EDL to buy electricity from Nam Neun 1 and 3 hydro plants
EDL to buy electricity from Nam Neun 1 and 3 hydro plants
Electricite du Laos (EDL) and the Nam Neun 1 and 3 Power Company have agreed on power purchase after both sides signed a Memorandum of Understanding on tariffs in July.
The Power Purchase Agreement (PPA) was signed in Vientiane last week by the company joint venture developers, namely the President of Vangsub Development and Investment Co., Ltd., Ms Viengvanh Phommaly; President of the THB Group Sole Co., Ltd., Mr Tong Homsombath; and Director of the Kongdub Road-Bridge and Architect Sole Construction Company, Mr Sounthone Sabandith. EDL was represented by its Director General Mr Boun-Oum Syvanpheng and Deputy Managing Director Mr Bounma Manivong.
The ceremony was attended by Deputy Prime Minister Dr Sonexay Siphandone, Deputy Minister of Energy and Mines Mr Viraphonh Viravong, Deputy Minister of Finance Mr Sila Viengkeo and Deputy Minister of Planning and Investment Ms Khamchanh Vongsengboun, along with other government officials and representatives of the EDL- Generation Public Company.
The Nam Neun 1 hydropower plant will be built in Xieng Khuang province and will have an installed capacity of 124MW with a production capacity of 570 million KWh annually.
The Nam Neun 3 hydropower plant will be located in Huaphan province and will have an installed capacity of 60MW with a production capacity of 250 million KWh per year.
Developers expect that the Nam Neun 1 plant will start generating electricity in 2023 and the Nam Neun 3 in 2022.
The projects will create job opportunities for local people and provide infrastructure such as roads, schools, clean water, a hospital and electricity that will benefit the northern provinces of Xieng Khuang, Luang Prabang and Huaphan.
It will also generate more revenue for use by the government in social and economic development.
There are now 40 hydropower projects around the country wi th 6,304MW of installed capacity and worth about US$10 billion. Other projects are under feasibility study and some are under construction, according to the Ministry of Energy and Mines.
Laos has the potential to produce about 10,000MW of electricity by 2020 and 20,000MW by 2030.
Fully 91 percent of the country's households now have access to electricity and some power is exported to neighbouring countries such as Thailand, Vietnam and Cambodia, with plans to sell to Myanmar as well.
Government officials say the energy sector will be the major engine of growth in the coming years.
