Cambodia's Clean Energy Transition Emerges as New Engine for Economic Growth

PHNOM PENH, Sept 18, 2026 (KPT) — Cambodia is increasingly framing its clean energy transition as a strategic engine for economic competitiveness and investment. Technologies such as solar power, energy efficiency, electric vehicles (EVs), and battery storage are seen as key drivers for growth and reducing exposure to volatile fuel markets, officials said this week. The shift was underscored during Clean Energy Week 2026, where government, business, and development partners examined how the transition could support industrial growth and enhance resilience. Mines and Energy Minister Keo Rottanak stated that renewables already constitute over 63 percent of installed capacity, with a target to reach 70 percent by 2030. The ministry's priorities include expanding renewable energy sources, improving energy efficiency, and widening electrification. Natharoun Ngo Son of EnergyLab Asia noted Cambodia's growth in solar, EVs, and efficiency, with wind and storage technologies emerging. He highlighted that these technologies are creating demand for new services and capabilities across the value chain. Labour Minister Heng Sour emphasized that clean energy should be viewed as an economic transformation, linking it to productivity, energy security, and competitiveness, particularly for export-oriented manufacturing. The Cambodian Investment Board has identified green and digital sectors as potential growth engines, citing opportunities in solar, hydropower, waste management, EV assembly, and efficiency. Large-scale projects are advancing. Rottanak announced that companies are on track to deliver over 1,100 MW of solar power with 500 MW of storage by the end of 2026. The Asian Development Bank (ADB) has approved financing for a 250 MW/500 MWh battery project in Kampong Chhnang, and construction has begun on the 1,000 MW Upper Tatay pumped storage project. The theme of Clean Energy Week, "Clean Energy for Energy Security and Economic Resilience," reflects the growing focus on costs, competitiveness, and stability. Officials and investors are also exploring how clean energy supply chains can be developed domestically. However, challenges remain. The Clean Energy Skills Conference highlighted shortages of specialized workers and gaps in training. EnergyLab Asia estimates that 45,000 jobs could be created across the EV, solar, and efficiency sectors, but stakeholders stress the need for improved certification and practical experience. Australian Deputy Ambassador Bridget Collier stated that stronger partnerships between government, industry, and training institutions are crucial for building workforce capacity. The Skills Development Fund aims to prepare workers for future industry needs, not just current demand. Cambodia's push for clean energy is thus becoming intertwined with its industrial strategy, offering opportunities for investment and higher-value businesses while requiring parallel progress in infrastructure, skills, and technology. Source: Kampuchea Thmey English