TSBP Sekong power station

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TSBP Sekong power station is an announced power station in Lamam, Sekong, Laos. It is also known as formerly CHMC Sekong power station.

Location

Table 1: Project-level location details

Plant name Location Coordinates (WGS 84)
TSBP Sekong power station Lamam, Sekong, Laos 15.7166, 106.65 (approximate)

The map below shows the approximate location of the power station.

Loading map...


Project Details

Table 2: Unit-level details

Unit name Status Fuel(s) Capacity (MW) Technology Start year Retired year
Unit 1 announced coal - unknown 300 unknown 2025
Unit 2 announced coal - unknown 300 unknown 2025

Table 3: Unit-level ownership and operator details

Unit name Owner
Unit 1 TSBP Sekong Power and Mineral Co Ltd [100.0%]
Unit 2 TSBP Sekong Power and Mineral Co Ltd [100.0%]

Project-level coal details

  • Coal source(s): mine-mouth

Background

In March 2016, China National Heavy Machinery Corporation (CHMC) signed an EPC agreement with Electricite du Laos for a Sekong province coal-electricity integration project in Vientiane, capital of Laos. The contract was valued at US$2.1 billion. The project included: a coal mine with the annual raw coal output at 3 million tonnes and a 700 MW pithead plant with two 350 MW units. The project was expected to last 48 months with the loan by the Export-Import Bank of China.[1]

In October 2019, it was reported that Cambodia’s state-owned utility firm Electricite du Cambodge signed a 30-year deal to buy coal power from two producers with a combined capacity of 2,400MW: the 1,800 MW Xekong power station and 600 MW Sekong power station, both situated in Laos’ Sekong province. The two plants will be built in four phases, commissioned from 2024 to 2027; the 600 MW Sekong plant is planned for 2025 or 2026 and will include an associated coal mine.[2]

In February 2021, a senior Lao government official said a 700 MW coal plant – presumably Sekong – will be built in Lamam district by a Chinese company, as yet unnamed, which plans to invest more than US$1 billion in the project. The Chinese company will not build transmission lines but will partner with Electricite du Laos (EDL) in the export of power to Cambodia.[3]

In May 2021, the project management team was reaching out to Hunan Chuxiang Construction Engineering Group Co., Ltd. to explore the cooperation possibilities.[4]

In June 2022, the project was not listed on the CHMC website.[5] The 700 MW station may be progressing for Electricite du Cambodge under a different authority.

In September 2022, the Cambodian Ministry of Mines and Energy reportedly approved the exclusive purchase of 600 MW of electricity from TSBP Sekong Power and Mineral Company Limited's Sekong power station.[6]

In October 2022, the project was mentioned (under ownership of TSBP Sekong Power and Mineral Company) in a report on electricity trade among ASEAN countries with a start date of 2025 and an estimated cost of over $1 billion USD.[7]

As of June 2023, details of the proposed plant's further development were unclear, including uncertainty surrounding funding and investment.

Financing

Since the signing in September 2019 of a power purchasing agreement for the project, with estimated construction costs of US$1.7 billion, in October 2019 IJGlobal reported speculation of potential Chinese financial institution involvement in the project.[8]

In September 2020, IJGlobal Reported that the planned financing will be used for a portfolio comprised of a 600MW coal-fired power plant and a coal mine infrastructure. Project development also involves the construction of new transmission lines and sub-stations. The total project cost is around $1.7-2 billion.[9]

Opposition

In October 2021, Bridget McIntosh, country director of EnergyLab Cambodia, argued that by damping economic activity and the growth in demand for power, the pandemic had given Phnom Penh the chance to rethink its strategy – particularly plans to import 2.4 GW of coal power from Laos. "If the 2,400MW of coal imported from Laos will struggle to get finance now, wouldn't it be better to invest in solar and wind in Cambodia?" she said. "It would result in billions of dollars of investment, local green jobs and much needed economic stimulus."[10][11]

Articles and Resources

References

  1. "CHMC signed EPC agreement on Laos Sekong coal-electricity integration project," chinca.org, March 23, 2016
  2. "Cambodian-Lao coal power deal an environmental worry," Asia News Network, October 15, 2019
  3. "Laos to build coal-fired power plants in order to sell electricity to Kingdom," February 8, 2021
  4. "老挝色贡拉芒煤电一体化项目顺利推进," Chuxiang Construction Group, May 11, 2021
  5. "Electric Power Projects," China National Heavy Machinery Corperation, accessed June 24, 2022
  6. "柬埔寨进口电力来源国有「老挝电力," cszx123.com, September 29, 2022
  7. "Regional electricity trade in ASEAN," PwC Singapore, October 2022
  8. "Details emerge on Southeast Asia coal-fired projects," IJGlobal, October 11, 2019
  9. "Sekong Coal-fired Power Plant (600MW) and Coal Mine IPP". ijglobal.com. September 2020.{{cite web}}: CS1 maint: url-status (link)
  10. "Cambodia counts the cost of its push to expand coal-fired power," Nikkei Asia, October 1, 2021
  11. "Opinion: Cambodia can secure reliable electricity without new coal," China Dialogue, October 27, 2021

Additional data

To access additional data, including an interactive map of coal-fired power stations, a downloadable dataset, and summary data, please visit the Global Coal Plant Tracker on the Global Energy Monitor website.