As of 2023, Cambodia has installed solar power capacity, with a total of 482 MW. ⁵

By 2040, Cambodia’s solar capacity is projected to reach 3,155 megawatts (MW). ⁶

The average costs of various electricity generation sources in Cambodia are;

• Hydropower plants: $0.07 per kWh in 2020 (latest data unavailable) ⁷
• Solar power plants: $0.03 per kilowatt-hour (kWh) in 2019 (latest data unavailable) ²
• Coal fired Power plants: 8 to 11 US cents per kilowatt-hour ⁸

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A World Bank study indicates that the average Cambodian household connected to the grid receives approximately 8 hours of electricity per day. ¹⁰

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Latest data is not available, however;

Between 2013 and 2017, the Rural Electrification Fund provided solar home systems to over 60,000 households.

Projected installations

While the latest data on the exact number of homes is unavailable, the government’s target is to electrify 70% of households by 2030.

Cambodia has 10 operational solar plants, 4 under construction, and 2 planned. ¹²

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Current Off-Grid Solar Demand:

• Over 28% of Cambodia’s population lacks access to reliable electricity, driving immediate demand for off-grid solar solutions in rural areas.
• Approximately 4 million rural residents without reliable energy access require solar home systems and solar mini-grids to meet basic energy needs.
• Existing mini-grids, heavily reliant on imported diesel, face unsustainable costs, creating an urgent demand for solar PV systems to replace or complement diesel-based setups.
• Seasonal flooding disrupts energy infrastructure in areas like Kampong Thom and Pursat, creating a need for resilient off-grid solar systems.
• Financial challenges for mini-grid operators highlight the demand for cost-effective and scalable off-grid solar solutions.
• Programs like the Rural Electrification Fund have initiated solar-based projects, but demand outpaces current supply due to limited outreach and infrastructure.

Future Off-Grid Solar Demand:

• Cambodia’s goal to achieve 100% village electrification by 2025 and 70% household electrification by 2030 underscores significant future demand for off-grid solar systems.
• Expansion of solar mini-grids and solar home systems is required to electrify approximately 1,300 unelectrified villages, prioritizing remote and underserved regions.
• The growing need for agricultural energy solutions, such as solar-powered irrigation pumps under the Scaling Up Renewable Energy Program (SREP), will drive demand.
• Climate-resilient solar infrastructure will be in high demand to address seasonal flooding and the effects of climate change on energy systems.
• Innovative financing mechanisms like pay-as-you-go (PAYG) models will increase accessibility and drive demand for off-grid solar systems among low-income households.
• The development of battery storage technology and hybrid systems will support growing off-grid solar demand by ensuring consistent energy supply and reliability.
• Capacity-building initiatives to train skilled labor for installing, operating, and maintaining solar systems will be critical to supporting the future growth of the off-grid solar sector.
• International collaborations and projects, such as those funded by the World Bank and UNDP, will bolster demand by providing financial and technical support for large-scale solar initiatives.

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Current On-Grid Solar Demand in Cambodia:

• As of 2018, Cambodia had an installed on-grid solar capacity of 75 MW, contributing to approximately 3% of the national energy mix. This was part of the initial steps toward diversifying the energy portfolio.
• By 2023, solar energy’s share in the energy capacity rose to 7%, equivalent to about 300 MW of installed solar power, showcasing a steady demand increase due to policy initiatives and private sector engagement.
• Several approved solar projects aim to elevate the installed capacity to over 400 MW, driven by growing urbanization and industrialization that demand a more sustainable and reliable energy supply.
• The Cambodia National Energy Statistics 2021 reported that solar power installations are concentrated in regions with higher energy consumption, such as Phnom Penh and its neighbouring provinces.
• Industrial parks, economic zones, and commercial facilities are increasingly adopting on-grid solar solutions to reduce operational costs and meet corporate sustainability goals.

Future On-Grid Solar Demand in Cambodia:

• By 2040, solar photovoltaics are projected to contribute nearly 30% of Cambodia’s electricity production, with an installed capacity exceeding 3,000 MW. This reflects the government’s commitment to transitioning toward renewable energy sources.
• The energy development master plan targets 70% renewable energy generation by 2030, with solar energy playing a central role alongside hydroelectric power. This plan prioritizes scaling up utility-scale solar farms.
• Initiatives like public-private partnerships are being encouraged to attract foreign investments, with favourable policies such as tax incentives and feed-in tariffs boosting investor confidence in the solar sector.
• The Ministry of Mines and Energy has identified 20 strategic locations for large-scale solar farm development, aiming to serve both domestic and export energy markets.
• Future demand will also be driven by grid modernization projects, including smart grid technologies and interconnectivity with regional grids, enabling more efficient distribution and utilization of solar energy.
• Efforts to electrify rural areas via grid expansion will further boost on-grid solar demand, as access to cleaner energy becomes a national priority to support economic growth and improve living standards.

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• Average Salary: ~$8,900/year
• Lowest Salary: ~$4,100/year
• Highest Salary: ~$14,100/year

The current population of Cambodia is 17,751,609. ¹⁹

Estimate for Factory Rent

Monthly Average Warehouse Rental Cost ²⁰

Highest Warehouse Rent

• Rent: $11,500 per month
• Location: Krang Thnong, Sen Sok, Phnom Penh
• Floor Area: 3000m²
• Land Area: 4755m²

Lowest Warehouse Rent

• Rent: $1,100 per month
• Location: Boeung Tumpun, Meanchey, Phnom Penh
• Floor Area: 360m²

Key Components of Administrative Costs

Salaries and Wages: ¹⁸

• Average Salary: ~$8,900/year
• Lowest Salary: ~$4,100/year
• Highest Salary: ~$14,100/year

Monthly Rents for Office Space ²¹

The highest office rent is $19.0/m² per month in Tonle Bassac, Chamkarmon, Phnom Penh, while the lowest is $5.0/m² per month in Chroy Changvar, Phnom Penh.

Electricity Generation ²²

• Cambodia’s domestic electricity generation totaled 9,255 GWh.
• The country’s total installed capacity in 2022 reached 4,495 MW, with hydro and coal being the major sources of power.
• Cambodia also imported 1,030 MW of electricity from neighboring countries, particularly during the dry season.
• The government is transitioning towards renewable energy, with plans to phase out coal power plants after 2024.

Transmission & Distribution ²³

• There are 310 transmission towers spanning the 230/115kV Kampong Cham substation and the 230/22kV Kratie substation.
• The transmission line is energized by hydropower supplied from the north of Cambodia, as well as cross-border power imports from Laos.

Energy Access ²⁴

• In 2022, the World Bank reported that 92.3% of the Cambodian population had access to electricity.

Energy Exports ²⁵

• In 2022, Cambodia exported $298k worth of refined petroleum, ranking as the 168th largest exporter of refined petroleum globally.
• That year, refined petroleum was Cambodia’s 384th most exported product. The primary destinations for Cambodia’s refined petroleum exports were Burma ($238k), South Korea ($38.1k), Iceland ($20k), Thailand ($1.74k), and Finland ($123).

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2018 Solar Energy Regulations

• The Cambodian government adopted its first solar energy regulations in 2018, providing official guidance for both solar power plants and rooftop solar systems.
• However, the 2018 regulations included several challenges, including a capacity charge for rooftop solar projects and restrictions on project size, which hindered the financial viability of many solar initiatives.
• The capacity charge, which was based on the total installed capacity rather than actual electricity consumption, made rooftop solar projects less attractive for businesses.

2023 Solar Guidelines

To address the barriers and attract more investment in rooftop solar, the Ministry of Mines and Energy issued the 2023 Solar Guidelines, which provide clearer and more favorable conditions for rooftop solar projects. The guidelines include the following key provisions:

• Rooftop solar systems are now allowed to feed excess electricity into the national grid, which is an important step for companies aiming to reduce their carbon footprint.
• The guidelines remove the capacity charge and require a new tariff structure based on actual electricity consumption rather than the installed capacity of the system. This new tariff is expected to improve the financial viability of rooftop solar projects.
• The guidelines introduce a Compensation Tariff for Variable Energy from Rooftop Solar, which aims to ensure that the cost of electricity for solar users is comparable to that of non-solar users.

Environmental and Natural Resources Code (2023)

On June 29, 2023, Cambodia adopted the Environmental and Natural Resources Code (Environmental Code), which is a significant piece of legislation that addresses renewable energy and environmental management. Some notable provisions related to solar energy and rooftop solar include:

• The Code requires the government to implement a pilot project to establish a preferential tariff system for renewable energy, including solar power.
• The Code stipulates tax incentives for all materials used in the installation of renewable energy technologies, including solar systems. While the specific details of these tax incentives have yet to be clarified, the provision represents a favorable shift for businesses involved in renewable energy installations.

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Incentives and subsidies for solar energy in Cambodia include a range of measures designed to stimulate the adoption of renewable energy, particularly solar power:

Tax Incentives for Solar Equipment:

• The Environmental Code mandates tax incentives for materials used in the installation of renewable energy technologies.
• This provision signals that businesses engaged in solar energy projects will likely benefit from reduced taxes on equipment and materials essential for solar installations.

Compensation Tariff for Rooftop Solar:

• The 2023 Solar Guidelines remove the capacity charge previously imposed on rooftop solar systems, which was a barrier to the financial viability of such projects. Instead, a new tariff system will be set, based on actual electricity consumption rather than the installed capacity.
• This aims to make rooftop solar systems more financially feasible for businesses and consumers alike.

Feed-in Tariff (Expected Development):

• Although no feed-in tariff has been established yet, the 2023 Solar Guidelines indicate that the Cambodian government plans to set up a preferential tariff system for renewable energy, including solar.
• This system would likely include compensation for power fed into the national grid, offering financial incentives for solar energy producers.

Rooftop Solar Integration with National Grid:

• The new guidelines allow rooftop solar projects to feed excess electricity into the national grid, which could offset operational costs for businesses and households with solar systems.
• This is an important step in integrating solar energy into the broader energy system.

Tourism Industry and Clean Energy Integration:

• Cambodia’s move to incentivize rooftop solar is particularly relevant for the tourism sector, which has seen a recovery in 2023, with a significant increase in international tourist visits.
• The forthcoming regulation, endorsed by the Cambodia Tourism Federation (CTF) and WWF-Cambodia, aims to create clear pathways for the adoption of rooftop solar across tourism facilities.
• This transition will help reduce electricity costs, stabilize power supply, and lower carbon emissions, contributing to the long-term sustainability of the industry.
• The integration of solar systems in hotels, eco-resorts, and community-based ecotourism sites can boost clean energy supply, enhance income for ecotourism sites, and support biodiversity conservation.

These incentives and subsidies reflect Cambodia’s commitment to growing its solar energy sector and increasing the role of renewable energy in the national energy mix.

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Current Operational Projects

Bavet City Solar PV Plant (10 MW)

• Location: Svay Rieng, Svay Teab, Cambodia
• Capacity: 10 MW
• Inauguration: 2017

Kampong Chhnang Solar (SchneiTec) (60 MW)

• Location: Kampong Chhnang, Tuek Phos, Cambodia
• Capacity: 60 MW
• Inauguration: 2020

Kampong Speu Solar Farm (80 MW)

• Location: Kampong Speu, Oudong, Cambodia
• Capacity: 80 MW
• Inauguration: 2019

Risen Energy Battambang Solar PV Park (60 MW)

• Location: Battambang, Thma Koul, Cambodia
• Capacity: 60 MW
• Inauguration: 2021

Future Projects (Planned)

Sihanoukville Solar PV Project (200 MW)

• Location: Sihanoukville, Cambodia
• Capacity: 200 MW
• Expected Commissioning: 2025

Prey Veng Solar (80 MW)

• Location: Prey Veng, Cambodia
• Capacity: 80 MW
• Expected Commissioning: 2025

Kamworks Solar LTD

• Location: Phnom Penh, Cambodia (Address: No. 2, St. Rothasaphea, Tonle Bassac, Chamkarmorn, Phnom Penh, 120101, Cambodia)
• Website: kamworks.com
• Products and Services:
  • Energy Monitoring
  • On-grid Solar
  • Off-grid Solar
  • Solar Water Pumping

NRG Solar

• Location: Phnom Penh, Cambodia (Address: 71AE0, Street 440, Toul Tom Pong, Phnom Penh, Cambodia)
• Phone Number: +855 095 848 246
• Opening Times: Mon-Fri, 9:00 AM – 5:00 PM
• Website: https://www.nrg-renewables.com/
• Products and Services:
  • Engineering and Design (Specific solar solutions design)
  • Financing (Project finance available for most clients)
  • Consulting (Energy assessments, load monitoring, energy consulting)

Khmer Solar

• Location: Cambodia
• Phone Number: Not specified
• Website: http://www.khmersolar.com/
• Products and Services:
  • Solar panels
  • Energy storage
  • DC-AC inverters
  • Grid tie inverters
  • Solar home systems for rural electrification
  • Grid-tied systems