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Tue, May 22, 2007 : Last updated 20:14 pm (Thai local time)



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Home > Business > Govt seeks more Lao electricity





HYDROPOWER
Govt seeks more Lao electricity

Deals likely as gas supplies dwindle

The government is aiming for a 20-per-cent boost in power from Laos, from 5,000 to 7,000 megawatts over the next 15 years, and will sign a memorandum of understanding with Vientiane on power supply, a senior official said yesterday.

Pornchai Rujiprapha, deputy permanent secretary of the Energy Ministry, said the ministry was fast-tracking agreements on joint hydropower investment in neighbouring countries.

Ministry officials will tour neighbouring countries to seek a greater supply of hydropower than had been planned due to an expected fall in natural gas production in the Gulf of Thailand as well as public resistance to coal-fired electricity plants, Pornchai said.

"Our plan is to increase the ratio of hydropower from neighbouring countries to above 20 per cent [of total electricity]," he said.

In the 15-year power development plan, which runs from this year, power from neighbouring countries accounts for 20 per cent of total electricity.

Recently, Energy Minister Piyasvasti Amranand had official talks with the Lao government and power-purchase agreements for four more hydropower projects there are expected to be concluded by year-end. The four projects are Nam Nguem 3 (440MW), Nam Thuen 1 (523MW), Nam Ngieb (261MW) and an extension to Nam Thuen-Hinbun (220MW). The government also hopes to secure an agreement to buy power from the Hongsa Lignite project.

It has four power-purchase agreements with Laos. The Nam Thuen-Hinbun, Huay Ho, Nam Thuen 2 and Nam Nguem 2 projects will supply 1,848MW.

Talks on Chinese projects are also under way. An initial agreement with China will be signed later this month during Prime Minister Surayud Chulanont's official visit. It will involve power from a project on the Nu River.

Talks with Burma and Cambodia will follow, Pornchai said.

"We need to push for hydropower development in neighbouring countries as hydropower generation involves the lowest cost, compared to power produced from other fuels," he added.

"Hydropower is the alternative fuel that wins our support while the projects [in Laos] have great potential to satisfy our growing demand. Moreover, power generated from other fuels involves limitations, such as public acceptance for coal-fired power plants as well as depleting supplies of natural gas."

Since gas production in Thai waters in the Gulf of Thailand is expected to peak within the next decade, Thailand will be forced to import more gas. The gas will likely be imported in the form of liquefied natural gas (LNG) from Middle Eastern countries like Iran or piped in from Burma or Cambodia.








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