Phnom Penh, Sep 18: The Asian Development Bank (ADB) announced on Thursday that it has approved a 52.72-million-US-dollar loan for the Grid Expansion Project in Cambodia.

The project will strengthen the country's transmission network to integrate more renewable energy into the national grid and help meet rising electricity demand with cleaner, locally generated power, the ADB said in a news release.

Cambodia has expanded its domestic electricity generation rapidly, doubling output from 8.68 terawatt hours (TWh) in 2020 to 17.85 TWh in 2024, it said, adding that over the same period, reliance on imported electricity dropped from 3.06 to 1.57 TWh, reports Xinhua news agency.

"This progress reflects the country's growing energy self-reliance and the potential of renewable sources to support its development goals," the news release said.

ADB country director for Cambodia Jyotsana Varma said reliable and affordable electricity is the backbone of Cambodia's growth story.

"This project is about more than building transmission lines -- it is about connecting people, schools, hospitals, and businesses to a cleaner and more resilient energy future," she said.

"By bringing more renewable energy into the grid, Cambodia can power opportunities for its people while protecting the environment for generations to come," Varma added.

Cambodia's grid was built for conventional power and now needs expansion to handle growing solar and wind.

The project will build 55 km of 230-kilovolt transmission lines between Pursat and Kampong Chhnang provinces, and upgrade nine substations across the country, the news release said.

Aligned with Cambodia's Power Development Master Plan (2022-2040) and the National Energy Efficiency Policy (2022-2030), the project will help reduce transmission losses and enhance energy security, it added.

(IANS/NS)