EDF (Électricité de France), in partnership with the Government of Laos, has taken a major step towards Southeast Asia’s decarbonisation by signing a memorandum of understanding (MoU) to conduct feasibility studies for the Nam Theun 2 Pumped Storage Hydropower project.
The project, which will have an installed capacity of up to 2,000 megawatts (MW) and 30 gigawatt-hours (GWh) of energy storage, is set to become one of the largest pumped hydro energy storage systems in the world.
The pumped storage facility will be located near the existing Nam Theun 2 hydropower plant, a key project operated by the Nam Theun 2 Power Company Limited (NTPC).
Once completed, the project will strengthen Laos’ role as a regional energy hub, supplying renewable energy to neighboring countries such as Thailand, Vietnam, and Singapore, thanks to new transmission infrastructure linking the plant to the regional grids.
EDF described the project as an enabler for Southeast Asia’s energy transition, saying that it will help boost grid stability and facilitate the region’s shift towards renewable energy.
The MoU is the beginning of in-depth studies to assess the project’s feasibility, technical specifications, and environmental impact.
Pumped storage hydropower is increasingly being recognised as an essential technology for integrating renewable energy into power grids.
Acting as a large-scale energy storage system, it provides backup power during periods of high demand and stores energy when renewable sources like solar and wind are not generating electricity.
The Nam Theun 2 Hydropower Plant, which became operational in 2010, is a key component of Laos’ electricity generation infrastructure. NTPC, the entity responsible for operating the plant, is a consortium comprising three shareholders: EDF Nam Theun Holding (EDF-NTH) with a 40% stake, the Electricity Generating Public Company Limited (EGCO) of Thailand holding 35%, and the Lao Holding State Enterprise (LHSE) owning 25%.
The plant generates electricity for export to Thailand, contributing significantly to Laos’ economic development while adhering to international environmental and social standards.
NTPC’s mission is not only to run a world-class hydropower facility but also to improve the living conditions of local communities in the surrounding areas. The Nam Theun 2 project has been lauded for its efforts to generate electricity in a reliable and sustainable manner while contributing to the development of Laos.
The Nam Theun 2 pumped storage facility is designed to enhance grid flexibility, addressing the intermittent nature of renewable energy sources by storing excess energy and releasing it when required. With its expected capacity, the project will set a new benchmark for energy storage in Southeast Asia.
EDF, a global leader in power generation, has decades of experience in pumped storage hydropower, a key technology for managing the intermittency of renewable energy. The company operates numerous pumped storage plants worldwide, including in France, Switzerland, and China. The facilities have demonstrated the vital role such projects play in stabilizing grids, particularly as the share of renewable energy increases.
The Grand’Maison pumped storage plant in the French Alps, with an installed capacity of 1,800 MW, is one of Europe’s largest such facilities. Similarly, EDF’s pumped storage plant in Sichuan, China, provides essential backup power during peak demand, underscoring the global relevance of this technology.
The increasing global demand for renewable energy has pushed the importance of energy storage to the fore. Pumped storage hydropower is currently the most mature and efficient large-scale storage technology available, boasting a round-trip efficiency rate of up to 80%.
It is particularly well-suited to manage the variability of renewable energy sources like wind and solar, which can be unpredictable due to weather conditions.
With energy grids around the world becoming more reliant on renewables, the ability to store and release power as needed is key to ensuring stability and meeting demand spikes. Pumped storage hydropower offers this capability at a large scale, making it a preferred choice for many countries aiming to expand their renewable energy capacity.
The Nam Theun 2 project arrives at a time when Southeast Asia is accelerating its transition towards renewable energy. Countries like Thailand and Vietnam have set ambitious renewable energy targets, and Laos, with its abundant hydropower resources, is well-positioned to play a pivotal role in supplying clean energy to the region.
