Two big Vietnamese and Lao corporations have signed a deal to develop 2,500 megawatts (MW) of renewable energy in Laos then transmit the power to Vietnam.
| T&T Group and Lao Phongsubthavy Group ink deal on Mar 21 to develop renewable energy in Laos. Photo: T&T Group |
Under a memorandum of understanding (MOU) signed earlier this week, Vietnamese T&T Group and Lao Phongsubthavy Group will join the project development process including feasibility study, environmental assessment impact, and construction.
T&T Group will be responsible for seeking funding for the project.
“The cooperation with a major partner in Laos enables us to quickly grasp the legal provisions and energy policy of Laos; assisting the selection of feasible projects for T&T Group’s overseas investment plan in the energy sector,” said Nguyen Thi Thanh Binh, T&T Group’s Deputy Director.
The partnership helps tap Lao renewable energy potential and specify investment cooperation in the energy sector by the governments of Vietnam and Laos.
In 2019, Vietnam and Laos signed an MOU on investment cooperation in hydropower projects in Laos, building transmission networks, and importing power from Laos. In 2019, the two countries signed an agreement on developing electricity and mining projects, for which, Vietnam will import 3,000-5,000MW in the 2020-2030 period.
Laos currently has more than 80 hydropower plants with a combined installed capacity of nearly 10,000MW, which greatly exceeds domestic consumption. The power generation is also from a coal-fired power plant, four biomass projects, and six solar farms.
Laos has huge potential for hydro, solar, and wind to generate power for sales to Vietnam and Cambodia. Electricity is one of Laos’ main income sources thanks to sales to Thailand, Vietnam, Cambodia, and Myanmar.
Energy is part of investment portfolios by Vietnamese investors in Laos. In 2021, Vietnam poured over US5 billion in more than 200 projects across Laos, ranking third among investors in the neighboring country.
T&T Group, set up in 1993, becomes one of Vietnam’s leading multisectoral private corporations with green energy prioritized in recent years, including wind, solar, LNG. By the end of 2021, the group developed 1,000 MW of wind and solar power and kicked off 1,500MW gas-to-power projects. It targets to develop 12,000-15,000MW by 2030.
Phongsubthavy Group started operating in 2001 in different sectors but is known as a key developer in the energy sector in Lao, conducting hydropower, solar, wind, and coal power projects.
