Cambodia grid reinforcement project approved

The ADB Board on 11 September approved a loan to improve the transmission and distribution network in Cambodia. The concessional loan in the amount of $127.8 million from ADB’s ordinary capital resources is being supplemented by grants where $4.7 million will be coming from the Strategic Climate Fund under the Scaling Up Renewable Energy Program in Low-Income Countries that is providing $4.7 million and $2 million from the Clean Energy Fund under the Clean Energy Financing Partnership Facility. The grant component will finance the pilot of a battery energy storage system (BESS). Both grants are being administered by ADBThe project aims to improve the reliability of power supply that is expected to spur economic growth, create jobs, and help the country recover from the COVID-19 pandemic.The BESS pilot will be installed adjacent to the ADB-supported National Solar Park project. It is part of the Government’s program to increase solar photovoltaic capacity from 155 MW in 2019 to 415 MW by 2022. The BESS which has a capacity of around 16 megawatt-hours is expected to integrate more renewable energy sources into the grid, stabilize power supply and demand, and regulate transmission congestion. Grant financing also supports on-the-job training for the operation and maintenance of the system.The project is being led by Daniela Schmidt of the Energy Division, Southeast Asia Department.