PHNOM PENH: French state-owned utility giant Électricité de France (EDF) is looking to develop a major 800-megawatt (MW) hydropower project in Cambodia, a deal valued at over US$1.2 billion that underscores deepening bilateral economic ties.
Cambodian Permanent Deputy Prime Minister H.E. Vongsey Vissoth, Minister in Charge of the Office of the Council of Ministers, met with an EDF delegation last week, led by Ms. Marie Buscail, Chargé d’Affaires of the French Embassy, and Mr. Erkki Maillard, EDF Senior Vice President for Government and International Affairs, to discuss the proposal.
H.E. Vongsey Vissoth characterised the potential investment as a “symbol of the close friendship” between Cambodia and France, noting that the Council of Ministers is prepared to facilitate the massive undertaking.
“Energy has become a matter of national security, especially within the current global geopolitical and geo-economic landscape,” he said. “Ensuring an affordable and stable energy supply is a top priority for the Royal Government of Cambodia.”
The Kingdom has seen electricity demand skyrocket over the last two decades due to rapid industrialisation.
Officials expect this trend to accelerate as the country pivots toward a digital economy and integrates Artificial Intelligence (AI) technologies.
To manage this growth, the Royal Government of Cambodia is focused on four key pillars: Reducing power generation costs; Ensuring long-term price competitiveness for industries; Strengthening grid stability and reliability; Enhancing energy sovereignty through the diversification of investment sources.
In response, EDF’s Erkki Maillard emphasised that the utility is seeking a long-term partnership rather than a simple equipment sale. He noted that large-scale infrastructure like hydropower plants operates for decades, requiring a foundation of robust cooperation and adherence to high international standards for safety and environmental protection.
The project comes as Cambodia grapples with the “energy transition” challenge – balancing the expansion of renewable energy with the need for system stability, all while attempting to phase out a heavy reliance on coal.
H.E. Vongsey Vissoth noted that lowering electricity tariffs is essential for Cambodia’s competitiveness, particularly for special economic zones and agri-industrial processing.
Diversifying foreign investment in the energy sector, he added, is a strategic move to increase the nation’s resilience and long-term economic growth.