The composition of Cambodia’s electricity supply is a blend of domestic production and international imports. In 2022, over 25% of the country’s energy was imported from Thailand, Laos and Vietnam. Due to the country’s high reliance on hydropower, power demand typically outstrips domestic supply during the dry season.
Electricity prices in Cambodia are among the highest in the region, topping USD 0.137 per kWh. This is considerably more than neighbouring countries. The price of electricity in Cambodia not only impacts the competitiveness of Cambodian industries but also limits access to reliable power for a significant segment of the population.
The high electricity cost for consumers results from the quantity of imported energy and the outdated energy grid. Electricity prices in Cambodia are among the highest in the region, topping USD 0.137 per kWh. This is considerably more than neighbouring countries.
First, Cambodia’s existing electricity demand and supply gap need to shrink. One of the main ways the country can achieve this is to reduce the rapidly increasing demand for energy. The country’s National Energy Efficiency Policy 2022-2030 aims to decrease Cambodia’s final electricity consumption by 19% in 2030.
In its new Power Development Plan, Cambodia plans to invest US$1.8bn to improve its electricity transmission network. Following the Government's decision to stop building new coal plants, a new 900 MW gas plant is expected. The Ministry of Mines and Energy (MME) is in charge of the energy policy through the General Department of Energy (GDE).
Cambodia's energy sector has been a tremendous success story over the last 20 years. From experiencing frequent power cuts and limited regional electricity access in 2004 to a stable grid in the capital, Phnom Penh, and a village electrification rate of over 98%.
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