Powering Cambodia’s future: solar irrigation for climate resilience

Cambodia's climate and irrigation crisis

Access to reliable water is fundamental to food security, rural livelihoods, and climate resilience, especially in regions like Cambodia, where farmers face increasingly erratic rainfall and rising drought risk. Investing in sustainable irrigation is one of the most effective ways to adapt agriculture to climate change while reducing emissions from traditional diesel-powered systems.

With over 3.5 million hectares of rice cultivated annually, Cambodia is one of Southeast Asia’s leading exporters of high-quality jasmine rice, building on a centuries-old tradition of rice farming. However, this export potential is increasingly threatened by the impacts of climate change, particularly prolonged droughts. Currently, only an estimated 30% of rice-growing areas have access to reliable dry-season irrigation.

The Cambodian government is making significant investments to expand irrigation infrastructure. Yet, challenges persist due to poor maintenance and the limited capacity of farmer water user groups to effectively manage these systems. As a result, many farmers rely on small diesel pumps to irrigate their fields, often struggling with water scarcity and high fuel costs.

Bridging the gap with private sector partners

To help address these issues, the Dutch Fund for Climate and Development (DFCD) has approved origination support for Solar Green Energy (SOGE), Cambodia’s largest solar irrigation company. SOGE aims to become a dedicated irrigation water supplier by installing large-scale solar-powered pumps to deliver water directly to irrigation schemes. By charging farmers an annual water service fee, the model ensures a more reliable and cost-effective water supply, reducing dependency on farmers’ management capacity, erratic rainfall and diesel-based systems.

An environmentally-friendly alternative to diesel

In addition to increasing resilience to drought, solar-powered irrigation opens opportunities for crop diversification and the adoption of water-saving practices such as Alternate Wetting and Drying (AWD). AWD can significantly reduce methane emissions from irrigated rice fields, contributing to climate change mitigation compared to conventional practices.

About SOGE

Founded in 2014, SOGE is a women-led, locally rooted company that operates 19 solar irrigation stations and has installed more than 3,000 solar units directly with farmers. By replacing costly diesel systems with clean solar power, SOGE enables year-round rice production while reducing greenhouse gas emissions and boosting climate resilience.

About SNV’s support

Through the DFCD Origination Facility, SOGE will receive tailored technical assistance and grant funding to de-risk a proposed $13 million investment. This support will help the company assess and design 18 new solar irrigation stations covering over 18,000 hectares of rice, strengthen its financial systems, and ensure robust environmental and social safeguards are in place. The project introduces a private sector-led model for delivering reliable irrigation water services, with the potential to benefit hundreds of thousands of farmers across up to one million hectares of farmland. This approach aligns with Cambodia’s ambition to achieve high middle-income status and supports its national climate commitments (NDC) on both adaptation and mitigation goals. The origination support will serve as a roadmap for translating these policy goals into practical, scalable solutions on the ground. Read more in the disclosure notice.

“Cambodia still has over one million hectares of arable land without irrigation. With DFCD’s support, SOGE can rapidly expand solar irrigation systems across the country – an environmentally friendly solution that enables farmers to boost their income, enhance food security, and create jobs, ultimately driving economic growth," said Thida Kheav, CEO of SOGE.

Anticipated long-term impact

The initiative directly supports Cambodia’s national strategies for climate adaptation, sustainable agriculture, and renewable energy. Key outcomes of the fully funded investment are expected to include:

A systems approach to inclusive transformation

This partnership reflects SNV’s commitment to a systems approach—supporting integrated solutions that link food, energy, and water challenges by strengthening technical capacities, unlocking investment, and promoting practical policies for inclusive, climate-resilient development. It also underscores SNV’s ability to provide tailored support throughout a company’s growth journey—from nurturing early-stage innovation through the Innovations Against Poverty (IAP) programme to preparing businesses like SOGE for investment and scale-up through the DFCD.

“With SOGE, we’re supporting a locally led model that holds significant potential to inform national policy and drive long-term climate resilience within Cambodia’s agricultural sector," said Sola Heng, Business Origination Advisor at SNV Cambodia. "This exemplifies the type of high-impact, climate-focused enterprise that the DFCD is committed to advancing."

What it means for Least Developed Countries (LDCs)

SOGE represents the kind of climate-smart, investable opportunity increasingly emerging in LDCs – businesses with strong local roots that offer scalable solutions to interconnected water, energy, and agriculture challenges. Cambodia, where nearly half of all irrigation systems are still non-functional, urgently needs such innovation.

Through DFCD’s Origination Facility, SNV identifies and de-risks these promising ventures – bridging the gap between community needs and investor confidence. This partnership highlights how catalytic finance, targeted technical assistance, and strong local partnerships can unlock sustainable investments in climate adaptation and mitigation, advancing both national and global development goals.

About the DFCD

The Dutch Fund for Climate and Development (DFCD) is a climate resilience fund, dedicated to supporting climate adaptation and mitigation projects which benefit vulnerable communities and landscapes. It is funded by the Dutch government and managed by a pioneering consortium of Climate Fund Managers (CFM), Worldwide Fund for Nature Netherlands (WWF-NL) and SNV, led by the Dutch Entrepreneurial Development Bank, FMO. For more information, please visit the DFCD website.

About SNV

SNV is a global development partner deeply rooted in the African and Asian countries where we operate. With 60 years of experience and a team of approximately 1,600 people, we strengthen capacities and catalyse partnerships that transform agri-food, energy and water systems. Working on the core themes of gender equality and social inclusion, climate adaptation and mitigation, and strong institutions and effective governance, we tailor our approaches to different contexts to achieve large-scale impact and create sustainable and more equitable lives for all.

About SOGE

Solar Green Energy (SOGE) is Cambodia’s largest solar irrigation provider, working to bring clean, affordable water access to farmers through innovative, solar-powered solutions.

You can read the full disclosure document here.

For more information and if you want to share any confidential information you may have regarding the intended project or company, please contact: Alex Downs, adowns@snv.org (SNV - Dutch Fund for Climate and Development)