PHNOM PENH (Bernama): Cambodia is reshaping its long-term energy security strategy by accelerating its transition to renewable energy to reduce reliance on costly fossil fuel imports as the conflict in West Asia continues to drive up fuel prices, fuel inflation and weigh on economic growth.
Renewable energy sources currently account for 63 per cent of Cambodia's power mix, with the government targeting a 70 per cent share by 2030.
Against this backdrop, senior energy officials and lawmakers met last Thursday to chart a new direction for the Kingdom's energy sector, which relies on imports for 90 per cent of its fuel needs.
A day earlier, Prime Minister Hun Manet said the country loses about US$80 million (RM318 million) to stabilise domestic electricity prices.
"While many countries have raised electricity tariffs in response to surging fuel prices, Cambodia has prioritised price stability to protect household purchasing power and support economic resilience,” said Manet, reported online news portal Fresh News.
The Commerce Ministry said petrol prices have risen by 40 per cent while diesel prices jumped by 41.5 per cent since the West Asia conflict erupted.
Cambodia’s economic growth rate is projected to slow to 4.2 per cent this year, compared to the earlier five per cent target, largely pressured by rising fuel costs.
April inflation rose sharply to 5.8 per cent due to higher fuel and transportation costs, combined with surging food and beverage prices.
A steady, sustainable electricity supply is essential to support Cambodia’s export-driven economy - particularly its garment, footwear and travel products sector - and its small and medium industries.
Cambodia is the world’s eighth-largest exporter of apparel and footwear.
According to the Ministry of Mines and Energy, the Kingdom’s total installed electricity generation capacity last year rose to 5,932 megawatts (MW) compared to 5,183 MW the previous year.
Its renewable energy mix includes - hydropower (34.25 per cent), solar (28 per cent), and biomass (0.92 per cent) make up the bulk of its green energy production.
Cambodia approved a US$200 million (RM794 million) project in February this year to build a 150 MW wind power plant in Mondulkiri province in the northeastern part of the country.
There has been significant progress in strengthening its energy sector to meet soaring demand with vast investments in power-related infrastructure to provide stable electricity to homes in rural and urban areas.
The national electrification rate has reached almost 96 per cent.
Manet’s government also plans to transform the Kingdom from a low-cost manufacturing hub into a major green production centre in ASEAN to attract more investments into the country.
The country’s Long-Term Strategy for Carbon Neutrality aims to achieve net-zero emissions by 2050 by targeting energy, transport, agriculture, forestry and waste management.
-- BERNAMA
