ADB Supports Cambodia’s Renewable Energy Transition with Major Battery Storage Project

The Asian Development Bank (ADB) has approved a $63.44 million financing package to support the construction of a 250MW/500MWh battery energy storage system (BESS) in Cambodia, strengthening grid stability, renewable energy integration and cross-border power trade.

The Utility-Scale Battery Energy Storage Project will be developed at the Takeo substation in southern Cambodia. The battery facility will store excess renewable electricity and dispatch it to the grid when needed, helping manage peak demand and stabilise fluctuations in the power system.

The project is expected to support Cambodia’s growing electricity demand from industrial zones, agro-processing facilities and urban districts, while strengthening the country’s electricity infrastructure.

Supporting Cross-Border Power Trade

Beyond domestic grid stability, the project is expected to support greater electricity trade and grid interconnectivity between Cambodia and Viet Nam, including Cambodia’s electricity imports.

The initiative will also contribute to the broader ASEAN Power Grid, which aims to achieve fully integrated electricity grid operations across Southeast Asia by 2045.

With battery storage providing greater flexibility to the power system, Cambodia will be better positioned to integrate additional solar and other variable renewable energy resources while maintaining reliable electricity supply.

Accelerating Cambodia’s Clean Energy Transition

Cambodia currently relies heavily on imported fuels for power generation, leaving the country exposed to international fuel price volatility and potential supply disruptions.

The new BESS project will support Cambodia’s target of achieving 70% renewable energy capacity by 2030, enabling greater integration of solar and other renewable energy sources.

Once operational, the project is expected to avoid up to 27,700 tonnes of greenhouse gas emissions annually, while improving the reliability and sustainability of Cambodia’s electricity system.

The project will also strengthen the capacity of Electricité du Cambodge (EDC), the country’s state-owned power utility, to manage advanced energy storage systems. In addition, it will support the development of battery energy storage regulations and skills development, with a particular focus on increasing women’s participation in technical and leadership positions within the energy sector.

$63.44 Million Financing Package

The financing package includes a $40 million concessional loan and a $5 million grant from ADB through the Asian Development Fund, together with $18.44 million in cofinancing from the Green Climate Fund and the United Kingdom through the ASEAN Catalytic Green Finance Facility.

Cambodia’s 250MW/500MWh BESS project highlights the growing role of utility-scale battery storage in Southeast Asia, not only in supporting renewable energy integration and grid stability, but also in strengthening regional electricity connectivity and cross-border power trade.