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Thailand considers importing more electricity from Laos
The export value of Lao hydro electricity to Thailand may see an unexpected jump this year because Thailand is facing higher electricity production costs.
The Electricity Generating Authority of Thailand (EGAT) Governor, Mr Sutat Patmasiriwat said last week that the Thai state owned enterprise may decide to purchase more electricity from the Nam Ngum and Nam Theun 2 hydropower plants in Laos to cut its production costs amid recent gas supply disruptions in the Gulf of Thailand.
The shortage is forcing EGAT to use bunker oil for electricity generation at a 48 percent higher cost than natural gas. Because electricity generation from hydropower costs one-third less than natural gas based production, it is possible for Thailand to import electricity cheaper than producing it, he said.
“We're considering an increase in our power purchases from Laos to cut our operational costs. This is an appropriate time, as Laos is in its rainy season, the peak period for hydroelectricity production,” said Mr Sutat as quoted in the Bangkok Post on Thursday.
According to EGAT, it may lift its electricity purchases from Nam Theun 2 to 530 million kilowatt-hours from 300 million and from Nam Ngum 2 to 370 million kWh from 220 million to offset the natural gas dip.
The increase export value of Lao electricity will help Laos to reduce its trade deficit this fiscal year in particular with Thailand. Laos faced trade deficit of US$211 million over the first six months of this fiscal year as import rose to about US$1 billion over the same period.
Electricity is one of the major export goods and foreign capital earners of Laos.
According to a report from Ministry of Planning and Investment, energy output was 3,890 million kWh over the first six months of this fiscal year, about a 188 percent increase compared to the same period last year. The country exported 3,400 million kWh, mainly Thailand, generating revenue of US$164 million over the first two quarters of the fiscal year.
Laos imported electricity from neighbouring countries to provinces, which lack access to the national power grid. The total electricity imported in the first six months of this fiscal year was 338 million kWh at a cost of US$18 million.
At present the country has 16 operational power plants of which nine are under the management of Electricity due Laos and EDL Generation Public Company, in which the Lao government holds a 75 percent stake.
The remaining power plants are managed by independent power producers (IPP), most of which are primarily for exporting electricity, or are joint ventures between local and foreign investors.
Laos plans to become the battery of Asean. The government has approved feasibility studies for 73 additional power plants nationwide, 37 of which are currently undergoing economic and technical studies, 27 are in the project development stage and nine have received concessions from the government.
vientiane times
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