Production Cost Optimization to Assess the Operational Export Potential of LAO PDR by 2025

Abstract

The Lao People's Democratic Republic or Lao PDR is a landlocked country which is surrounded by the neighbouring countries like China, Vietnam, Cambodia, Thailand and Myanmar. Lao PDR is blessed with natural resources like hydropower as the Mekong River flows through over 1,900 km of the country. This paper analyses the export potential of Lao PDR through system optimization of operational and upcoming units connected to the national grid. Lao PDR“s economy has largely benefited from foreign direct investment in development of hydro power as it is among the richest countries in South-East Asia in terms of hydropower resources. The Production Simulation Planning and Dispatch Analysis of Lao PDR power system is performed using GE proprietary software GE MAPS (Multi-Area Production Simulation) to assess the dispatch profile of the existing system (2020) to meet its domestic load demand by honouring the operational export contract to Thailand and Vietnam. The MAPS analysis also attempts to quantify the maximum operational export potential to the neighbouring countries like Thailand, Vietnam, Cambodia and Myanmar for the future scenario 2025, based on the EDL“s planned capacity addition. The existing & future transmission flows are obtained from network system studies performed in GE PSLF (Positive Sequence Load Flow). The following points are also address in this study: • Economic dispatch & judicious storage of water during the monsoon season and balancing the national demand during non-monsoon period through limited thermal support. • Maximization of export of electricity with the neighbouring countries, having primary focus on production cost reduction for the Lao PDR system. • Outlines the need and pattern of Energy Banking requirements to be factored in while drafting export contracts/MoU“s with the neighbouring countries.