Is the market for Lao PDR’s power assured ?
Yes. Energy demand in Thailand is consistent and the Lao Government has signed MOUs to supply power to Thailand and Vietnam. China will also become a larger consumer in the future. Demand is forecast to exceed 30,000 MW by 2011 and 40,000 MW by 2016. The Electricity Generating Authority of Thailand (EGAT) signed a 25-year Power Purchase Agreement with the Nam Theun Power Company (NTPC) in November 2003. Under the terms of this agreement, EGAT is committed to purchase almost all of the power produced by Nam Theun 2 on a “take-or-pay” basis, thus guaranteeing security of revenue for NTPC and the the Lao Government. Payments are to be made in a mixture of US dollars and Thai baht.
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