The governments of Malaysia, Thailand and Laos signed a memorandum of understanding (MoU) today to facilitate the implementation of cross-border multilateral power trade of up to 100 megawatt (MW) between Laos and Malaysia, through Thailand.
The MoU will pave the way for Malaysia to purchase up to 100MW of hydro power from Laos, transmitted through Thailand by 2018, said the Energy, Green Technology and Water Ministry (KeTTHA) in a statement today.
The document was signed by KeTTHA Minister Datuk Seri Dr Maximus Johnity Ongkili, Thailand’s Energy for the Government of the Kingdom of Thailand Minister General Anantaporn Kanjanarat, as well as Laos’ Energy and Mines Vice Minister Viraphonh Viravong.
The ceremony took place after the 34th Asean Ministers on Energy Meeting (AMEM) in Nay Pyi Taw, Myanmar, said KeTTHA.
The multilateral power trade is the initial stage of the Asean Power Grid initiative, which is a flagship project under the Asean Vision 2020, and aims to enhance energy security in Asean through the establishment of a network of interconnections between Asean member states, it noted.
“The signing of the MoU also marked Malaysia’s commitment to increase the share of renewable energy in its fuel mix by 2020, as part of the mitigation action to reduce carbon emission in the power sector,” it said.
As the fuel mix of Malaysia is dominated by coal and gas, the government is committed to rationalise this, as per the commitment made in the Paris Agreement at end-2015.
“The initial capacity of 100 MW could be increased in the future and would positively balance our fuel mix to be more environmental-friendly,” KeTTHA added.
Source: The Edge Markets