With plans for cross-border electricity grids growing in the region, Laos is banking on hydropower exports to earn revenue. But a recent deal to also sell coal power generated in Laos to Cambodia has sparked environmental concerns over this trade.
Last month, Cambodia’s state-owned utility firm Electricite du Cambodge signed a 30-year deal to buy coal power from two producers with a combined capacity of 2,400MW situated in Laos’ Sekong province.
The two companies – Xekong Thermal Power Plant Company Limited and TSBP Sekong Power and Mineral Company Limited – will start supplying power from 2024.
Cambodia is trying to maintain its momentum as one of the fastest-growing economies in Asean, even as it grapples with having one of the highest electricity tariffs in the region.