VIETNAM will buy more electricity from Laos starting in 2024 as the country expects to experience power shortages amid a rapidly developing economy.
On Sunday, national utility company Vietnam Electricity (EVN) signed three memoranda to purchase power from Lao companies.
EVN will buy power from two hydropower plants and one coal-fired power plant in Laos.
According to a report by Vn
Express, the 84 megawatt Nam Yeuang hydropower plant and 300 megawatt Nam Phan coal-fired thermal power plant developed by Phongsubthavy Group will send electricity to Vietnam from 2024 and 2025.
Another hydropower plant, Nam Neun 1, with a capacity of 124 megawatt and developed by Kong Sup Hydro Development, will also start sending power to Vietnam in 2024 and 2025.
In January, EVN signed five deals with the two Lao companies to purchase 1.5 billion kWh of power each year in 2021 and 2022.
The Industry and Trade Ministry had warned about the shortage of 3.7 billion kWh of power next year and nearly 10 billion kWh the following year.
This is due to the construction of new thermal and gas-fired plants falling behind schedule.
The power shortage is expected to peak in 2023 at 15 billion kWh.
It will then drop to a shortage of seven billion kWh and 3.5 billion kWh in 2024 and 2025.
The ministry had said the only way out was to import more power from Laos and China, but only as a band-aid solution.