nValid Precision Engineering Pte. Ltd. is pleased to announce that it has executed a Power Purchase Agreement (PPA) with Électricité du Laos today to deploy the SAPP Solar Power Project, the first utility scale solar PV power plant in Lao PDR. The SAPP project is located in the southern Lao provin Contact online >>
nValid Precision Engineering Pte. Ltd. is pleased to announce that it has executed a Power Purchase Agreement (PPA) with Électricité du Laos today to deploy the SAPP Solar Power Project, the first utility scale solar PV power plant in Lao PDR. The SAPP project is located in the southern Lao province of Attapeu and will have an installed capacity of up to 64MWac, with a total electricity generation of approximately 128 Gwh per year for a term of 30 years through a 115 kV transmission line from the power plant to the Saphaothong substation.
nValid is expecting to deploy and commission a diversified portfolio of solar PV projects over the next 3-5 years, including rooftop-based, ground-mounted, and floating solar PV plants located in multiple provinces across South East Asia (including Laos, Cambodia, Vietnam and Myanmar).
The execution of the concession agreement and pre-planning permitting requirements of the SAPP Project are expected to be completed by the fourth quarter this year, followed by full project construction in 2021. The renewable power generated from 64MW of solar power capacity of the SAPP Project in Lao will result in a reduction of CO2 emissions of approximately 47,900 Tons per year.
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Solar and wind capacity in the Association of Southeast Asian Nations (ASEAN) region increased by 20% in 2023, bringing the total to more than 28 gigawatts (GW).
The technologies now make up 9% of electricity generating capacity in ASEAN countries – Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam – according to a new report from Global Energy Monitor (GEM).
Building an additional 17GW of utility-scale solar and wind projects in the next two years – those that feed power directly into the electricity grid – would be sufficient to reach the goal, it adds.
In fact, it says the region is on track to sail past its target, nearly doubling wind and solar capacity in the next two years by adding a further 23GW of new projects
An even larger 220GW pipeline of new utility-scale wind and solar capacity has been announced, or entered pre-construction or construction stages, according to GEM''s analysis, though only 6GW of this is currently being built.
However, ASEAN countries collectively have one of the fastest-growing economies in the world and have seen very rapid recent electricity demand growth of 22% per year between 2015 and 2021. This has translated into continued support for gas and coal power in the region, even though demand growth is expected to slow.
The increase in utility-scale solar and wind capacity over the past year has come as a result of a supportive policy environment across many countries in the ASEAN region, says GEM.
In 2017, Vietnam deployed a series of investment policies designed to bring utility scale-solar projects into operation, for example. Two feed-in-tariff (FiT) programs were deployed by the country''s state-owned utility between 2017 and 2020.
However, when these programs expired, Vietnam failed to administer a replacement, GEM says. As such, despite the nation adding 12GW of utility-scale solar capacity between 2019 and 2021, gaps in energy policy have started to limit progress.
Thailand and the Philippines currently have the second and third highest utility-scale solar and wind capacity in the region, with 3GW of operating capacity each.
Thailand is the second largest economy in ASEAN after Indonesia and has benefitted from being seen as a "low-risk country", notes GEM, with few barriers for investment.
The Philippines, meanwhile, hosts a "streamlined project bidding system", which allows for an "unencumbered pipeline of project development", GEM says. Currently, around three-quarters of its operational utility-scale solar and wind capacity comes from solar.
There is currently a total of 222GW of announced, pre-construction and construction-stage utility-scale wind and solar capacity in ASEAN countries, according to GEM''s research.
More than 185GW of this pipeline of projects is in the Philippines and Vietnam, meaning they account for more than 80% of prospective capacity in the region. This is shown in the figure below.
The Philippines is responsible for 45% of prospective capacity in ASEAN countries. Its Green Energy Auction Program (GEAP) aims to facilitate the development of more than 11GW of renewable energy.
In April 2023, the nation issued an executive order, outlining cooperation between private investors and the government on offshore wind. Since then, offshore wind contracts have more than doubled to nearly 80, representing 61GW of capacity, GEM notes.
About Laos utility-scale solar
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