China General Nuclear, a state-owned power company, has recently signed an agreement with Laos to expand a significant renewable energy initiative in the northern region of the country. The agreement marks the second phase of an ongoing project that aims to enhance Laos’ renewable energy capacity.
The new deal will add a 580 megawatt (MW) wind and solar plant in Luang Namtha province and a 420 MW solar plant in Oudomxay province. This expansion follows an initial agreement made last September to develop a major renewable energy base in northern Laos.
Construction is already underway for the first phase of the project, which involves a 1000 MW solar plant in Oudomxay province. This facility is expected to connect to an existing power line that transports electricity from Laos to China’s Yunnan province. The report did not clarify whether the power generated from the second phase would also be exported to China.
Laos Vice Minister of Energy and Mines, Thongpath Inthavon, highlighted that this project would strengthen power sector connectivity between northern Laos and China. In February, Southern Power Grid, one of China’s major grid companies, began jointly managing Laos’ power grid through its venture with Electricite du Laos, known as Electricite du Laos Transmission Company.
Laos has relied heavily on hydropower for about 80% of its electricity in the past decade but faces challenges in expanding solar and wind energy. The country has increasingly focused on electricity exports to neighboring Thailand and Vietnam as part of its development strategy. Despite this, Laos has become a net power importer since 2021 due to rising demand and decreased rainfall impacting its hydro resources.
