Keppel unit, Laos state-owned power company to look into importing renewable energy into Singapore

KEPPEL Electric, a wholly-owned subsidiary of Keppel Infrastructure Holdings, has signed an exclusive framework agreement with Laos state-owned electricity company Électricité Du Laos (EDL), to jointly explore opportunities in importing renewable energy into Singapore.

Under the agreement, EDL will export and Keppel will import up to 100 MW of renewable hydropower from Laos to Singapore via Thailand and Malaysia, using existing interconnectors under an import trial.

Once finalised, the import of renewable energy from Laos will enable Keppel Electric to diversify its energy portfolio.

The trial electricity supply is expected to commence once all technical, commercial, legal and regulatory arrangements are finalised with the governments of the four member Asean countries, and following the execution of a binding power-purchase agreement between Keppel Electric and EDL.

Keppel Electric and EDL will also explore collaboration opportunities from the demand for renewable energy and the transition towards greener forms of energy, including development and supply of long-term renewable hydropower for the Asean region, as well as renewable energy tracking, verification and assurance, which will support the growth of Asean's renewable energy sector.

Said Cindy Lim, chief executive of Keppel Infrastructure: "This project is not only a testament of the strong collaboration among Asean energy leaders, but is also a significant step towards promoting greater energy infrastructure connectivity as well as energy sustainability for the region."

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The agreement is part of the Lao People's Democratic Republic-Thailand-Malaysia-Singapore Power Integration Project (LTMS-PIP), an inter-government project to study the feasibility of cross-border power trade from Laos to Singapore.

The LTMS-PIP also serves as a pathfinder to advance cross-border trading in Asean, and complement existing efforts in the region's Power Grid vision by creating opportunities for multilateral electricity trading beyond neighbouring borders.

Chanthaboun Soukaloun, managing director of EDL, said: ""EDL is delighted for this opportunity to supply power across two separate countries to Singapore and honoured to be able to partner with Keppel for this important project. This project is a complement to the realisation of the Asean Power Grid in the future."

Shares of Keppel closed flat on Wednesday at S$5.25.