Nearly 4,150 MW of wind power from Laos waiting to be sold to Vietnam

EVN said it has received proposals from seven Lao wind power projects, with a total capacity of nearly 4,150 MW, wanting to sell electricity to Vietnam.

Of the above, the capacity that Lao investors propose to sell before 2025 is more than 682 MW, the remaining after this time.

Reporting to the Ministry of Industry and Trade , Vietnam Electricity Group (EVN) said that electricity for the Central and Southern regions will be guaranteed until 2030, if new sources in the Power Plan VIII ensure completion progress. However, for the North, electricity supply in the last months of the dry season (May-July every year) until 2030 will be extremely difficult and this region will lack electricity from 2025.

Therefore, importing from Laos will help reduce the risk of power shortages in the coming years. This will also help reduce the cost of purchasing electricity as the proportion of cheap sources (hydropower) gradually decreases and high-cost sources (LNG, offshore wind power) tend to increase, according to the Power Plan VIII.

In fact, Vietnam has imported electricity from Laos (mainly hydropower) since 2016 and China since 2005 through intergovernmental cooperation agreements. The Ministry of Industry and Trade has also included the increase in electricity purchases from neighboring countries in its electricity supply and operation plan this year.

Onshore wind power project in Ninh Thuan, commercial operation before November 1, 2021. Photo: Quynh Tran — Onshore wind power project in Ninh Thuan , commercial operation before November 1, 2021. Photo: *Quynh Tran*

According to the proposal, wind power projects from Laos are expected to be brought to Vietnam via the Quang Tri transmission line. That is, the amount of electricity purchased will depend largely on the infrastructure in this area.

EVN's calculations show that the wind power capacity that Lao investors want to sell to Vietnam is 4,149 MW, which is exceeding the receiving capacity of the regional grid. In fact, most of the 200 kV and 110 kV lines here regularly operate at 80-100% of their permitted capacity. During the dry season (May-July), this area can only receive a maximum of 300 MW, and less than this level in the remaining months of the year.

"Before putting the 500 kV Lao Bao transformer station into operation, this area had difficulty receiving additional imported capacity from Laos because the 220 kV lines were currently operating at high load mode," EVN said.

When adding grid infrastructure, the 500kV Huong Hoa transformer station and connection lines (expected from the end of 2027), the capacity to receive electricity from Laos will increase to 2,500 MW. However, this level is also lower than the nearly 1,650 MW that investors want to sell to Vietnam.

In addition, the addition of renewable energy also makes it difficult to operate and regulate the power system. By the end of 2023, the proportion of domestic renewable energy sources will account for over 27% of the total capacity of the entire system. This proportion is expected to increase to 34% by 2030, according to Power Plan VIII.

Many reasons have been given to consider increasing electricity imports from Laos . In addition to solving the power shortage in the North, low prices are also a factor to consider. Currently, each kWh of wind power purchased from this country is 6.95 cents, with projects operating commercially before December 31, 2025. This level is much more competitive than domestic projects operating before November 1, 2021, fluctuating between 8.5-9.8 cents per kWh, depending on the type of wind power on land or at sea.

Compared to the transition projects applying the price frame of the Ministry of Industry and Trade of 6.42-7.34 cents per kWh (1,587-1,816 VND), the cost of electricity imported from Laos is higher. However, in return, Vietnam will reduce the initial investment capital, and will not need to have solutions to reduce the environmental and social impacts in the country at the project location.

On the other hand, importing wind power from Laos is also a "political task" of Vietnam with this country, when the total power capacity (mainly hydropower) of Laos approved by the Prime Minister for import is 2,689 MW.

Therefore, to match the receiving capacity and release grid capacity, EVN recommends that the Ministry of Industry and Trade only purchase a maximum of 300 MW of wind power from Laos during the dry season by 2025. The purchase amount will increase in the 2026-2030 period, reaching a maximum of 2,500 MW.

In addition to wind power, the group also proposed importing more hydropower to increase operational flexibility and grid investment efficiency.

To draw electricity from Laos, in addition to the 500 kV Monsoon - Thanh My line invested in from September 2023, EVN proposed to add other grid and connection projects, including the 220 kV and 500 kV double-circuit lines from the border to Lao Bao, to the Power Plan VIII and the plan to implement this plan.

Mr. Minh

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