Laos’ biggest wind power project may provide excess electricity to Vietnam


(Photo: AMI AC Renewables)

The Lao government signed a Project Development Agreement (PDA) in collaboration with SVARE (Savan Vayu Renewable Energy) on Feb. 16. This agreement entails an investment of USD 2 billion to develop Laos' largest wind power project. With an estimated installed capacity of 1,200 MW, the project electricity aims to meet domestic demand and export to neighboring countries.

The onshore wind farm occupies an area of approximately 2,687 hectares and is located in Savannakhet Province in southern Laos and near Quang Binh Province in central Vietnam. It not only significantly increases Laos' renewable energy generation capacity, but also contributes to achieving the country's renewable energy targets by 2030. Additionally, there is an opportunity to export the surplus electricity to Vietnam.

The Lao government anticipates that the wind farm will be completed and come to operate by early 2026. Laos and Vietnam governments signed energy cooperation memorandum of understanding (MOUs) in 2016 and the Agreement in Power Cooperation in 2019. This project is considered a concrete manifestation of the collaboration between the two countries.

According to Vietnamese media reports, the project is named "AMI Savannakhet" after its geographical location in Laos and partner from Vietnam, Quang Binh AMI Renewables. The Quang Binh AMI Renewables signed a PDA with the Lao government for this project on Jul. 6, 2023.

Quang Binh AMI Renewables has previously collaborated with AC Energy (ACEN), a subsidiary of the Philippines' largest conglomerate Ayala Corporation, through a joint venture to develop a wind farm in Quang Binh Province, Vietnam. With a capacity of 252 MW, it is considered to be Ayala Group’s largest investment in Vietnam.

Approximately 80% of Laos' total electricity generation is exported to neighboring countries such as Thailand, China, Myanmar, Vietnam, Cambodia, and Singapore. According to statistics from the Ministry of Energy and Mines, Laos has 94 power plants with a total installed capacity exceeding 11,600 MW by the end of 2023, of which 81 are hydroelectric power plants. This project is not only the largest wind farm in Laos but also one of the largest in Asia outside of China.

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