EGAT eyes Laos as a new energy production base
EGAT eyes Laos as a new energy production base
Electricity Generating Authority of Thailand (EGAT), one of the largest electricity generating firms in the neighbouring nation, plans to move its energy production base into Laos after learning of the huge investment potential, according to a top company official.
Strong opposition from locals and environmental activists over the establishment of power plants in Thailand has also forced the Thai state owned company to look for investment opportunities in neighbouring countries including Laos, Myanmar and Vietnam to meet the growing demand for power.
As part of its efforts to increase investment in the nearby region, EGAT has established EGAT International. The subsidiary has a mission to invest in the establishment of power plants in neighbouring countries and export some of the electricity power back to Thailand.
Acting President of EGAT International, Mr Thana Puttarangsri told Reuters the company has gained approval from its parent company to invest US$525 million (4.2 trillion kip) to build power plants in neighbouring countries in upcoming years.
According to Mr Thana, EGAT International plans to invest US$80 million to acquire a 30 percent stake in the 289-megawatt (MW) Nam Ngiep hydro power plant in Laos, which is expected to start operations in 2019.
One of the main factors inspiring EGAT International to move its production base into Laos is the Lao government's policy to make the country a major energy supplier in the region thanks to its ample rivers and suitable mountainous terrain.
Laos has the capacity to build more than a hundred hydro power plants with a combined electricity installed capacity of 28,000 MW. At present, only 20 power plants have been built with combined installed power capacity of only 3,000 MW.
The Thai government has signed an MOU with the Lao government to purchase 7,000 MW of electricity from Laos by 2015.
Mr Thana said besides the business expansion in Laos, the company in late June signed a contract with the Vietnamese government to develop two coal-fired power plants with combined capacity of 1,200 MW in Quang Tri province. It will spend US$263 million for a 40 percent stake in the two power plants, he said.
EGAT International is also planning to spend US$46 million to buy a 25 percent stake in a coal mine in Indonesia, Thana said.
Additionally, the company is planning to invest at least US$153 million in two power projects which will have a combined capacity of 8,360 MW. A decision on that is pending clearer regulation by the Myanmar government, he said.
Power demand in Thailand is expected to reach 52,256 MW by 2030 up from 26,355 in 2013, while Thailand needs to double its electricity generating capacity to 70,000 MW over the next 16 years.
vientiane times
