Bangkok Post
December 14, 2007

Thailand’s National Energy Policy Council has signed an agreement to buy electricity from the Hongsa power plant in Laos, Bangkok Post reported.

According to Energy Minister, Piyasvasti Amranand, Thailand will buy 1473 MW from the lignite-fired plant over 25 years.

The US$2.61-billion Hongsa plant, with a total generating capacity of 1,800 MW, is 40 percent owned by Banpu, Thailand’s biggest coal mining company, 40 percent owned by Ratchaburi Electricity Generating Company, and 20 percent owned by the Lao government.

Construction of the plant is scheduled to start next year and it will begin to generate power for the Electricity Generating Authority of Thailand in 2013. The average price of its output will be 2.05 baht per unit over the 25-year period.

EGAT has agreed to buy 7,000 MW of power from Lao hydro dams and lignite plants to meet the country’s projected power demand. Power-purchase contracts for an additional 1,520 MW from five more hydropower plants are expected to be finalized soon, Bangkok Post reported. This includes Xeset 2 (76 MW), the Theun Hinboun expansion phase of 220 MW, Nam Ngum 3 (440 MW), Nam Theun 1 (523 MW) and Nam Ngiep (261 MW).