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Conventional thermal power to continue dominating Cambodia’s power market

It is expected to account for 73% of the power mix in 2032.

Cambodia’s power market will remain dominated by conventional thermal power with its share in the power mix expected to reach 73% in 2032 from 51% in 2022.

In a report, BMI Country Risks & Industry Analysis said the growth of conventional thermal power will be led by coal-fired generation, with the most recent project, the second unit of the 700-megawatt (MW) plant in Sihanoukville, coming online in December 2022.

BMI added that in March, the governor of the Oddar Meanchey province announced that its coal-fired power plant, which could be the 265MW plant by Han Seng Coal Mine in the Trapaing Prasat district, is ready for operations.

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As of June 2023, Cambodia’s coal power project pipeline capacity, including the Oddar Meanchey plant, is at 3.5GW, the largest of all the power types.

“We believe that the gradual commissioning of the project pipeline will increase the market’s reliance on coal-fired power generation, though downside risks from private sector pressure to reduce coal use in the market are mounting,” it said.

Meanwhile, the approval of the Power Development Plan for 2022 to 2040 presents upside risks to stronger renewable growth because “it brings greater clarity to the government’s intentions for power sector development,” according to BMI.

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