Cambodia Accelerates Clean Energy Shift, a Model for ASEAN ?

Phnom Penh, February 16, 2026 – Cambodia is accelerating its energy transition at a rapid pace. According to the annual report from the Electricity Authority of Cambodia (EAC), released on Thursday, the total installed electricity generation capacity climbed to 5,932 megawatts (MW) in 2025, a spectacular 14.4% increase from 5,183 MW in 2024.

This performance, boosted by renewables, positions the kingdom as an unexpected regional leader in the race to decarbonization.

Electricity Demand Skyrockets

Electricity demand is following the same frantic pace: it reached 2,553 MW last year, up from 2,281 MW in 2024, marking growth of more than 12%. This boom reflects galloping urbanization, industrialization, and the rise of digital services in Cambodia, whose GDP grew 6.8% in 2025 according to World Bank estimates. At the EAC's annual meeting on February 12, its president, H.E. Yim Viseth, hailed this momentum: “The rapid development of power capacity, dominated by renewables, perfectly meets growing demand.”

Renewables Lead at 63.23%

The highlight is the share of clean energy, peaking at 63.23% of total capacity, or 3,325 MW fed into the national grid. Hydropower, solar, and biomass dominate the local energy mix, supplemented by coal and diesel as backups. This breakthrough exceeds national ambitions and puts Cambodia ahead of ASEAN standards, where the renewable average still hovers around 25-30%. The Ministry of Mines and Energy confirms: the kingdom now ranks among the region's champions in green energy penetration.

Universal Access and 2030 Goals

Energy inclusion is advancing too: 99.1% of villages are electrified, and 96% of households are connected to the national grid. These figures, driven by massive public-private investments, support the royal government's vision: to raise clean energy production to 70% by 2030. With projects like the Stung Treng dam or Bavet's solar farms, Cambodia is betting on self-sufficiency to attract foreign investors, especially in electronics and textiles.

Economic Implications: A Lever for Sustainable Growth?

This expansion is more than a technical feat; it's reshaping the Cambodian economy. By reducing reliance on imports (mainly from Vietnam and Thailand), the country secures its supply and curbs energy inflation. Production costs fell 8% in 2025, boosting industrial competitiveness. At the ASEAN level, where electricity demand is expected to double by 2035 according to the International Energy Agency, Cambodia's model—blending hydro, solar, and biomass—inspires. Challenges remain: storing intermittent energy and financing the additional 2,000 MW targeted for 2030.