China General Nuclear Power Corporation (CGN) continues to expand its renewable energy business in Laos, signing a new agreement to add 1 GW of power capacity.
This project, which adds to an initial agreement signed last year, includes the construction of a 580 MW wind and solar power plant in Luang Namtha province, as well as a 420 MW solar power plant in Oudomxay province.
These new infrastructures are in addition to a first phase of 1000 MW already in preparation in the same region.
Optimizing regional energy infrastructures
The project aims to integrate this new capacity into the existing transmission network, facilitating the transfer of electricity between Laos and China’s Yunnan province.
This initiative is part of a wider energy connectivity strategy, promoted by the joint management of the Laotian power grid by Southern Power Grid, one of China’s leading operators, in collaboration with Electricite du Laos.
This cooperation strengthens energy interdependence between the two nations, while contributing to regional energy stability and security.
Challenges and opportunities for Laos
Laos, traditionally dependent on hydropower, faces the need to diversify its energy sources due to rainfall variability and environmental constraints.
The development of these new wind and solar capacities is crucial to reducing the country’s dependence on electricity imports, especially since Laos became a net energy importer in 2021.
In addition, this energy diversification is essential to support new industries, such as data centers and cryptocurrency operations, which require stable, environmentally-friendly energy sources.
The partnership with CGN offers Laos a significant opportunity to modernize its energy network while moving towards a gradual decarbonization of its energy mix.
By strengthening its infrastructure, the country is positioning itself as a key player in the supply of renewable energy in Southeast Asia, while ensuring more resilient management of its energy resources.
