Thailand signs MOU to buy more power from Laos

Thailand will today sign a memorandum of understanding (MoU) with its neighboring Laos to buy more electricity from that country, according to Thai Energy Minister Piyasvasti Amaranand.

Mr. Piyasvasti said he would sign an agreement with the Lao industry and commerce minister in Vientiane to allow Thailand to purchase more hydropower from Laos to 7,000 megawatts from the initial 5,000 MW in 2015.

The increase in the power purchase would benefit both countries as Thailand would acquire more power at reasonable cost because Lao electricity was produced from both hydro and coal-fired power plants and was quite inexpensive for Thailand. Laos could also earn money which could be used in developing its economy, Mr. Piyasvasti said. Bilateral relations will become stronger too.

Also, the state-run Electricity Generating Authority of Thailand (EGAT) will soon sign agreements with Laos to buy electricity generated from the Hongsa lignite-fired power plant, which has a total capacity of 1,400 MW and from Nam Ou with 1,000 MW. The Hongsa power plant project plans to sell power to Thailand from 2012 onward.

Construction may start in late 2008 or early 2009 and is a joint venture between the Lao government and a Thai investor.

It will have an installation capacity of 1,800 MW. The Hongsa Lignite power plant is among several projects that will deliver electricity to Thailand under a Power Purchase Agreement with Laos.