Laos launches largest wind farm in Southeast Asia to supply Vietnam
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A Thai-led consortium and a Chinese state firm launched the Monsoon Wind Power Project in southern Laos to export electricity to Vietnam.
The project features 133 turbines and operates as the first cross-border wind project in Asia. It covers an area roughly the size of Singapore and serves as a primary example of the region moving toward wind energy to diversify away from hydroelectricity, which faces seasonal production drops and environmental criticism.
The project provides a cheaper source of renewable energy for Vietnam, which faces potential power shortages by 2027 due to rising demand and drought-related hydropower issues. Thomas Jakobsen of Indochina Energy Partners estimates that the Vietnamese state utility, Electricity Vietnam, pays approximately six US cents per kilowatt-hour for this power, which is lower than domestic Vietnamese rates. The project also helps Vietnam work toward its goal of reaching net-zero emissions by 2050.
Local residents in Dak Wai village report that the project brought new roads and improved access to water and healthcare. However, the community still faces power outages because the domestic electricity infrastructure in Laos remains outdated and the state utility carries heavy debt. The Lao government expects to earn US$180 million in taxes and development funds over a 25-year contract.
