B Grimm goes big with power projects in Laos

B Grimm goes big with power projects in Laos

B GRIMM POWER has taken an aggressive move in building and operating
hydropower plants in Laos. The company officially opened on Friday the
Xanamnoy 2 and Xekatam 1 hydropower plants in Champasak province that shares
a border with Thailand's Northeastern Ubon Ratchathani province.

It is a small scale hydropower plant with capacity of 20.1 megawatts (MWs)
building on small rivers in Laos' Southern Champasak province.

The electricity from this plant supplies the Laos government via its state
enterprise Eletricite Du Laos (EDL) under a 25-year power purchase agreement
(PPA), that is renewable for another 25 years. A 50-year land lease is also
renewable for an additional 50 years.

It is a joint venture between B Grimm Power and SV Group Ltd, a leading
engineering company in Laos. B Grimm Power holds 70 per cent equity and SV
Group 30 per cent. The total development cost is Bt1.75 billion, according
to B Grimm Power.

"Local people are happy with our hydropower plant due to its reliability of
electricity supplies to them," said Harald Link, chairman of B Grimm and B
Grimm Power Group.

He said the small-scale runoff river plant has a very minimal impact on
forests and the environment due to its very small construction site. Nearby
residents will not be displaced, since there is no large water reservoir
like occurs with a big dam, Link said.

In addition to this hydropower plant, the company has concessions on seven
other hydro power projects with total installed capacity of 113 megawatts.

Their locations include the Nam Che 1 hydropower plant project in Xaisomboun
province, Nam Khao 1-5 in Xiangkhouang province, and Tadsakoi in Suvannakhet
province, said the company.

These seven hydropower plants are expected to be completed and open in 2018,
2019 and 2021. The seven planed projects do not include the Xekong 4
hydropower plant project. That facility, with an expected capacity of
300-400 MW, is in PPA negotiations with the Electricity Generating Authority
of Thailand (EGAT). It would be a dam power-plant in partnership with
Ratchaburi Electricity Generating. B Grimm Power would hold 25 per cent of
the shares.

The company is also studying investment opportunities in power transmission
lines linking Northern, Central and Southern regions of Laos, as well as to
other Asean countries.

Link foresees a jump of electricity demand in Laos, Cambodia, Myanmar,
Vietnam, Indonesia and the Philippines in the next 10 years.

"Electricity demand in those countries would triple, or more, increasing by
2030 while electricity demand in Thailand may be double," said Link.

High demand for electricity in those five countries has been driven by their
rapid economic growth. For example, the gross domestic product (GDP) of Laos
has expanded 8 per cent on average over the past decade, according to World
Bank data.

Laos, often touted as the "battery of Asia", has been leveraging its rich
water resources and mountainous areas with spare populations for developing
its economy.

The country's development potential was historically limited by a lack of
financial resources and technology. International lenders including Asian
Development Bank, Export-Import Bank of Thailand and Thai commercial banks
have engaged to provide loans for hydropower plant projects in Laos.

According to the Laos Minister of Energy and Mines, Khammany Inthirath,
Champasak province alone has potential to generate electricity from
hydropower resources up to 8,000 MW annually.

Laos currently could produce electricity from both hydropower plants and
coal firing facilities up to 6,700 MW, and plans to increase that to 14,000
MW by 2025, he said.

The local power industry had estimated that 80 per cent of generated power
would be exported to the nearby countries of Thailand, Vietnam, Myanmar,
Cambodia and China.

Khammany said 94.2 per cent of the Laos population can now access
electricity supplies, and the coverage will reach 98 per cent by 2025.

--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---

Link to Original Article:
http://www.nationmultimedia.com/detail/Corporate/30325654

--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---

John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com