Laos' Monsoon Wind Project Commences Cross-Border Power Transmission to Vietnam, Bolstering ASEAN Grid Integration
Key Insights
The Monsoon Wind Power Project, Laos' first and ASEAN's largest onshore wind farm, has begun transmitting electricity to Vietnam in July, marking a significant regional energy milestone.
This cross-border initiative represents a crucial step towards realizing the ASEAN Power Grid, demonstrating the viability of large-scale renewable energy trading across Southeast Asia.
Developed by Monsoon Wind Power Co., Ltd., the project leverages Laos' abundant wind resources to provide clean energy, supporting Vietnam's growing electricity demand and decarbonization goals.
The successful operationalization of the 600 MW project underscores enhanced regional energy security and paves the way for future inter-country renewable energy collaborations within ASEAN.
Vientiane, Laos – The Monsoon Wind Power Project, Laos' inaugural and Southeast Asia's largest onshore wind farm, officially commenced cross-border electricity transmission to Vietnam in July, culminating over a decade of intricate negotiations and development. This landmark achievement, spearheaded by Monsoon Wind Power Co., Ltd., a joint venture primarily involving B. Grimm Power Public Company Limited and Impact Electrons Siam Co., Ltd., signifies a pivotal advancement for the ASEAN Power Grid (APG) initiative and regional energy integration.
Located in the Sekong and Attapeu provinces of southern Laos, the 600-megawatt (MW) project is designed to harness the region's robust wind resources, delivering clean, renewable energy to Vietnam's burgeoning power market. The electricity is transmitted via a dedicated 500 kV transmission line, spanning approximately 600 kilometers, connecting the project substation in Laos to Vietnam's national grid. This operationalization is a direct outcome of a power purchase agreement (PPA) signed between Monsoon Wind Power Co., Ltd. and Vietnam Electricity (EVN), underscoring a long-term commitment to regional energy security and sustainability.
"The commencement of power transmission from Monsoon Wind to Vietnam is a testament to the collaborative spirit and shared vision for a sustainable energy future in ASEAN," stated Harald Link, Chairman of B. Grimm Power, in a recent press briefing. "This project not only diversifies Vietnam's energy mix but also establishes a scalable model for cross-border renewable energy trade, unlocking the immense potential of Laos' natural resources."
The project's estimated annual generation capacity is approximately 1,700 gigawatt-hours (GWh), which will significantly contribute to Vietnam's renewable energy targets and reduce its reliance on fossil fuels. Vietnam, experiencing rapid economic growth, faces increasing electricity demand, with its power sector heavily dependent on coal. The integration of large-scale wind power from Laos provides a crucial clean energy alternative, aligning with Vietnam's commitment to achieving net-zero emissions by 2050.
Financially, the Monsoon Wind project represents a substantial investment, estimated at over $950 million, financed through a consortium of international and regional banks. Its success is expected to catalyze further foreign direct investment into Laos' renewable energy sector, particularly in hydropower and wind, positioning the country as a vital "battery of ASEAN." This cross-border framework also provides a blueprint for other ASEAN nations to leverage their complementary energy resources, fostering greater grid stability and resilience across the region. The project's long-term implications include enhanced energy security, reduced carbon emissions, and the acceleration of the energy transition across Southeast Asia, setting a precedent for future large-scale renewable energy infrastructure projects.