Growing electricity trade increases Lao GDP
Growing electricity trade increases Lao GDP
A significant portion of Lao GDP is expected to come from the sale and supply of electricity to Thailand, a Thai official predicted.
The Thai and Lao governments reached agreement to increase the amount of power being supplied to 7,000 MW in the near future, a substantial increase from the current amount being supplied of about 2,100 MW, the Thai Ministry of Energy's Inspector General, Mr Chavalit Pichalai, told Vientiane Times in an interview during the 32nd Senior Officials Meeting on Energy last week.
To achieve this figure the power generating sources currently under construction at Xayaboury, Hongsa, Xepiane and Xe Namnoy will be needed.
The 7,000 MW of electricity will bring in an income of around 100 billion baht (25 trillion kip) to Laos.
The income from this sector will contribute to socio-economic development and significantly boost trade between the two countries, said Mr Chavalit. Currently there are five hyd ropower plants generating electricity for supply to Thailand including Nam Theun Hinboun, Nam Theun II and Nam Ngum II.
Other cooperation projects between the two governments like the Xayaboury plant, Hongsa lignite, Xepiane and Xe Namnoy are under construction and there are four projects currently under negotiation including Nam Ngum III, Nam Theun I and Pak Beng, he explained.
The two governments have also cooperated on a plan to construct a number of smaller hydropower projects with installed capacities of 50-100KW to supply power to people in rural areas in Laos, said Mr Chavalit.
“As Laos has large mountainous areas and many s of rivers, the country has a high potential to generate electricity through hydropower so we are sure that Laos will be a major source of electricity to supply to the other Asean countries and the region,” he commented.
He expressed the opinion that electric power produced by rivers is a clean source of energy with minimal environmental impact.
Mr Chavalit believed that the cheaper cost of labour and electricity in Laos will attract investment and increase the country's relationship with its Asean partners and other countries in the region.
Besides the electricity trade between the two countries, Laos will continue to import cement, construction equipment and other products from Thailand to be used in hydropower construction projects in the future, he added.
Laos can also get more profit from hydropower dams if the government spends the money to build irrigation systems for agriculture produce, especially rice, downstream from the dams.
vientiane times
