Singapore commences first renewable electricity import from Lao PDR

The Lao PDR-Thailand-Malaysia-Singapore Power Integration Project (LTMS-PIP), which enables Singapore to import up to 100 MW of hydropower from Lao PDR through existing infrastructures in Thailand and Malaysia, announced its commencement late June 23, according to a statement by Keppel Corporation on the same day.

The statement showed, as part of the LTMS-PIP, an initial two-year power purchase agreement has been signed by Keppel Electric Pte Ltd, Singapore's first homegrown electricity retailer and licensed importer, and Electricite du Laos (EdL), a state corporation of Lao PDR, who owns and operates the nation's assets for electricity generation, transmission, and distribution.

The statement said LTMS-PIP serves as "a pathfinder towards realizing the broader ASEAN Power Grid (APG) vision", which targets to realize the multilateral electricity trading beyond neighboring countries in the region.

"Interconnected power grids can accelerate the deployment of renewable energy, promote supply diversification and strengthen grid stability for the region as a whole," Ngiam Shih Chun, Chief Executive of Singapore's Energy Market Authority (EMA), said in the statement.

Singapore now heavily relies on imported natural gas to fulfil its power demand, while it seeks to boost renewable energy adoption and realize its climate pledge of reaching net zero by or around the mid-century.

Considering the nation's limited land space and renewable resources, EMA has been working on broadening the electricity import networks and targeted to get up to 4 GW of electricity imports by 2035.

"With its vast renewable energy potential, Lao PDR targets to be a major supporter of renewable energy in the region," Daovong Phonekeo, Minister of Energy and Mines of Lao PDR, said in the statement.

He said Lao PDR has exported over 6,000 MW cross-border electricity to its neighboring countries including Cambodia, Myanmar, Thailand and Vietnam, adding that the nation has more than 8,000 MW of installed hydropower capacity, which is set to grow in the near future to support its domestic demand and future exports.