ADB backs $63.44m Cambodia grid upgrade
It aims to cut instability, support renewables, and ease peak demand.
The Asian Development Bank (ADB) has approved a $63.44m financing package to support a utility-scale battery energy storage project in Cambodia aimed at improving grid stability, integrating more renewable energy, and supporting cross-border electricity trade, according to a company announcement.
The project will develop a 250-megawatt and 500-megawatt-hour battery energy storage system at the Takeo substation which will store excess electricity generated from renewable sources and release it during peak demand periods to stabilise the grid.
The system is intended to help balance fluctuations from solar and other renewable sources whilst supporting rising electricity demand from industrial zones, agro-processing sites, and urban areas in southern Cambodia.
ADB said the project will also support Cambodia’s renewable energy targets and grid expansion efforts with the country targeting 70% renewable energy capacity by 2030.
The battery system is expected to reduce grid instability and improve the ability of the national system to integrate variable renewable energy.
It is also projected to cut around 27,700 tonnes of greenhouse gas emissions annually once operational.
The project includes support for cross-border electricity flows, particularly between Cambodia and Viet Nam, and aligns with wider regional efforts to build an integrated ASEAN Power Grid by 2045.
“By strengthening the power grid with advanced battery storage, we are helping the country unlock more renewable energy whilst ensuring that families, farmers, and businesses benefit from safe, stable, and affordable electricity,” said ADB country director for Cambodia Yasmin Siddiqi.
Cambodia continues to rely heavily on imported fuels for power generation. Whilst generation capacity and transmission infrastructure have expanded in recent years, the system remains exposed to external price swings and supply disruptions.
ADB said the project will also support Electricité du Cambodge, the state-owned utility, in managing more advanced grid systems.
It will include work on developing regulatory frameworks for battery storage.
The initiative also includes training and skills development components, including efforts to increase participation of women in technical and leadership roles in the energy sector.
The financing package includes a $40m concessional loan and a $5m grant from the Asian Development Bank through the Asian Development Fund. It also includes $18.44m in cofinancing from the Green Climate Fund and the UK via the ASEAN Catalytic Green Finance Facility.
