Cambodia Temporarily Halts New Permits for Solar Rooftop Installation Companies

The Ministry of Mines and Energy in Cambodia has announced a temporary suspension of new permit applications for companies that install rooftop solar power systems. According to a notice issued by the ministry on September 17, the decision was made because 68 companies have already been granted permits, which are deemed sufficient to meet the country's electricity demand. This measure is intended to provide time for monitoring and evaluating the service provision by existing licensed companies, as well as to reassess the actual service demand going forward. The ministry also stated that existing companies must perform installation work directly and are prohibited from subcontracting or misrepresenting their responsibilities to unauthorized third parties. Companies that have already obtained permits are required to adhere to the terms of their licenses, technical standards, and prevailing regulations. Violations may result in the suspension or revocation of licenses, as well as legal action. The Ministry of Mines and Energy, the Electricity Authority of Cambodia, and Electricité du Cambodge will collaborate to supervise and evaluate the operations of these companies. This decision reflects the pace of renewable energy adoption in Cambodia and the maturity of its related market. In recent years, Cambodia has encouraged investment in renewable energy, including solar power, leading to the entry of numerous companies. The temporary halt on new entrants is seen as a regulatory adjustment to prevent market overheating and ensure the provision of quality services.