Hongsa power station
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Hongsa power station is an operating power station of at least 1878-megawatts (MW) in Ban Han, Hongsa, Sainyabuli, Laos with multiple units, some of which are not currently operating. It is also known as HPC power plant, Phase III (Unit 4).
Location
Table 1: Project-level location details
| Plant name | Location | Coordinates (WGS 84) |
|---|---|---|
| Hongsa power station | Ban Han, Hongsa, Sainyabuli, Laos | 19.691284, 101.278217 (exact) |
The map below shows the exact location of the power station.
Unit-level coordinates (WGS 84):
- Unit 1, Unit 2, Unit 3, Unit 4: 19.691284, 101.278217
Project Details
Table 2: Unit-level details
| Unit name | Status | Fuel(s) | Capacity (MW) | Technology | Start year |
|---|---|---|---|---|---|
| Unit 1 | operating | coal: lignite | 626 | subcritical | 2015 |
| Unit 2 | operating | coal: lignite | 626 | subcritical | 2015 |
| Unit 3 | operating | coal: lignite | 626 | subcritical | 2016 |
| Unit 4 | shelved | coal: lignite | 626 | subcritical | – |
Table 3: Unit-level ownership and operator details
| Unit name | Owner | Parent |
|---|---|---|
| Unit 1 | Hongsa Power Co Ltd [100%] | Banpu Power PCL [40.0%]; RATCH Group PLC [40.0%]; Lao Holding State Enterprise [20.0%] |
| Unit 2 | Hongsa Power Co Ltd [100%] | Banpu Power PCL [40.0%]; RATCH Group PLC [40.0%]; Lao Holding State Enterprise [20.0%] |
| Unit 3 | Hongsa Power Co Ltd [100%] | Banpu Power PCL [40.0%]; RATCH Group PLC [40.0%]; Lao Holding State Enterprise [20.0%] |
| Unit 4 | Hongsa Power Co Ltd [100%] | Banpu Power PCL [40.0%]; RATCH Group PLC [40.0%]; Lao Holding State Enterprise [20.0%] |
Project-level coal details
- Coal source(s): mine-mouth
Financing
- Source of financing: Unit 1-3: 9 Thai commercial banks: Bangkok Bank, Siam Commercial Bank, Krungthai Bank, Government Savings Bank, Kasikornbank, Export-Import Bank of Thailand, Bank of Ayudhya, Thanachart Bank, and TMB Bank
Background
The power station was developed by Hongsa Power Company, a consortium comprising the Thai company RATCH Group Public Company Limited (Ratch), Banpu Power (a susbidiary of the the Thai coal-mining company Banpu) (BPP), and Lao Holding State Enterprise (LHSE). Ratch and BPP each have a 40% stake in the project and LHSE 20%.[1]
The power station was proposed as a mine-mouth power station. The power station and associated mine were slated to cost US$4 billion. The consortium was granted a 25 year concession over a 60 square kilometre site.[1]
Under the terms of a May 2009 agreement, 1,473 MW were to be exported to the Electricity Generating Authority of Thailand (EGAT) with 100 MW for domestic Lao consumption. The remainder was allocated for on site use.[1]
In August 2014, LHSE said generator units 1 and 2 would begin electricity generation in 2015 and unit 3 in 2016.[2]
The first unit began operating in June 2015, and the power was set to be solely exported to the Electricity Generating Authority of Thailand (EGAT) through a 500-kilovolt power grid system stretching over 67-km. The second unit was planned to begin commercial generation in November 2015 and the third in March 2016.[3]
Unit 2 began operating on November 2, 2015.[4] Unit 3 was synchronized in December 2015,[5] and began commercial operation in March 2016.[6]
2020 data published by the World Bank showed that carbon dioxide emissions in Laos grew five times faster in the four years after the Hongsa plant came online than it had in the previous half-century.[7]
RATCH Group's 2023 Annual Report reaffirmed the power station's 25-year power purchase agreements with EGAT and Electricite du Laos. These contracts, if fully executed, mean that Hongsa power station would operate through at least 2040/41.[8]
History
In 1996, Thai Lao Power Co. Ltd. (TLL) initiated the proposed development at HongSa District, Laos PDR. The project was to be comprised of a coal mine, power plant, and transmission line.[9]
It was reported that the project comprised of a large open pit lignite mine which would supply fuel for a power plant consisting of three (3) 626 MW (gross) generating units. Water supply for the power plant would be from 2 reservoirs on Nam Louak (upstream of Muang Hongsa) and Nam Kene (downstream of Muang Hongsa). A double circuit 500 kV transmission line would also be constructed.[10]
Expansion (Phase III)
In May 2015, Ratch president Phongdit Potchana said the company planned to add a fourth unit to the plant. According to Phongdit, mining partner Banpu Plc had estimated 577 million tonnes of lignite reserves, more than the 371 million tonnes needed for the 25-year operation (2016-2041) of the first three units.[11]
However, in November 2016, the Laos government said it planned to delay a decision on developing the fourth unit for a decade or so. Officials said they wanted to formulate a clearer policy to develop the country's power sector before making any decision, and determine if there is enough domestic lignite coal to power the unit.[12]
In June 2021, hundreds of villagers from two villages were resisting pressure to be relocated to make way for the expansion of the 1,878 MW plant. An official from the Hongsa consortium confirmed that 2,700 hectares of land were allocated for the expansion of the plant, including one entire village and part of another.[13]
In February 2022, Governor of Xayaboury Province and Managing Director of Hongsa Power Company Limited visited the location of the relocated residents, which were apparently "successfully migrated".[14]
In June 2023, it was unclear if the expansion involved 626 MW (previously proposed Unit 4) or a different capacity.
As of September 2023, there were no further public updates regarding development of the expansion. A Unit 4 of the power station was not mentioned on the Hongsa Power or RATCH websites or in recent corporate documents.[15][16]
RATCH Group's 2023 Annual Report did not mention an expansion at Hongsa power station.[8]
As of March 2024, the Unit 4 expansion was presumed to be shelved.
Opposition
Units 1-3
According to 2010 reporting, the Hongsa project "met protests from environmentalists and from local residents.” About 2,000 villagers were planning to intensify their campaign against the project, claiming widespread pollution issues. They “erected protest banners and posters in front of houses and schools and along streets in the area.”[17]
In May 2013, it was reported that authorities in northern Laos had barred non-governmental organizations from meeting with villagers being relocated for the plant. The NGOs said they were trying to inform residents about their compensation rights and the full impact of the project.[18] Nearly 2,000 people were moved to new locations.[19]
Local fisherman and citizens have resisted against the Thai-backed power plant. An example of overarching resistance was the Break Free movement in 2016, which was an anti-coal movement in Thailand.[20] In February 2017, protestors also wore green T-shirts and raised banners that read “No Coal” or “Save the Environment” in front of the Government House in Thailand.[21]
In March 2024, an EarthRights International article highlighted the growing community opposition to the plant in Laos and nearby indigenous communities in neighboring Thailand. Anecdotal evidence suggested that rice, corn, and coffee harvest qualities were decreasing and respiratory illnesses were increasing. Community organizers were concerned about the growing environmental and public health impacts of the power station, particularly because it was expected to operate until 2040.[22] Residents were also self-sampling nearby water sources and identified growing levels of mercury in the ecosystem.[23]
Expansion
In 2021, villagers argued the compensation they were being offered to relocate to accommodate the plant's proposed expansion was only half the value of their houses and land and feared the resettlement village currently being built was on lower quality land. The Lao language version of the Vientiane Times reported on June 2, 2021, that construction on the resettlement village began March 1 and was expected to be complete by November of the same year. A Pang Bong resident explained: “The new land will not be good, and nothing will grow on it. We will lose all our farms and gardens that are currently sitting on flat land near a small river. When that power plant expands, it will displace all the residents of our two villages. We’re losing our farms, cattle, livestock, our forest and our water source. All of these resources are going to be taken away by this project.” [13]
Finance
According to the Hongsa Power website in 2016, "A total finance package worth US$3.71 billion in capital commitments to HPC was proportionately contributed by 9 Thai commercial banks – namely, Bangkok Bank, Siam Commercial Bank, Krungthai Bank, Government Savings Bank, Kasikornbank, Export-Import Bank of Thailand, Bank of Ayudhya, Thanachart Bank, and TMB Bank. As for long-term senior debts under the typical limited-recourse project financing scheme, the financial close took place in August 2010; while the first drawdown was made in October 2010. In addition to senior loan facilities, shareholders are committed to back-end equity injection."[24][25]
Articles and Resources
References
- ↑ 1.0 1.1 1.2 "Government goes ahead Hongsa lignite power plant," Lao Voices, December 3, 2009 (this is a story from the KPL Lao News Agency)
- ↑ "Construction of Hongsa power plant going smoothly," Viet Stock, August 14, 2014
- ↑ "Laos’ Hongsa Power launches commercial power generation," Thai PBS, June 3, 2015
- ↑ "Coal-Fired Plants Elsewhere," Industcards, accessed April 2016
- ↑ "Laos inaugurates largest coal-fired power plant constructed by China," China.org, December 10, 2015
- ↑ "Unit 3 started the commercial operation," Hongsa Power, March 2, 2016
- ↑ "CO2 emissions (metric tons per capita) - Lao PDR," The World Bank, 2020
- ↑ 8.0 8.1 "Form 56-1 One Report 2023," RATCH Group, accessed May 14, 2024
- ↑ "Hongsa Power Company Limited (HPC)," Hongsa Power, accessed July 2014
- ↑ "The Potential Impacts of Lignite Mining on the Environment and Local Livelihoods in Hongsa District, Sayabouli Province, Lao PDR," Open Development Laos, undated, uploaded August 22, 2017
- ↑ Apornrath Phoonphonphiphat, "Ratch wants fourth Hongsa unit in Laos," Bangkok Post, May 25, 2015
- ↑ "Ratch delays plans for fourth unit at Hongsa plant," Bangkok Post, November 21, 2016
- ↑ 13.0 13.1 "Hundreds of Families Forced to Move for Lao Coal Plant Expansion," Radio Free Asia, June 10, 2021
- ↑ "Visited the area of Ban Kiew Ngew, Muang Ngern," Hongsa Power, February 27, 2022.
- ↑ "News & Activities," Hongsa Power, accessed September 21, 2023
- ↑ "RATCH Business," RATCH Group, accessed September 21, 2023
- ↑ "PFI – Hongsa to light up Laos," Reuters, July 30, 2010
- ↑ "NGOs Barred From Meeting Villagers Relocated for Lao Power Plant," RFA, May 7, 2013
- ↑ "Hongsa Power company boosts income of relocated Lao villagers," Vientiane Times Asia News Network, January 11, 2015
- ↑ "Climate Change and the Ugly Truth about Thailand’s Relationship with Coal," EarthRights International, November 20, 2017
- ↑ "Forget Coal and Embrace Energy 3.0," Myanmar Times, February 21, 2017
- ↑ Indigenous Lua Communities Express Concern on Impacts of Hongsa Power Plant, EarthRights International, March 18, 2024
- ↑ Mercury rising: Why a Thai community believes it is being poisoned across the international border, Channel News Asia, March 3, 2024
- ↑ "Financing," Hongsa Power website, accessed December 2016
- ↑ "Preview of Hongsa Thermal Power Plant (1878MW)," IJGlobal, accessed November 23, 2020
Additional data
To access additional data, including an interactive map of coal-fired power stations, a downloadable dataset, and summary data, please visit the Global Coal Plant Tracker on the Global Energy Monitor website.
