Mitsubishi Corporation of Japan will invest in a 600-MW onshore wind farm in Laos that would provide electricity to Vietnam.
The company said today that it has struck an agreement to invest in Impact Energy Asia Development Ltd, the project’s developer, through an intermediate holding company with a group business of Thailand’s Impact Electrons Siam Co Ltd. Mitsubishi is engaging through Diamond Generating Asia Ltd, a wholly-owned subsidiary in Hong Kong. There were no other details about the investment supplied.
The wind farm, which will be built in the provinces of Sekong and Attapeu in southern Laos, will be the first in the country and the largest in Southeast Asia. A dedicated power transmission line will be used to export electricity to Vietnam’s state-owned Vietnam Electricity over a 25-year period.
Vietnam requires additional power to sustain its economy, particularly during the dry season, when hydropower generation is limited. According to Mitsubishi, the project will assist in stabilizing Vietnam’s power system while also making the country’s energy mix greener.
The wind farm is being built in accordance with a 2016 memorandum of understanding between the Vietnamese and Lao governments on the power exchange. The wind farm is expected to be operational by 2023, according to the material on Impact Electrons Siam’s website.