EDL-Gen drives Lao PDR's vision of becoming a green energy leader in ASEAN JV with private firms under IPP schemes to create sustainable growth Targeting 2,435 MW in installed capacity by 2029

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EDL-Gen drives Lao PDR's vision of becoming a green energy leader in ASEAN JV with private firms under IPP schemes to create sustainable growth Targeting 2,435 MW in installed capacity by 2029

EDL-Generation Public Company (EDL-Gen) has unveiled its strategic plan to support Lao PDR's move to lead green energy production in ASEAN and strengthen energy security for the region. EDL-Gen, one of the major power producers in Lao PDR, is pursuing hydropower development under the global ISO14001 quality standards by highlighting projects that offer low-cost production, produce green and sustainable energy and foster environmental preservation. EDL-Gen also welcomes private companies from neighbouring countries as partners in its bid to raise its total installed capacity to 2,435 megawatts (MW) by 2029 in order to fulfil the growing demand of energy.

Mr. Duangsy Pharanhok, Managing Director and Chief Executive Officer of EDL-Gen, said the company will leverage more than 50 years of experience and expertise in the procurement, production and distribution of electricity from hydropower and other renewable energy to help Lao PDR realising its goal of becoming the leader in green energy production.

The target will not only strengthen the energy security in ASEAN region but also follow the global trend of green energy development, he said.

EDL-Gen operates under the ISO14001 standards, prioritizing environmental preservation with the electricity produced from ‘Run-off-the-River’ flows.

The 'run-off-the-river' dam does not cause effects to the quantity and quality of water flows from both the upstream and downstream dams, nor adversely impact the quality of aquatic life in the Mekong River Basin.

Noise emission from the dam is minimized and controlled not to disturb the community.

With all factors taken into account, EDL-Gen has been able to efficiently utilize the country’s natural resources which in turn has generated economic values and thereby uplifted quality of Lao PDR people’s life.

"Our goal is to make Lao PDR the regional leader in green, sustainable and reliable energy production," he said.

"And we want to meet the region’s increasing demand for energy by using our country’s abundant water resources and our expertise to develop hydroelectric power plants that offer low-cost production and produce sustainable and environmental-friendly energy, thereby contributing to drive current global trend and transition towards green energy."

Mr. Vanhseng Vannavong, Deputy Managing Director and Chief Financial Officer of EDL-Gen, stated that EDL-Gen has widened its investment opportunity to welcome and engage more independent power producers (IPPs) as joint venture partners for the development of its hydropower projects rather than only having EDL-Gen as the sole sponsor of the projects like in former times.

By 2029, EDL-Gen would own and operate 18 hydroelectric power plants in the Lao PDR with total capacity of 974 MW. We also aim to own stakes in 24 power projects under the Independent Power Producer (IPP) scheme with total of 1,461 MW. EDL-Gen’s total installed capacity is therefore expected to rise to 2,435 MW with the total of 42 power plants.

This investment pattern will bolster EDL-Gen’s sustainable growth and support Lao PDR in becoming the green energy leader in ASEAN.

At the end of 2020, EDL-Gen had total installed capacity of 1,949 MW, in which 27 power plants were already in operation contributing to total capacity of 1,683 MW. Specifically, EDL-Gen had 11 wholly-owned hydroelectric power plants with total capacity of 699 MW, and 16 projects under IPP scheme with total capacity of 984 MW.

Thailand has been the major buyer of electricity produced by EDL-Gen, taking up to 42% of EDL-Gen's total installed capacity in 2020.

Mr. Suthep Lertsrimongkol, former Advisor to the Minister of Energy and Mines, Lao PDR, and Specialist at the Electricity Generating Authority of Thailand, said Lao PDR has the potential to develop significant hydropower projects in this region.

It is estimated that by 2030, Lao PDR’s total installed capacity for electricity generation would reach 21,000 MW out of more than 30,000 MW that could be potentially expected in the long run from the country’s existing resources.

"Lao PDR is endowed with abundant natural resources and number of rivers which can be harnessed for power generation," Dr Suthep said.

"The Government of the Lao PDR (GOL)'s policy that welcomes IPPs to partner in the country's power projects offers a great opportunity for Thai companies to join.”

The demand for electricity in this region is still growing in line with the economic expansion.

Thailand has been relying on Lao PDR as a major source of power imports.

According to Thailand's National Power Development Plan 2018-2037 (PDP 2018), the country can purchase 3,500 MW of electricity from neighbouring countries, 3,000 MW of which from Lao PDR and the remaining 500 MW from other countries.