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Power sector booms as govt sets sights on 10 dams in five years
The government hopes to see 10 hydropower dams built over the next five years as part of its effort to turn Laos into the ‘battery of Asean'.
According to the 7th National Socio-Economic Development Plan, which the first session of the 7th Legislature of the National Assembly is expected to approve today, the government will facilitate investments in hydropower plants from 2011 to 2015.
It will encourage investors to complete construction of eight power plants with total installed electricity generation capacity of 2,865 megawatts (MW) for both domestic consumption and export to Thailand and Vietnam.
At present, five hydropower plants are under construction - the Nam Ngum 5 in Vientiane province is about 60 percent complete, the Theun Hiboun expansion in Khammuan province is 78 percent complete, the Nam Xong in Vientiane province is 30 percent finished, the Nam Nhone in Luang Namtha 91 percent complete, and the Xekhaman 3 in Xekong province is 90 percent complete.
A groundbreaking ceremony to mark the start of construction of the 1,800 MW capacity Hongsa lignite-fired power plant in Xayaboury province is expected to begin this year, while the Nam Ngum 3 hydropower plant developers are negotiating a power purchase agreement and the Nam Ngiep 1 project is seeking a construction contractor.
Over the past five years, five hydropower plants have been built, including Nam Theun 2 in the central province of Khammuan, the largest hydropower plant in the country.
According to a report from the Ministry of Planning and Investment, there are 16 operational hydropower plants in the country. The current total electricity generation capacity of Laos is more than 2,000 MW.
The government has granted approval for feasibility studies into or construction of 73 power plant projects over the past decade.
Of the 73, 37 projects are now in the economic and technical feasibility study stage, 27 have signed project development agreements with the government, and the rest have received concession agreements.
The approved investment value in the electricity sector has reached about US$4 billion after the government began to promote foreign investment in the power sector over a decade ago. Power generation and distribution is the largest investment sector in Laos.
Laos generated income of US$164 million from exports of electricity to Thailand over the first six months of this fiscal year.
Laos is building a number power grids and power substations from north to south and east to west to facilitate exports of electricity. The expanded power grid will also enable the country to more easily import power in the dry season when lower water levels mean a reduced capacity to generate electricity by hydropower plants.
At present, 72 percent of all Lao households have access to electricity.
vientiane times
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