Out-Law News | 16 Jul 2021 | 12:03 am | 1 min. read
Vietnam Electricity (EVN) has agreed to buy power from 600 megawatts (MW) windfarm the Monsoon Wind Project in southern Laos.
EVN and Impact Energy Asia Development (IEAD) signed a 25-year power purchase agreement (PPA) for Monsoon which, once operational in 2025, will be the largest wind plant in southeast Asia. This is the first cross-border PPA for wind power in the region.
It is reported that the plant will cost $1.5 billion and will deliver electricity from Laos to central Vietnam through the project’s 500kV transmission line. Construction will start in 2022.
Infrastructure expert John Yeap of Pinsent Masons, the law firm behind Out-Law, said:
“Cross border deals are usually highly complex as the project needs to take into account the country risks and regulatory frameworks of two nations. The announcement of this milestone achievement is therefore great news for both Laos and Vietnam. Laos has for some time seen itself as a natural exporter of renewable energy, though this has largely been about its significant hydro resources. With this project it is now able to export its wind resource as well.”
In June, Japan’s Mitsubishi Corporation agreed to invest the project via its Hong Kong-based wholly owned subsidiary Diamond Generating Asia (DGA), together with a group company of a Thailand’s renewable energy development company Impact Electrons Siam Company Limited (IES).
IEAD is the project company which is 45% owned by Thailand’s renewable company BPCG and 55% owned by Impact Wind Investment Limited, the latter one is 43% owned by Mitsubishi and 57% owned by a group company of IES.