On January 3, 2024, the People’s Committee of Ha Tinh Province sent a letter to the Ministry of Planning and Investment regarding the investment in the Truong Son Wind Power Plant project in Bolykhămxay Province, Lao People’s Democratic Republic.
According to the People’s Committee of Ha Tinh Province, the Truong Son Wind Power Plant project has significant importance to the socio-economic development of Ha Tinh Province – Vietnam and Bolykhămxay Province – Laos.
The establishment of the investor in Ha Tinh Province will contribute to the local budget, create employment opportunities for workers, and improve the income of the people in the border area.
The project will also contribute to the improvement of infrastructure on the Lao side (upgrading and constructing approximately 50km of border roads) and will help generate tax revenue for the development of Bolikhămxay Province.
Therefore, the People’s Committee of Ha Tinh Province proposed expediting investment procedures for both Vietnam and Laos. In addition, the People’s Committee of Ha Tinh Province requested the Ministry of Planning and Investment to consider including the Truong Son Wind Power Plant project in the priority project list until 2025 under the Agreement on Cooperation in Power and Mining Development between the Government of Laos and the Government of Vietnam at the 46th Session of the Joint Commission for Bilateral Cooperation between Vietnam and Laos.
Prior to that, the Vietnam Electricity Group (EVN) and the Ministry of Industry and Trade had requested relevant ministries and localities to provide comments on the wind power import policy for the Truong Son Wind Power Plant from Laos to Vietnam.
The Truong Son Wind Power Plant project has a capacity of 250MW, with an average annual electricity output of 715.2 million kWh. The survey area for the project is approximately 24,812 hectares, with a land area requirement of about 90 hectares.
The expected timeline for commercial operation is before December 31, 2025, with a project lifespan of 50 years and a power purchase agreement with EVN for 25 years.
The business model is Build-Operate-Own (BOO), selling electricity to EVN under the agreement between the two governments.
According to the EVN proposal, the investor of the project is Vietnam-Laos Energy Investment and Development Joint Stock Company, which proposed exporting electricity from this project to Vietnam.
The electricity price committed by the investor is to be applied according to regulations, with the import ceiling price for wind power plants from Laos to Vietnam set at 6.95 US cents/kWh (approximately 1,700 dong/kWh at the current exchange rate).
In addition, to import electricity from this wind power plant to Vietnam, the proposed interconnection plan is to construct a new 220kV double-circuit transmission line from the Truong Son Wind Power Plant’s 220kV substation, with a length of 75km connecting to the 220kV bay at the Do Luong 220kV substation (Nghe An – Vietnam).
* EVN wants to import wind power from Laos at a price of 1,700 dong/kWh.