Renewable Energy Certificate

Cambodia’s renewable energy (RE) transition is progressing. According to Électricité du Cambodge (EDC), renewable sources accounted for 47.4% of electricity generation in 2024. Electricity production increased significantly, from 1,016 GWh in 2010 to 17,851 GWh in 2024. Expanding the share of renewables can help reduce power generation costs for EDC and lower energy costs for consumers and industry.

For the private sector to access and use exclusively renewable electricity, Renewable Energy Certificates (RECs) have previously been issued and sold by two Independent Power Producers operating solar power plants in Cambodia, as well as by some rooftop solar companies. This was facilitated by REC agents providing administration and sales services to the project owner. The main international REC framework is the I-REC Standard, now called the I-Track Standard. The TIGR Standard also exists but is less prevalent. The I-Track Standard is an independent body that verifies renewable electricity generation, issues RECs, ensures no double-counting, and provides a platform for REC trading and redemption. It operates in over 50 countries and is widely recognised by REC buyers globally.

The I-Track Standard appoints a “designated Issuer” for each country it operates. This issuer is responsible for the verification of renewable power plants and the MWh generated. The I-Track Standard prefers to designate and train a local agency. company or NGO to be the Issuer in each country (e.g. EGAT in Thailand, the Pakistan Environment Trust in Pakistan, Instituto Totum in Brazil, the Petroleum Regulatory Authority in Kenya etc). If no local Issuer can be found, then the global default Issuer – the Green Certificate Company – performs the role of the Issuer. GCC is the Issuer in Malaysia, Vietnam, Indonesia, and Cambodia. The Issuer collects the Issuance Fees, which are usually US$0.03 per REC. 

RECs allow renewable electricity producers to receive tradable certificates for each MWh of electricity generated. When issued and redeemed under international standards such as I-Track or TIGR, RECs allow companies to credibly claim renewable electricity use and report zero Scope 2 emissions under the GHG Protocol. This supports compliance with voluntary corporate climate commitments, including the Science Based Targets initiative (SBTi), ISO Net Zero Guidelines (ISO 50010 & 14068), the GHG Protocol, ISSB Standards (IFRS S1 & S2), and RE100. Under these frameworks, only RECs generated in Cambodia may be used to offset electricity consumed in Cambodia, and RECs issued under I-Track and TIGR are explicitly recognised.

Demand for Cambodian RECs remains limited, with estimated annual sales below 100,000 RECs, despite a significantly larger available supply from registered solar plants. However, demand is increasing as companies face growing pressure to reduce emissions and reach net-zero targets. By comparison, approximately 10 million RECs are sold annually in Vietnam. The availability of credible RECs in Cambodia is therefore important for multinational companies seeking practical ways to reduce GHG emissions.

To promote renewable energy under the Power Development Masterplan, the Ministry of Mines and Energy (MME) issued Prakas No. 0039 on 7 February 2025, establishing a government-led REC system. Under this framework, EDC would act as the exclusive issuer and seller of RECs, responsible for identifying eligible facilities and approving transactions under the oversight of MME and the Electricity Authority of Cambodia (EAC).

While this proposed system aims to be a positive step toward achieving net-zero goals, this single-issuer/broker system does not align with any international REC framework. Because RECs issued and traded solely by EDC would not be internationally recognized, and there would be an absence of a market-based system with independent third-party brokers, Cambodian RECs wouldn’t meet international standards for transparency and independence for the prevention of ‘double-counting’. Also, the I-Track Standard has already developed the framework, infrastructure, systems and registry necessary to verify, track and redeem RECs (at significant cost and effort).

By not allowing companies to certify RECs for both their on-site RE production and verify the portion of RE they must source from the grid, companies pursuing net-zero operations by 2030 would be unable to credibly demonstrate a transition to 100% renewable energy. This gap also poses a barrier to investment: international companies with strong environmental commitments evaluating future expansion in Cambodia may instead favor neighboring ASEAN countries such as Malaysia and Vietnam, where credible REC markets with internationally aligned issuers and independent third-party brokers are already established.

The lack of an internationally aligned REC mechanism has several implications for Cambodia’s private sector.

Without access to internationally verified RECs, companies aiming for Net-Zero operations by 2030 cannot credibly switch to using renewable zero-emission electricity, making compliance with global net-zero reporting standards impossible. As multinational companies (MNCs) operate across multiple countries, they must do sustainability reporting through a common, internationally recognized system (RE100, CDP), something a domestic, non-aligned REC structure cannot provide.

Plus, the lack of an internationally aligned REC mechanism prevents renewable energy power plants from generating additional revenue. Allowing these revenue streams could help renewable energy producers offer more attractive electricity tariffs to EDC while earning supplementary income from RECs, thereby enhancing the overall appeal of renewable energy investments in Cambodia Moreover, the absence of a market-based REC trading system further slows Cambodia’s progress toward a more affordable, sustainable, and diversified energy mix.