Laos and China Sign New Electricity Agreement

Chinese engineers observe work in Yunnan Province.
Chinese engineers observe electrical work in Yunnan Province (Photo: Seetao).

China Southern Power Grid (CSG) signed an electricity agreement with Electricite du Laos (EDL) on Wednesday in a move to set up a shared electricity market in the region.

China’s Embassy in Laos reported on Thursday that the agreement would help Laos to improve its electricity supply and improve the living standard of local residents by addressing electricity shortages, according to Global Times.

Chinese Ambassador to Laos, Mr. Jiang Zaidong, said that both CSG and EDL are prominent in the power industry of each country, and this new collaboration will help secure energy security and strengthen bilateral ties.

“Laos is rich in electricity resources, with a total installed hydropower capacity of nearly 10,000 megawatts and an average annual power generation of more than 50 billion kilowatt-hours, but its deployment capacity is seriously insufficient, thus leading to huge abandoned water and electricity facilities,” Jiang said.

He said that there is a lot of room for energy cooperation between China and Laos, although both countries must ensure they do not exceed grid capacity.

Mohan traction substation near the Mohan Railway Station
Mohan traction substation near the Mohan Railway Station along the Laos-China Railway.

Global Times quoted Chinese expert, Lin Boquiang, Director of the China Center for Energy Economics Research at Xiamen University, as saying that “Though Laos enjoys rich electricity resources, its grid construction is lagging.”

The new agreement is a bid to address local long-abandoned water and electricity facilities, as well as promote green development in both countries.

Laos’ Minister of Energy and Mines, Mr. Daovong Phonekeo, stated that the country places a great importance¬†on energy development, noting that the country would continue to deepen energy cooperation with China, aimed at mutual benefit and green development.

The success of the Laos-China Railway and its power supply project have encouraged Laos and China to seek further cooperation amid the strengthened relationship between the two countries, described as a shared future.