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Wednesday, March 26, 2025
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Laos Signs Clean Energy Deal with Chinese, Singaporean Firms

This Week

Laos has taken another step toward expanding its clean energy sector by signing a USD 1.45 billion agreement with China Western Power Industrial and a Singapore-based construction firm.

The deal, announced in a stock exchange filing on 24 March, involves designing, supplying, and constructing an 1,800-megawatt clean energy power project in Xekong, southern Laos.

The project, undertaken in partnership with the province’s thermal power plant, is set for completion by early 2030, with initial designs expected to be finalized by the end of this year. However, details on the project’s energy source were not disclosed.

The Chinese company has also signed a USD 228.8 million power transmission deal with the same Lao entity on the same day.

This latest agreement follows a 2022 supply and service deal worth USD 409 million between China Western Power and another Lao power company.

Last year, Laos and China further agreed to expand a wind and solar energy base in the north of the country.

Laos has historically relied on hydropower, generating about 80 percent of its electricity from this source over the past decade.

However, efforts to scale up solar and wind energy have been ongoing. Electricity exports to neighboring Thailand and Vietnam continue to play a key role in Laos’ economic strategy.

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