Representatives from the Lao government and Vietnam’s AMI Renewables Quang Binh Investment Joint Stock Company signed an agreement last week in Vientiane Capital to establish a wind power plant project in Sepone, Savannakhet province. Contact online >>
Representatives from the Lao government and Vietnam’s AMI Renewables Quang Binh Investment Joint Stock Company signed an agreement last week in Vientiane Capital to establish a wind power plant project in Sepone, Savannakhet province.
The AMI Savannakhet Wind Power Plant project, with a total capacity of 1,220 MW, has received a total investment of over USD 2 billion. This makes it the largest venture by Vietnam in the energy sector of Laos.
The signing ceremony was presided over by the Minister of Science and Technology, Mr. Boviengkham Vongdara, and the Ambassador of Vietnam to Laos, Mr. Nguyen Ba Hung. It was also attended by the CEO of AMI AC Renewables, Mr. Nguyen Nam Thang, and other officials.
During the ceremony, Mr. Nguyen Nam Thang announced that AMI Quang Binh would finalize and submit the final feasibility report for approval by September 2023. They expect to sign the franchise contract by the end of 2023 and commence construction in the second quarter of 2024. The wind power plant aims to begin commercial electricity generation in the fourth quarter of 2025.
Mr. Nguyen also expressed his commitment to adhering to agreed terms and striving to finish the project ahead of schedule and make practical and effective contributions to the economic cooperation between Quang Binh and Savannakhet, as well as between Vietnam and Laos as a whole.
Dr. Sathabandit Insixiengmay, Deputy Minister of Planning and Investment of Laos, who also took part in the ceremony, emphasized how this project was in line with the government’s five-year socio-economic development plan (2021-2025).
He highlighted the potential of the energy sector in Laos, given its advantageous landscape for the development of energy sources such as hydroelectricity, wind power, and solar power.
Dr. Sathabandit further mentioned that the development of wind energy projects aligns with the country’s goals of transitioning towards a modern, high-quality, green, and sustainable economy.
AMI Quang Binh is a prominent investor in Quang Binh province and has previously invested in the B&T wind farm project, which has a capacity of 252 MW. This new project not only signifies the special solidarity and comprehensive cooperation between Quang Binh and Savannakhet because of its scale and budget but also highlights the strong partnership between Vietnam and Laos.
The Monsoon Wind Power Plant, another wind power plant in Laos, began construction in May. The Asian Development Bank (ADB) and the Monsoon Wind Power Company agreed to a USD 692.55 million credit deal to fund the project, which will comprise 133 wind turbines spread over 1,000 hectares.
In a major boost for renewable energy in Southeast Asia, the Lao government signed a Project Development Agreement (PDA) with Savan Vayu Renewable Energy Co., Ltd. (SVARE) in Vientiane Capital on 14 February.
The project, a 1,200 MW wind power project in the Lako Focus Area, Sepon District, Savannakhet Province, marks the largest wind power development in Laos to date and is expected to generate enough electricity to power both domestic needs and contribute to the region’s energy security.
The signing ceremony was attended by Dr. Sthabandith Insisiengmay, Deputy Minister of Planning and Investment for the Lao government, and Mr. Sengsack Sayarath, Managing Director of SVARE. This landmark agreement aligns with the existing Memorandum of Understanding (MOU) on energy cooperation between Laos and Vietnam, signed in 2016, and the Agreement in Power Cooperation, signed in 2019. The project has the potential to export excess electricity to Vietnam.
This project represents a major milestone in Laos’ journey toward clean energy and sustainable development. It will not only contribute to domestic energy needs but also strengthen Laos’ position as a reliable power exporter in the region, particularly to Vietnam, contributing to regional energy security and cooperation.
SVARE conducted extensive feasibility studies in Sepon District, Laos, identifying high wind resource potential with a total installed capacity of 1,200 MW. Requiring an estimated investment of USD 2 billion, the project will generate clean energy and contribute to regional economic and social development, creating significant job opportunities throughout construction and operation.
The wind farm is expected to be operational by early 2026, significantly boosting Laos’ renewable energy capacity and supporting its goal of achieving renewable energy targets by 2030.
The first priority of Lao PDR''s energy policy is to provide reliable, affordable, and sustainable electricity to ensure economic growth and to reduce poverty. The main focus areas are to increase the electricity access and hydropower development.
The Renewable Energy Development Strategy in Lao PDR (2011) sets the target for renewable energy share in national energy mix in 2025. The plan consists of three strategies: short-term strategy (2010-2015) aiming at provision of necessary studies and capacity building, mid-term strategy (2016-2020) to establish clear renewable energy framework, and long-term strategy (2021-2025) to develop a fully competitive renewable energy market.
In 2015, the Government has approved the Policy on Sustainable Hydropower Development in Lao PDR. The purpose of the policy is providing guidance and reference on hydropower sector investment as well as to inform and encourage project developers/investors to be aware of the Government policy on sustainable development in Lao PDR.
Household electrification is also an important aspect of Lao energy policy. The Power Sector Policy and Targets for 2020 outlined the target of 90% electrification rate by 2020. With abundant hydropower resources, the development of hydropower constitutes another key area. The Law on Water and Water Resources (1996) sets the regulation for utilization of hydropower to ensure sustainability of hydropower projects and to prevent any adverse effect on the environment.
In 2017, Lao PDR generated around 35,022 GWh of electricity, 5.34% of which (equivalent to 1,873 GWh) was exported to Thailand, Myanmar and Cambodia. Power exports are projected to increase sharply, because the government has reached agreements with its neighbouring countries to export 7,000 MW to Thailand and 5,000 MW to Viet Nam by 2020. However Lao PDR has also imported electricity from Thailand, Vietnam, and China that amounted to 430 GWh in 2017.
The electricity tariffs in Lao PDR are divided into several sub-groups. The electricity tariffs in three main sectors have not changed since 2017, that are shown in Figure 3 (Electricity Tariffs in Lao PDR for 2017).
In the residential sector, the tariffs are classified into three main types based on the consumption level [kWh], while the commercial and industrial tariffs take the voltage level into consideration. The tariffs are set for the period of 2012 – 2017 that are revised for each year. In 2017, the residential and commercial tariffs is 8.2% higher than in 2012, while the industrial tariffs are raised by 24%.
The maximum tariff applies when the customer consumption level is higher than 150 kWh. For the commercial sector, the type of business is decisive in determining the tariff i.e. education and sport businesses connected to medium voltage pay the lowest tariff, while the entertainment businesses connected to the low voltage – the highest. For industrial sector, the lowest tariff is paid if connected to the high voltage, while the highest tariff applies to industries above 5 MW connected to medium voltage.
According to the data obtained from Lao PDR delegation presentation in the annual Renewable Energy Sub-Sector Network (RE-SSN) Meeting of the ASEAN Energy Cooperation in Singapore (2017), Lao PDR''s electricity has reached around 92.05% of total households in 2016. In Vientiane, full electricity access (100%) has been achieved, while Phongsali has the lowest electrification rate of 21.86%. The government plans to increase the overall electrification rate to 98% by 2020.
VIENTIANE (Vientiane Times/Asia News Network): Renewable energy generation in South-east Asia, including Laos, can generate US$90 billion to US$100 billion in sustainable revenues by 2030, according to a new report.
The report, "Renewable Energy Manufacturing: Opportunities for Southeast Asia", was published by the Asian Development Bank (ADB) and a collection of non-profit organisations – Bloomberg Philanthropies, ClimateWorks Foundation and Renewable Energy For All.
About Vientiane renewable electricity
As the photovoltaic (PV) industry continues to evolve, advancements in Vientiane renewable electricity have become critical to optimizing the utilization of renewable energy sources. From innovative battery technologies to intelligent energy management systems, these solutions are transforming the way we store and distribute solar-generated electricity.
When you're looking for the latest and most efficient Vientiane renewable electricity for your PV project, our website offers a comprehensive selection of cutting-edge products designed to meet your specific requirements. Whether you're a renewable energy developer, utility company, or commercial enterprise looking to reduce your carbon footprint, we have the solutions to help you harness the full potential of solar energy.
By interacting with our online customer service, you'll gain a deep understanding of the various Vientiane renewable electricity featured in our extensive catalog, such as high-efficiency storage batteries and intelligent energy management systems, and how they work together to provide a stable and reliable power supply for your PV projects.
