Top 5 Renewable Energy Investment Opportunities in Cambodia (2025 Edition)
Cambodia is rapidly becoming a hotspot for renewable energy investments, with 2025 bringing even more attention to solar, biomass, and hydroelectric projects. These trends align with the country’s broader infrastructure development and urban planning efforts, offering long-term potential for foreign investors. Understanding the legal framework and the new investment law is essential for navigating this opportunity-rich landscape.
Cambodia is experiencing a once-in-a-generation transformation in how it powers its homes, factories, and cities. In recent years, the Kingdom has taken bold steps toward cleaner, more sustainable energy solutions—creating fertile ground for both seasoned and first-time energy investors.
As of 2025, renewable energy investment opportunities in Cambodia are becoming increasingly viable thanks to political will, regional demand, and significant improvements in infrastructure and policy transparency. From sun-soaked provinces ideal for solar, to rice-producing regions rich in biomass potential, Cambodia is fast emerging as a compelling clean energy frontier in Southeast Asia.
This guide explores the top five renewable energy sectors for investment in Cambodia in 2025—along with insights on expected ROI, local context, and strategic tips for market entry.
🌞 1. Utility-Scale Solar Farms: Shining Bright in the Mekong Sun
Why It’s a Top Opportunity: Cambodia has over 2,000 hours of sunlight annually, with solar irradiance levels rivaling some of the best locations in Southeast Asia. Several provinces—such as Kampong Speu, Kampong Chhnang, and Pursat—offer vast tracts of underutilized land perfect for large-scale solar development.
What Makes It Attractive:
100% foreign ownership permitted in energy generation
National target: 30% renewable generation share by 2030
Competitive Power Purchase Agreements (PPAs) authorized by Electricité du Cambodge (EDC)
Multilateral support from institutions like the ADB, World Bank, and USAID Green Invest Asia
Investment Tip: Keep an eye on the Ministry of Mines and Energy (MME) for upcoming solar tender announcements. Many projects are now structured as PPPs or reverse auctions, offering transparency and predictable returns. Consider collaborating with experienced Cambodian EPCs or landowners to streamline permitting and grid connection processes.
Estimated ROI: 10–14%
🌾 2. Agricultural Biomass Energy: Turning Waste into Watts
Why It’s a Top Opportunity: Cambodia’s agrarian economy produces substantial quantities of biomass waste—particularly from rice milling, cassava processing, sugarcane farming, and rubber tapping. Much of this waste is either unused or burned, posing environmental and logistical challenges in rural zones.
What Makes It Attractive:
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Biomass fuel (rice husk, corn stalks, rubberwood) is abundant and low-cost
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Enables decentralized energy production in agro-rich provinces
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Biomass energy helps reduce rural waste and mitigate air pollution
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Eligible for carbon offset credits under the Clean Development Mechanism (CDM) and voluntary markets
Investment Tip: Target provinces like Battambang, Kampong Thom, Kampong Cham, and Prey Veng, where feedstock is plentiful and local farmers are eager to partner. Develop small-to-mid-scale biomass gasification or combined heat and power (CHP) systems. Also explore Green Climate Fund grants for pilot projects aligned with Cambodia’s rural electrification goals.
Estimated ROI: 12–16%
💨 3. Wind Energy: The Sleeping Giant on Cambodia’s Coastlines
Why It’s a Top Opportunity: Although Cambodia has yet to commission its first commercial wind farm, feasibility studies conducted by the ADB and private consultants show significant potential along the southwest coastline, especially in Kampot, Preah Sihanouk, and the Cardamom Mountains.
What Makes It Attractive:
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Cambodia has coastal and upland regions with year-round wind speeds suitable for turbines
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Regulatory openness to pioneering renewable technologies
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Opportunity to be a first mover in an underdeveloped vertical
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Wind power aligns with Cambodia’s aim to reduce diesel imports and diversify energy sources
Investment Tip: Team up with engineering firms and universities to validate wind patterns and micro-climate data. Land acquisition will be key: collaborate with local communities and authorities early to secure favorable locations. Submit proposals to the General Department of Energy (GDE) under the MME’s Independent Power Producer (IPP) framework.
Estimated ROI: 8–12%
🌊 4. Mini- and Micro-Hydropower: Sustainable Power for Remote Areas
Why It’s a Top Opportunity: Cambodia’s rural northern provinces—including Ratanakiri, Mondulkiri, and Preah Vihear—remain energy-challenged. In these regions, mini- and micro-hydro projects (1–10 MW) are a low-impact, high-benefit solution for powering schools, clinics, and small industries.
What Makes It Attractive:
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Ideal for off-grid and mini-grid solutions supported by NGOs and donor agencies
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Avoids environmental challenges of large dams
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Can be developed using run-of-river models with minimal habitat disruption
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Eligible for rural energy funding through programs like the National Electrification Plan
Investment Tip: Start with hybrid systems (hydro + battery + solar) to stabilize supply in remote villages. Work with development partners like GIZ, UNDP, or Mekong River Commission to co-finance infrastructure. Community ownership models can also boost acceptance and reduce O&M costs.
Estimated ROI: 10–15%
🏙️ 5. Rooftop Solar for Commercial and Industrial Users (C&I): A Quiet Revolution
Why It’s a Top Opportunity: While large-scale projects get the headlines, Cambodia’s rooftop solar sector has been quietly expanding. Businesses across Phnom Penh, Sihanoukville, and Bavet SEZs are increasingly installing solar panels to slash electricity bills and hedge against grid instability.
What Makes It Attractive:
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High electricity prices for commercial users (0.15–0.25 USD/kWh)
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Fully legal leasing and third-party PPA frameworks
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Strong government backing for “net metering” and smart meters
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Ideal for hotels, malls, garment factories, data centers, and food processing plants
Investment Tip: Structure flexible financing models (solar leasing, zero-upfront PPAs, energy-as-a-service). Offer bundled packages that include design, install, financing, and maintenance. Consider scaling with carbon credit revenueor explore issuing green bonds once portfolio assets mature.
Estimated ROI: 15–20%
🔎 Cambodia’s Renewable Energy Policy Landscape (2025 Snapshot)
| Policy Area | Status |
|---|---|
| Renewable Energy Master Plan | Active – 30% target by 2030 |
| 100% Foreign Ownership | Allowed in all renewable sectors |
| Corporate Income Tax Holidays | Available under investment law |
| VAT on Clean Tech Imports | Exemptions for solar, wind, hydro equipment |
| National Grid Access | Available for licensed IPPs |
| Carbon Market Development | In progress (Voluntary and Article 6) |
🔋 Which Energy Sector Is Right for You?
| Opportunity | Estimated ROI | Best Locations |
|---|---|---|
| Solar Farms | 10–14% | Kampong Speu, Pursat, Kampong Chhnang |
| Biomass | 12–16% | Battambang, Prey Veng, Kampong Thom |
| Wind | 8–12% | Kampot, Preah Sihanouk, Mondulkiri |
| Mini-Hydro | 10–15% | Northern & Northeastern Provinces |
| Rooftop Solar C&I | 15–20% | Phnom Penh, Sihanoukville, SEZ clusters |
📣 Final Thoughts: Cambodia’s Renewable Future is Now
Cambodia may not yet rival Vietnam or Thailand in installed capacity, but it offers something more valuable: market entry flexibility, first-mover incentives, and fewer regulatory bottlenecks. The government is actively encouraging renewable adoption—not just for power security, but for long-term economic competitiveness.
As demand for electricity rises with urbanization, industrialization, and digitalization, renewable energy investment opportunities in Cambodia will only grow in scale and sophistication.
📞 Ready to Explore a Project?
Whether you’re a solar EPC, energy financier, technology supplier, or a climate-focused investor—we help you navigate Cambodia’s regulatory, technical, and cultural landscape.
📧 Contact us today at info@vichetruon.com 🌐 Visit: vichetruon.com
Let’s build a greener Cambodia—together.
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