Gulf Development Acquires Full Ownership of Pak Lay Hydropower Project in Laos
Thailand’s Gulf Development completes $128 million takeover of 770 MW run-of-the-river plant, securing long‑term electricity supply to Thai grid
SET-listed Gulf Development has acquired the remaining sixty‑percent shareholding in the Pak Lay Hydropower Project in Laos from Sinohydro for approximately one hundred and twenty‑eight million US dollars, bringing its ownership to one hundred percent .
The Pak Lay facility, located on the Mekong River in Pak Lay district of Xayaburi province, is a run‑of‑the‑river hydropower plant with an installed capacity of seven hundred and seventy megawatts .
It is under development and slated to begin commercial operations in 2032 under a twenty‑nine‑year power purchase agreement to sell electricity exclusively to the Electricity Generating Authority of Thailand at an average tariff of approximately two point seven baht per kilowatt‑hour .
The project uses natural river flow without a large reservoir or water diversion, ensuring inflow equals outflow and the water volume of the Mekong remains unaffected .
The acquisition aligns with Gulf’s strategy to expand its renewable energy portfolio and support Thailand’s commitments to net‑zero greenhouse gas emissions by 2050 .
Gulf aims for forty percent of its total power capacity from renewables by 2035 and net‑zero scope one and two emissions by 2050 .
The transaction was executed through Gulf’s wholly‑owned subsidiary, Gulf Hydropower Holdings, and includes both equity and shareholder loans .
Gulf previously held a forty percent stake in Pak Lay Power Co via a joint venture with Sinohydro, which had held the remaining sixty percent .
The Pak Lay acquisition is part of Gulf’s broader investment programme, comprising a ninety‑billion‑baht budget from 2025 to 2029, of which up to eighty percent is earmarked for renewable energy development, including solar, wind, biomass, waste‑to‑energy, and hydropower projects, as well as digital infrastructure .
The Pak Lay facility, located on the Mekong River in Pak Lay district of Xayaburi province, is a run‑of‑the‑river hydropower plant with an installed capacity of seven hundred and seventy megawatts .
It is under development and slated to begin commercial operations in 2032 under a twenty‑nine‑year power purchase agreement to sell electricity exclusively to the Electricity Generating Authority of Thailand at an average tariff of approximately two point seven baht per kilowatt‑hour .
The project uses natural river flow without a large reservoir or water diversion, ensuring inflow equals outflow and the water volume of the Mekong remains unaffected .
The acquisition aligns with Gulf’s strategy to expand its renewable energy portfolio and support Thailand’s commitments to net‑zero greenhouse gas emissions by 2050 .
Gulf aims for forty percent of its total power capacity from renewables by 2035 and net‑zero scope one and two emissions by 2050 .
The transaction was executed through Gulf’s wholly‑owned subsidiary, Gulf Hydropower Holdings, and includes both equity and shareholder loans .
Gulf previously held a forty percent stake in Pak Lay Power Co via a joint venture with Sinohydro, which had held the remaining sixty percent .
The Pak Lay acquisition is part of Gulf’s broader investment programme, comprising a ninety‑billion‑baht budget from 2025 to 2029, of which up to eighty percent is earmarked for renewable energy development, including solar, wind, biomass, waste‑to‑energy, and hydropower projects, as well as digital infrastructure .
