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Electricity production surges
Electricity production has seen huge increases in the first six months of the current fiscal year after the largest hydropower plant in Laos began commercial operation at the end of last year.
According to a report from the Mi nistry of Planning and Investment at a joint meeting of the planning and finance sector last week, energy output was 3,890 million kWh, a 188 percent increase on last year.
The 1070MW Nam Theun 2 hydropower plant in the central province of Khammuan is largely responsible for the increase in electricity output.
A number of other hydropower plants including Nam Lik 1-2 in Vientiane also began electricity generation at the end of last year.
According to the report, Laos exported 3,400 million kWh, generating revenue of about US$164 million over the first six months of this fiscal year.
Although the export volume saw massive growth, provinces not linked to the national grid have imported 338 million kWh at a cost of US$18 million in the same period.
At present, Laos has 16 operational hydropower plants of which nine are under the management of state owned enterprise Electricite du Laos and EDL Generation Public Company, in which the government holds a 75 percent share.
The remaining power plants are managed by independent power producers, a joint venture between local and foreign investors.
The government has approved feasibility studies for 73 further power plants nationwide. Thirty-seven are currently undergoing economic and technical study, 27 are in the project development stage, and nine have received government permission for construction.
The report also showed development of the Nam Ngum 5 project is 60 percent complete, the Theun Hinboun expansion project is 78 percent complete, the Xekaman 3 project is 90 percent complete, and the Nam Xong project is 30 pe rcent complete.
The Hongsa lignite fired electricity power plant, set to be the largest energy generating facility, is also currently under construction in Xayaboury province.
There are an additional 11 power grid construction projects in Laos which will ensure supply to all parts of the country and enable Laos to export electricity to Thailand, Vietnam and Cambodia.
The electricity sector attracts the largest amount of investment in Laos and the government has approved more than US$4 billion of electricity generation projects since 2000, according to the Ministry of Planning and Investment.
The electricity sector is one of the main driving forces of the Lao economy and international financial experts expect them to lay the foundations for 8 percent GDP growth annually over the next five years.
The government aims to turn Laos into “the battery of Asean” using its natural resources of rivers and mountainous terrain.
vientiane times
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