Lao factories face unstable power supplies
Lao factories face unstable power supplies
Laos is still facing instability in electricity supplies which will hamper further industrial development despite the increasing number of hydropower plants in the country.
The number of operational hydropower plants in Laos has increased rapidly over recent years thanks to the government's policy to promote development of clean and renewable electric power.
At present, there are 24 hydropower plants operating in Laos with a combined installed capacity of 3,000 MW, however domestic supply is still not sufficient to cope with peak demand in the summer months.
The Ministry of Energy and Mines this week issued an announcement urging factories in Vientiane to reduce power consumption by at least 50 percent during peak load periods from 6pm to 8pm, making it possible for factories in the capital to run over time.
The ministry made the announcement as part of efforts to prevent a shutdown of electrical power in the capital.
Vientiane Industry and Trade Area (VITA Park) President, Mr Sibounheuang Vienheuangphay told Vientiane Timesrecently that power supplies are one of the major issues which foreign business people have expressed concerns about.
“Power supply must be stable otherwise investors will not invest in Laos,” he said, adding that the park is developing its own power station, which will secure a stable supply for the factories in the park in the future.
Mr Sibounheuang said the government had informed park management that it would have to import electricity from neighbouring Thailand in order to boost industry growth in Laos.
An official from the Ministry of Energy and Mines told Vientiane Times that despite the increasing number of power plants in Laos; most of the electrical power is not for domestic consumption but exported to earn foreign exchange.
Nam Theun 2, one of the largest hydropower plants in Laos exports about 90 percent of its power to Thailand in accordance with a power purchasing agreement with Electricity Generating Authority of Thailand.
Many investors want to sell electricity to Thailand because the neighbouring country is one of the largest markets in the region and they can secure a good return on their investment.
The official said that Laos did not have electricity reserves to accommodate unexpected surges in electricity consumption due to economic growth, as is the case in many developing countries; therefore it was difficult to secure a stable power supply for factories in Laos.
He said the government has realised the challenges and was promoting local and foreign investors to build hydropower plants for domestic consumption, adding that at present, investors are developing Nam Ou hydropower plants in northern Laos to generate electric power for the domestic market.
“Don Sahong dam in Champassak province is one of the power plants, which the government wants to promote so as it can generate electricity for southern provinces, which is seeing rapid demand for electricity,” he said.
He also said that Laos expect s to have enough power for domestic consumption after the construction of various major power plants is completed in 2015.
vientiane times
