Laos to boost electricity supply in Mekong region
Laos to boost electricity supply in Mekong region
Laos plans to supply more electricity from hydropower development projects and expects to be able to meet around 7.3 percent of regional demand by 2020 and 8.1 percent by 2030, according to the Ministry of Energy and Mines.
In 2012, Laos supplied electricity from hydropower development equivalent to about three percent of total demand in the Mekong region, which comprises Laos, Thailand, Cambodia, Myanmar, Vietnam and Yunnan in China. At that time total regional demand was reported at 71,780MW.
The ministry predicted that the electricity demand in these regional countries will increase to some 136,411MW by 2020 and 233,032MW by 2030.
The installed capacity of hydropower plants in Laos has currently reached about 6,300MW and is trending to increase over the next five years, Deputy Minister of Energy and Mines, MrViraphonhViravong reported recently.
“However, there are different issues we have to continue working on together for improvement and resolution in order to guarantee electricity supply,” he advised.
Despite the fact that the country has the potential to increase electricity production through hydropower development projects, investment in the expansion of the electricity network is still limited and the system of domestic electricity supply is not related.
The Vietnamese, Cambodian and Myanmar markets have not yet provided the necessary facilitation regarding the price of electricity trading despite the fact that the demand for electricity in these countries is high. Only Thailand has agreed on the cost and is trading according to a set plan.
So, it necessary to improve electricity industry supply structure to match with hydropower development including macro and micro supply mechanisms as well as dividing the production, sales and transmission systems, MrViraphonh noted.
The government should formulate the policy and structure in regards to costs in order to promote socio-economic development, subsidise priority areas and build a spirit of serving the nation.
“We should also to provide information widely to the media and society for transparency as well as to promote the growth of state enterprises, which should use their roles to develop the sector effectively and in accordance with market mechanisms and equality under the law,” he explained.
Coordination between central and local authorities should also be improved for the mutual benefit of the relevant sectors.
The hydropower development strategy is to expand the electricity system in the potential areas where people require and have the ability to pay the fees for electric power.
Electricity business operations should achieve self-sufficiency in financial matters and pursue sustainable development.
The deputy minister said revenue from hydropower exports should be used to invest in expanding the electricity network within the country and to maintain subsidies in the necessary sectors.
The ministry also needs to encourage the private sector to participant in hydropower development as well as exploiting other energy resources and expand connections to the electrical transmission systems with neighbouring countries in order to provide more facilitates in exporting electricity and hydropower exchange.
Benefits and revenue from the development of hydropower plants will increase step by step from 10 percent at the beginning of the projects to reach 100 percent after the end of their concession periods.
