Deputy Minister of Planning and Investment Dr Sthabandith Insisiengmay (right) shakes hands with the Managing Director of Savan Vayu Renewable Energy Co., Ltd. (SVARE), Mr Sengsack Xayarath, after they signed a Project Development Agreement on February 14.

Govt inks pact on green and largest 1,200MW wind power project with Savan Vayu

The Lao government has approved development of a massive 1,200MW wind power project, which will be the largest green energy project in Laos.
To push forward the development, the government has signed a Project Development Agreement with Savan Vayu Renewable Energy Co., Ltd. (SVARE) for the development of the 1,200MW wind farm in the Lako Focus Area of Xepon district in Savannakhet province.

Officials and invited guests attend the project agreement signing ceremony.

Senior officials from various ministries sign documents as witnesses to the signing of the Project Development Agreement.

The project is expected to be a major boost for renewable energy in Southeast Asia as it is located near the Laos-Vietnam border, close to Quang Tri province in Vietnam.
Under the agreement, Laos will have its largest wind farm to date, which is expected to generate sufficient electricity to meet Laos’ energy needs as well as contribute to the region’s energy security.
The agreement was signed on February 14 at the Ministry of Planning and Investment in Vientiane by Deputy Minister of Planning and Investment Dr Sthabandith Insisiengmay, on behalf of the government, and the company’s Managing Director, Mr Sengsack Sayarath. This landmark agreement aligns with the existing Memorandum of Understanding on energy cooperation between Laos and Vietnam, signed in 2016, and the Agreement on 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 towards 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 Xepon district to identify high wind resource potential with a total installed capacity of 1,200MW.
Requiring an estimated investment of US$2 billion, the wind farm will generate clean energy and contribute to regional economic and social development, creating significant job opportunities throughout its construction and operation.
The wind farm is expected to become operational by early 2026 and supply energy to Laos and for export to Vietnam, significantly boosting Laos’ renewable energy capacity and supporting its goal to meet set renewable energy targets by 2030.

By Advertorial Desk
 (Latest Update February 20, 2024)