Pak Beng Project has signed a power purchase-sale agreement. Investing a hundred billion baht, with a period of 29 years, with an average electricity rate of 2.7129 baht per kilowatt-hour.
Gulf Energy Development Public Company Limited informed the Stock Exchange that on September 13, 2023, Pak Beng Power Company Limited, a joint venture between the Company and China Datang Overseas Investment Co., Ltd. (“CDTO”), a subsidiary of China Datang Corporation Ltd., a state-owned enterprise and a leading energy company of the People’s Republic of China, holding 49% and 51% respectively, to implement the Pak Beng Project, has entered into a contract. Power Purchase Agreement with the Electricity Generating Authority of Thailand (EGAT) for a period of 29 years with an average electricity rate of 2.7129 baht per kilowatt-hour.
The Pak Beng project has a total investment value of approximately 100,000 million baht and is currently in the process of procuring loans with financial institutions. It is expected that financing will be closed by the end of 2024 and construction will take approximately 8 years, with commercial operations scheduled for 2033.
The Pak Beng project is one of the power plant projects under the Memorandum of Understanding between Thailand and Lao PDR. Regarding cooperation in the development of electricity in the Lao PDR (MOU) to support the reduction of carbon emissions. (Decarbonization) and increasing the use of clean energy during the energy transition (Energy Transition). Under the MOU, Thailand will purchase electricity from power plant projects developed in Lao PDR. and connected through the international electricity transmission system Currently, there is a framework for cooperation in purchasing electricity of 10,500 megawatts. There are 11 projects that have supplied electricity into the system of 5,935 megawatts. Projects that have signed power purchase agreements: 3, 060 megawatts, 3 projects, and 815 megawatts of projects that have signed a memorandum of understanding for the purchase of electricity (Tariff MOU). The cooperation under the MOU is also consistent with the Thai government’s policy that focuses on increasing the proportion of power plants. Electricity from clean energy sources that will enter the system To replace power plants that will expire, totaling more than tens of thousands of megawatts, from 2023 onwards, and also to meet the demand for electricity that will increase in the future from the increase in electric vehicles (EVs).
The Pak Beng Project has an installed capacity of 912 megawatts, located on the Mekong River, Muang Pak Beng, Udomxai Subdistrict. It is a hydroelectric power plant with water flowing throughout the year. (Run-of-the-River)
Source: Thai News Agency