DPM: Lower electricity production cost needed
DPM: Lower electricity production cost needed
Laos is enjoying rapid economic growth from the contributions of many sectors who play essential roles in the nation's development, none more so than electricity and mines.
To do more for economic development, the Ministry of Energy and Mines has been working hard to increase energy generation and create a policy on electricity generation sources.
Deputy Prime Minister Somsavat Lengsavad, who is in charge of economic affairs, including production and goods distribution, recently called on officials at the Ministry of Energy and Mines during the ministry's recent annual meeting in Vientiane.
The meeting was partly to summarise the results of fiscal year 2013-14, which allowed various departments under the Ministry of Energy and Mines and the provincial Energy and Mines Departments to underline their past achievements in task implementation, along with the announcement of future plans.
“Laos has recently gained membership of several important international organisations such as the World Trade Organisation, and the integration of the Asean Economic Community will come into effect later this year,” he said.
Mr Somsavat stressed that AEC integration will bring both challenges and opportunities for Laos, which require all relevant sectors to be well-prepared.
“Officials from the electricity sector will need to carefully study the potential impacts and opportunities integration will create and the implications of one production base and one market,” he added.
The cost of electricity generation was prioritised and the relevant officials were required to determine an appropriate solution.
Currently there are 24 hydropower plants operating in Laos with a combined installed capacity of more than 3,000MW, and the requirement for domestic electric consumption in Laos remains high during the summer.
In 2015-16, almost 20 power projects will be completed with an installed capacity of around 4,000MW.
Laos is exporting the bulk of its generated electricity to its neighbours Thailand, China and Vietnam but Singapore recently approached the Lao government for a power purchase through the transmission lines of Thailand and Malaysia.
“Officials of the electricity sector have to work harder on the possibility of lowering production cost in order to attract more Asean customers when it comes to AEC connection at the end of the year,” Mr Somsavat said.
