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French investor to study Lao hydro project
A major French electricity investor, Velcan Energy, has signed a Memorandum of Understanding (MOU) on a hydropower project study in Laos.
The company and its local partner Electrical Construction and Installation (ECI) Sate Enterprise entered into the MOU with the Lao government, through the ministries of planning and investment, and energy and mines, on Tuesday in Vientiane.
The agreement involves the development of the Nam Ang-Tabeng project in Sanxai district, Attapeu province.
The MOU grants the Velcan Energy-ECI consortium the exclusive right to investigate the hydropower potential of a site situated in the district, on both the Nam Ang and Nam Tabeng rivers and their tributaries.
The current preliminary studies have shown a potential energy generation capacity of 35 megawatts (MW), according to a press release issued at the signing ceremony.
The technical studies will last about 18 months. If they confirm that the site is technically feasible and economically promising, the consortium will have the exclusive right to ask the Lao government to be granted the full concession on the Nam Ang-Tabeng project.
Velcan Energy develops and operates hydropower concessions in emerging markets. The company's strategy is to become a market leader in up to 200MW hydropower concessions in, among others, India, Brazil and Laos.
Laos has a strategy position in South-East Asia, and can export to high power demand growing countries such as Thailand, Vietnam, Cambodia and China, the press release noted.
Laos will witness the opening of at least two new power plants each year between now and 2020. In 2006 the country had only 10 power plants with a total capacity of 700MW. Now it has 14 plants with a total capacity of 2,540MW.
According to the Energy Promotion and Development Department of the Ministry of Energy and Mines, excluding the mainstream Mekong River, Laos has the potential to generate about 26,500MW from hydropower sources.
vientiane times
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