Continuing low rainfall has caused electricity production in Laos to drop 3.31 percent in the first two quarters of this financial year, but the energy sector confirmed there will be no impact on power generation for domestic use or export purposes.

According to a report by the Ministry of Planning and Investment, the lack of rainfall has resulted in significantly low water levels in reservoirs, which has reduced the nation’s capacity to produce electricity compared with the same period last year.

Over the last six months of the 2009-2010 financial year, Laos produced about 1.5 billion kwh of electricity.

In a statement to the Vientiane Times last week, Director General of the Ministry of Energy and Mines’ Electricity Department, Mr Viraphonh Viravong, discussed another factor contributing to falling production levels.

“The Nam Ngum 2 hydropower plant has been filling its own reservoirs, which means water has not been flowing into the Nam Ngum 1. That has significantly affected the capacity of the Nam Ngum 1 to generate electricity,” he said.

He added that although electricity generation has fallen, both domestic and foreign demand have remained stable.

The Ministry of Planning and Investment released figures that show electricity revenue for the 2009-2010 financial year reached more than US$101.46 million, a 10 percent increase compared to last year. Of this figure, about US$40 million was earned from exports, which marks a 4.38 percent rise.

During the same period Laos imported 432.85 million kwh of electricity, worth US$21.2 million. Imports have risen 45.29 percent.

The government promotes economic investment in the national energy sector, with the aim of turning Laos into the “battery of Asean”. They hope that the investment in the sector can be used to boost social and economic development in the country.

According to the Ministry of Planning and Investment, from 2000 to 2009, the electricity sector topped the list of the most valuable entities, maintaining US$11.7 billion in total investment value.

Last month, authorities in Vientiane province allowed the DSK Company Group to conduct a feasibility study for a small scale hydropower project in the Longcheng area, in Xaysomboun district.

The feasibility study for the 5MW Namphanhai River Hydropower Project will take one year to complete, with a total cost of about US$800,000.

At present, Laos has 11 hydropower plants in operation and another 17 plants in the planning stages, with a further 45 undergoing feasibility studies.

Source: Vientiane Times
July 06, 2010