On January 9, within the framework of the Vietnam – Laos Investment Cooperation Conference, and under the witness of Prime Minister Pham Minh Chinh and his Lao counterpart Sonexay Siphandone, the Laos Ministry of Planning and Investment granted the concession agreement for the Savan 1 Wind Power Project to Savan 1 Wind Power One-Member Co., Ltd. (a member of T&T Group), according to information from the T&T Group.
BRINGING WIND POWER TO VIETNAM
Per the concession agreement, the Government of the Lao People’s Democratic Republic agreed to allow Savan 1 Wind Power One-Member Company to design, construct, own, and operate the Savan 1 Wind Power Project for a term of up to 25 years to export and sell electricity to Vietnam. The project is located in Phin County, Savannakhet Province, Laos, with an installed capacity of up to 495 MW and a total investment of about $768 million. The first phase of the project has an installed capacity of 300 MW, a total investment of over $490 million, and is planned to be put into commercial operation by the end of 2025.
Earlier, in August 2024, the Prime Minister approved the policy of importing electricity from the Savan 1 Wind Power Project to Vietnam. The Government also assigned the Ministry of Industry and Trade, Vietnam Electricity (EVN), and other relevant agencies to proactively and timely provide guidance and implement related tasks. The Ministry of Industry and Trade was also instructed to direct EVN and related agencies to negotiate and sign a power purchase agreement (PPA) with the investor, ensuring a solid legal basis and economic efficiency.
To date, the PPA for the Savan 1 Wind Power Project between Savan 1 Wind Power One-Member Company and EVN has been officially signed.
According to the Power Development Plan VIII, the total imported capacity from Laos is about 5,000 MW, which can be increased to 8,000 MW by 2030. Additionally, the import of electricity from Laos will also comply with the memorandums of understanding and joint agreements between the two countries.
EVN stated that importing electricity from Laos in 2025 would play a crucial role in supplementing the power supply, enhancing the ability to ensure electricity provision, and reducing the risk of power shortages in the Northern region. Thus, investing in the Savan 1 Wind Power Project and connecting it to the national transmission grid is essential. It not only materializes T&T Group’s commitment to expanding investments in clean energy but also contributes to increasing the electricity supply for the national power system. This move also aligns with the cooperation commitments between Vietnam and Laos and the orientation of electricity import in the Power Development Master Plan approved by the Prime Minister in Decision No. 500/QD-TTg dated May 15, 2023.
THE BEGINNING OF T&T GROUP’S CROSS-BORDER ENERGY INVESTMENT STRATEGY
Ms. Nguyen Thi Thanh Binh, Vice Chairman of T&T Group and Chairman of Savan 1 Wind Power One-Member Company, shared that the signing of the concession agreement for the Savan 1 Wind Power Project with the Laos Government marks a significant milestone and the beginning of T&T Group’s cross-border energy investment strategy.
“The Savan 1 Wind Power Project will be a pioneer and the foundation for the Group to continue investing in many other energy projects in Laos in the future,” emphasized Ms. Nguyen Thi Thanh Binh.
This will also be the largest onshore wind power project that T&T Group has invested in so far, helping to diversify the Group’s investment portfolio. By 2035, T&T Group aims to have a total installed capacity of about 12-15 GW from renewable and low-emission energy projects, accounting for approximately 10% of Vietnam’s total installed capacity.
Savan 1 Wind Power One-Member Company also signed a capital arrangement agreement for the project with Military Bank (MB), opening up strategic cooperation opportunities between T&T Group and MB in the energy sector. According to this agreement, MB will be the lead bank, committing to successfully arranging and allocating the entire financing package for the investor to implement the first phase of the Savan 1 Wind Power Project.
Currently, T&T Group has operated ten wind and solar power projects in Ninh Thuan, Binh Thuan, Soc Trang, and Gia Lai provinces, with a total installed capacity of nearly 1,000 MW connected to the national grid. Additionally, T&T Group is also partnering with KOGAS, KOSPO, and HANWHA (South Korea) to develop the 1,500 MW Hai Lang LNG Power Project, with an investment of about $2.5 billion.
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