Malaysia inks pact to buy up to 100MW of hydro power from Laos
PETALING JAYA: Malaysia has inked a memorandum of understanding (MoU) with Laos for the implementation of multilateral cross-border power trade of up to 100MW, through Thailand.
The Ministry of Energy, Green Technology and Water (KeTTHA) said in a statement yesterday that the MoU was signed on the sidelines of the 34th Asean Ministers on Energy Meeting in Nay Pyi Taw, Myanmar.
The MoU will pave the way for Malaysia to purchase up to 100MW of hydro power from Laos transmitted through Thailand by 2018.
The ministry said the multilateral power trade is the initial stage of the Asean Power Grid initiative which is a flagship project under the Asean Vision 2020. The project is aimed at enhancing energy security in Asean through the establishment of a network of interconnections between the Asean member states.
It also noted that the signing marks Malaysia’s commitment to increase the share of renewable energy in its fuel mix by 2020 as part of the mitigation action to reduce carbon emission in the power sector.
Currently, the fuel mix of Malaysia is dominated by coal and gas and the governmet is committed to rationalising this in accordance with its commitment made in the Paris Agreement at the end of 2015.
“The initial capacity of 100MW could be increased in the future and would positively balance our fuel mix to be more environment friendly,” the ministry said.
Energy, Green Technology and Water Minister Datuk Seri Maximus Johnity Ongkili in the statement expressed his expectations that the pilot project will pave the way for other multilateral power trading in Asean as a means to enhance energy security in the region which would be of significant advantage to Malaysia.