Cambodia’s Energy Efficiency Push Still Lags, Experts Warn

KT - Sokunthea

Two years after launching a flagship energy-saving strategy, Cambodia’s energy efficiency market remains underdeveloped, raising concerns over the Kingdom’s ability to meet its 2030 climate and energy targets.

The National Energy Efficiency Policy (NEEP), introduced in April 2023, set ambitious goals: reduce total energy consumption by 19 percent—from 89,837 GWh to 72,470 GWh—by the end of the decade. Yet experts say the country’s domestic energy efficiency market is still in its infancy, lacking the scale, expertise, and momentum required for meaningful progress.

P Ram Shankar, a global consultant on energy efficiency, told Khmer Times that while NEEP was a “milestone policy”, more robust efforts are now needed to build a thriving market for energy-saving products and services. “A well-developed energy efficiency market will complement the Kingdom’s manufacturing and services sectors,” he said, pointing especially to the cement industry—an energy-intensive field where improvements could yield outsized gains.

Currently, Cambodia’s energy efficiency efforts include initiatives such as regular energy audits, technology upgrades, and public awareness campaigns. But adoption remains slow. Statista data shows the annual market turnover is just $2 million, with projections suggesting modest growth to $2.6 million by 2029.

German and European analysts echo the view that Cambodia’s market offers significant potential—but only if current gaps are addressed. A recent analysis by Germany’s Federal Ministry of Economic Affairs noted high demand for services like auditing and monitoring, but highlighted the urgent need for trained professionals, financial tools, and technical support for industrial upgrades.

The policy has set sector-specific targets, with the steepest cuts (34 percent) aimed at residential consumption and the lowest (5 percent) in transport. Experts say without a functioning energy efficiency market—complete with trained local providers, accessible financing, and scalable solutions—those goals risk being missed.

While Cambodia has embraced innovation in areas such as digitalisation and ESG practices, Shankar stressed that progress on energy efficiency must now accelerate to match the country’s broader ambitions.

If NEEP is to succeed, observers say the next five years must see not just planning—but action.

-2025-06-21