ADB Approves $63.44 Million for 250MW/500MWh Battery Energy Storage System in Cambodia

• Proeksa Meas
• 2 July 2026
• Construction Focus
• 73 Views

The Asian Development Bank has officially approved a $63.44 million financial support package for the Royal Government of Cambodia to construct a 250MW/500MWh Battery Energy Storage System at the Takeo substation in southern Cambodia.

According to the announcement of the Asian Development Bank (ADB) on June 24, 2026, the comprehensive financing package consists of a $40 million concessional loan directly from the Asian Development Bank, a $5 million grant from the Asian Development Fund, and $18.44 million in co-financing mobilized from the Green Climate Fund and the UK government via the ASEAN Catalytic Green Finance Facility.

The project will be equipped with advanced grid-forming inverter capabilities, enabling the asset to actively participate in frequency control to stabilize the national grid, a crucial service historically performed by the rotating mass of thermal and hydro turbines. Primarily, the system will help integrate variable renewable energy into industrial zones, agricultural processing facilities, and urban districts. Furthermore, it will facilitate cross-border electricity trade with Vietnam, aligning with the broader ASEAN Power Grid initiative.

The Asian Development Bank and the state-owned utility Electricite du Cambodge launched the invitation for bids under a single-stage competitive bidding process. The deadline for submissions is set for August 20, 2026, and the selected contractor must complete the project within 12 months of the contract taking effect. Eligible bidders must demonstrate a strong track record in large-scale battery storage deployment and maintain an average annual turnover of at least $83 million over the past five years.

Yasmin Siddiqi, the Asian Development Bank Country Director for Cambodia, emphasized that amid the global energy crisis, this project further reinforces Cambodia’s commitment toward a clean energy transition. She added that by strengthening the power grid with advanced battery storage, they are helping the country unlock more renewable energy while ensuring that families, farmers, and businesses benefit from safe, stable, and affordable electricity.

Driven largely by its abundant hydropower resources, Cambodia already boasts a 63% share of renewables in its current generation mix. This puts the country well ahead of the ASEAN regional target of 35% by 2030, keeping it firmly on track to meet its own ambitious national target of 70% renewable capacity by 2030 under the Power Development Master Plan 2022–2040.

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