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Lao energy minister Dr Daovong Phoneke. VIENTIANE TIMES
China has increased its purchase of 115kV electricity from Laos this year under a bilateral energy cooperation agreement, to meet the growing demand for energy.
The additional purchase expands the cooperation framework under the Laos-China 500kV transmission network to Yunnan province in China.
Electricite du Laos (EdL) and the China Southern Power Grid (CSG) signed an “Agreement of Intent” which spells out the scope of cooperation and principles and is indicative of the fact that cooperation between Laos and China takes precedence over cooperation between Laos and neighbouring countries.
The agreement contains the same terms as a power purchase agreement for a 115kV system.
The deal was signed in Vientiane late last week between the CSG, Power China Resource, Electricite du Laos Transmission Co Ltd (EdL-T) and EdL, marking the next step in energy trading cooperation between Laos and China.
The accord was signed under the 2nd Laos-China Energy Cooperation Committee Meeting between the Lao Ministry of Energy and Mines and China’s National Energy Administration (NEA).
The agreement signing ceremony was attended by Lao Minister of Energy and Mines Dr Daovong Phonekeo, Chinese ambassador to Laos Jiang Zaidong, senior ministry officials, and invited guests from Laos and China.
The signing is said to mark “significant and substantive progress” in enhancing “win-win cooperation” between Laos and China in the power industry. Under the agreement, the two parties will buy and sell electricity under a memorandum of understanding (MoU) on energy cooperation.
Dr Daovong said the agreement was further progress under the two countries’ energy cooperation framework and was an expansion of the cooperation framework under the MoU on strategic cooperation between his ministry and China’s NEA signed in 2017.
The 2017 MoU identified five key areas of cooperation, namely policy exchange and planning, Laos’ energy planning and energy exchange, financial consolidation cooperation, and capacity building for technical staff.
NEA vice-president Ren Jingdong said the two sides would work together to improve power supply in Laos to serve the country’s economic development, improve livelihoods, and promote Laos-China energy cooperation under a new rollout of the action plan of the China-Laos Community of a Shared Future.
VIENTIANE TIMES/ASIA NEWS NETWORK