Laos, Thailand signs PPA for Xekong hydroelectric project


Laos’s Xekong 4 Power (XK4) and the Electricity Generating Authority of Thailand (EGAT) have inked a Power Purchase Agreement (PPA) for the Xekong 4A and 4B Hydroelectric Power Project.

The ceremony held in Vientiane marks a significant milestone in renewable energy cooperation between the two countries.

The agreement was signed by EGAT’s acting governor, Jiraporn Sirikum and Xekong 4 Power’s managing director, Chollawit Winitchai.

According to the agreement, EGAT will purchase all electricity generated by the project for 27 years, starting from its commercial operation date in 2033.

EGAT and Xekong 4 Power Company have signed a PPA for the Xekong 4A and 4B Hydroelectric Power Project. (Photo: Vientiane Times)

The strategic collaboration underscores the growing importance of sustainable energy in the Southeast Asia region.

The Xekong 4A and 4B Hydroelectric Power Project, located on the Xekong River in Xekong province, is projected to be a game-changer in the energy sector of southern Laos.

The Xekong River, a tributary of the mighty Mekong River, had its hydroelectric power potential first explored in a Memorandum of Understanding signed in 2015 between the Lao government and Lao World Engineering and Construction. The project gained momentum with RATCH Group and B.Grimm Power joined as co-developers.

With feasibility studies approved in 2022 and the basic design finalized in late December of that year, the project has steadily moved toward realization.

The developers have committed to not only producing energy but also ensuring environmental accountability and enhancing community engagement.

The project aims to become a ‘Good Neighbor,’ promoting sustainable community development and preserving the environment and local traditions. The construction phase is planned to initiate in 2025, with two proposed dams, Xekong 4A and Xekong 4B.

Despite the challenges caused by the current road conditions to the dam sites, the project is a testament to the promise of all stakeholders towards sustainable and renewable energy development.

The agreement between XK4 and EGAT is not just about electricity generation and represents a significant step in regional cooperation in renewable energy. As the project progresses, it promises to bring a positive impact on local communities, the environment, and the energy landscape of the region. 

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