Keppel Electric Pte Ltd, a subsidiary of Keppel Infrastructure Holdings Pte Ltd (KI), and Electricite Du Laos (EDL) have signed an exclusive framework agreement as part of the Lao PDR-Thailand-Malaysia-Singapore Power Integration Project (LTMS-PIP) to explore opportunities to import renewable energy into Singapore.
LTMS-PIP is an intergovernmental project to study the feasibility of cross-border power trade from Lao PDR to Singapore. 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 neighboring borders, according to a release.
Under the framework agreement, EDL will export and Keppel will import up to 100 MW of renewable hydropower from Lao PDR to Singapore via Thailand and Malaysia using existing interconnectors under an import trial. Once finalized, the import of renewable energy from Lao PDR will allow Keppel Electric to diversify its energy portfolio.
In addition, Keppel Electric and EDL will explore collaboration opportunities arising from the demand for renewable energy and the transition toward greener forms of energy. This includes 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,” said 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 urbanization.”
Mr. Chanthaboun Soukaloun, Managing Director, EDL, said, “EDL is delighted for this opportunity to supply power across two separate countries to Singapore and honored to be able to partner with Keppel for this important project. This project is a complement to the realization 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 of cross-border electricity to neighboring countries, including Cambodia, China, Malaysia, Myanmar, Thailand and Vietnam. The country has more than 8,000 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 finalized with the governments of the four member ASEAN countries and after the execution of a binding power purchase agreement between Keppel Electric and EDL.
Keppel Electric is a wholly-owned subsidiary of KI. Keppel Electric has more than 21 years of experience in powering Singapore’s electricity grid and retailing electricity to diverse off-takers including multinational companies, small and medium sized enterprises and government agencies. KI is a wholly-owned subsidiary of Keppel Corporation. KI provides solutions for some of the world’s most pressing challenges through its power and gas, environment and new energy businesses.
EDL, the state-owned enterprise of Laos, serves electricity for its domestic customers and is also responsible for the electricity transmission and distribution businesses. EDL is majority owner of EDL-Generation Public Company (EDL-GEN), which owns and operates over 1500 MW of hydropower and also purchases from independent power producers. EDL also manages the export of electricity from the national electricity grid to the neighboring countries.