Cambodia to Purchase 2,400MW Energy from Laos by 2027

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Cambodia to Purchase 2,400MW Energy from Laos by 2027

Cambodia has agreed to purchase 2,400MW of electricity from Laos by 2027, in a move to meet growing energy demand in the country.


Cambodia will buy exclusive power from two coal-fired power plants in Laos: TSBP Sekong Power and Mineral Company that will produce 600MW of electricity and Xekong Thermal Power Plant Company, which will produce 1,800MW, The Phnom Penh Post reported.

The USD 4.97 billion plan calls for the two coal-fired power plants to be divided into four phases. The first is set to go online by the end of 2024 and generate 300MW while the second phase will go into operation by 2025, generating an additional 600MW.

The third phase is set to launch in 2026 to produce 600MW, and the last phase will go online by 2027 and produce a 900MW, which will make a total of 2,400MW.

The Lao government has given the green light on both firms to develop coal mines and power plants to supply energy to Cambodia.

The Phnom Penh Post quoted a spokesperson at Cambodia’s Ministry of Mines and Energy Victor Jona as saying that the project will be signed on September 12 during the Lao Prime Minister Thongloun Sisoulith’s visit to Cambodia.

Cambodia imports 442.5MW of energy from its neighboring countries – 277MW from Vietnam, 135.5MW from Thailand and 30MW from Laos.

Laos is currently pushing for more energy exports by considering it as the key sector expected to drive the growth of the economy.

According to the Lao Ministry of Industry and Commerce, the value of electricity exported jumped from USD 600 million in 2015 to USD 1.4 billion in 2018, making it Laos’s top export earner.

The country’s goal is to earn about USD 1.328 billion from energy exports this year. Under this plan, Laos expects to export 14,800 MW of electricity annually to neighboring countries by 2025.

Laos currently has operational power plants with a total installed capacity of 7,207 MW and an electricity generation of 37,366 GWh per year.