Keppel Electric Pte Ltd (Keppel), a subsidiary of Keppel Infrastructure Holdings Pte Ltd (KI), and Electricite Du Laos (EDL) are exploring collaboration opportunities in renewable energy, with the firms signing an agreement to import up to 100MW of renewable hydropower from Lao PDR to Singapore via Thailand and Malaysia using existing interconnectors under an import trial.
Both companies signed an exclusive framework agreement as part of the Lao PDR-Thailand-Malaysia-Singapore Power Integration Project (LTMS-PIP). The LTMS-PIP is an inter-government project to study the feasibility of cross-border power trade from Lao PDR to Singapore. The LTMS-PIP will serve as a pathfinder to further advance cross-border trading in ASEAN and complement existing efforts in the ASEAN Power Grid vision by creating opportunities for multilateral electricity trading beyond neighbouring borders.
In addition to the framework agreement, Keppel Electric and EDL will also explore collaboration opportunities arising from the demand for renewable energy and the transition towards greener forms of energy, including development and supply of long-term renewable hydropower for the ASEAN region as well as renewable energy tracking, verification and assurance which will support the growth of ASEAN’s renewable energy sector.
“Keppel is honoured to work with EDL on this regionally significant project to jointly explore opportunities to import renewable energy into Singapore,” commented Ms Cindy Lim, Chief Executive Officer, KI. “This project is not only a testament of the strong collaboration amongst ASEAN energy leaders, but it is also a significant step towards promoting greater energy infrastructure connectivity as well as energy sustainability for the region. The importation of renewable power from Lao PDR to Singapore is aligned with Keppel’s Vision 2030 to provide innovative solutions for sustainable urbanisation.”
Mr. Chanthaboun Soukaloun, Managing Director, EDL, added: “EDL is delighted for this opportunity to supply power across two separate countries to Singapore and honoured to be able to partner with Keppel for this important project. This project is a complement to the realisation of the ASEAN Power Grid (APG) in the future. We would like to express our gratitude to Tenega Nasional Berhad (TNB) and Electricity Generating Authority of Thailand (EGAT) for their continuous support in the LTMS-PIP Project. As we embarked to supply up to 100 MW to Singapore on a trial basis, we look forward to the long-term supply to Singapore in the future.”
As of 2020, Laos has exported over 6,000 MW cross-border electricity to its neighbouring countries including Cambodia, China, Malaysia, Myanmar, Thailand and Vietnam. The country has more than 8000 MW of installed hydropower capacity, which is set to grow in the near future.
The trial electricity supply is expected to commence once all technical, commercial, legal and regulatory arrangements are finalised with the governments of the four member ASEAN countries and following the execution of a binding power purchase agreement between Keppel Electric and EDL.