Page 12 - AsiaElec Week 38

AsiaElec NEWS IN BRIEF AsiaElec

INVESTMENT an earlier commitment by NPS to Keppel Laos’ excess power sparks
Capital’s private infrastructure initiative.
Keppel Capital to boost Beyond infrastructure, this strategic export opportunities
cooperation will also create potential
investment in green energy collaboration opportunities across the other Electricite du Laos (EDL), the country’s power
corporation, is seeking to capitalise on the
asset classes where Keppel Capital is active,
Singapore’s Keppel Capital Holdings has such as real estate and data centres, and other excess amount of electricity generated during
signed a strategic cooperation agreement new sectors, such as senior living. the rainy season and is looking to sell it to
with the National Pension Service of Korea Since the start of 2020, Keppel Capital, more export markets.
(NPS) to explore investment opportunities through its platforms, achieved several key Acting managing director of EDL,
for private infrastructure in Asia, especially milestones across its many asset classes. Chanthaboun Soukaloun, said that about
in renewable energy and environmental Besides the launch of its Asian-focussed 1,500MW of potential electricity generation
infrastructure. infrastructure fund, Keppel Capital also was wasted by hydropower stations during the
The cooperation will bring together the launched its private credit fund and an high-flow wet season.
asset management expertise of both NPS and Indonesian logistics property venture, But Laos has to import more electricity
Keppel Capital, as well as Keppel Capital’s partnered with Australian Unity to establish from Thailand in the dry season at a higher
ability to leverage the Keppel Group’s track funds focussing on Australian metropolitan price, causing financial difficulties for EDL.
record and ability to develop, operate and office sector. Chanthaboun revealed the challenges
maintain complex real assets. Keppel Capital also entered the fast- facing EDL when speaking to the media
Christina Tan, CEO of Keppel Capital, said, growing Chinese data centre market when a yesterday, before highlighting possible
“We are glad to partner with NPS, the world’s data centre focussed fund, managed by a unit solutions to enable the company to move
third largest pension fund, to jointly explore of Keppel Capital, invested approximately forward.
investment opportunities in the infrastructure RMB 1.5 billion into a data centre project in The meeting was chaired by Deputy
space in Asia. Notwithstanding the current Huizhou, Guangdong Province. Minister of Information, Culture and
challenging macroeconomic environment, we With assets under management of Tourism, Savankhone Razmountry and
are confident that by working together with approximately S$33 billion as at end-2019, attended by representatives and journalists
a world-class and like-minded institutional Keppel Capital has a diversified portfolio that from various media organisations.
investor, we will be able to synergise and tap includes real estate, infrastructure and data Laos and Thailand exchange electricity via
on each other’s expertise and capabilities, centre assets in key global markets. EDL and EGAT. When Laos has a shortage of
given that we both embrace a value-oriented KEPPEL electricity because of population or business
shareholder focus and disciplined approach to growth, it can source electricity from Thailand
investment.” through its transmission lines.
The strategic cooperation builds on EXPORTS EDL sells 1,000 to 2,000 million kWh
to Thailand annually and imports a similar
amount. The problem is that Laos sells power
to Thailand for only $0.05 per kWh but buys
power at $0.011 per kWh, adding to EDL’s
debt burden.
Chanthaboun is looking at alternative
sources of energy in a bid to minimise
imports and help the company out of its
financial quagmire.
He said Laos needs to diversify its sources
of energy by developing solar and wind
power plants and other sources to address the
electricity shortage in the dry season.
Chanthaboun also said it was essential
to build high-voltage transmission lines
and find more markets for Lao electricity
so the country could capitalise fully on its
hydropower potential. It was also critical to
look at how Laos could store water in the wet
season in order to produce more electricity to
compensate for the electricity shortage in the
dry season.
The amount of power generated by EDL
has grown rapidly while domestic usage has
remained relatively stable.
Savankhone called on the media to act
more responsibly and to gain an in-depth
understanding of issues before reporting them
to the public.
He said EDL and the media should work
more closely together to ensure that the public
better understood the Party and government’s

P12 www. NEWSBASE .com Week 38 23•September•2020