Japan’s Mitsubishi Corporation and other project sponsors have signed a $692 million financing package for the Monsoon cross-border wind power project in Laos.
Once the wind farm has been constructed, it will sell electricity to Vietnam’s state-owned electric power company (Vietnam Electricity) under a 25-year power purchase agreement.
The Monsoon Wind Power Project is situated in southern Laos, and when completed will boast the largest installed capacity of any wind farm in Southeast Asia.
In addition to being the first cross-border renewable energy project in the ASEAN region, it will play a central role in the plan shared by the governments of Vietnam and Laos to transmit 5,000 megawatts of electricity from Laos to Vietnam by 2030.
Mitsubishi is involved in the project via investment through its wholly owned subsidiary Diamond Generating Asia, Limited.
Other partners for the project include the Asian Development Bank, Japan International Cooperation Agency, Sumitomo Mitsui Banking Corporation.
Vietnam is currently working to balance its climate actions with measures to ease energy constraints. Having set a target to curb the country’s carbon emissions by 27% by 2030, the Vietnamese government has made increasing the use of wind and other renewables part of its 8th national power development plan, which is under preparation. The Monsoon project is considered a key contributor to that plan.
Mitsubishi added that, by partnering on this project, the government of Laos will secure more foreign capital that will aid the country’s economic growth and development. Furthermore, in strengthening cross-border power-transmission infrastructure, the Monsoon project should help to raise the average standard of living in Laos.