The ASEAN Interconnection Masterplan Study (AIMS) III

The Lesson Learned and Challenges of Implementing Multilateral

Power Trade LTMS-PIP
By
Santisouk Phimphachanh
Department of Energy Policy and Planning
Ministry of Energy and Mines 1
20th April 2021
Project Background
1. The idea for LTMS-PIP was mooted during a
special SOME in Manado, Indonesia in Dec 2013
2. The idea is to transfer power up to 100MW from
Lao PDR to Singapore via Malaysia and Thailand’s
existing transmission grid networks.
3. LTMS-PIP will serve as a pathfinder to
complement existing efforts towards realizing
the APG and the ASEAN Economic Community
(AEC), by creating opportunities for electricity
trading beyond neighboring borders and
expected to help identify and resolve issues
affecting cross-border electricity trading in
ASEAN
4. LTMS-PIP Working Group (WG) and four
Technical Task Forces (TTFs) were formed in Nov
2015 to look into technical, commercial, legal
and tariff aspects of the project
Structure for LTMS – PIP Working Group
Technical Task Force Completed Study in Sep 2016

Finding of the Study

• The project will be implemented in two
phases
• Phase 1- 2018-2019 (LTM-PIP)
✓ Power Trade of up to 100MW
between Lao PDR and Malaysia
via Thailand only utilizing existing
network and interconnections

• Phase 2- 2020 or beyond (LTMS-PIP)

✓ Expansion to include Singapore
when second interconnection
cable between Singapore and
Malaysia is back in service.
 Signing of MOU for Phase 1 at 34th AMEM
• MOU (between LTM Governments)
was signed on 21 Sept 2016 at the 34th
AMEM held in Myanmar for
implementation of Phase 1
• Scope of Cooperation
– Explore the technical-economic feasibility
and viability of cross-border power trade of
up to 100 MW from Lao PDR to Malaysia
using existing interconnections.
– Exchange information on existing and
planned electricity generation sources and
electricity demand within each respective
participant.
– Identify the legal and regulatory issues,
explore possible commercial arrangements
for cross border power trade.
• The validity of MOU : 5 years
(21 Sept 2016 – 20 Sept 2021)
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Structure of Commercial Agreement for Phase 1

1. Energy Purchase and Wheeling Agreement (EPWA) - The

approach is three utilities entering into just one agreement ,
EPWA which consists the followings:
▪ MAIN: The agreement which apply to all three utilities and cover residual
issues or matters such as commencement date for the agreement, conditions
precedent, obligations to be responsible for own country laws and taxes,
governing law, procedure for dealing with disputes etc.

▪ PART 1: Energy Sale & Purchase between EDL & TNB- Set out the issues that
are relevant to EDL & TNB relating to the sale by EDL and its purchase by TNB of
the LTM energy

▪ PART 2: Wheeling Charge between EDL and EGAT- Set out the issues that are
relevant only to EDL & EGAT relating to the wheeling obligations of EGAT

2. Interconnection Operation Manual (IOM) – covers the

operations of LTM Energy transaction from EDL to TNB
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 Power Development Plan

35,000
30,683
Installed Capacity (MW)

30,000

25,000
21,151 23,595

20,000
16,651
17,173
15,000 13,055
13,273

10,000 10,577
6,437 6,393

5,000 3,378 3,378

4,559 2,478
1,878
600 615
25 45
0 0 0 0 0
Existing 2020 2025 2030 Over 2030
Hydro 4,559 10,577 13,273 17,173 23,595
Thermal 1,878 2,478 3,378 3,378 6,393
Wind 0 0 0 600 615
Solar 0 0 0 0 80
Biomas 25 0 0 0 45
Total 6,437 13,055 16,651 21,151 30,683
 Present Status
• Existing Grid System and cross – border interconnection

Voltage Thailand
EDC EVN CSG Myanmar Total
Level EGAT PEA
22/35 kV 1 7 3 1 6 18
115 kV 1 1 5 7
230 kV 2 2 4
500 kV 3 3
Total 2 9 4 1 10 6 32

Remarks:

22/35kV – Import
115kV – Exchange
230kV – Purely Export
500kV – Purely Export

Legend : 115 kV
230 kV
500 kV
 Physical Flow 2018-2019
275/230kV HVAC
115 kV HVAC 300 kV HVDC and Plentong -
300 MW Woodlands
TNL, PT-NK KNE-Gurun
PX-BKN

Lao PDR TKH-NN Thailand Malaysia Singapore

(L) PB-MD2
(T) (M) (S)
BY-SRD

Note:
•Between Lao PDR-Thailand: without Power Flow Control (without ACE)
•Between Thailand-Malaysia: Controlled by Pole Control of HVDC
•Between Malaysia-Singapore: AGC setting of Area Control Error (ACE)
LTM-PIP Commercial Arrangement for Phase 1

Interconnection Operation Manual (IOM)

Seller
Lao PDR

Part2:
Existing Wheeling
Energy Flow

Agreements Charge
Energy
Purchase
Transit Thailand and
Wheeling
Agreement
(EPWA)
Existing
Agreement Part 1:
Energy
Purchase
Buyer Malaysia

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 LTM- PIP 2.0 – Timelines and Activities

• Kick off Meeting for implementation of phase 2

was held in Vientiane, Lao PDR on 12 March 2019
• Bilateral Meeting Lao PDR- Malaysia was held in
Kuala Lumpur, Malaysia on 26 April 2019
• 2nd Consultative Meeting was held in Kuala
Lumpur, Malaysia on 26 May 2019
• 3rd Consultative Meeting was held in Bangkok,
Thailand on 21 June 2019
• 4th Consultative Meeting was held in Vientiane ,
Lao PDR on 25 July 2019
• Joint Press Statement by all 3 ministers at 37th
AMEM in Bangkok was held in Bangkok, Thailand
on 5 September 2019
• Operational Workshop of LTM-PIP 2.0 was held
in Kuala Lumpur, Malaysia on 7-8 October 2019
• Supplementary Agreement to EPWA was Signed
on 27 Dec 2019

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 Lesson Learn of LTM PIP
• The LTM-PIP is the first and successful venture of multilateral energy trading in
ASEAN where Malaysia purchases electricity power up to 100MW from Lao PDR via
existing Thailand’s transmission grid.
• A tripartite agreement known as the Energy Purchase and Wheeling Agreement (EPWA)
was signed among EDL, EGAT and TNB on 27 September 2017 during the 35th ASEAN
Ministers on Energy Meeting in Manila, Philippines. This EPWA governs the sale, transit
and purchase of electrical energy up to 100 MW. This agreement is for a period of 2 years
from 1 January 2018 until 31 December 2019.
• As of September 2019, there were 24.93 GWh energy has been transacted via the LTM-
PIP

• During 36th ASEAN Ministers on Energy Meeting in October 2018, all parties agreed
to continue the implementation of LTM-PIP with a new extension term and proposal
to increase the capacity up to 300MW with committed energy.

• All the parties intend to extend the term of EPWA for additional 2 years. Following
this, Supplementary Agreement to EPWA is proposed to reflect this extension
together with necessary amendments to EPWA.

• Series of meetings have been conducted from March – July 2019 among Lao PDR,
Thailand and Malaysia to discuss technical & commercial aspect LTM-PIP 2.0 and
the proposed Supplementary Agreement to EPWA. 12
 The way forward

Legal & Regulatory Framework

▪ Requirements to import and sell electricity in
Singapore’s Wholesale Electricity Market
Commercial Arrangement
▪ Possible Contractual Frameworks to import
electricity from Laos to Singapore Tax & Tariff
Structure
▪ Wheeling Charges
▪ Balancing Charges
▪ Taxes

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 Conclusion

• The pilot project to explore cross-border power

trade involving four (4) ASEAN Member States
“Lao PDR, Thailand, Malaysia, Singapore
(LTMS-PIP)”, will serve as a pathfinder to
enhance multilateral electricity trading beyond
neighboring borders towards realizing the APG
• Challenges and Obstacles
Technical
Finance
Legal and Regulation
Harmonization of standards

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 ຂອບໃຈ
Thank you for your attention

Ministry of Energy and Mines Lao PDR

Website: www.laoenergy.la