Thai energy giant BCPG Public Company has announced plans to develop ASEAN’s largest wind farm in Laos, capitalizing on rising demand for energy in the region.
The firm has announced that it will invest USD 840 million to build the facility, with a capacity of 600 megawatts, on 64,000 hectares in southern Laos.
The wind farm, located near the Mekong River across from Ubon Ratchathani, is expected to generate electricity for sale to Vietnam’s state-run Electricity Vietnam (EVN).
While feasibility studies identified sufficient winds in the area as early as 2015, the return on investment remained an obstacle until recently.
According to a report by Bangkok Post, president and chief executive Bundit Sapianchai said his company plans to sign a power purchase agreement with EVN this October to kick start the project, named “Swan”.
After signing, construction of the project will commence, and it is expected to be operational by 2023.
Citing an agreement between Laos and Vietnam for the trade of energy between the two nations, Mr. Bundit Sapianchai says BCPG took over the 114MW Nam San 3A and 3B from a company in Laos in order to sell electricity to EVN.
The rapid expansion of BCPG is aimed at offsetting a decline in sales as adder tariffs are expected to expire in 2023 and 2024 for its 11 solar farms in Thailand, meaning the company will lose revenue without its current benefit when selling power back to the grid.
Instead, it has begun to invest heavily in Laos and Japan.
BCPG was established in 2015 after spinning off from Bangchak Corporation. The Company was listed on the stock exchange market in 2016.
“Through five years of stable and sustainable growth, BCPG has been keen on business expansion in the clean energy business to create value for every sector. Experiences and expertise gained from the investments in various countries will definitely bring about the Company’s growth over 75% in the next five years” said, Mr. Bundit.