This proposal was made by Lao Prime Minister Sonexay Siphandone when he met with the Minister of Industry and Trade Nguyen Hong Dien, on April 8.
According to the implementation plan of Power Plan VIII, Vietnam plans to buy about 5,000 MW of electricity from Laos by 2025 and increase to 8,000 MW by 2030. Prime Minister Sonexay Siphandone said that he will urge the Lao government agencies to ensure the progress and capacity of electricity sales according to the signed agreements between Vietnam and Laos.
Currently, the price of electricity purchased from Laos until 2025 is 6.95 cents per kWh, but the price framework after 2025 has not yet been established. Therefore, the Lao Prime Minister proposed that Vietnam soon issue a framework for purchasing electricity from Laos after 2025, at a level not lower than 6.95 cents per kWh (about 1,700 VND per kWh).
This is also the ceiling price that Lao hydropower plants are applying when selling electricity to Vietnam, according to the price framework for plants operating before December 31, 2025, approved by the Government in 2020.
Regarding the framework for purchasing electricity from Laos, Minister of Industry and Trade Nguyen Hong Dien said that EVN is consulting with the Board of Members to approve the draft before reporting to the Ministry of Industry and Trade. After that, the agency will review and report to the Prime Minister for approval. It is expected that in the first quarter of 2023, the framework for purchasing electricity from Laos after 2025 will be issued.
Currently, EVN has signed 19 power purchase agreements (PPA) with investors to purchase electricity from 26 hydropower plants invested in Laos with a total capacity of 2,689 MW, reaching 89.6% of the power purchase capacity committed by 2025 (3,000 MW).
Forecasting that electricity demand will double by 2030, Mr. Dien said that the Ministry of Industry and Trade of Vietnam and the Ministry of Energy and Mines of Laos will recommend that the governments and prime ministers of the two countries allow the import capacity of electricity to Vietnam to increase to 5,000 MW by 2025. This level is about 2,000 MW higher than the current agreements signed between the two countries.
Together, the two ministries also propose that the government create favorable conditions for investors to develop sources, transmission systems, and land clearance to complete the projects on schedule.
In fact, from 2026, Vietnam will buy electricity from Laos, mainly hydropower according to intergovernmental cooperation agreements between the two countries. Currently, electricity from Laos to Vietnam is transmitted via 220 kV lines. However, since last year, the amount of electricity purchased from the neighboring country has started to increase as the North suffers from a shortage of electricity.
Phuong Dung
