Nam Theun 2 passes milestone with successful test of first unit

8 July 2009


The synchronisation test delivered 60MW via the transmission line to the Electricity Generating Authority of Thailand (EGAT), noted the World Bank.

Reservoir impoundment behind a 39m high dam started just over a year ago on the Nam Theun river, giving the plant a 350m head. The project is now in the final stages of construction,

The almost US$1.6B project is being developed under a 31 year concession, including 25 years of operation, by Nam Theun 2 Power Co (NTPC) which comprises edf International, Electricity Generating Public Co (EGCO) of Thailand, Italian-Thai Development Public Co (ITD) and Lao Holding State Enterprise.

Nam Theun 2 is being built in central Lao PDR and will mainly export electricity to Thailand. The planned scale of the export is 995MW of power, or 5354GWh of electricity per year, under a take-or-pay Power Purchase Agreement (PPA).

Separately, and under similar arrangements, about 75MW of power, and 300GWh of electricity, is to be delivered for domestic use to Electricite du Laos (EDL).

It is expected that the predominantly export power project will generate approximately US$2B in revenue over its operating life.

Late last year EGCO said that Thailand was reviewing power demand in view of the economic slowdown and had postponed the purchase of electricity from planned projects in Lao PDR.

EGCO said earlier in 2008 that it had plans for participation in three projects in Lao PDR - Nam Theun 2, under construction; it was negotiating then with EGAT over a PPA for Nam Theun 1, which it hoped would begin construction by the middle of this year; and, Nam Ou, which it was negotiating to undertake studies on with Sinohydro Corp, the majority participant, and Lao Holding State Enterprise.




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