Winds of change: Laos looks up for renewables push

In southern Laos, 133 Chinese-built wind turbines are helping to power Vietnam's rapid growth, marking a shift from hydroelectric dams that have proliferated across the region. The Monsoon Wind Power Project, which began operating in August 2025, is the first cross-border wind project in Asia and the largest in Southeast Asia. Spanning an area the size of Singapore, this US$700 million scheme is owned by a Thai-led consortium and sells electricity exclusively to Vietnam's national grid via dedicated transmission lines.

Though Laos already hosts 90 hydropower plants, few optimal sites remain for new projects. Experts say wind energy is set to take off, citing Laos' 600-megawatt Monsoon project as a case study. Although the project has brought improved infrastructure to nearby residents like Toukta Phonsala, who lives with 18 family members, Laos's own electricity infrastructure remains outdated, leading to frequent outages during heavy storms.

For Vietnam, Monsoon offers a reliable and cheaper source of energy, with EVN paying the project around six US cents per kilowatt-hour compared to the regional average. The project is crucial for Vietnam's net-zero emissions targets by 2050. Monsoon Wind plans to boost capacity by 1,000 megawatts, with some of the additional power potentially used within Laos.

The government stands to earn US$180 million from the 25-year contract, including taxes and community development funds. Despite public dissent being restricted in Laos, some grievances were resolved.