Laos secures Thai energy contract
Vientiane Times, By Phonsavanh Vongsay
(Latest Update April 5, 2010)
A power purchase agreement was signed in Vientiane last Friday, signalling a significant electricity export contract with neighbouring Thailand.
The agreement was finalised between the Electricity Generating Authority of Thailand (EGAT) and Hongsa Power Company Limited (HPC), and will see power sent from the proposed Hongsa lignite-fired power plant in Hongsa district, Xayaboury province, across the border.
The Hongsa plant will have an installation capacity of 1,878 megawatts (MW), and will be the largest power plant in Laos, according to EGAT representative, Mr Sutat Patmasiriwat.
EGAT agreed to purchase 1,473MW of that output per annum for 25 years once the plant is operational in 2015.
Between 100 and 170MW of the remaining capacity will be supplied to Electricite du Laos (EDL) for domestic consumption, with the remaining portion being used by the project for internal mining and power generating operations, said HPC representative, Mr Noppol Milinthanggoon.
Negotiations are still underway for the domestic supply contract, but are expected to be finalised in the coming months.
The domestic purchase period will also be a 25 year contract.
The Hongsa project has three shareholders, with Ratchaburi Electricity Generating Holding Public Company and Banpu Power Limited each holding 40 percent stakes, and the rest controlled by the government operated Lao State Holdings Enterprise.
Construction of the 31.2 trillion kip (US$3.7 billion) plant is due to begin by the end of this year, with studies currently underway to determine the environmental and social impact of the project.
It will require the relocation of five villages, which is expected to happen later this year.
It follows an agreement in December 2007 between the Lao and Thai governments which will see Laos supply 7,000MW of power to Thailand by 2015.
The project is the result of a joint Lao-Thai effort to address the increasing demand for electricity in the two countries as well as to stimulate Lao socio-economic development.
Demand for Lao electricity has been increasing rapidly both domestically and from abroad, prompting the development of several hydropower projects.
There are currently 76 hydroelectricity projects in Laos, 10 of which are operational while the rest are approaching deadlines for completion.
Laos has the potential to generate a total of about 26,500 MW from hydro sources, excluding the mainstream Mekong River, according to the Energy Promotion and Development Department. |
