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EGAT and Laos signed the power purchase agreement of Nam Ngiep 1 project of which commercial operation date is expected to be in January 2019.


On August 27, 2013, Mr. Soonchai Kumnoonsate, EGAT Governor, signed the power purchase agreement with Mr. Yoshihiro Yamabayashi, Managing Director of Nam Ngiep 1 Power Company Limited (NN1PC) at Don Chan Palace Hotel in Vientian, Laos.

According to the agreement, the installed capacity at the transmitting point is 269 MW accounting for the electrical power of 1,459 million units per year. The electrical power will be transmitted through the transmission line of 500 kv connected from the power plant to the Nabong substation in Laos and Udonthani 3 substation in Thailand respectively. The period of agreement is 27 years with the average electricity price rate of 2.3218 baht/unit.

This power purchase agreement is the good coordination between Thailand and Laos. It is beneficial for Laos as the country will have more power and income contributing to the growth of its economy, while Thailand can save the cost of power project construction but have reliable source of electricity with reasonable price which does not fluctuate because of fuel price.