Keppel Electric and Electricite Du Laos (EDL) have entered a framework agreement to explore importing renewable energy into Singapore, the companies said in a filing to SGX Wednesday.
Under the deal’s import trial, EDL will export and Keppel will import up to 100 megawatts of renewable hydropower from Lao PDR to Singapore via Thailand and Malaysia, using existing interconnectors, the filing said.
Once finalised, the deal will allow Keppel Electric to diversify its energy portfolio, the statement said.
The deal is part of the Lao-Thailand-Malaysia-Singapore Power Integration Project (LTMS-PIP), an inter-governmental project to study the feasibility of cross-border power trade from Lao PDR to Singapore, the filing said.
As of 2020, Laos has exported more than 6,000 MW of electricity to neighboring countries, including Cambodia, China, Malaysia, Myanmar, Thailand and Vietnam, the statement said, adding Laos has more than 8,000 MW of installed hydropower capacity, with more expected to be installed.
In addition to the framework agreement, Keppel Electric and EDL will also explore collaboration to tap the demand for renewable energy and the transition toward greener energy, including developing and supplying long-term hydropower for Southeast Asia and renewable energy tracking, the statement said.
Cindy Lim, CEO of Keppel Infrastructure Holdings, said the project is “a significant step towards promoting greater energy infrastructure
connectivity as well as energy sustainability for the region. The importation of renewable power from Lao PDR to Singapore is aligned with Keppel’s Vision 2030 to provide innovative solutions for sustainable urbanisation.”
Chanthaboun Soukaloun, managing director of EDL, said the project would complement efforts for an Asean power grid (APG).
“We would like to express our gratitude to Tenega Nasional Berhad (TNB) and Electricity Generating Authority of Thailand (EGAT) for their continuous support in the LTMS-PIP Project. As we embarked to supply up to 100 MW to Singapore on a trial basis, we look forward to the long-term supply to Singapore in the future,” he said in the statement.
Keppel Electric is a subsidiary of Keppel Infrastructure Holdings, the filing said.