In the mountains of the Indochinese Peninsula, various energy sources such as water, light, wind, and coal are waiting to be awakened. When the local power grid quietly connects with cross-border channels, Laos' green power is no longer just a natural gift from the mountains, but will become an industrial link connecting ASEAN and lighting up neighboring countries.

The State Power Company of Laos has signed a memorandum of understanding with the Pengshawan Group to jointly conduct a special feasibility study, explore the procurement of electricity from the group's multi energy complementary projects, and integrate them into the national power grid, effectively improving the stability of Laos' power system operation. Recently, the cooperation signing ceremony was successfully held in Vientiane, Laos. The General Manager of Laos State Power Company, Sushawar Sosupan, and the Chairman of Pongsawan Group, Pongsawan Sennapan, respectively signed the contract on behalf of both parties. The relevant deputy ministers of the Ministry of Industry and Trade and the Ministry of Finance of Laos, the chairman of the State Power Company of Laos, and relevant personnel from both sides attended and witnessed the signing of this agreement.

Signing and landing

Sosavat Sosupan, General Manager of the State Power Company of Laos, stated that this cooperation will systematically evaluate the feasibility of connecting new power sources to the grid, ensure sufficient and stable power supply, and align with Laos' economic and social development and energy special plans. The construction of local power sources is the core cornerstone supporting the development of national industrialization. The current development of Laos' power industry is under pressure due to factors such as funding shortage, debt burden, and limited payment capacity, resulting in insufficient investment attractiveness for large-scale power generation projects.

This cooperation can effectively expand Laos' power supply capacity, fully meet the electricity demand of the central and northern provinces in China, empower the steady growth of the processing industry, and lay a solid foundation for Laos' cross-border power transmission to neighboring countries such as Singapore. In addition, this cooperation will establish a standardized model for the operation of electricity purchase and sale, electricity price negotiation, and pricing mechanism in Laos, in line with domestic regulations and international market rules, to achieve mutual benefit and win-win results for all parties.

Activate green electricity

Pengshawan Sennapan, Chairman of Pengshawan Group, introduced that both parties will rely on advanced technology to integrate multiple power sources such as hydropower, wind power, photovoltaic, coal-fired power, geothermal power, etc., create a multi energy complementary power supply system, further optimize the power grid architecture, and enhance power supply stability. Laos has abundant reserves of clean energy resources, but their development and utilization are relatively scattered, resulting in uneven power supply periods and a coexistence of surplus and shortage of electricity. The enterprise will deepen its collaboration with State Grid and local power generation companies, coordinate and integrate power resources, and expand its power export business to neighboring countries such as Vietnam, Thailand, and Singapore. Among them, exporting 500 megawatts of clean electricity to Singapore is the core strategic direction of this cooperation. Keywords: Laos, green power, clean energy

Expand new exports

According to the cooperation framework, both parties will conduct joint research on the Singapore electricity market, negotiate and formulate cooperation details, and jointly connect with local power companies to negotiate the purchase and sale of electricity. Both parties will jointly establish a new operating company as the signing and executing entity for Singapore's electricity trade. The electricity export and establishment of the joint venture company will strictly comply with the laws and regulations of Laos, and will be submitted to the government for approval in accordance with the law and regulations. This cooperation can fully unleash Laos' advantages in clean energy resources, broaden the country's channels for foreign exchange income, assist in the interconnection of power grids in the ASEAN region, and comprehensively ensure stable domestic power supply.Editor/Gong Ziwei