VIENTIANE (Vientiane Times/ANN) -The government has given the green light to Vinacom Investment and Trading Sole Co., Ltd. and SD Vietnam Investment Construction Join Stock Company to carry out a feasibility study on the development of wind power generation in Savannakhet province.
A Memorandum of Understanding on the study was signed on Wednesday between Deputy Minister of Planning and Investment Dr Sathabandith Insysiengmai and the President of Vinacom Investment and Trading Sole Co., Ltd., Mr Phan Van Son. Speaking at the agreement signing ceremony, Mr Son said energy generation was essential for lives and for business, and the demand for energy was increasing day by day. But traditional energy sources have harmed the environment, leading to the greenhouse effect and climate change. “The generation of clean, renewable forms of energy is important, and it is necessary to produce more solar- and wind-powered electricity in order to reduce greenhouse gas emissions. This has become an urgent problem and Laos is now laying the framework for this direction of development,” he added. The Lao and Vietnamese governments signed a Memorandum of Understanding in 2016 to promote energy development in Laos so that more electricity could be transmitted to Vietnam.
The agreement aimed for Vietnam to buy 3,000MW of electricity in 2025 and 5,000MW in 2030. With the objective of reaching these targets, Vinacom Investment and Trading Sole Co., Ltd. and the SD Vietnam Investment Construction Join Stock Company have initiated the wind power project. It is proposed that a wind farm be built in four villages of Phin district, on 13,133 hectares of land. Investment in terms of capital and technology is ready and construction of the wind farm could start in June next year, if the feasibility study is approved. It is envisaged that electricity will be generated for distribution by October 2025 and that about 340 million kWh will be generated annually. This will bring in revenue of about US$225 million a year, which will contribute to the development of the local economy.