Powering Up: Laos Aims to Supply Viet Nam with 4,000 MW of Wind Power

Powering Up: Laos Aims to Supply Viet Nam with 4,000  MW of Wind Power

The Ministry of Industry and Trade (MoIT) reports that the Viet Nam Electricity Corporation (EVN) has received proposals from seven wind power investors in Laos to sell electricity to Viet Nam. The total proposed electricity capacity is close to 4,150 MW. The Laotian investors intend to offer more than 682 MW of wind power before 2025, with the remainder to be delivered thereafter.

According to the MoIT, the plan to supply wind power from Laos to Viet Nam will use transmission lines located in Quang Tri Province. Consequently, the amount of power that can be purchased will largely depend on the infrastructure available in the area. Thus, even though proposals have been submitted, the existing infrastructure may limit the capacity of electricity that can be distributed and purchased.

The reason for this is that the plan by Lao investors to sell wind power to Viet Nam exceeds the capacity of the provincial grid. This is due to the operation of 200 kV and 110 kV lines, which typically operate between 80 and 100 percent of their capacity. Especially during the dry season, from May to July, the province can only absorb up to 300 MW of electricity, while in other months the capacity is lower.

According to EVN, Quang Tri can only receive 2,500 MW of electricity from Laos with the current infrastructure. However, this figure is 1,650 MW lower than the total capacity that Lao investors want to sell to Viet Nam.

Last year, EVN proposed importing wind power from Laos to Quang Tri Province. This prompted the MoIT to review the proposal and submit it to the Prime Minister. The proposed purchase price for electricity from the Truong Son wind farm is 6.95 US cents per kilowatt hour (kWh).

The government has stated that it has received a request for feedback regarding the purchase of wind power from a power plant in Bolikhamxay Province, Laos. This power plant has a capacity of 250 MW and is expected to be completed by the end of 2025.

To implement the project plan on schedule, the Viet Nam Laos Energy Investment and Development Corporation has also proposed to sell electricity from the power plant to Viet Nam. They propose to finance the grid connection project with funds from the power plant.

Currently, EVN has signed 19 power purchase agreements (PPAs) with 26 Lao power plants. Of these, seven projects are operational and more are expected to be operational by 2025, according to Viet Nam's Ministry of Industry and Trade.

Source: LaotianTimes | Viet Nam News

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