Allow wind power imports from Laos, Vietnam ministry proposes PM

The Ministry of Industry and Trade has proposed the Prime Minister allows wind power imports from Laos, connecting the neighboring country's Truong Son wind power plant to the national grid.

Late last year, state utility Vietnam Electricity (EVN) had asked the ministry (MoIT) to submit the proposal to Prime Minister Pham Minh Chinh to ease the risk of power shortages in the northern region.

In the proposal submitted to the PM Wednesday, the MoIT said that importing electricity from the 250-megawatt Truong Son wind power project in Laos into Vietnam was in alignment with an agreement signed by both governments.

The total amount of electricity approved for import from Laos by 2025 is around 1,977 megawatts, less than the 3,000 megawatts in the signed agreement, according to EVN.

The proposal noted that wind power imports from Laos and the connection of the Truong Son wind power plant to 220 kV transmission lines are also in alignment with the national Power Development Plan VIII (PDP VIII).

Under this plan, total imported power capacity from Laos could reach 5,000-8,000 MW by 2030 and 11,000 MW by 2050. The electricity industry also plans 550 kilometers of backup transmission lines for load growth and development of regional sources, including imports.

The MoIT said importing electricity from Laos was necessary to increase supply and reduce the risk of power shortages in the northern region in 2025 and beyond.

Northern Vietnam could face a shortfall of about 3,632 MW of power capacity during the peak dry season (May-July). In the event of a water shortage when rivers run dry, the regional shortage of about 6.8 billion kWh in May-July 2025 was possible. In the 2026-2030 period, given the progress of ongoing power projects, the additional electricity generated in the northern region would not meet the increasing annual demand.

The central and southern regions can ensure power supply, but due to a lack of source reserves, there may be a shortage of electricity in 2025 in the event of unfavorable factors coming into play, the ministry argued.

Invested by the Vietnam-Laos Energy Investment Joint Stock Company, the 250 MW Truong Son wind power plant is expected to become operational in the fourth quarter of 2025.

If the import proposal is approved, this project will be connected to the 220 kV transformer substation in Do Luong district in the central province of Nghe An for transmitting electricity.

In order to meet project schedules, the investor has said it will finance grid connection of the Truong Son wind power plant on Vietnamese territory with its own capital, instead of EVN.

The ministry also said that the imported electricity price will be in line with the agreement between the two governments, with EVN negotiating it the investor to ensure that the maximum price does not exceed the prescribed ceiling level.

Previously, the investor had offered a selling price of 6.95 cents per kWh, applied to power projects put into commercial operation before December 31, 2025. EVN considers this much more competitive than domestic wind power sources operating commercially before November 1, 2021 (8.5 cents for onshore wind and 9.8 cents per kWh for offshore wind).

Apart from the Truong Son project, EVN has received electricity from seven wind power projects in Laos that have a total capacity of nearly 4,150 MW.

To transmit electricity from Laos, in addition to the 500 kV Monsoon-Thanh My line built in September 2023, EVN has proposed additional grid connection projects, including 220 kV and 500 kV double circuit lines from the border to the Lao Bao township in Quang Tri province.