MOIT VIETNAM | The Government Approves Import of Wind Power from Laos

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The Government Approves Import of Wind Power from Laos

13th May 2024 post by MOIT Vietnam

In a recent communication to the Ministry of Industry and Trade and Vietnam Electricity (EVN), Deputy Prime Minister Tran Hong Ha endorsed the proposal to import wind power from Laos, particularly from the Truong Son Wind Farm. This decision aligns with the eighth power development plan and related regulations.

The Ministry of Industry and Trade and EVN are tasked with promptly guiding and implementing the necessary steps to execute the proposal according to established procedures and regulations. Deputy Prime Minister Ha has directed these entities to negotiate and finalize a power purchase agreement with the investor, ensuring comprehensive legal and economic bases, including pricing and costs, as well as technical criteria for system security and clarifying the responsibilities of all parties involved.

Previously, the Ministry of Industry and Trade had proposed to the Prime Minister the import of electricity and the connection plan for the Trường Sơn Wind Farm, which has a capacity of 250 MW. Additionally, the proposal included updating the plan to include a 220kV double-circuit transmission line connecting the Truong Son Wind Farm to Do Luong, along with necessary cables and substations to integrate the wind farm's capacity into Vietnam's grid. To meet the project’s operational timeline by Q4 2025, the Truong Son Wind Farm’s investor will self-finance the entire transmission infrastructure within Vietnam.

The Ministry of Industry and Trade believes that importing electricity from the Trường Sơn Wind Farm is crucial for enhancing electricity supply, reducing the risk of shortages in Northern Vietnam in 2025 and beyond. The investor has proposed a maximum import price of 6.95 cents per kWh for the wind power, provided the farm begins commercial operation before December 31, 2025. EVN has assessed that importing wind power from this project will help reduce electricity costs and support the reliable electricity supply in Northern Vietnam.