By: Heng Pheakdey
Cambodia’s energy security is at risk. Insufficient domestic energy production and poor physical infrastructure cause dependency, accessibility, reliability and affordability issues. The country relies almost entirely on the import of fossil fuel, mainly diesel and heavy oil, for electricity production. Apart from Burma, Cambodia has the lowest electrification rate in the region—only 35 percent of its entire population has access to reliable electricity, while its electricity price is one of the highest in the world. This situation has serious implications for Cambodia. Firstly, importing fuel causes high energy costs, which in turn reduces the viability of commercial activities, affects the competitiveness of Cambodian products and hinders the country’s economic growth. Secondly, frequent energy disruption and high electricity prices can spur social unrest.
Disclaimer: All views expressed here belong to their respective author and do not represent the views of Enrich Institute