Laos Clean Energy Deal: $1.45 Billion Agreement with China
Laos has signed a groundbreaking $1.45 billion agreement with China’s PowerChina International Group to develop a series of clean energy projects across the country. This ambitious partnership includes the construction of three wind and solar power plants and a 3,000-kilometer transmission line for exporting electricity to Singapore.
Details of the Wind and Solar Projects
The agreement provides for three major power plants: a 600-megawatt (MW) wind farm, a 400-MW wind farm, and a 500-MW solar power plant. These projects are pivotal for boosting the nation’s clean energy capacity and moving Laos toward a sustainable energy future.
Cross-Border Power Transmission Line
Alongside the power plants, the deal includes a 3,000-kilometer transmission line connecting Laos with Singapore to enable clean energy exports. A separate 500-kilovolt (kV) power line will also be built from Houaphanh province to the Vietnamese border.
This critical infrastructure will allow Laos to export electricity to Singapore and other regional markets, including Vietnam, Cambodia, and Thailand. The project is scheduled for completion by 2027, marking a major milestone for the country’s energy sector.
Economic Impact of the Laos Clean Energy Deal
Laos’ Vice Minister of Planning and Investment, Sathabandith Insysiengmai, highlighted the substantial economic benefits expected from this $1.45 billion Chinese investment, as reported by Reuters.
“Through the signing of this agreement, the Lao government is confident that the investment will contribute significantly to the country’s economic development,” Sathabandith stated.
Broader Renewable Energy Ambitions
Laos is actively expanding its renewable energy sector, aiming to increase both its capacity and export potential. The country recently signed a separate $2 billion deal with a Vietnamese company to build a 1,200-MW solar power plant in Champasak province, with the generated power planned for export to Vietnam.
Laos is also collaborating with Singapore on a 600-MW wind power project and began exporting 100 MW to the country in June. In its southern region, the nation is developing an additional 1,000 MW of wind power.
This partnership with PowerChina International Group is a significant step in Laos’s goal to become a regional hub for clean energy. The initiatives will not only bolster the country’s energy infrastructure but also strengthen its economic ties with neighboring nations. Through these advancements, Laos is positioning itself as a key player in the Southeast Asian clean energy landscape. For more details on this transformative deal, visit PVKnowhow.
