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Laos inks $1.45B clean energy deal with China: check key details | Invezz
Laos has entered into a substantial clean energy agreement valued at $1.45 billion with a Chinese power plant equipment manufacturer.
invezz.com
Laos inks $1.45B clean energy deal with China: check key details | Invezz
Laos has entered into a substantial clean energy agreement valued at $1.45 billion with a Chinese power plant equipment manufacturer.
invezz.com
Laos inks $1.45B clean energy deal with China: check key details
Mar 24, 2025- Laos secures a $1.45 billion clean energy agreement with a Chinese power plant equipment manufacturer.
- The agreement includes the development of a 1,800-megawatt clean energy power project in southern Laos.
- Laos aims to expand its renewable energy mix further.
This strategic partnership aligns with Laos’ ongoing commitment to expanding its clean power generation and transmission capabilities.
The deal is expected to facilitate the development of new clean energy infrastructure within the country, potentially including solar, wind, and hydropower projects.
By collaborating with a Chinese manufacturer, Laos aims to leverage China’s expertise and resources in the renewable energy sector.
Laos’ transition towards clean energy
This agreement represents a significant step forward in Laos’ transition towards a cleaner and more sustainable energy future, while also strengthening economic ties between Laos and China.A Sichuan-based company, China Western Power Industrial, and a Singapore-based construction company have partnered to design, supply, and construct a 1,800-megawatt clean energy power project in southern Laos.
The agreement was signed with the Xekong Thermal Power Plant in Laos and was announced in a stock exchange filing by China Western Power Industrial on Monday.
The initial designs are expected to be completed by the end of this year, and the project should be finished by early 2030.
The filing did not provide details on the energy source of the project.
Furthermore, a power transmission agreement, amounting to $228.8 million, was executed between the aforementioned Laotian entity and the Chinese corporation.
China Western Power’s presence in Laos
In 2022, China Western Power solidified its presence in the Laotian energy market by securing a substantial supply and service contract.The deal, valued at $409 million, was signed with another prominent power company in Laos, marking a significant step in the ongoing cooperation between the two countries in the energy sector.
This agreement encompassed not only the supply of electricity but also a comprehensive range of services, potentially including technical support, maintenance, and infrastructure development.
This strategic partnership aimed to bolster Laos’ power grid and support its growing energy demands, while also furthering China’s economic and political influence in the region.
Additionally, in 2024, a state-owned power company from China entered into a significant agreement with the government of Laos.
This agreement centered around the expansion of a renewable energy facility in northern Laos, focusing on the increased production of both wind and solar power.
Challenges in solar and wind power
Laos, a landlocked country in Southeast Asia characterised by its mountainous terrain, has heavily relied on hydropower for its electricity generation.Over the past decade, approximately 80% of the country’s electricity has been produced from hydropower plants, taking advantage of its abundant water resources and mountainous landscape.
However, despite the success of hydropower, Laos has faced challenges in expanding its renewable energy mix to include solar and wind power.
While the country has potential for both solar and wind energy, the development of these resources has been slower compared to hydropower.
This may be attributed to various factors, including the high initial investment costs for solar and wind projects, the need for grid infrastructure upgrades to accommodate these intermittent energy sources, and potential environmental and social impacts associated with large-scale solar and wind farms.
Laos has embraced a development strategy centered around electricity exports to its neighboring countries, including Thailand and Vietnam.
This strategy has earned Laos the nickname “the battery of Southeast Asia.”
Laos-China 500-kV power link project set for completion by 2026
The Laos-China 500-kV interconnection project has been officially launched in the Lao capital, Vientiane, and will be complete by 2026.
www.power-technology.com
Laos-China 500kV power link to be complete by 2026
The initiative is set to expand bilateral power exchanges, enhancing co-operation between the two nations.February 28, 2025
The Laos-China 500kV interconnection project has been officially launched in the Lao capital, Vientiane.
The launching ceremony saw the presence of several dignitaries, including Laos Prime Minister Sonexay Siphandone, Chinese Ambassador to Laos Fang Hong, Lao Minister of Energy and Mines Phoxay Sayasone and China Southern Power Grid (CSG) vice-president Liu Wei.
The initiative is set to expand bilateral power exchanges, enhancing co-operation between the two nations.
The project, to be operational by 2026, will facilitate a two-way electricity exchange capacity of 1.5 million kW, delivering 3 billion kilowatt hours (kWh) of clean electricity annually, advancing strategic energy cooperation.
The Laos section of the project is being developed by Electricité du Laos Transmission (EDL-T), while CSG will manage the Chinese section.
The project encompasses a new 500kV substation in Laos, a 183.5km cross-border transmission line linking Namor in Oudomxay, Laos, with Xishuangbanna in Yunnan, China, and two 230kV lines connecting the northern Laos power grid.
The project will position Laos as a regional hub for clean energy interconnection in the Lancang-Mekong area.
CSG has also donated power equipment and materials to EDL to enhance its operational and maintenance capabilities.
Chinese Ambassador Fang Hong stressed the importance of the project, noting that the Laos-China 500-kV interconnection project marks a major step forward in practical cooperation between the two countries.
She underscored the essential role of electricity in fostering economic and social progress, and regional growth.
Lao Minister Phoxay Sayasone noted the project’s strategic importance within Laos’s Five-Year Energy and Mines Development Plan 2021-25.
The interconnection project bolsters economic growth, expands grid interconnections and electricity exchanges between Laos and southern China, and supports Laos’ goal of becoming a regional hub for energy connectivity in ASEAN [the Association of Southeast Asian Nations].
CSG vice-president Liu Wei emphasised that the company will leverage cutting-edge technologies, equipment and standards to enhance regional power connectivity. He highlighted CSG’s dedication to advancing energy exchanges across regions and establishing a model for power collaboration.
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