Sunlabob in cooperation with Entec signs a Power Purchase Agreement with Electricité du Laos
- Published on Tuesday, 09 February 2010
A Power Purchase Agreement (PPA) is a contract that allows an Independent Power Producer (IPP) to sell electricity that is independently generated to a power purchaser. In this PPA, which was signed on 4th January 2010 for a term of 25 years, the IPP is a Sunlabob-Entec cooperation, and the power purchaser is the Lao national electric utility, Electricité du Laos (EdL).
This PPA will enable the Sunlabob-Entec cooperation to expand its independent electricity-generating equipment (small hydropower) from a powerhouse at Ban Nam Kha to include a second larger powerhouse on the same river. For the first powerhouse completed in 2007, Sunlabob’s private partner, Entec, provided private investment into the project and engineering expertise, which included designing the turbine and civil structures, configuring the control electronics, supporting and checking all civil works carried out by Sunlabob staff, and assisting in project management.
The additional powerhouse and expansion of the EdL grid will provide access to high-quality electricity services to over 380 households. In this undertaking, Helvetas (Swiss Association for International Cooperation) acts as a public investor, supporting EdL for the grid extension costs required to reach the project area (currently 2.88 km away “as the crow flies").
With 4 project partners from different sectors, this PPA and associated project activities demonstrate Public-Private Partnership (PPP) to improve the country’s electrification rate in rural areas.
For more information about our project partners, please visit their websites by clicking on the logos.