The signing takes place in Manila, the Philippines on Sep 27, 2017

(KPL) Laos signed on Sep 27 a tripartite electricity-trading agreement with two neighbouring Thailand and Malaysia to sell 100 mw of electricity to Malaysia using power transmission system in Thailand.

The delivery of power will commence on August 1, 2018. The signing took place on the sidelines of the 35th ASEAN Energy Ministers’ Meeting held in the Philippines. 

The deal constitutes a significant step for energy export market of Laos and will help realize ASEAN Power Grid which was first discussed at an informal ASEAN summit in late 1997.

It is expected that Malaysia might consider selling to Singapore some of the electricity it acquires from Laos and that the power-grid integration by Thailand, Malaysia and Laos would encourage other ASEAN member states to head in the same direction, according to Thailand’s English daily Nation.

ASEAN recognises the critical role of an efficient, reliable and resilient electricity infrastructure in stimulating regional economic growth and development.

To meet the growing electricity demand, huge investments in power generation capacity will be required.

In recognising the potential advantages to be gained from the establishment of integrated systems, ASEAN established the electricity interconnecting arrangements within the region through the APG under the ASEAN Vision 2020 adopted in the Second ASEAN Informal Summit in Kuala Lumpur on 15 December 1997.

HAPUA (Heads of ASEAN Power Utilities/Authorities), as SEB (Specialised Energy Body), is tasked to ensure regional energy security by promoting the efficient utilisation and sharing of resources.

The construction of the APG is first done on cross-border bilateral terms, then expanded to a sub-regional basis  and finally to a total integrated regional system.

It is expected to enhance electricity trade across borders which would provide benefits to meet the rising electricity demand and improve access to energy services in the region.

KPL