Gulf Energy Development Plc has teamed up with China Datang Overseas Investment Co (CDTO), a subsidiary of a mainland energy firm, to ink a tariff memorandum of understanding (MoU) with the Electricity Generating Authority of Thailand (EEGAT) for the Pak Beng hydroelectric energy venture. The announcement was made in an announcement to the Stock Exchange of Thailand.
Uncomplicated sees Gulf taking a 49% stake, whilst CDTO holds a 51% equity stake with a mission to function the Pak Beng project. The parties have additionally agreed to a power buy contract with EEGAT. This settlement spans 29 years from the commercial operation date, with electricity tariffs averaging 2.7129 baht per kilowatt-hour.
With a complete investment cost of a hundred billion baht, the Pak Beng venture is at present securing loans from numerous monetary establishments. The expectation is for the deal to shut by the top of 2024, with development taking around eight years to meet the deliberate operational start date in 2033.
Situated on the Mekong River within the Pak Beng district of Oudomxay province in Laos, the project has an installed capability of 912 megawatts. The electricity generated is expected to be sold completely to EEGAT.
This endeavour is part of the MoU between Thailand and Laos, geared toward fostering vitality improvement in Laos. The objective is to promote decarbonisation and bolster the adoption of unpolluted energy throughout the transition interval. As per the MoU, energy might be procured from tasks developed in Laos and dispatched through the cross-border electricity transmission system.
With rising energy demand from a rise in electrical vehicle utilization, the Pak Beng project is primed to accommodate this surge. The purchase of electrical energy from this challenge is projected to mitigate gas price volatility, thereby lowering power bills for households and the commercial sector through the contract’s tenure.
The project’s electrical energy production price is lower than the present common electricity value, which stands at 4-5 baht per unit. The power buy agreement additionally outlines the proportion of uncooked supplies and items from Thailand used, in addition to the personnel, employment, and services utilised during construction.
This is anticipated to stimulate economic improvement and increase employment inside the nation, reported Bangkok Post..