Viet Nam Electricity Signs Power Purchase Agreement with Lao PDR Wind Farm
Viet Nam Electricity and Impact Energy Asia Development (IEAD) Limited signed the 25-year Power Purchase Agreement (PPA) for the Monsoon Wind Project on 12 July 2021. The 600-megawatt wind energy project will be the largest wind farm in Southeast Asia and the first cross-border wind energy project. It will be located in Sekong and Attapeu provinces in Southern Lao PDR, and export green energy to Central Vietnam through a 500 kilovolt transmission line. Construction is expected to begin in 2022, with commercial operation aimed for 2025.
A report from the BCPG group notes that the Monsoon Wind Project is projected to save over 35 million tonnes of greenhouse gas over its lifetime. It will also enhance Viet Nam's grid stability, with the majority of the project's electricity to be generated during the country's dry season. This complements Viet Nam’s existing supply of hydropower electricity that is generated mostly during the wet season.
IEAD, a Thai renewable energy company, will form a joint venture with the Diamond Generating Asia Ltd., a subsidiary of the Mitsubishi Corporation of Japan. Ms. Paradai Suebma, Chairwoman of IEAD, underscores, "The signing of ASEAN’s first cross-border PPA marks a symbolic collaboration between Lao PDR, Vietnam, Japan, and Thailand to work towards the global quest of net zero-emissions. We are part of the global fight against climate change and the journey to uplift the well-being and happiness of local communities in which we operate. We have always known that Lao possessed strong natural resources - this project shows the carbon credentials of Lao PDR as the wind is harnessed to power Viet Nam and possibly other ASEAN nations with clean and stable electricity."