Microgrids to Meet a Macro Goal: A Case Study in Cambodia
By: Michael Reilly
The Rural Electrification Problem
In 2024, the world generated more electricity from fossil fuels than ever before, more than double what it did just a quarter of a century before. Partially driving this crisis is a massive increase in the electrification of rural areas worldwide, especially in nations with burgeoning populations like India and Nigeria. Access to electricity has been driven by a desire for higher quality of life, as grid access brings more efficient food production, education, and healthcare, among many other benefits. Despite this, rural electrification comes with a host of issues.
One such problem is unreliability. Rural electricity users worldwide regularly face hours of electricity shutoffs, often unplanned and without a clear end in sight. Residents are forced to plan their lives around blackouts and brownouts, unable to complete basic tasks and feeling as though they have been sent back in time to the Stone Age.
Unreliable electricity can also push ratepayers into debt. The massive costs of developing electrical infrastructure are either amortized into sky-high electricity prices for already economically disadvantaged customers or require upfront funding that governments are unwilling or unable to provide.
Government itself can also create a massive roadblock in the development of rural energy. Corruption siphons money away from works-in-progress, leaving unfinished infrastructure dotting the countryside. Likewise, political instability and financial mismanagement create money pits instead of opportunities for farmers and other rural residents. Even well-intentioned measures, such as safety regulations, can slow progress, as they are often cited as a major driver of high capital costs.
The Rural Electrification Solution
To mitigate the negative consequences associated with rural electrification, developing nations like Cambodia have invested in renewable energy projects that can drive down costs, increase reliability, and power economic growth, while advancing the world’s green energy transition and modeling a solution for the rest of the world.
Cambodia, a tropical nation in Southeast Asia, is home to what some have called “the final frontier”, a region of small, unconnected rural villages surrounded by miles of jungle and mountains. These villages often lack resilient electrical infrastructure, as well as access to clean and affordable energy.
In 2023, the United Nations Development Programme joined the government of Cambodia to deploy solar energy microgrids in these remote villages, connecting them to a small solar farm that charges batteries used to power appliances, computers, and other essential devices. Reliable access to electricity quickly improved quality of life. Teachers gained access to new educational materials online, chefs cooked without inhaling harmful wood smoke, and businesses expanded as appliances could run consistently.
Solar microgrids, as the name implies, function similarly to conventional electrical grids, but on a smaller scale. Solar panels, usually rooftop or small- to medium- sized solar farms, convert sunlight into electricity, which is then distributed to connected users or stored in batteries during periods of surplus production. These grids can serve as few as one household or span entire villages, depending on the need, either acting as the sole producer of electricity or supplementing an existing power source.
Microgrids fit seamlessly into the puzzle of rural electrification. Their on-site location prevents the need for miles of costly transmission infrastructure to connect remote areas to the main grid. The same factor promotes the local economy and eases the burden of upkeep and repair, increasing reliability. Using solar panels instead of fossil fuel-based generation reduces air pollution, protects community health, and contributes to addressing the climate crisis.
Replicating the Solution
Replicating this project, however, may not be feasible everywhere in the world. First, a high financial barrier to entry prevents similar microgrid systems from reaching populations without substantial resources or external support from actors such as NGOs, IGOs, or national governments. Specifically, the Cambodian project required 70% initial public financing, in addition to ongoing operational costs. Second, Cambodia benefits from solar energy potential, receiving abundant sunlight year-round that can be converted into electricity. Not all countries share this advantage, particularly in parts of the Global North.
Despite these limitations, many nations do possess high solar potential, alongside large populations in hard-to-reach rural areas, governments seeking to expand electrification, and a commitment to a green energy transition. Take India, for example. The country with the world’s largest population has experienced a dramatic increase in electricity access as it industrializes, with over 99% of households having some level of access as of 2024. Much of this access, however, still relies on fossil fuel use, primarily coal. At the same time, many southern and rural regions face similar problems to those in Cambodia: “last mile” villages that are often too remote and economically disadvantaged to bear the high costs of grid connection. In rural, forested, and mountainous states such as Jharkhand or Bihar, many residents still experience limited or inconsistent electricity access. India has committed to financing a capacity for 500 megawatts of renewable electricity by 2030, aiming primarily to harness solar and wind energy. Moreover, India receives comparable levels of annual solar radiation to Cambodia.
Other countries may also be well-suited for investment in solar microgrids. However, India, with its growing population, significant number of hard-to-reach rural communities, commitment to solar energy investment, and growing demand for improved living standards, represents a particularly compelling starting point.
Funding from the United Nations Development Programme has already contributed to significant improvements in the quality of life in Cambodia while advancing global clean energy goals. Programs of this kind can be replicated in similarly situated nations and directly support the United Nations’ sustainable development goals, including expanding access to affordable and clean energy and resilient infrastructure, while indirectly advancing many others.
In an era of rapid wealth concentration, now is the time to prioritize often-overlooked rural disadvantaged communities, low-income farmers and laborers who represent nearly half of the world’s population, while a large proportion continues to live in extreme poverty. Law and judicial systems must promote investment in rural solar microgrids through funding and legal frameworks to advance clean energy goals and work towards a more just society.
This article was written by PECC's Energy and Climate Law Scholar Michael Reilly, a law student at Elisabeth Haub School of Law at Pace University. It was originally published on February 27, 2026, in Volume 1, Issue 4 of the R.E.A.C.T. by PECC Newsletter.
Editors: Mercè Martí I Exposito, Frances Gothard, Carington Lowe