Electricite Du Laos (EDL)and the Electricity Generating Authority of Thailand Thailand (EGAT) agreed on the new electricity prices that the two provincial government agencies will implement next month.
According to the new power purchase agreement (PPA) that the two companies will implement on April 1, EGAT will be at a price of 1.8 baht/kWh during peak hours and 1.53 baht/kWh during off-peak hours from EDL buy electricity. The average purchase rate of EGAT is 1.63 baht / kWh, and the current purchase agreement rate is 1.33 baht / kWh.
Under the same agreement, EDL will purchase electricity from EGAT at a price of 1.9 baht/kWh during peak hours and 1.63 baht/kWh during off-peak hours. The average purchase rate of EDL is 1.73 baht / kWh.
Laos and Thailand have two main trading methods. The first is a power purchase agreement between EDL and EGAT, which agreed to buy and sell electricity based on demand and supply.
EDL has many hydroelectric power stations that are mainly used for domestic market consumption. However, hydroelectric plants generate a large amount of electricity during the rainy season, so the remaining electricity must be sold to EGAT during this period. In the dry season, hydroelectric power plants generate less electricity, so electricity must be imported from EGAT to ensure supply in the domestic market.
The second is the power purchase agreement between EGAT and independent power producers, which have signed a fixed power purchase agreement. For example, Nam Theun 2 must sell 95% of its electricity generation to Thailand.
According to the Bangkok Post, Thailand and Laos are expected to sign a total of 9,000 megawatts of electricity purchase agreements by 2030.