Gulf Energy Development Public Limited Company and China Datang Overseas Investment Company (CDTO) have signed a tariff memorandum of understanding (MoU) with the Electricity Generating Authority of Thailand (EGAT) for the development of the PakBeng hydroelectric power project in Laos.
PakBeng Power is a joint venture (JV), with Gulf holding 49 per cent stake and the remaining 51 per cent by CTDO to operate the project. The JV entered into a 29-year-long power purchase agreement (PPA) with EGAT, with an average electricity tariff of THB2.7129 per kWh.
The project will be developed at a total investment of THB100 billion for which it is securing loans from financial institutions, with an expected closing date by the end of 2024. Construction works are expected to commence in 2025 and commercial operations will commence by 2033. The project will be developed with an installed capacity of 912 MW and electricity will be produced and then sold to Egat. Additionally, it will also be able to accommodate the increasing demand for electric vehicles (EV).
As per the MoU, electricity will be purchased from power projects developed in Laos and will be transmitted through a cross-border electricity transmission system. The project has a lower electricity production cost as compared to the current average electricity price.