Japan’s Mitsubishi Corp (TYO:8058) will invest in a 600-MW onshore wind farm project in Laos that will supply electricity to Vietnam.
The company said today it has reached an agreement to invest in the project’s developer, Impact Energy Asia Development Ltd, through an intermediate holding company together with a group company of Impact Electrons Siam Co Ltd of Thailand. Mitsubishi is acting through its wholly-owned Hong Kong subsidiary Diamond Generating Asia Ltd. Further details about the investment were not provided.
To be located in Sekong and Attapeu provinces in southern Laos, the wind farm will be the first in Laos and the largest in South East Asia. It is planned to sell electricity to Vietnam's state-owned Vietnam Electricity over 25 years by means of a dedicated power transmission line.
Vietnam needs additional power supply to support its economy, especially in the dry season, when the country’s hydro power generation is limited. The project is therefore expected to both help stabilise Vietnam's power system and make its energy mix greener, Mitsubishi explained.
The wind farm development is in line with a 2016 memorandum of understanding on power interchange between the Vietnamese and Lao governments.
According to information on Impact Electrons Siam’s website, the wind farm is targeted to achieve commercial operation by 2023.
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