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 sub-station 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 a 115-kV transmission line that runs to the Pakxan sub-station in Bolikhamxay.
NNP1 is operated under a 27-year concession agreement. During this period the Nam Ngiep Hydropower Project expects to contribute more than US$ 600 million to Lao PDR through royalty fees, taxes, and dividends paid to the Laos Holding State Enterprise, the Government shareholder in the Project.
Lao PDR not only expects to benefit directly from the Project through electricity supply, but also indirectly through local employment, community infrastructures such as roads and bridges, and through the use of goods and services supplied to the Project by Lao businesses.
Nam Ngiep 1 Power Company is committed to helping the Lao Government to alleviate poverty and bringing prosperity to people in Lao PDR.