The reason of this article interesting to evaluate the effects of the cross-border power trade policy between Laos and Thailand are the rapidly changing economic and demographic structures in Laos along with Thailand, which is undergoing rapid economic and demographic changes, strong implications for increasing energy consumption. Security of energy supply and diversification of energy resources are the prime strategies of Thailand, whereas the government of Laos recognizes that exporting electricity is a major source of revenue of the country.
This paper assessed the effects of hydropower development 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.