Logo of Phnom Penh Post newspaper Phnom Penh Post - Saudi firm eyes investment in Cambodian energy sector

Saudi firm eyes investment in Cambodian energy sector

Saudi firm eyes investment in Cambodian energy sector

Saudi Arabia’s ACWA Power is eyeing to invest $10 billion in 10 countries this year, including Cambodia, its CEO said on Saturday.

ACWA Power – which is backed by Saudi Arabia’s sovereign investment fund – already holds substantial assets in 12 countries and has bid for renewable energy projects in Cambodia, among other countries, Paddy Padmanthan told Reuters at the sidelines of the World Future Energy Summit in Abu Dhabi this week.

“The company, which builds power and desalination water plants, has 50 per cent of its portfolio in Saudi Arabia, and plans to expand into new markets,” Padmanthan said.

The Ministry of Mines and Energy on Tuesday said the Kingdom welcomed all investors as the government aims to expand the power network to all villages across Cambodia.

“There is great potential here for investments in the energy sector,” ministry spokesman Victor Jona told The Post.

Due to the Kingdom’s rapid pace of development, Electricite du Cambodge announced that it will increase investments in solar energy by 12 per cent by the end of the year, boosting that commitment to over 20 per cent over the next three years.

Last month, Cambodia International Investment and Development Group Co Ltd and China Huadian Hong Kong Co Ltd announced a partnership to build two coal-fired power plants in Preah Sihanouk province.

With a capital investment of around $1 billion, the coal-fired facilities will produce some 700MW of electricity. The power plants are scheduled to be completed by the end of 2022 and will become operational by early 2023.

Cambodia generates most of its energy from hydropower dams and coal-fired plants, accounting for around 48 per cent and 47 per cent of power production, respectively.

The Kingdom’s energy demand is projected to increase to 2.3GW in 2020 from 1.5GW last year. The government forecasts demand to reach 2.8GW in 2021.

ACWA Power was recently granted three contracts worth a total of $800 million to develop power stations in Azerbaijan and Ethiopia, Padmanthan said.

The $300-million project in Azerbaijan will produce 200MW of power, while two power plants in Ethiopia – worth about $500 million combined – will produce 300MW of energy.

The firm has committed $500 million to develop several renewable energy projects in Indonesia. It is also eyeing to expand its portfolio to include the Moroccan, UAE, Jordanian and Saudi markets.

The sovereign Public Investment Fund of Saudi Arabia holds a 25 per cent stake in ACWA and has announced it will increase its holdings to 40 per cent.

MOST VIEWED

  • Kingdom accepts Chinese vaccine, PM first to get jab

    Prime Minister Hun Sen said China would offer Cambodia an immediate donation of one million doses of the Covid-19 vaccine produced by the Sinopharm company. In an audio message addressing the public on the night of January 15, he said Cambodia has accepted the offer and

  • Hun Sen: Lakes filled in for national developments

    Prime Minister Hun Sen has announced continued operations to fill some lakes in Phnom Penh to create land for developments, though he is against the unrelated practice of damming rivers or blocking waterways. Speaking at the inauguration of the Ministry of Public Works and Transport

  • Koh Preus upgrades 70% complete

    Initial construction of a nearly $30 million tourism infrastructure project on Preah Sihanouk province’s Koh Preus Island is “about 70 per cent complete”, according to an official with the developer. Heng Thou, construction site manager of Angela Real Estate Co Ltd (ARE), told The Post that

  • Local media loses a giant, and The Post a great friend

    Cheang Sokha, a gifted and streetwise reporter who rose to the highest ranks of Cambodian media and was beloved for his sharp intelligence, world-class humour and endless generosity, died on Friday in his hometown of Phnom Penh. He was 42. His wife, Sok Sophorn, said he

  • Cambodia, India agree to start direct flights, tourism exchanges

    Cambodia and India have agreed to start direct flight connections and promote closer tourism exchanges and cooperation in all areas after the Covid-19 saga comes to a close. The agreement was reached during a meeting between Cambodian Minister of Tourism Thong Khon and newly-minted Indian

  • PM asks India for vaccine help

    Prime Minister Hun Sen is seeking assistance from India for the provision of Covid-19 vaccines as the country has produced its own vaccine which is scheduled to be rolled out to more than 300 million Indians this year. The request was made during his meeting with