ELECTRICITY

The Electricity Generating Authority of Thailand (Egat) has moved forward to expand its presence in Laos as part of the countries' collaboration to strengthen energy security in Asean.

Under a memorandum of understanding (MoU) signed with E{aac}lectricite{aac} du Laos (EDL) last week, wholly owned Egat International Co will work with the Laotian state enterprise to invest in power and related sectors in the neighbouring country.

Main areas of the cooperation are high-voltage transmission lines, power generation, power-plant maintenance and fibre-optic telecommunications.

Several years ago, Laos announced an ambitious plan to become Asean's battery, given its high potential in hydroelectric power generation.

Sisavath Thiravong, EDL's managing director, said the two parties have cooperated in the power sector's development for many years.

Before the MoU signing, Egat assisted EDL partly through personnel exchange.

Somboon Arayasakul, the acting president of Egat International, said the joint development may expand into the area of a smart power grid to improve the efficiency of power transmission.

"The MoU will enhance the close relationship between the utilities of the two countries," said Egat governor Sutat Patmasiriwat.

The latest cooperation will support the development of an Asean power grid aimed at strengthening electricity security and the telecommunications sector.

Thailand had bought 2,000 megawatts of electricity total from Laos as of Dec 31, 2012.

Ongoing projects such as Hongsa Lignite, with a capacity of 1,653 MW, will begin to supply electricity to Thailand in 2017, followed by the Xe Pian Xe Namnoy and Nam Ngiep projects in 2018 with a combined output of 660 MW.

Strong protests in Thailand against power-plant construction have prompted the country to double electricity purchase from Laos to 7,000 MW between now and 2030.