6.3. Energy security improvement
Hydropower import from Laos to Thailand would provide greater diversification of energy sources for Thailand. That certainly could assist Thailand in reducing its dependency on coal. The NIER values suggest that the levels of energy security in both countries would improve with the expansion of power trade. Laos would be the larger net exporter under the power trade regime; as well, energy import dependency of Thailand would slightly improve. Thailand’s dependency on fossil fuels is expected to reduce substantially.
The results discussed above indicate that, in terms of energy
System cost, environment and energy security, cross-border power trade policy between Laos and Thailand would be successful, there venue of power export as percentage of the GDP. The money generated from electricity sales2 could be seen as additional source of revenue to an economy. In addition, the energy import expenditure that is heavily dependent on petroleum products could be balanced by the power export gains Electricity exportation thereby could in fact be considered as a solution to the unsustainable reliance on other exported goods, thus narrowing down national current account deficit of the country. Moreover, the expansion of hydropower developments could directly improve the reliability of power transmission and distribution system. Public health, education and infrastructure (e.g., road, water supply, rural electrification, transportation, and communications) are also expected to see positive change, with the local economy located in that area being equipped with necessary facilities for the development of industrial estates or manufacturing-based plants. Furthermore, the government of Laos could gain taxes and royalty fees from the power plant as well as export revenue can be utilized as a subsidy