Savan 1: Cross-Border Power Transmission and the Role of Private Sector Economics

The Commercial Operation Date (COD) milestone of the project is set as a marker leading up to the New Year 2026 and the 14th National Congress of the Party. According to experts, this serves as a prime example of the private sector’s increasingly prominent role in realizing national energy goals.

Savan 1 and Its Rapid Journey in the Land of a Million Elephants

In the power sector, the COD is a critical legal and technical boundary. It marks the point when a plant is confirmed to operate stably, is accepted by the power grid, and begins commercial electricity sales. Only upon achieving COD does a project truly transition from an investment phase to a revenue-generating phase.

For Savan 1, the COD on December 26 signifies the completion of its entire development cycle, from finalizing legal procedures and constructing the plant to completing transmission infrastructure and entering the electricity market. Here, it’s evident that T&T Group, led by entrepreneur Do Quang Hien, meticulously planned each step, laying a solid foundation for the project’s timely completion.

Legally, experts note that within the energy cooperation framework between Vietnam and Laos, Savan 1 embodies the spirit of promoting infrastructure connectivity, developing energy projects, and enhancing power exchange, as agreed upon by both governments.

Specifically, in August 2024, the Prime Minister approved the policy to import electricity from the Savan 1 Wind Power Plant to Vietnam, creating a policy framework for integrating renewable energy from Laos into the national grid.

Subsequently, in January 2025, T&T Group officially received the concession contract for the Savan 1 wind power project from Laos’ Ministry of Planning and Investment. Under this contract, the Lao government granted Savan 1 Wind Power Company (a T&T Group subsidiary) the rights to design, construct, own, and operate the project for 25 years, exporting electricity to Vietnam. Additionally, the power purchase agreement between Savan 1 Wind Power Company and Vietnam Electricity (EVN) paved the way for the project’s electricity to be integrated into Vietnam’s grid.

Leaders from Laos’ Ministry of Planning and Investment hand over the Savan 1 wind power project concession contract to Mr. Nguyen Thai Ha, CEO of Savan 1 Wind Power Company (second from left). (Photo: Nhat Bac/VGP)

Notably, the completion of this critical legal framework occurs as wind power in Laos continues to attract Vietnamese businesses, with numerous large-scale project proposals aimed at expanding renewable energy development beyond borders.

In terms of implementation, the project spans a vast area, featuring large-scale wind power components requiring high technical standards. Equipment transportation for construction must adhere to strict border procedures. Additionally, challenging terrain and hazardous access roads posed significant hurdles. To ensure equipment delivery to the site, T&T Group upgraded and reinforced multiple roads and bridges to facilitate construction logistics.

Moreover, the project’s remote location limited access and living conditions. Meanwhile, constructing high-tech components, particularly turbine foundations and large-scale wind turbine installations, demanded precision and strict discipline.

Critically, the project’s final acceleration phase coincided with severe flooding in both Savannakhet and Quang Tri, adding pressure to construction and grid connection efforts. In response, T&T Group proactively implemented suitable construction measures, prepared material and equipment supply plans in advance, and continuously updated them based on field conditions, ensuring synchronized and uninterrupted progress.

The COD achievement of the Savan 1 Wind Power Plant demonstrates T&T Group’s long-term vision and well-structured cross-border energy investment strategy. It also reflects the diligent execution, determination, and close collaboration among project stakeholders to meet deadlines.

Transmission Infrastructure: The Key to Timely Progress

With a total capacity of 495MW and an investment of $768 million, Savan 1 is one of the few large-scale onshore wind power projects in Southeast Asia completed in a short timeframe, meeting high technical standards and urgent schedules to serve Vietnam’s power transmission goals.

From the outset, Savan 1 was developed with the aim of exporting electricity to Vietnam—a model already applied to Vietnamese energy projects in countries like Laos and China. However, Savan 1 stands out due to the developer’s simultaneous implementation of power generation and transmission infrastructure within a single project, ensuring control over timelines and grid integration.

T&T Group opted to invest in a dedicated transmission line for the project, accepting higher costs to guarantee overall progress. This parallel approach to plant construction and transmission infrastructure prevented the common issue of “completed generation but waiting for the grid,” a frequent bottleneck in regional renewable energy projects.

T&T Group chose to invest in a dedicated transmission line for the project, accepting higher costs to ensure overall progress.

Following this roadmap, during the project’s implementation in Savannakhet, plant construction and turbine installation proceeded alongside the 70km+ transmission line connecting the plant to the 220kV Lao Bao substation. On August 31, just before National Day, the final stretch of cable was pulled across the Se Pon River into Vietnam, enabling Savan 1’s electricity to integrate into Vietnam’s grid as planned.

Experts highlight that developing transmission infrastructure alongside power generation “clears the path” for electricity, eliminating the risk of completed plants unable to commence commercial operations. The project avoided grid delays, ensuring seamless progress. Consequently, Savan 1 achieved COD in late December, completing the entire cycle—from legal finalization and concession signing to construction and commercial operation—in just 16 months. This “ahead-of-schedule” approach sets Savan 1 apart among Vietnamese-invested wind power projects in Laos.

More Than Just a Wind Power Project

Amid numerous renewable energy projects stalled in the “completed but not operational” phase, Savan 1’s Commercial Operation Date serves as the ultimate benchmark for assessing a project’s tangible effectiveness.

Furthermore, Savan 1’s COD achievement should be viewed within the broader context of national energy strategy, where ensuring energy security and transitioning to clean energy sources are top priorities.

During high-level talks in Laos in early December, General Secretary To Lam emphasized elevating Vietnam-Laos relations from “cooperation” to “strategic partnership,” including mutual support in resources, development space, and energy. Specifically, he stated, “Laos’ renewable energy can connect to the regional grid via Vietnam.”

Savan 1’s Commercial Operation Date is the ultimate measure of a project’s tangible effectiveness.

From this perspective, Savan 1 exemplifies the deepening energy cooperation between Vietnam and Laos. A Vietnamese company investing in wind power in Laos, building transmission infrastructure, and exporting electricity to Vietnam signifies a shift from policy agreements to concrete, commercially viable projects that generate real power for the economy.

In terms of development models, Savan 1 showcases Vietnamese enterprises’ deeper involvement in the regional energy supply chain, beyond traditional electricity imports managed by EVN. Here, Vietnamese companies directly invest in and develop power sources in neighboring countries, while also investing in transmission infrastructure to supply the domestic grid. This approach enhances supply autonomy and supports balanced domestic energy development amid limited land availability and stricter environmental standards.

Within T&T Group’s long-term vision, founder and chairman Do Quang Hien emphasizes that energy is a strategic infrastructure sector requiring long-term investment, substantial resources, and unwavering commitment, not a short-term venture. Engaging in energy means tackling complex challenges but yielding sustainable value for the nation.

As electricity from Savannakhet flows into Vietnam’s grid, it represents more than a wind power project’s success. It signifies a new approach to energy development, where national strategy is validated by corporate execution capabilities.