MOIT VIETNAM | A new transmission line from Laos to Cambodia will boost energy cooperation and trade between the Southeast Asian countries.

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A new transmission line from Laos to Cambodia will boost energy cooperation and trade between the Southeast Asian countries.

13th October 2022 post by MOIT Vietnam

The Lao People's Democratic Republic has begun delivering power to Cambodia through a brand-new transmission line, which promises to greatly improve energy cooperation and commerce between the two Southeast Asian neighbors. A new 500 kilovolt (KV) transmission line connects an electrical substation in a southern Laotian hamlet to an area near the Cambodian border. Cambodia imports around 25% of its electricity consumption from neighboring nations like Laos, Vietnam, and Thailand in order to keep up with the demands of its fast developing economy.

It is estimated that by 2030, electricity trading between Cambodia and Laos would have increased to 6,000 MW from the present 445 MW. "The import of power is first to replenish the deficit and second to lessen the environmental effect," Electricité du Cambodge (EDC) Director General Keo Rattanak stated previously. He also said that Cambodia spends over $100 million each year importing power from Laos in order to fulfill local demand and give a clean energy option for its citizens.
To far, the Kingdom of Saudi Arabia has relied on hydroelectric dams, coal-fired units, diesel-consuming plants, solar energy parks, and biomass power units to provide its electricity needs, but it is working toward switching to natural gas, LNG, or hydrogen as its primary fuel source.

Production of energy in Cambodia increased to 10,313 GWh in December 2022, from 9,713 GWh the year before. There will be 8,581 GWh of electricity produced in the nation year 2020. According to CEIC statistics, the number for December 2022 is unprecedented.
In the period from December 2004 to December 2022, the amount of electricity supplied increased by an average of 1,770 GWh every year. Cambodians use an average of 353 kilowatt hours of power per person each year (KWh).
Thongphat Inthavong, the deputy minister of energy and mines in Laos, was quoted on Thursday by Lao National Radio as saying that the country's ability to provide electricity to local residents and boost economic development would benefit greatly from the construction of a new power transmission line.

Electricite du Laos Managing Director Chanthaboun Soukaloun praised the 200-kilometer power transmission line as a major accomplishment for Laos in its efforts to export energy to neighboring nations, particularly Cambodia. Currently, Laos sends energy to Cambodia's Champassak area through a 115kV transmission line; the new 500kV transmission line will make this process more streamlined.
From Thailand, power reaches Phnom Penh through Banteay Meanchey, Battambang, and Siem Reap, while from Vietnam, it travels to Phnom Penh via high voltage lines. At the same time, the government of Laos has built a number of hydroelectricity facilities in an effort to transform the nation into the "battery of Southeast Asia" for generating energy.

About 90 separate projects have given Laos the ability to generate almost 11,000 MW of electricity by 2022. The majority (77) are hydroelectric units, followed by solar (eight), biomass (four), and coal (one) power plants.

Laos aims to increase its energy production by 1,807 MW by 2025, with hydropower accounting for 57%, coal-fired power for 19%, and solar power for 24%. It is projected that Laos would increase its power production by 5,559 MW by 2030. According to estimates, hydropower will account for 77.59 percent of this total, with the remainder coming from renewable sources like solar and wind, as well as fossil fuel generators like coal.

According to the PwC research "Regional electricity trade in ASEAN: the way forward to an integrated and greener power future," Laos has much greater generating technological capability than its domestic consumption requires, and it exports up to 78% of its generation. Laos is the primary power exporter within the Association of Southeast Asian Nations (ASEAN), supplying energy to Cambodia, Vietnam, Thailand, China, and Singapore, and is also pursuing research to expand its power exports to Malaysia.