The Asian Development Bank (ADB) has approved the $82.5 million second phase of Cambodia's Energy Transition Sector Development Program (ETSDP). It combines policy reform with investment in new technologies to provide comprehensive support for the country's clean energy transition.
According to ADB, the $82.5 million programme is cofinanced by the ASEAN Infrastructure Fund, the Asia–Pacific Climate Finance Fund, the Green Climate Fund and the United Kingdom through the ASEAN Catalytic Green Finance Facility.
The first phase, approved in 2022, introduced key policy measures steering the energy sector towards more efficient and renewable development. Building on that work, phase two advances regulatory reforms to strengthen the energy efficiency framework and clarify policy to attract private investment. A major milestone is Cambodia's first regulations setting Minimum Energy Performance Standards for electrical appliances, beginning with air conditioners, the largest component of residential energy consumption.
Phase two will also establish an Energy Efficiency Revolving Fund to help local small and medium-sized enterprises finance energy-saving technology. Through a financial intermediation structure, local banks will be able to expand loans for SME energy efficiency investment. By involving domestic financial institutions and supporting SMEs, the fund is expected to accelerate such investment nationwide.
ADB Acting Country Director for Cambodia Anthony Gill said: “ADB is honoured to help Cambodia undertake its ambitious transformation of the energy sector. By bringing policy support and strategic investment together in a comprehensive reform package, the Energy Transition Sector Development Program will help turn the government's vision into practical results. This includes the goal of a 70% renewable share in the power mix by 2030, alongside a firm commitment to affordable energy efficiency, which is essential for Cambodia's growth to remain sustainable.”
A third phase will follow in 2027, deepening reforms by extending the energy efficiency regulatory framework and introducing technical standards for renewable energy, buildings and industry to attract further private investment.
ADB is a leading multilateral development bank supporting inclusive, resilient and sustainable growth across Asia and the Pacific. Working with members and partners on complex challenges, it uses innovative finance and strategic partnerships to improve lives, build quality infrastructure and protect the planet. Established in 1966, ADB is owned by 69 members, including 50 from Asia and the Pacific.
Preah Sihanouk Provincial Television — Written by: ង៉ែត ពិសាន្ត