Concluding remarks
The main results and findings on benefits of cross-border power trade between Laos and Thailand and its implications are as follows: Cost implication is assessed based on discounted total energy system cost. Overall, total energy system costs of Laos and Thailand would not significantly reduce as the exploitations of hydropower resource in Laos increase Laos is estimated to earn more export revenue from electricity exportation as compared to the base case.
It is also remark able that the increase in revenue of net energy export per increase in total energy system cost is found to improve. The more power exported from Laos is estimated to be advantageous to the Laos economy giving 14% of the total GDP. These improve its balance of trade and net energy import dependence. Furthermore, Laos could gain benefits directly from the export tax, royalty fee, and socio-economic development from hydro power project is advantageous to the economy. These points are raised to emphasize on the benefits of power trade policy between these two countries.
Environmental implications are analyzed in terms of CO2 and local pollutant emissions. Openness of cross-border power trade between Laos and Thailand and promotion of hydropower development in Laos would be advantageous particularly for Thailand. Total CO2 and other pollutant emissions during 2000–2035 in Thailand would reduce by 2% compared to that of the base case, whereas the environmental impacts to Laos would be negligible. The analysis is found that the cross-border power trade policy would secure energy sources of supply for Laos and Thailand. Both countries are expected to decrease their level of energy import and fossil fuels dependencies under the expansion of power trade.
Thailand would have greater diversification of energy source, whereas Laos would face the lower diversification as the country exploits further its vast hydropower potential. Finally, this paper concluded that cross-border power trade policy between Laos and Thailand and expansion of hydropower development in Laos would generate significant benefits to them.