Japanese trading conglomerate Mitsubishi Corporation will develop a massive onshore wind farm in Laos that will supply electricity to power-hungry Vietnam.
The facility will have power generation capacity of 600 megawatts, making it one of the largest onshore wind farms in Southeast Asia, reported Nikkei Asia. It is expected to cost hundreds of millions of dollars.
A Mitsubishi subsidiary will take a 20% stake in a joint venture to be formed with two Thai renewable-energy developers. Construction by the new company is expected to start by the end of this year with operations to begin in 2024.
A grid network will be built to send power to a Vietnamese state-run utility under a 25-year contract, said the Nikkei.
Vietnam needs additional power supply to support its economy, especially in the dry season, when the country’s hydro power generation is limited. The project is therefore expected to both help stabilise Vietnam’s power system and make its energy mix greener, Mitsubishi explained.
Vietnam’s power demand has expanded rapidly in parallel with its economic expansion. To offset part of that demand, the country in 2016 agreed with Laos to share electricity.
Vietnam is rolling out renewable-energy projects, including wind and solar, but few areas in the country’s inland region are suitable for wind power.
Laos, on the other hand, is suited for wind energy. The planned wind farm marks the nation’s first export deal involving wind power, according to the Nikkei.
To be located in Sekong and Attapeu provinces in southern Laos, the wind farm will be the first in Laos and the largest in South East Asia.