Laos Wind Farm Begins Power Exports to Vietnam in Regional First

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The 600-megawatt Monsoon Wind Power Project began delivering electricity to Vietnam’s national grid on August 22, marking the first cross-border renewable energy project in Asia.

The wind farm, located across mountainous terrain in southern Laos, will supply power to Vietnam under a 25-year agreement with state utility Electricity of Vietnam (EVN). The project represents a $950 million investment and took 14 years to develop from initial conception in 2011.

The facility spans 68,000 hectares across Dak Cheung District in Sekong Province and Sanxay District in Attapeu Province. Its 133 wind turbines connect to Vietnam’s power grid through a 71-kilometer transmission line system that crosses the Lao–Vietnam border.

Power from the turbines is collected at four 115-kilovolt substations before being stepped up to 500 kilovolts for transmission. The electricity travels 27 kilometers to the border, then continues another 44 kilometers through Vietnam’s transmission system to EVN’s Thanh My substation.

Financing and development

The project is operated by Monsoon Wind Power Company Limited, a Lao-incorporated entity backed by shareholders from multiple countries. Impact Electrons Siam (IES) serves as the lead developer and controlling shareholder, with other stakeholders including ACEN from the Philippines, Thailand’s BCPG Public Company Limited and STP&I Public Company Limited, Japan’s Mitsubishi Corporation and its subsidiary Diamond Generating Asia Limited, and Lao PDR’s SMP Consultation Sole Company Limited.

Financing came from a consortium led by the Asian Development Bank, with participation from the Asian Infrastructure Investment Bank, Japan International Cooperation Agency, Export–Import Bank of Thailand, Hong Kong Mortgage Corporation, Sumitomo Mitsui Banking Corporation, Kasikornbank, and Siam Commercial Bank.

Chinese state-owned PowerChina led construction, while Envision Energy supplied the wind turbines.

Economic and social impact

The project created approximately 1,600 jobs during construction, which began in March 2023. More than 1,000 positions were filled by Lao nationals, according to project developers. Also, government reports verify that there were no resettlements or displacements due to the massive infrastructure construction.

The company has established a $1.1 million annual community development fund to support education, healthcare, agriculture, and infrastructure improvements in surrounding villages. Initial programs include scholarships for local students and mobile health services for remote communities.

Regional energy context

The project supports ASEAN’s power grid connectivity goals by demonstrating cross-border electricity trade between member nations. Laos, which generates most of its electricity from hydropower, gains energy diversification, while Vietnam secures additional renewable power capacity.

The wind farm is expected to generate enough electricity annually to avoid approximately 1.3 million tonnes of carbon dioxide emissions, according to project estimates.

The 25-year power purchase agreement with EVN runs alongside a 28-year concession agreement with the Lao government. More than a decade of wind measurement studies informed turbine placement across the mountainous terrain.

The project’s completion follows growing regional focus on renewable energy development and cross-border power trade as Southeast Asian nations work to meet climate commitments and energy security objectives.