The purpose of this website is to provide information on the Nam Nhone Hydropower Project, a 6.0 megawatt (MW) (stage #1 and #2 combined) facility that will supply the Bokeo province in Laos with clean and renewable energy. If you have any questions or comments as you navigate through this site, please contact us directly at the link above.
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Project Background
The Nam Nhone Hydropower Company (NNHPC) is a Joint-Venture company established in Laos in 2004. M K Dynamic Resources Development, a holding company registered in Hong Kong SAR, acquired NNHPC in 2007 by the invitation of what was known the Ministry of Industry of Laos and began implementation of the project. We are located in Vientiane, the country's capital city.NNHPC’s purpose is to Build, Own, Operate and Transfer (often referred to as the BOOT scheme) small and medium size hydropower projects, while always striving for the highest standards of clean development with low socio-environmental impacts.Nam Nhone HPP, located in the Bokeo province of northwestern Laos and designated by the government of Laos as the pilot project for all future small or mini hydropower development, is the company's first project. When Stage 2 of the project is completed, the 3.0 MW plant will output the equivalent of 75% of Bokeo’s current (2009) electricity consumption during its rainy season and 30% during its dry season. It is estimated that electricity consumption in Bokeo province will double after the bridge crossing over Mekong River at Houay Xai city Bokeo province is completed in 2011. It is also the first 100% privately owned hydropower project to be carried out in Laos, making NNHPC the pioneer and leader in small and medium-sized hydropower development in the country.
Small HPP, an adapted answer to the Developing Countries needs.
The Small Hydropower Power Producer (SHPP): an answer to developing countries like Laos where resources are abundant but lacking of transmission/distribution networks nationwide. This makes SHPP a logical approach to localize energy supply to meet localized demand, perhaps the best and only solution under the circumstance.Laos has great hydropower potential, with an estimated output of more than 26,000 MW across its territory, and is thus known as the "ASEAN Battery.” Only a few projects have been developed in the past, with 600 MW of installed capacity mostly funded by international institutions and domestic or foreign government soft loans combined with some private investment. Those developed projects supply most of their output to Thailand. The grid in Bokeo province is an isolated one, connected only to the Thailand grid. The fact that Bokeo province and other parts of Laos have to purchase electricity from Thailand to meet its needs is ironic but currently unavoidable. Although it is costly, importing electricity from Thailand and Vietnam is for many areas the only solution the Laotian government can adopt in order to take care of its citizens.Given this current environment, we believe SHPPs like NNHPC and future similar projects are well suited to these specific conditions. They don’t necessitate large networks of transmission lines, and they can reliably and reasonably supply electricity through short distances. SHPPs are proven to be reliable sources of energy. China, and in particular its frontier province with Laos, Yunnan province, is the world’s most developed region for small HPPs (more than 2000 in total number), which drive as much as 15% of the region’s electrical energy. By combining this Chinese experience and local expertise with private foreign direct investment and management, NNHPC aims to deliver a forward-looking solution to address some of Laos’ energy and socio-economic challenges, and thus represents the best solution for supplying provinces with locally generated electricity, culminating in the reduction of energy imports and costs, as well as a new “clean industry” within the province. Both the Laotian government and M K Dynamic Development/NNHPC are committed to set the Nam Nhone HPP pilot project as an example and model for future mini and small hydro projects.Hydropower is clean and renewable energy. Nevertheless, HPPs, especially large ones, can result in significant environmental impacts. With its cascade development scheme, Nam Nhone HPP has been designed to have the lightest environmental impact possible. This first stage will have a relatively small reservoir without any re-settlement nor any loss of farmland, and will enhance the performance of downstream in stage 2 (currently under construction), which is based on what is known as the “run off the river scheme”:· in order to raise the water level at the intake, the plant utilizes a small dam for stage #1 and a weir for stage #2. · purposefully designed tributaries below the dam or weir allow a substantial percentage of the river flow in the river’s main stream to remain all year round in order to protect the river life.· The result is minimum flooded areas without re-settlement or loss of farmland. Environmental impacts on fauna and flora are believed to be isolated to low noise emissions during operation. Almost no forest clearance is expected; minimum for any reservoir purposes and relatively little for road construction. Overall, less than 20 trees (primary forest) are expected to be cut for purposes of construction for this project. Indeed, most of the roads already exist, and the local surroundings are principally composed of already degraded forest. The fish migration impact should remain minor, as the Nam Nhone waterfalls (5m high), located between the water intake and the tailrace, already act as a natural barrier to fish migration.After study of the Nam Nhone HPP's Environmental Impact Assessment (EIA), stage #2 of Nam Nhone HPP has been awarded the Science, Technology and Environment Agency (STEA) certificate, and the Bokeo Province’s Forestry Department has also approved the project and recognized its low environmental impact. Additionally, this project has qualified as a Clean Development Mechanism (CDM) under the Kyoto Protocol, and thus is eligible to receive carbon credits. NNHPC engaged a well known consultant specializing in managing CDM projects to complete the CDM application for stage #2 and provide expertise during design of stage #1.
Socio-Economic ImpactNam Nhone HPP will result in a positive socio-economic benefit to the local population. Despite initial disturbance during construction, Nam Nhone HPP will:- not require any population resettlement.
- bring long awaited electricity to local residents along its transmission line, which was completed and donated before the site construction commencement.
- create jobs and stimulate the local economy short term during construction and long term during plant operation. For example, 12 local residents were hired to be trained by EDL, NNHPC’s O&M contractor.
- create a fishing basin, and all-season access to the left bank of the river through construction of a new bridge.
- introduce and expose the local population, particularly the young, to modern technology and development.
- generate provincial revenues (royalties)
