EnergyOMNI's Perspectives｜One More Onshore Wind Farm in Laos Completed and Transmitting Power to Vietnam

Edited by EnergyOMNI

On December 26, 2025, Phase 1 of the Savan 1 Wind Power Plant, located in Savannakhet Province, Laos, officially reached commercial operation, transmitting electricity from Laos to Vietnam and connecting to the Vietnamese power grid. Following the Monsoon Wind Project, this marks another onshore wind project exporting electricity to Vietnam. Notably, the Savan 1 project involves not only project development by the developer but also the construction of its own transmission line. In addition, Vietnamese domestic financial institutions have participated in the project financing, reflecting growing market confidence in renewable energy projects.

The Savan 1 Wind Power Plant has a total installed capacity of 495 MW, with a total investment of approximately USD 768 million, and is being developed in two phases. Phase 1 has a capacity of 300 MW and represents the largest onshore wind project undertaken by T&T Group to date. This phase includes 48 wind turbines manufactured by Goldwind, with an investment exceeding USD 490 million.

Savan 1 serves as a case in which a Vietnamese private enterprise invests abroad, builds transmission infrastructure, and exports electricity back to Vietnam. In August 2024, Vietnam approved the policy to import electricity from the Savan 1 project, and the project signed a power purchase agreement (PPA) with Vietnam Electricity(EVN). On the Lao side, the Ministry of Planning and Investment granted a concession to T&T Group in January 2025, allowing the project to be developed, constructed, and operated over a 25-year period. In addition to the wind farm itself, T&T Group independently constructed a more than 50 km 220 kV transmission line connecting the plant to the Vietnamese border.

This is not the first wind power collaboration between Laos and Vietnam. Laos's first onshore wind project, the Monsoon Wind Project, officially began commercial operation on August 22, 2025. Located in Sekong and Attapeu provinces near the Vietnam border, it has a total installed capacity of 600 MW, making it the largest onshore wind farm in Southeast Asia. The project includes 113 turbines manufactured by Envision Energy, with a total investment of approximately USD 950 million. It has a 25-year PPA with Vietnam Electricity Group, and upon completion, became Southeast Asia's first cross-border wind power transmission project. EVN has also indicated that multiple additional cross-border power agreements are in place with Laos, with seven planned wind farms totaling 4 GW expected to export electricity to Vietnam.

According to Nguyen Minh Tam, the Vietnamese Ambassador to Laos, the Savan 1 project has created numerous employment opportunities during its construction and operation phases, stimulated local economic activities, and improved previously underdeveloped transport infrastructure in Savannakhet Province. The project is expected to generate over 800 million kWh of electricity annually, contributing to diversification of Vietnam's power supply, enhancing energy security, and strengthening economic cooperation between Vietnam and Laos.

The Ambassador also emphasized that a key feature of the project is the simultaneous completion of both power generation and transmission infrastructure, enabling the plant to achieve commercial operation as scheduled while reducing the risk of delayed grid connection. On the financing side, Military Bank acts as the lead arranger, with participation from several reputable financial institutions. The involvement of Vietnamese domestic financial institutions demonstrates market confidence in the feasibility, efficiency, and long-term prospects of cross-border renewable energy projects, and sets a benchmark for financing similar large-scale infrastructure projects in the future.