Cambodia emergency energy storage power supply price

The composition of Cambodia's electricity supply is a blend of domestic production and international imports. In 2022, over 25% of the country's energy was imported from Thailand, Laos and Vietnam. Due to the country's high reliance on hydropower, power demand typically outstrips domestic supply during the dry season.

Electricity prices in Cambodia are among the highest in the region, topping USD 0.137 per kWh. This is considerably more than neighbouring countries. The price of electricity in Cambodia not only impacts the competitiveness of Cambodian industries but also limits access to reliable power for a significant segment of the population.

In absolute terms, Cambodia's primary energy supply is projected to increase from 7.02 million tonnes of oil equivalent (Mtoe) to 15.24 Mtoe during the period, while final energy demand is also expected to rise from 5.93 Mtoe to 11.77 Mtoe (Kimura and Han, 2019).

The high electricity cost for consumers results from the quantity of imported energy and the outdated energy grid. Electricity prices in Cambodia are among the highest in the region, topping USD 0.137 per kWh. This is considerably more than neighbouring countries.

First, Cambodia's existing electricity demand and supply gap need to shrink. One of the main ways the country can achieve this is to reduce the rapidly increasing demand for energy. The country's National Energy Efficiency Policy 2022-2030 aims to decrease Cambodia's final electricity consumption by 19% in 2030.

Cambodia's electricity grid is ageing and cannot meet the country's rapidly growing energy demands. As a result, the country's electricity prices are some of the highest in the region, and its infrastructure suffers from quality issues. Tackling these challenges is a core component of the country's long-term energy security.