A 150 MW wind power project in Mondulkiri Province is expected to be completed by 2026.
A 150 MW wind power project in Mondulkiri Province is expected to be completed by 2026. As investments continue to grow, Cambodia’s demand for electricity, especially clean energy, is increasing daily.
Wang Junwei, representing HK OASIS Power Energy Development Co., Ltd., which received investment approval from the government for the project, met with Chea Vuthy, secretary-general of the Cambodian Investment Board (CIB) at the Council for the Development of Cambodia (CDC) on January 17.
Junwei shared that his company is committed to implementing its work effectively and plans to complete the facility by 2026. He explained that HK Oasis is examining investment registration procedures with the CDC to ensure the project complies with regulations and receives proper legal incentives.
Vuthy noted that the Kingdom is currently attracting a significant amount of foreign direct investment (FDI), leading to a daily increase in electricity demand, particularly for clean energy.
As part of the CDC, he encouraged the company to implement its investment project in line with the agreement made with the Ministry of Mines and Energy to ensure its efficiency.
“At present, Cambodia is experiencing rapid investment growth in the industrial sector, which is driving an increasing demand for electricity, particularly clean energy,” he added.
Vuthy explained that the investment registration process at the CDC is simple and fast, and the CDC team is ready to accept investment registration applications from the company.
Lor Vichet, vice-president of the Cambodia Chinese Commerce Association (CCCA), told The Post that countries with sufficient energy (especially renewable energy), low costs, good infrastructure, abundant labour forces and investment-friendly laws are likely to attract more foreign investment. He also noted that clean energy is increasingly demanded by developed countries, which require consideration of environmental issues.
“All of these factors are key drivers in attracting FDI to establish businesses or factories in Cambodia,” he noted.
He also mentioned that when energy costs are low, production costs decrease, making Cambodian products more competitive in international markets.
Minister of Mines and Energy Keo Ratanak, speaking at a forum on Cambodia's energy policy at the University of Phnom Penh in October last year, highlighted the speed of the energy sector’s development. He apportioned the rapid growth to the close attention paid to it by the government.
From virtually no electricity in 1979, Cambodia expanded its electrical grid to 14,151 villages, covering 99.88% of the country by the end of 2023. The Kingdom is now one of the leading countries in ASEAN with more than 62% of total electricity usage coming from clean energy. Clean, or renewable energy, includes sources such as hydropower, solar and biomass.
He also mentioned that according to the ASEAN guidelines, all member states should use 35% of energy from renewable sources by 2030. Cambodia has already surpassed that target.
“More than 40% of our clean energy comes from hydropower plants, over 10% comes from solar power, and the rest comes from biomass and imports from neighbouring countries,” he explained.
According to the Cambodia Electricity Development report, by the end of 2023, Cambodia's total energy capacity was 4,649 MW, with 2,277 MW from renewable energy, 1,700 MW from non-renewable sources (coal and oil), and 672 MW imported from neighbouring countries.
Ratanak added that through the energy ministry, the government is focused on strengthening and expanding its clean energy capacity to minimise environmental impact, predominantly through expanded investment in solar and wind power generation.
