MALAYSIA will be able to purchase up to 100mw of hydropower from Laos starting next year, thanks to the signing of the Energy Purchase of Wheeling Agreement between Malaysia, Laos and Thailand.

The Energy, Green Technology and Water Ministry said the multilateral cross-border power trading agreement is the first in Asean and was inked by the representatives of the power companies involved.

They are Tenaga Nasional Bhd (TNB), Electricite du Laos (EDL) and Electricity Generating Authority of Thailand (EGAT).

Energy, Green Technology and Water Minister Maximus Ongkili said the agreement allows Malaysia to purchase the power from Laos, transmitting through the transmission network of Thailand, before reaching to Peninsular Malaysia.

The agreement will commence on January 1, 2018 under Phase 1 of the Laos-Thailand-Malaysia-Singapore Integration Project.

“This will mark the first multilateral power exchange project in Asean implemented under the Asean Power Grid (APG) initiative, which is a flagship project under the Asean Plan of Action for Energy Cooperation (APAEC) 2016-2025,” said Ongkili who led Malaysia’s delegation to the 35th Asean Ministers on Energy Meeting (AMEM-35) in Manila, Philippines, today.

“This initiative is also aimed at enhancing energy security in Asean through the establishment of a network of interconnections between the Asean member states,” he said.

Ongkili said the deal also marked Malaysia’s commitment towards the Paris Agreement to reduce 45% of greenhouse emission per-GDP by 2030.

Also present were Laos Vice-Minister of Energy and Mines, Thongphath Inthavong and the Government of the Thai Energy Minister, General Anantaporn Kanjanarat. – September 27, 2017.