The Cambodian Council of Ministers have approved 23 new investment projects in the power sector for the period 2024-2029, aimed at addressing the country’s ongoing power shortages. The approval was granted during a weekly cabinet meeting chaired by Prime Minister Hun Manet on Friday, September 27, at the Peace Palace.
The 23 energy development projects comprise 12 solar power projects, 6 wind power projects, 1 combined solar-biomass project, 1 gas-fired (LNG) power plant, 1 hydropower project, and 2 energy storage facilities. Collectively, 21 of these projects will serve as power stations, with a combined capacity of 3,950 MW, while the two large-scale storage projects will have a capacity of 2,000 MW.
The total investment for these projects is estimated at USD 5.79 billion. The projects will play a crucial role in meeting Cambodia’s growing electricity demand. It will ensure a reliable and affordable power supply to consumers across the country, contributing to the stability of the national grid.
These projects will enhance Cambodia’s energy security by reducing reliance on imports and boosting domestic clean energy sources like solar, wind, hydropower, and biomass. They align with Cambodia’s goal of achieving 70 % clean energy by 2030 while contributing to Cambodia’s environmental goals and global greenhouse gas reduction commitments.
In addition, the projects are expected to create tens of thousands of jobs, particularly in provinces such as Battambang, Pursat, Kampong Chhnang, Ratanakkiri, Mondulkiri, Sihanoukville, Kampong Cham, and Prey Veng, providing on-site training and modern skills development for Cambodian workers.
The state will also benefit from tax revenues generated by these 23 investment projects, which will include income tax, pre-allocation tax, withholding tax, and taxes on dividend distribution during the operational phase. Fresh News