Laos is to construct two new coal-fired power plants in southern Laos with the aim of selling more electricity to Cambodia.
Vientiane Times reports that the construction of two coal-fired power plants is to commence at the end of this year in Xekong Province.
The two plants are to come online and begin the transmission of power to Cambodia in 2025.
The first plant will be built by Phonesack Group in Kaleum District, with an installed capacity of 1,800MW, according to Deputy Minister of Energy and Mines, Dr. Daovong Phonekeo.
The company is to invest between USD 3-4 billion, including the construction of transmission lines to assist in exporting power to Cambodia.
The second coal-fired plant in the works will be built in Lamam District by a Chinese company that plans to invest over USD 1 billion in the project, which will have an installed capacity of 700MW.
While the Chinese investor will not construct transmission lines, it will partner with Electricite du Laos (EDL) in the export of power to Cambodia.
“Cambodia will buy electricity from our power plants for 7.3 US cents per kWh,” the deputy minister said in an interview.
He said the amount of coal present in the two districts is sufficient to supply the two plants throughout a concession period of 25 years. Exploration is also underway to locate coal seams in other areas as well.
Authorities in Xekong Province will draw on experiences of the Hongsa coal-fired plant, the largest energy-generating plant in Laos, when constructing the two new coal power plants.
Laos plans to boost the amount of electricity sold to Cambodia after transmission lines were completed in November last year.