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Effects of cross-border power trade between Laos and Thailand: Energy security and environmental implications

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  • Watcharejyothin, Mayurachat
  • Shrestha, Ram M.

Abstract

This paper analyzed the effects of hydropower development in Laos and power trade between Laos and Thailand on economy wide, energy resource mix, power generation capacity mix, energy system cost, environment, as well as, energy security. A MARKAL-based model for an integrated energy system of Laos and Thailand was developed to assess the effects of energy resource development and trade to meet the national energy demands of the two countries. Two national MARKAL-based energy system models of Laos and Thailand were formulated for the study. The results show that 80% exploitation of water resource in Laos would induce power trade between the countries. The integrated energy system cost is found to decrease marginally but it would mitigate the CO2 emission by 2% when compared with the base case. Thailand is expected to gain benefit from the increased level of power imported from Laos in terms of the lower energy system cost, better environmental quality and, greater diversification of energy sources. As compared to the base case, Laos would become the net energy exporter, earn significant export revenue, and improve the increase in revenue of energy export per increase in total energy system cost from the maximum exploitation of hydropower resource.

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  • Watcharejyothin, Mayurachat & Shrestha, Ram M., 2009. "Effects of cross-border power trade between Laos and Thailand: Energy security and environmental implications," Energy Policy, Elsevier, vol. 37(5), pages 1782-1792, May.
    • Handle: RePEc:eee:enepol:v:37:y:2009:i:5:p:1782-1792
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    Cited by:

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    7. Youngho Chang & Yanfei Li, . "Power Generation and Cross-border Grid Planning for the Integrated ASEAN Electricity Market: A Dynamic Linear Programming Model," Chapters, in: Yanrui Wu & Xunpeng Shi & Fukunari Kimura (ed.), Energy Market Integration in East Asia: Theories, Electricity Sector and Subsidies, chapter 3, pages 37-58, Economic Research Institute for ASEAN and East Asia (ERIA).
    8. Watcharejyothin, Mayurachat & Shrestha, Ram M., 2009. "Regional energy resource development and energy security under CO2 emission constraint in the greater Mekong sub-region countries (GMS)," Energy Policy, Elsevier, vol. 37(11), pages 4428-4441, November.
    9. Kyophilavong, Phouphet & Shahbaz, Muhammad & Kim, Byoungki & OH, Jeong-Soo, 2017. "A note on the electricity-growth nexus in Lao PDR," Renewable and Sustainable Energy Reviews, Elsevier, vol. 77(C), pages 1251-1260.
    10. Yong Zeng & Yanpeng Cai & Guohe Huang & Jing Dai, 2011. "A Review on Optimization Modeling of Energy Systems Planning and GHG Emission Mitigation under Uncertainty," Energies, MDPI, vol. 4(10), pages 1-33, October.
    11. Jun Wang & Lichun Sui & Xiaomei Yang & Zhihua Wang & Dazhuan Ge & Junmei Kang & Fengshuo Yang & Yueming Liu & Bin Liu, 2019. "Economic Globalization Impacts on the Ecological Environment of Inland Developing Countries: A Case Study of Laos from the Perspective of the Land Use/Cover Change," Sustainability, MDPI, vol. 11(14), pages 1-21, July.
    12. Wang, Hongye & Su, Bin & Mu, Hailin & Li, Nan & Jiang, Bo & Kong, Xue, 2019. "Optimization of electricity generation and interprovincial trading strategies in Southern China," Energy, Elsevier, vol. 174(C), pages 696-707.
    13. Wang, Can & Ye, Minhua & Cai, Wenjia & Chen, Jining, 2014. "The value of a clear, long-term climate policy agenda: A case study of China’s power sector using a multi-region optimization model," Applied Energy, Elsevier, vol. 125(C), pages 276-288.
    14. Unger, Elizabeth A. & Ulfarsson, Gudmundur F. & Gardarsson, Sigurdur M. & Matthiasson, Thorolfur, 2018. "The effect of wind energy production on cross-border electricity pricing: The case of western Denmark in the Nord Pool market," Economic Analysis and Policy, Elsevier, vol. 58(C), pages 121-130.
    15. Huber, Matthias & Roger, Albert & Hamacher, Thomas, 2015. "Optimizing long-term investments for a sustainable development of the ASEAN power system," Energy, Elsevier, vol. 88(C), pages 180-193.
    16. Srinivasan, Sunderasan, 2013. "Electricity as a traded good," Energy Policy, Elsevier, vol. 62(C), pages 1048-1052.
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    18. Mustonen, S.M., 2010. "Rural energy survey and scenario analysis of village energy consumption: A case study in Lao People's Democratic Republic," Energy Policy, Elsevier, vol. 38(2), pages 1040-1048, February.

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