In a major boost to the development of renewable energy in Southeast Asia, the Lao government signed a Project Development Agreement (PDA) with Savan Vayu Renewable Energy Limited (SVARE) in the capital city of Vientiane on February 14.

The project, a 1,200-MW wind power project in Lako Focus district, Sepon County, Sawan Nachet Province, Laos, marks the largest wind power development project in Laos to date and is expected to generate enough electricity to meet domestic demand and contribute to the region's energy security.

The signing ceremony was attended by Dr Sthabandith Insisiengmay, Deputy Minister of Planning and Investment of the Lao Government, and Mr Sengsack Sayarath, Managing Director of SVARE. This landmark agreement is in line with the existing Memorandum of Understanding (MOU) on energy cooperation signed between Laos and Vietnam in 2016 and the electricity cooperation agreement signed in 2019. The project has the potential to export surplus electricity to Vietnam.

The project is an important milestone on Laos' path towards clean energy and sustainable development. It will not only help meet domestic energy needs, but also strengthen Laos' position as a reliable electricity exporter in the region, especially Vietnam, contributing to regional energy security and cooperation.

SVARE has conducted an extensive feasibility study in Sepon County, Laos, identifying a high wind resource potential with a total installed capacity of 1,200 MW. With an estimated investment of $2 billion, the project will generate clean energy, contribute to regional economic and social development, and create a large number of jobs during construction and operation.

The wind farm, which is expected to be operational by early 2026, will significantly boost Laos' renewable energy generation capacity and support its goal of meeting renewable energy targets by 2030. Editor/Xu Shengpeng