Large-scale solar plant to shine on capital
Large-scale solar plant to shine on capital
Pacific Star Capital Management Inc, a project developer from USA, will undertake a feasibility study for a solar power plant development at km 36 in Xaythany district, Vientiane.
A memorandum of understanding (MoU) for the solar power plant feasibility study was signed in Vientiane on Wednesday.
Deputy Minister of Planning and Investment, Dr Bounthavy Sisouphanthong signed the MoU agreement with President of Pacific Star Capital Management Inc, Mr Robert Khoonsrivong.
Speaking to media at the signing ceremony, Mr Khoonsrivong said the project would be the first solar power plant development in Laos and the study would take at least one year to complete.
“This joint venture development project will cost around US$50 million, and a 10 percent share is owned by the government along with the company's 90 percent, with a concession period of 30 years,” he said.
The feasibility study will be carried out by the company and supported by the government and local authorities.
The project will cover a total area of 50 hectares with electricity generation capacity of 20 MW.
“I think the solar power plant is achievable because it will be the first and there is plenty of sunlight in Laos,” Mr Khoonsrivong said.
He explained the solar power plant development would have the least negative impacts on the environment being harmless to wildlife and not affect local people's lifestyles.
“Most importantly, it will also benefit local workers in terms of job creation and supply of some essential materials to be used in the project. The power will also be available for the local market,” he said.
Laos has abundant natural resources and the development of solar power fits in with the government's efforts to support sufficient electricity generation for domestic consumption nationwide.
The government is set to boost economic growth from exports of electricity and minerals, as well as sustain domestic consumption of electricity in the years to come.
Currently there are 24 hydropower plants operating in Laos with a combined installed capacity of more than 3,000MW, with domestic electricity consumption peaking during the hottest months.
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 neighbours Thailand, China and Vietnam but Singapore recently approached the government to purchase power via Thai and Malaysian transmission lines.
However, domestic electricity supply remains a priority for the government as it endeavours to attract more foreign investors to develop alternative energy sources besides hydroelectric power.
