France & Cambodia : EDF Eyes $1.2 Billion Hydro Project in Cambodia

The French energy giant EDF is considering investing more than $1.2 billion in an 800-megawatt hydroelectric dam in Cambodia, an emblematic project of the strengthened economic ties between Paris and Phnom Penh.

On Thursday, Cambodian Permanent Deputy Prime Minister His Excellency Vongsey Vissoth, in charge of the Council of Ministers' cabinet, received an EDF delegation led by Marie Buscail, chargé d'affaires at the French Embassy, and Erkki Maillard, EDF's Senior Vice President for Government and International Affairs. This meeting advanced this colossal initiative, which Mr. Vissoth described as a "symbol of the close friendship" between the two countries. The Council of Ministers expressed its readiness to facilitate its implementation.

"Energy has become a national security issue in the current geopolitical and geo-economic context," declared the Cambodian official. "Ensuring an affordable and stable supply is an absolute priority for the royal government."

Electricity demand has exploded in Cambodia over the past twenty years, fueled by rapid industrialization. Authorities anticipate further acceleration with the shift toward a digital economy and the integration of artificial intelligence. To address this, Phnom Penh is relying on four pillars: reducing production costs, ensuring long-term tariff competitiveness for industry, strengthening grid stability, and promoting energy sovereignty through diversification of investors.

For his part, Erkki Maillard emphasized the pursuit of a sustainable partnership, far beyond a simple equipment sale.

"These giant infrastructures last for decades: they require solid cooperation and adherence to international standards on safety and the environment," he stressed.

This file comes at a time when Cambodia is struggling to orchestrate its energy transition: developing renewables while maintaining system stability and reducing its dependence on coal. Lowering electricity tariffs is crucial for the competitiveness of special economic zones and agro-industry, Mr. Vissoth reminded. Diversifying foreign investment in energy? A strategy to bolster the kingdom's long-term resilience and growth.