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Power sales

The power purchase agreements governing electricity sales for the duration of the NNP1 Concession Agreement were signed in Vientiane in August 2013(Photo: NNP1/Chakrit Duangjai).

The power purchase agreements governing electricity sales for the duration of the NNP1 Concession Agreement were signed in Vientiane in August 2013
(Photo: NNP1/Chakrit Duangjai).

The energy to be generated by the Nam Ngiep Hydropower Plant will be sold to the national electricity utilities of Laos and Thailand.

In August 2013 NNP1 signed Power Purchase Agreements with both the Electricity Generating Authority of Thailand (EGAT) and Electricité du Laos (EDL). The agreements set out the basic terms and conditions for electricity sales from the project, including unit price, basic operation patterns and the duration of the sales period.

The Nam Ngiep 1 Main Powerhouse, which can generate around 1,546 GWh per year, will export all its production to Thailand through a 230-kV transmission line to Nabong substation in Vientiane, from where it will be conveyed across the Mekong River to Thailand through a 500-kV line.

The Nam Ngiep 1 Re-Regulating Powerhouse will sell about 105 GWh per year, or almost 7% of the plant’s output, to EDL through an 115-kV transmission line that runs to the Pakxan substation in Bolikhamxay.

Over NNP1’s concession period, power sales from the Project are expected make over US$600 million for the Lao government through royalties, dividends, and tax payments.