DEVELOPMENT OF A REGIONAL ENERGY MARKET IN THE MEKONG AREA

by Piyasvasti Amranand National Energy Policy Office, Thailand

ENERGY WEEK 1999 7 April1 9 9 9 ,Washi ngt on D. C.

THAILAND : THE SINGLE BUYER OF ENERGY FROM THE MEKONG

SUBREGIONAL ECONOMIES

• MOU WITH LAO PDR FOR IMPORTING 3,000 MW OF POWER BY 2006

• MOU WITH MYANMAR FOR IMPORTING 1,500 MW OF POWER BY 2010

• MOU WITH CHINA FOR IMPORTING 3,000 MW OF POWER BY 2017

• POWER EXCHANGE WITH MALAYSIA TO RISE TO 300 MW

• COOPERATION IN POWER SECTOR WITH CAMBODIA UNDER DISCUSSION

Power Purchase from Lao PDR

• 4 1993MOU of June : Thailand agr M M MM MMM1 , 5 0 0

2000erfromprojectsinLao PDR by• MMM MMM MMMMMMM MMM MMMMM 4( 1, 600 ) :,’

MMMMMM MMM MMM MMM MMMMMM• 191996 30002006SecondMOUof June : Thailandagreedtoincreasepurchaseto , MWby• MMM MMM MMMM MMMMMM MM MMMMMMM MMMMMMM

MM MMMMMM MMMMMM MMMMMM MMMM MMMMM MMMM MMMMM MMM MMMMMMMM MM MMMMMMMM MMM,

MM MMMM MMMMM MM MMM MMMMMM

Power Purchase from Lao PDR cont.

• Two PPA’s signed 187Nam Theun Hinboun ( MW)

31 1998Commissioning March on schedule (126 )

1999Commissioning September

• Hongsa Lignite (608 MW) 1997PPA negotiations completed December MMMMMMMMM MMMMM MMMMMMMMMMM MM MMMMMMMM MMMMM

MM MMMM MMMMMMMMM MMM MMMMMM MMM MMMMMMM MMMMMMMMM MM

MMMMMMMMMMMMMM. 2006 2008New COD set for or

Power Purchase from Lao PDR cont

• 2 553 3Nam Ngum ( MW) & Nam Ngum (4 3 0 )MW

MOU agreed September 1 9 9 7 Thai government approval October 1 9 9 7 -CODscheduled2006 2008

• &( 365 ) MMMMMMMMMMM MMMMMMMMM -CODscheduled2006 2008

• MMMMM MMM MMMMMMMM MMMM MM MMMMM MMMMM MMM’ er negotiation

• MMMMMM MMMM MMM MMMMM MMMM MM MMM 1600 200MW to be purchased December6

1700 2008MW to be purchased March• MM MMMM M MMM MMMMMMM 2 0 0 6

non firm prices

Power Purchase from Lao PDR cont

Project MW Investors CODProjects with PPANam Theun-Hinboun 187 Lao PDR, Nordic, MDX 3/98Houay Ho 126 Lao PDR, Daewoo, Loxley 9/99HOA & PPA under negotiationHongsa Lignite (Stage 1&2) 608 Thai-Lao Lignite 2006/8Nam Ngum 3 430 Lao PDR, MDX 2006/8Nam Ngum 2 553 Shlapak, Bilfinger & Berger, Voith, Noell,

Siemens, Ch. Karnchang, Sri U-Thong2006/8

Under negotiationNam Theun 2 900 Lao PDR, Transfield EDF, Italthai Jasmine, Phatra 2006Xe Kaman 1 407 Lao PDR, Hecce, Sri U-Thong 2006/8Xe Pien - Xe Nam Noi 365 Dong Ah, Thai-Lao Hydropower, Intertrade 2006/8Total 3,576

Power Purchase from China

• 12 1998MOU signed November f MMMM MMMMM 3 0 0 0

2017by .• MM MMMMMM MMM,..,90 , 000.• MM MMMMMMMMMM MMM MMM () 22,260 . (1,500 ) .2

underconst r uct i on.• - Possi bl e pr oj ect f or power sal e J i n

M M MMM MMMMMMM 1500 1200Capacity: , MW, with , M

M MMM MMMM MM MMMMMMMM MMMMMMMM: / Location: 400kmf r omThai bor der

Hydro Power Potential in Yunnan Province

Generation CapacityNameMW TWh/yr

Jinsha River (Yantze) 40,940 215.5Lancang River (Mekong) 22,260 110Nujang River (Thanlwin) 13,900 77.5Tributary Projects 12,900 47Total 90,000 450

Source: Subregional Energy Sector Study for the Greater Mekong Subregion,Asian Dev elopmentBank,1 9 9 5

Power Plants Envisaged for LancangRiver

Project Name Installed Capacity(MW)

Project Name Installed Capacity(MW)

Liutongjiang 500 Xiaowan 4,200Jiabi 430 Manwan 1,500Wulonglong 800 Dachaoshan 1,350Tuoba 1,640 Nouzhadu 5,000Huangdeng 1,860 Jinghong 1,500Tiemenkan 1,780 Ganlanba 150Gongguoqiao 900 Mensong 600

Total: 22,260

Power Purchase from Myanmar

• Myanmar has significant potential for hydro a nd natural gas

• Technical potential for hydro possibly up to 1 00,000 MW

Preliminary studies by Myanmar government on 1 9 6 projects indicates total capacity of 3 7 , 0 0 0 MW

• 1997MOU signed July for Thailand to purchas e up to 1,500 MW by 2010

• Potential projects for exporting to Thailand Hydr o

55Nam Kok (MDX, Italian Thai, Marubeni) MW MM(, )400 MM() 3,600

NaturalGas(Combi ned Cycl e) MM() 1,500

Power Sale to Myanmar

• MMMMMMMMM M MMMM MM MMMM MMM-MMMMM MM MMMMM M/100150 oMyanmar t o al l evi at e t hei r cur r ent p MMMMMMMMM.

• A transmission line will be constructed bMMM MMM M MM MMM MM MMM MMMMMMMM MMM MMM

o, Myanmar to link the Thai and Myanma MMMMMM.

• A feasibility study is currently underway.• 2001200 2.

Power Supply by Source(PDP 99-01) Unit:MW

1997 % 2001 % 2006 %EGAT-HYDRO 2,874 16.6 3,384 12.6 3,384 12.9EGAT-THERMAL 11,825 68.5 16,217 58.6 15,797 48.0EGCO 2,056 11.9 2,056 7.7 2,056 5.8IPP 0 0.0 1,400 11.5 4,597 18.3SPP 224 1.9 1,807 7.4 2,097 5.7LAO PDR + Malaysia 195 1.1 613 2.3 613 9.4TOTAL 16,979 100.0 25,477 100.0 28,312 100.0

Power Supply by Source - (PDP 99 01) Unit:GWh

1997 % 2001 % 2006 %EGAT-HYDRO 7,055 7.6 3,925 3.8 5,388 3.2EGAT-THERMAL 69,270 74.7 65,022 63.0 75,998 52.3EGCO 13,620 14.7 9,849 11.2 12,406 7.7IPP 0 0.0 9,204 8.7 31,652 20.3SPP 1,977 2.1 12,830 11.3 14,696 7.7LAO PDR 803 0.9 2,863 2.1 2,863 8.7TOTAL 92,725 100.0 103,684 100.0 143,003 100.0