Vietnam is to help meet its rapidly rising electricity demand by importing power from neighbouring Lao PDR through a new $240 million transmission line.
The 165 km, 500 kV transmission line will enable Lao PDR to exploit its hydropower potential and earn income through increased electricity exports. The project will be supported by the Asian Development Bank, which is currently developing a financing programme involving two loans.
Lao PDR has an estimated hydropower potential of 18 000 MW, of which only 663 MW has so far been tapped. While electricity demand in the country is soft, demand in Vietnam is growing at an estimated 7.5 per cent, according to the ADB.
The new transmission line will export around 1000 MW from 11 hydropower projects in Lao PDR. The estimated cost of the project will be $150 million in Lao PDR and $120 million in Vietnam.
“About $55 million have been included in ADB’s 2010 lending program for financing the project, but the final financing plan for the development of the power transmission facilities still needs to be finalized after discussion with potential co-financiers in both countries,” said Xavier Humbert, Senior Energy Specialist with the ADB.
The power transmission project consists of the construction of a 65 km, 500 kV double circuit transmission line, which will run from the Ban Sok substation in Lao PDR to the Vietnam border. It will also involve construction of a 100 km, 500 kV double circuit transmission line from the Lao PDR border to the Pleiku substation in Vietnam.
A new 500/230 kV substation will be built in Ban Sok, Lao PDR, while the Pleiku substation in Vietnam will be extended.
“Maximizing [Lao PDR’s] hydroelectric power potential is challenging due to financing constraints,” said Humbert. “The government recognizes this and has been strongly promoting private sector involvement.”
Income from electricity exports will enable Lao PDR to fund electrification projects as well as social development and poverty reduction efforts. Vietnam estimates that its electricity demand will rise by 16 per cent per year to 2010 and 11 per cent per year between 2011 and 2015.
The two countries have signed a sale agreement involving as much as 5000 MW by 2020.
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