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Cambodia: A new step in the modernization of the power grid, supported by France and the European Union, and involving French expertise

bouram@afd.fr

Published

18 Sept 2026

Cambodia: A new step in the modernization of the power grid, supported by France and the European Union, and involving French expertise bouram@afd.frFri, 18 Sep, 2026 - 13:47 In the field September 21, 2026 1 Cambodia Energy CambodiaEurasia and Beyond European Union (EU) Affordable and Clean Energy Phnom Penh, September 18, 2026 – H.E. Mr. KEO Rottanak, Minister of Mines and Energy; H.E. Dr. PRAING Chulasa, Delegate of the Royal Government of Cambodia in charge as Managing Director of Electricité du Cambodge (EDC); H.E. Mr. Olivier RICHARD, Ambassador of France to Cambodia and H.E. Mr. Igor DRIESMANS, Ambassador of the European Union to Cambodia, today presided over the launch of three contracts that will accelerate two projects to modernize Cambodia's power grid. Both projects are supported by France, through Agence française de développement (AFD), and by the European Union. The ceremony also highlighted the role of French companies and experts working alongside Cambodian partners.“A decade ago, the questions facing Cambodia’s electricity sector were largely about how many villages and households we could reach. Today, the questions are different. Renewable energy, storage and new technologies are advancing across the region at remarkable speed. We must continue extending the grid while developing the knowledge and capability to understand and manage a system that is growing more complex by the year. Today’s three partnerships strengthen EDC’s ability to plan and manage this next phase” said H.E. KEO Rottanak, Minister of Mines and Energy.As Cambodia completes the electrification of its territory and as its demand for electricity continues to grow rapidly, the objective now is to build a more reliable and resilient grid, capable of integrating more renewable energy. With a combined funding of 99.1 million euros, the two projects jointly address this challenge: one modernizes the management of the power grid, while the other strengthens its infrastructure.The Grid Modernization for Transmission and Distribution Systems project, financed by a 25 million euro concessional loan from AFD and a 4.1 million euro grant from the European Union delegated to AFD, is upgrading the grid’s monitoring and control systems and supporting EDC’s digital transformation, as well as the development of training and research capacities. The project is expected to help reduce the duration of power outages by 30%, cut energy losses by 0.5%, and prevent approximately 12,000 metric tons of CO2 emissions per year.The Sustainable Power Grid Development project, financed by a 70 million euro AFD concessional loan, strengthens the national power grid and its capacity to integrate renewable energy. It includes the upgrading of power lines and substations in several provinces, as well as the deployment of battery storage capacity.“France, through AFD, has been supporting Cambodia in the development, modernization and strengthening of its power system since the late 1990s. Over the past 30 years, AFD has extended more than 190 million euros in financing in that area. Today’s two projects illustrate the continuation of this long-lasting commitment to the Cambodian energy sector” said H.E. Olivier Richard, Ambassador of France to Cambodia.A Team Europe partnershipThe Grid Modernization project brings European and Cambodian partners together around shared objectives. The European Union and France finance it jointly, through a European Union grant and an AFD concessional loan implemented as a single operation. European companies deliver the engineering and the equipment. The Royal Government, through the Ministry of Mines and Energy and EDC, sets the direction and will operate it. This is the Team Europe approach: European public financing, European expertise and Cambodian ownership working towards the common goals.French expertise supporting the partnership with CambodiaTwo French companies are among the three selected for the contracts announced at the ceremony. EDC has awarded EDF a 2.1 million euro engineering and consulting contract, financed by AFD, to support the implementation of the Sustainable Power Grid Development project. As part of the Grid Modernization project, UKKO, a subsidiary of the French company Groupe Duval, will supply 300.000 euros worth of equipment for the Institute of Electrical Science (IES), which is EDC’s training center. A third contract, worth 450.000 euros, was signed with the Canadian company Opal RT for the installation of a real-time simulator for the Platform for Research and Training on Power Systems developed jointly by EDC, Institut de technologie du Cambodge, and Université Grenoble Alpes. These two contracts are financed by delegated funds from the European Union. “A modern grid needs modern skills. Electricity touches every part of our lives — homes, hospitals, schools, businesses. Keeping it reliable and clean is continuous work, and it demands constant adaptation of skills. With this project, the students will train on a real-time model of the power grid, learning the system before they are responsible for it. Infrastructure and skills, together — that is what the Global Gateway strategy delivers" said H.E. Igor Driesmans, Ambassador of the European Union to Cambodia. These contracts demonstrate the commitment of Cambodian, French, and European partners to a shared goal: to provide long-term support for the modernization of Cambodia’s electricity system and to build a grid that is more reliable, more resilient, and capable of integrating more renewable energy.Press Contact: Lola MERCIER / mercierl@afd.fr / +855762765492 Phalkun CHAN/ Phalkun.CHAN@eeas.europa.eu / +855 23230-491About Agence française de développement :The French Development Agency (AFD) contributes to the implementation of France’s development and international solidarity policy. Through its financing activities for the public sector and NGOs, its research and publications (Éditions AFD), its training programs on sustainable development (Campus AFD), and its awareness-raising efforts in France, it finances, supports, and accelerates the transition toward a more just and resilient world.Together with our partners, we develop shared solutions with and for people in the Global South. Our teams are involved in more than 3,250 projects in the field, in France’s overseas territories, in 115 countries, and in crisis-affected regions, working to advance the common good: climate, biodiversity, peace, gender equality, education, and health. In this way, we contribute to France’s and the French people’s commitment to the Sustainable Development Goals (SDGs). For a world in common. For more information, visit www.afd.frAbout Global Gateway and Team Europe in Cambodia:The European Union is Cambodia's biggest grant development partner and fourth-largest trading partner, supporting the country's economic growth, infrastructure, and reforms since the early 1990s. Global Gateway attracts quality investments and infrastructure to connect Cambodia to global markets and accelerate its integration in ASEAN. It builds green and digital skills, unlocking Cambodia’s full potential to meet tomorrow’s opportunities.To deliver the Global Gateway, Team Europe partners with Cambodia for enhanced competitiveness and decent jobs. Team Europe contributes to the green transformation of the agriculture and industrial sectors, by investing in modern infrastructure, knowledge and expertise, and technology.