World Bank Approves $115 Million for Cambodia’s Clean Energy Shift

Cambodia has made major progress in expanding access to electricity over the past decade, bringing power to nearly every household across the country.

The World Bank has approved a $115 million financing package to help Cambodia strengthen its electricity system, expand clean energy solutions and support sustainable economic growth as the country prepares for the next stage of its energy transition.

The package includes a $110 million credit from the World Bank's International Development Association (IDA) and a $5 million grant from the Energy Sector Management Assistance Program (ESMAP). The investment is expected to improve energy reliability, encourage greater energy efficiency and create new employment opportunities across Cambodia's growing clean energy sector.

The project will support electricity consumers, government institutions, industrial businesses, renewable energy developers, service providers and suppliers of energy-efficient technologies, helping build a stronger and greener economy.

Reliable and Affordable Power for a Growing Economy

Cambodia has made major progress in expanding access to electricity over the past decade, bringing power to nearly every household across the country. As industrial activity, urban development and living standards continue to rise, electricity demand is increasing rapidly, placing greater pressure on the national power system.

The new Sustainable Energy Transition Project will focus on making Cambodia's electricity network more reliable, affordable, resilient and environmentally sustainable. By strengthening the power grid and improving energy efficiency, the project will help reduce the country's exposure to fluctuations in global energy markets while supporting cleaner economic growth.

World Bank Country Manager for Cambodia Tania Meyer said the country has achieved remarkable success in providing electricity access to its people. She noted that strengthening the electricity network and helping businesses improve energy efficiency will support Cambodia's clean energy transition, strengthen economic competitiveness, encourage investment and create quality jobs.

The initiative is being implemented as Phase 7 of the Accelerating Sustainable Energy Transition Multiphase Programmatic Approach (MPA) for the East Asia and Pacific region, reflecting broader regional efforts to expand access to cleaner and more resilient energy systems.

Supporting a Green Economy and Job Creation

Cambodia sees the project as an important step toward achieving a balanced energy transition that supports both economic development and environmental sustainability. Minister of Mines and Energy H.E. Keo Rottanak said the country's energy strategy is guided by the principles of CARE—Clean, Affordable, Reliable and Equitable energy. He said Cambodia remains committed to building an energy system that serves households, businesses and industries while supporting long-term national development.

The project is expected to encourage greater private sector participation in renewable energy and energy-efficient technologies while creating opportunities for skilled employment in engineering, infrastructure development, equipment supply and energy services.

With electricity access now close to universal, Cambodia is shifting its focus from expanding connections to improving the quality, reliability and sustainability of power supply. The World Bank believes the latest investment will help the country build a more resilient energy system that supports economic growth, strengthens industrial competitiveness and advances Cambodia's transition toward a greener future.