Forte Insurance (Cambodia) Plc. and Cambodia Reinsurance Company (Cambodia Re) have raised concerns about growing insurance gaps in the country’s rapidly expanding solar energy sector, warning that domestic markets alone cannot absorb the financial risks tied to large-scale projects.
The two companies issued a joint statement following a seminar titled “Solar Energy and Insurance – Protecting Investments and Delivery,” held this week in Phnom Penh. The event brought together government officials, financial institutions, banks, investment firms, and solar installation contractors to discuss risk management and insurance coverage for solar projects in Cambodia.
The companies said solar projects face a broad range of hazards, from natural disasters to technical failures, including fire risks linked to battery energy storage systems. Given that individual investments often reach hundreds of millions of dollars, the joint statement said international reinsurance networks are needed to supplement local insurers’ capacity.
“Given the massive investment scales reaching hundreds of millions of dollars, the local insurance market alone cannot absorb these risks entirely, thereby requiring backing from international reinsurance networks,” the statement read.
Youk Chamroeunrith, chairman of Forte, said the company is prepared to extend financial protection to solar investors, businesses, and banks operating in Cambodia.
“Forte deeply understands this challenge, and we are fully prepared to provide a robust ‘financial shield’ for their businesses,” Chamroeunrith said. “Our main goal is to ensure that all solar power station assets in Cambodia receive protection aligned with international standards, allowing local business owners to operate and expand their green projects with absolute peace of mind.”
The seminar outlined insurance solutions covering three stages of solar development: construction and installation, including accidental damage and third-party liability; operations, covering risks such as fire, storms, and flooding; and business interruption, which compensates investors for lost revenue if power generation is disrupted.
The seminar was attended by Ros Seilava, secretary of state at the Ministry of Economy and Finance, and Hor Sovathana, deputy director general of the Insurance Regulator of Cambodia.
Cambodia’s installed solar capacity has grown from virtually zero in 2011 to more than 400 MW. The government’s Power Development Master Plan 2022–2040 targets solar contributing about 30% of total electricity generation by 2040.
On the regulatory side, Cambodia’s Ministry of Mines and Energy issued a directive in February establishing a 30 MW rooftop solar quota for the year, authorizing the Electricity Authority of Cambodia to grant approvals primarily targeting commercial and industrial users seeking to diversify their energy supply – a measure officials said is designed to balance growing demand with grid stability. The government has set a goal of reaching 70%–80% renewable energy by 2030.
