mechanism plays an essential role in Cambodia's strategy to meet international environmental standards and help the industry create a low-carbon supply chain. It ensures traceable clean electricity supply, which is a global market requirement,” he said.

Rattanak explained that the RECs will allow electricity users to actively participate in the country’s renewable energy transition. He said that each certificate will verify that one megawatt-hour of electricity was generated from renewable sources and delivered to the national grid, ensuring transparency and accountability. 

He highlighted that the framework provides businesses with a reliable way to demonstrate their support for renewable energy and align with environmental goals.

EDC will serve as the sole buyer of RECs, ensuring alignment with the country’s market conditions. Businesses will have the option to purchase RECs alongside their electricity usage, enabling them to showcase their commitment to renewable energy.

The pricing of RECs will be determined by the Electricity Authority of Cambodia (EAC), with the ministry jointly overseeing compliance and implementation of the system.

The minister clarified that the country’s power purchase agreements with renewable energy producers include clear definitions of energy production and environmental benefits, particularly RECs. He said this ensures the full valuation of renewable energy production and incentivises further clean energy development within the national grid.

For the industrial sector, he highlighted that the REC mechanism offers a valuable opportunity to meet the sustainability demands of international buyers, particularly in the US and EU markets, where verified environmental efforts are increasingly required. He said the system supports the country’s renewable energy transition while aligning with global environmental reporting standards.

Rattanak emphasised that the REC framework will enable electricity users to meet their sustainability goals, regardless of whether they have installed renewable energy systems on their premises. Each REC purchase will contribute to the Kingdom’s renewable energy sector by fostering investment, advancing technology and enhancing local expertise.

He highlighted the system’s transparency, which will allow businesses to track and report energy usage, building trust among customers, partners and stakeholders. 

“By ensuring fairness, transparency and equity, we can create a win-win situation, with investors gaining business confidence and seeing tangible profits, while our citizens benefit from a secure energy system prepared for the future,” he said. 

The minister added that close collaboration with all relevant parties would be essential to the system’s success.

Sam Soknoeun, chairman of SAM SN Group, who is exploring the establishment of a Cambodia-Japan special economic zone (SEZ), told The Post on December 31 that electricity is critical for all aspects of modern life. 

“Countries with sufficient and affordable electricity are in a stronger position to drive economic growth by attracting investments from all nations,” he said.

He added that energy derived from clean or renewable sources would be particularly valuable. 

“Not only does this help reduce environmental pollution, but it is also highly valued by developing countries, where clean energy usage is encouraged through incentives like allowing special import duties.”

Soknoeun welcomed the ministry’s announcement, saying, “Allowing factories and businesses to apply for renewable energy certificates from EDC will increase opportunities for Cambodian products in the global market. This will also boost Cambodia’s exports, especially to countries that are strict about environmental pollution.”

He further noted that energy considerations are often a top priority for investors deciding where to establish businesses. 

“Lower energy costs lead to lower production costs, which in turn enhances competitiveness in international markets,” he said.