Summary
This report assesses the readiness and potential of Energy Service Companies (ESCOs) and On-Bill Financing (OBF) to accelerate energy efficiency in Cambodia's building sector. According to AEO8, the building sector accounts for 23% of ASEAN's TFEC, with Cambodia's commercial consumption projected to nearly double to 1.849 Mtoe (21,500 GWh) by 2050.
The report finds that Cambodia's ESCO market is nascent with no fully operational energy performance contracting models among the 14 identified energy service providers. Scenario modelling quantifies the opportunity at approximately USD 144 million in financing needed for ESCOs to deliver 25% of the commercial building TFEC reduction target by 2050.
Four structural barriers constrain growth: weak regulatory foundation, limited access to capital, low market awareness, and inadequate technical capacity. Cambodia's vertically integrated utility structure (EdC) provides a favorable foundation for OBF, though OBF-specific regulations and a strengthened ESCO market must be developed in parallel through a phased sandbox pilot.
The report concludes with a five-theme recommendation covering policy and regulation, finance mobilisation, capacity building, awareness raising, and market infrastructure, with phased actions assigned to specific Cambodian institutions.