ACEN Corporation, through its subsidiary ACEN Renewables International Pte. Ltd., has signed financing documents for a 600-megawatt (MW) wind power project in Laos.
Called the Monsoon Wind, the project will construct a 500-kilovolt (kV) transmission line in the Sekong and Attapeu provinces in Lao PDR. The project will be the first cross-border wind project in Southeast Asia.
Though the wind farm will be constructed in Laos, the electricity generated will be sold to Vietnam Electricity (EVN) under a 25-year power purchase agreement.
The Monsoon Wind project is a collaboration between ACEN, Impact Electrons Siam Ltd., Mitsubishi Corporation, SMP Consultation, BCPG Public Company Ltd., and STP&I Public Company Ltd.
The project cost is approximately $1 billion, with Asian Development Bank (ADB) serving as the lead arranger alongside co-financers such as the Japan International Corporation Agency, Hong Kong Mortgage Corporation Limited, Export-Import Bank of Thailand, Asia Infrastructure Investment Bank, Sumitomo Mitsui Banking Corporation, Kasikornbank, and Siam Commercial Bank.
“Vietnam has significantly scaled up solar and wind over the last few years which made it an ideal place for sustainable investments. Power demand in the country is recovering strong post-COVID, and the Memorandum of Understanding (MOU) between Laos and Vietnam unlocks a new avenue of providing more power to Vietnam while serving as a catalyst for more cross-border power sharing in the region.” ACEN International CEO Patrice Clausse said in a statement.
The Monsoon Wind project is part of the Vietnamese government’s power development plan, and its goal is to contribute to ASEAN regional ties through cross-border electricity sales, in addition to their decarbonization.
The project is expected to operate before the end of 2025.