Laos, China to increase power trade, balance demand: minister

Laos and China look set to increase cross-border power trade and to balance demand following the signing of a cooperation deal, a minister has said.
Two major state enterprises – Electricite du Laos (EDL) and China Southern Power Grid (CSG) - signed the 500kV power trade deal, Minister of Planning and Investment Khamjane Vongphosy told the National Assembly’s 5th ordinary session recently.
The high-voltage transmission line will enable more trade volume and better balance power surplus and shortages on both sides.
Laos produces a hydroelectricity surplus in the rainy season because of the high volume of water in reservoirs but suffers a power shortage in the dry season.

EDL’s staffs fix the 115 kV transmission line in northern Bokeo Province on June 29, 2023. --Photo EDL

The two sides signed a Power Purchase Agreement (PPA) to export surplus power from northern Laos to China and import back to Laos during times of shortage through the existing 115kV grid-to-grid line.
“Power exchange cooperation with China ensures a stable supply of power during both seasons,” the minister told lawmakers.
By the end of 2022, China enjoyed a power trade surplus with Laos, transmitting 1,228GWh of power to its southern neighbour.
“Laos needs more power in the dry season,” General Manager of CSG’s International Cooperation Department, Li Xinhao, told media personnel from Lancang-Mekong countries during their recent visit to the company in the Chinese city of Guangzhou.
The visit took place after media personnel attended the 2023 Lancang-Mekong Cooperation Media Summit in Beijing on June 27.
The General Manager added that power trade between Laos and China is set to increase in the future, following the launch of the 500kV project.
CSG, which provides electrical power to Guangdong, Guangxi, Yunnan, Guizhou, Hainan, Hong Kong and Macao, connects power grids in Hong Kong, Macao and Southeast Asian countries.
In 2020, EDL and CSG signed a shareholders’ agreement to jointly establish the Electricite du Laos Transmission Company Limited (EDLT).
In the future, the joint venture company plans to invest about US$2 billion to build Laos’ national backbone power grid and cross-border power grid interconnection for Laos and its neighbouring countries.
This will move forward projects such as the Laos-Cambodia power grid interconnection scheme and Laos-China power grid interconnection project, and in purchasing from EDL the right to use EDL’s existing power transmission assets at 230kV and above voltage levels, according to EDL.
EDLT will take advantage of CSG’s financial strength and mature experience in power grid construction, operations and management to move forward the construction of the national backbone power grid in Laos.
It comes as Laos has the potential to generate hydroelectricity for sale to neighbouring countries thanks to its abundant rivers.
The Lao government is also promoting investment in other forms of green energy, such as wind farms, to diversify renewable energy sources. Some foreign firms are building large wind farms in Laos with the intention of exporting the power generated.
As of May 2023, there were 94 electricity generating plants in Laos with combined installed capacity of more than 11,661MW, which can generate more than 58,813GWh of power a year.
The plants comprise 81 hydropower plants, 12 renewable energy plants including solar power, and a coal-fired power plant, Mr Khamjane said.

By Souksakhone Vaenkeo 
 (Latest Update July 17, 2023)