Assessing the Economic Viability of Small Modular Reactors in Cambodia’s Evolving Energy Mix

Abstract

Cambodia’s economy has grown steadily over the past two decades, leading to a sharp increase in electricity demand across residential, commercial, and industrial sectors. At the same time, the country continues to face challenges related to energy affordability, dependence on imported power, and the need for a stable electricity supply to support economic development. This paper explores the economic potential of introducing nuclear power into Cambodia’s energy mix, with a particular focus on small modular reactors (SMRs) as a more flexible and scalable technology option. The study begins by analyzing Cambodia’s current electricity generation profile, highlighting the heavy reliance on hydropower, imported fossil fuels, and rising but still limited contributions from solar energy. While hydropower has enabled some degree of energy independence, seasonal variation and climate risks make it unreliable as a sole baseload provider. In contrast, nuclear energy offers a steady, low-emission supply of electricity that can operate continuously, independent of weather or fuel market fluctuations. Through a review of cost data and levelized cost of electricity (LCOE) comparisons, the study finds that nuclear power—despite its higher initial investment—can become cost-effective over time due to low operating costs and long plant lifespans. The paper also considers broader economic benefits, including job creation during construction and operation, foreign direct investment opportunities, and support for industrial growth through more reliable and affordable energy. Given Cambodia’s current technical capacity and financial resources, the paper emphasizes the importance of phased planning, international cooperation, and investment in human capital. Strategic partnerships with countries experienced in nuclear technology can help reduce costs and build local expertise. The findings suggest that nuclear energy has strong potential to complement Cambodia’s renewable energy goals while addressing long-term affordability and supply stability. The paper concludes with key policy recommendations to help Cambodia assess and prepare for the possible integration of nuclear energy in its national energy strategy.