Bangkok: The Cabinet has given the green light for the Electricity Generating Authority of Thailand (EGAT) to develop a power transmission system in Nan, Phrae, and Uttaradit provinces, facilitating the purchase of 26.22 billion baht worth of electricity from Laos.
According to Thai News Agency, Deputy Government Spokesperson Ms. Sasikarn Wattanachan announced the approval which aligns with the Ministry of Energy's proposal. The project aims to support the acquisition of electricity from the Luang Prabang and Pak Beng Hydroelectric Power Plant projects in Laos. This initiative is part of Thailand's strategy to achieve carbon neutrality and corresponds with the Thailand Power Development Plan 2018-2037, First Revision (PDP2018 Rev.1).
The project, with an investment value of approximately 26.22 billion baht, is split into two phases and is expected to be completed by 2031. It is designed to enhance energy security by providing low-cost electricity. Phase 1 entails the expansion of power stations and construction of transmission lines in Nan, while Phase 2 involves additional power station construction and further transmission line work.
EGAT plans to explore various funding options for the NPUP project, including domestic and international financial institutions, commercial banks, and bond issuances. The funding structure is anticipated to be 25% from EGAT's revenue and 75% from other sources. Despite an increase in the average wholesale electricity tariff by 0.51 satang/unit, the project promises a favorable return on investment with a Financial Internal Rate of Return (FIRR) of 17.89% and an Economic Internal Rate of Return (EIRR) of 19.15%. The EGAT Board of Directors, the National Economic and Social Development Council, and the National Environment Board have all approved the project, including its Environmental Impact Assessment (EIA) report.