Serba Dinamik Annual Report 2019

110 2019 ANNUAL REPORT INDUSTRY IMPACT ON OUR BUSINESS SERBA DINAMIK HOLDINGS BERHAD In line with the power generation installed capacity, electricity generated in Laos grew substantially by a CAGR of 37.3% between 2015 and 2017. In contrast, power consumption in Laos remained stable and grew at a relatively lower CAGR of 8.2% between 2015 and 2017 as compared to the power generation level of the country. In 2017, power generation in Laos far outweighs domestic consumption by more than six times where power generation in Laos stood at 31.6TWh exceeding total consumption by 26.6 TWh (Figure 4-25) . With a population of 7.0 million, the demand for power is small. However, some of the excess power generated in Laos were exported to neighbouring countries including Thailand, Cambodia and Myanmar. In 2017, Laos exported 305.4 GWh (USD11.5 million), 52.7 GWh (USD5.1 million) and 0.2 GWh (USD0.02 million) of electricity to Thailand, Cambodia and Myanmar respectively. According to EDL’s Power Development Plan 2016-2025, memorandums of understanding were signed with governments of some neighbouring countries for the supply of electricity, including the following: 3,000 MW to 7,000 MW to Thailand; 5,000 MW to Vietnam by 2020; and 300 MW of planned export to Myanmar. Meanwhile, as power generated in Laos were mainly dominated by hydropower plants, the country also imports power from neighbouring countries including Thailand Vietnam and China to meet demand during the dry season. The border areas of Laos also import power due to limited transmission of electricity from the north to the south of the country. FUTURE OUTLOOK OF THE POWER GENERATION SECTOR IN LAOS Approved investment projects would provide an indicative outlook for the power generation sector in Laos. Active development in the power generation sector can be translate into higher demand for IRM and MRO services for the power generation plants in Laos, which may be beneficial to strengthen our presence in the country. In 2019, there were 5 approved power generation projects with a total investment value of USD6.03 billion, the highest investment value recorded in the past five years in Laos. The high level of investment in the power generation sector is likely to provide a positive prospect to the industry. (Source: Ministry of Planning and Investment, Lao PDR) Figure 4-26: Approved Foreign and Domestic Investment for Power Generation Sector in Laos 2015 2016 2017 2018 2019 2 5 2 2 5 No of project Year 0.57 1.95 0.94 0.46 6.03 Investment Value (USD Billion) Investment Value CAGR 80.5% 2015 - 2019 2017 - 2019 152.8% P OWE R G E N E R AT I O N I N D U S T R Y