The extension of a multilateral deal by Singapore to import hydropower from Laos is stuck due to disagreements over how the energy will be transferred through Malaysia and Thailand, two regional government sources acquainted with the matter said.

The Lao PDR-Thailand-Malaysia-Singapore (LTMS) Task to provide up to 100 megawatts (MW) of electricity from Laos through Thailand and neighbouring Malaysia was hailed by Singapore as historic when it was checked in 2022.

Grid affiliation is extensively viewed as a key solution to cut the growing dependence on fossil fuels for power generation, and the deal was valid for 2 years that ended June 22, 2024.

The power retail arm of Singapore's Keppel Ltd and Electricite du Laos (EDL) signed a renewal agreement on June 24, but Singapore has yet to sign handle Thailand and Malaysia due to differences over the quantity of power to be acquired, the sources stated.

Singapore, Malaysia and Thailand have up until Dec. 31 to sign transmission arrangements, said among the sources, who was straight associated with the settlements. However both sources, who decreased to be called since they are not authorised to speak to the media, said a last agreement was not likely.

LTMS may be dead for the minute. There's really no extension, the source associated with the discussion stated.

The Energy Market Authority Singapore and the state-run energies of Thailand, Malaysia and Laos did not respond to ' requests for remark. A spokesperson for Keppel said the company does not comment on market talk.

Throughout conversations last month in Vientiane, officials from Thailand and Malaysia had actually asked Singapore to guarantee the purchase of a fixed amount of electrical power to cover transmission costs, a condition that Singapore refused, both sources said.

The original arrangement provided for payment of transmission charges only for the power bought, one of the sources said.

Extending the deal was also made complex by competition amongst economies for access to eco-friendly electricity.

In December, Thailand's prime minister said the nation had informed Laos that it will not allow electrical power to pass through to Singapore as it wished to purchase the power itself, Thai news portal The Nation estimated him as stating at a public event.

Thai authorities at the Vientiane conference likewise said they were waiting for policy instructions from the federal government to continue with LTMS, and an approval appeared unlikely, the source stated.

Nobody wants to defy the words of the PM, the source said.