Singapore power generator Tuas Power has joined Laotian conglomerate Phongsupthavy Group and state utility Electricite Du Laos to study importing up to 500MW of electricity from Laos, mostly from hydropower dams, The Straits Times reported. 

The volume equals a little over 4% of Singapore's 12GW generation capacity. At full scale it would be more than double the 200MW permitted under the Laos-Thailand-Malaysia-Singapore Power Integration Project, which began in 2022.

Singapore is turning to electricity imports to shore up its energy security. Its Energy Market Authority (EMA) has granted conditional approval to 13 projects that would bring in 9.25GW of low-carbon power from Australia, Cambodia, Indonesia, Malaysia and Vietnam.

The three companies signed a memorandum of understanding on October 30 during the Singapore International Energy Week. It covers a possible arrangement lasting five to 15 years. In a statement, Tuas Power said supply would begin at 100MW in the first contract year, increase to 300MW in the second and settle at 500MW after that.

Tuas Power chief operating officer Michael Wong said the partners were seeking approvals. He said they aimed to find buyers and obtain regulatory clearances and the required certificates by 2027. Dams may produce less in the dry season, so solar and wind output from Laos could make up the shortfall, he said.

The company is targeting firms that want greener power, including data centres and semiconductor makers. Some of these businesses already buy from Tuas Power. Wong said discussions started in 2023, but the partners needed time to secure a stable volume of supply.

Under EMA rules, importers first need "conditional approval" confirming a proposal is technically and commercially viable. A conditional licence comes next, followed by the importer licence.

Somlath Mek Akath, managing director of Phongsupthavy Group, said the power would come from the group's projects in northern and southern Laos. He said the main hurdle would be agreeing the bilateral contracts that allow electricity to cross borders.

Regional power trade in ASEAN has made good progress in recent years, and we believe deeper cooperation among likeminded partners can support a more integrated ASEAN Power Grid, Souksavart Sosouphanh, managing director of Electricite Du Laos said. 

Phongsavath Senaphuan, chairman of Phongsupthavy Group, said: "We recognise that hydropower is a seasonal resource, and we will work towards a supply profile that is transparent and deliverable, should the arrangement proceed."