China General Nuclear signs agreement with Laos for renewable energy base

The state-run People's Daily, which is a daily newspaper published by the Chinese government, reported that the power company China General Nuclear had signed an agreement to expand a renewable energy base planned for the northern region of Laos.

The new deal includes a second phase that will include 580 Megawatts (MW) of wind and solar power in Luang Namtha Province and a solar plant with a capacity of 420 MW in Oudomxay Province.

This agreement follows an initial agreement that was signed between the two parties in September last year to build a base for renewable energy in the northern part of the country.

According to the report, preparations have begun for the construction of the first phase of a 1000MW Solar Plant in the province Oudomxay.

The project's first phase was to feed power from Laos into an existing line that transports power to China's Yunnan Province in the south. The report didn't specify if the power generated by the second phase will be exported to China.

Thongpath Inthavon, vice minister of energy and mines in Laos, was quoted as saying that the project will increase the power sector connectivity between northern Laos and China.

Since February, Southern Power Grid (one of China's main grid companies) has operated the Laos power grid in partnership with Electricite du Laos Transmission Company.

Laos, a mountainous country, has been producing about 80% of the electricity it needs from hydropower in the past decade. However, solar and wind power have not scaled up.

Laos' development strategy, a landlocked country that has been called the "battery of Southeast Asia", is heavily reliant on electricity exports to Thailand and Vietnam.

A push by the government to increase data centres has also led it to become a hub of operators of cryptocurrency mining, who are looking for cheap non-fossil energy.

The higher demand coupled with the lower rainfall has forced Laos to become a net importer of power since 2021. (Reporting and editing by Jacqueline Wong; Colleen howe)

(source: Reuters)