Gulf Energy Development Public Company Limited (GULF) has announced a memorandum of understanding (MOU) with China Datang Overseas Investment Co, Ltd (CDTO), a subsidiary of China Datang Corporation Ltd, for a joint purchase of electricity with the Electricity Generating Authority of Thailand (EGAT). This collaboration aims to develop the Pak Beng hydroelectric power plant project, located in Laos, with an installed capacity of 912 megawatts. Under the agreement, all electricity generated by the project will be sold to EGAT.
This initiative is part of the Thai government’s efforts to increase the use of clean energy and reduce carbon emissions. The MOU enables Thailand to purchase electricity from power plants in Laos, connecting them through the international power transmission system. Currently, there are 11 projects supplying electricity to the system, totaling 5,935 megawatts, with additional projects in the pipeline.
The Pak Beng project, which has governmental approval and a concession contract, is a significant investment with an estimated value of 100,000 million baht. The funding for the project is currently being acquired through financial institutions, with the aim of closing the funding by the end of 2024. The construction is projected to take around 8 years, with commercial operations expected to begin in 2033.
This collaboration between GULF, CDTO, and EGAT represents a major step towards achieving Thailand’s clean energy goals, while also meeting the future electricity demand driven by the expected increase in electric vehicles.
Source: InfoQuest News Agency (21 Sep ’23)
Stock news 18:25 2023-09-21
Gulf Energy Development Public Company Limited (GULF) revealed that according to the company and China Datang Overseas Investment Co, Ltd (CDTO), a subsidiary of China Datang Corporation Ltd., a state-owned enterprise and a Leading Chinese energy company with power generation projects
The total installed capacity of more than 170,000 megawatts covers 13 countries worldwide. sign a memorandum of understanding for the joint purchase
Electricity (Tariff MOU) with the Electricity Generating Authority of Thailand (EGAT) to develop the Pak Beng hydroelectric power plant project, with an installed capacity of 912 megawatts, located on the Mekong River, Mueang Pak Beng, Udomxai Subdistrict, Laos Laos, and will generate and sell all electricity generated to EGAT.
On September 13, 2023, Pak Beng Power Company Limited, a joint venture between the Company and CDTO holding 49% and 51% respectively, to execute the Pak Beng Project, entered into a Power Purchase Agreement with EGAT. The contract has a period of 29 years from the date of electricity supply to the system. and has an average electricity rate of 2.7129 baht per kilowatt-hour
The Pak Beng project has a total investment value of approximately 100,000 million baht and is currently in the process of acquiring loans with financial institutions. Funding is expected to be closed by the end of 2024 and construction will take approximately 8 years, with commercial operations scheduled for 2033.
The Pak Beng Project is a project approved by the government and the Lao PDR National Council, which has signed a concession contract.
(Concession Agreement) with the government of Lao PDR on August 11, 2023, is considered one of the power plant projects under the Memorandum of Understanding between Thailand and Lao PDR. Regarding cooperation in electricity development in Lao PDR (MOU) to support carbon emission reduction. (Decarbonisation) and increasing the use of clean energy during the energy transition (Energy Bridging)
Under the Memorandum of Understanding, Thailand will purchase electricity from power plants developed in Lao PDR and connect them through the international power transmission system. Currently, there is a framework for cooperation in the purchase of electricity of 10,500 megawatts, with 11 projects that have already supplied electricity to the system of 5,935 megawatts, 3 projects that have signed power purchase agreements of 3,060 megawatts, and
Projects that have signed a memorandum of understanding for the purchase of electricity (Tariff MOU), 815 megawatts, 2 projects.
Cooperation under the MOU is also in line with the Thai government’s policy which focuses on increasing the proportion of power plants from clean energy sources that will enter the system. To replace decommissioning power plants, totaling more than tens of thousands of megawatts, from 2023 onwards, and also to meet future electricity demand from the increase in electric vehicles (EVs).
By InfoQuest News Agency (21 Sep ’23)
Tags: GULF , Gulf Energy Development , Thai stocks
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