Gulf Energy and China Datang collaborate on Thai-Laos hydroelectric venture

Gulf Energy Development Plc has teamed up with China Datang Overseas Investment Co (CDTO), a subsidiary of a mainland power agency, to ink a tariff memorandum of understanding (MoU) with the Electricity Generating Authority of Thailand (EEGAT) for the Pak Beng hydroelectric power project. The announcement was made in an announcement to the Stock Exchange of Thailand.
The Pak Beng Power three method partnership sees Gulf taking a 49% stake, whilst CDTO holds a 51% equity stake with a mission to function the Pak Beng venture. The events have also agreed to an influence purchase contract with EEGAT. This settlement spans 29 years from the commercial operation date, with electricity tariffs averaging 2.7129 baht per kilowatt-hour.
With a total funding value of a hundred billion baht, the Pak Beng project is presently securing loans from various financial institutions. The expectation is for the deal to shut by the end of 2024, with construction taking around eight years to meet the planned operational start date in 2033.
Situated on the Mekong River within the Pak Beng district of Oudomxay province in Laos, the challenge has an installed capacity of 912 megawatts. The electricity generated is predicted to be offered entirely to EEGAT.
This endeavour is part of the MoU between Thailand and Laos, geared toward fostering power growth in Laos. The aim is to promote decarbonisation and bolster the adoption of unpolluted power throughout the transition interval. As per the MoU, power will be procured from tasks developed in Laos and dispatched through the cross-border electrical energy transmission system.
With rising energy demand from an increase in electric automobile utilization, the Pak Beng venture is primed to accommodate this surge. Picnic of electrical energy from this challenge is projected to mitigate gas price volatility, thereby reducing energy bills for households and the economic sector through the contract’s tenure.
The project’s electrical energy production cost is decrease than the current average electrical energy value, which stands at 4-5 baht per unit. The power purchase settlement also outlines the proportion of raw supplies and items from Thailand used, as nicely as the personnel, employment, and providers utilised throughout building.
This is anticipated to stimulate financial development and enhance employment throughout the nation, reported Bangkok Post..

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