Impact Energy Asia Development Limited (“IEAD”) (previously Impact Energy Asia Limited) entered into a Memorandum of Understanding (“MOU”) with the Government of Lao PDR (“GOL”) in November 2011 to exclusively study the feasibility of large-scale wind projects in three provinces in central and south of Lao PDR. Based on the onsite wind measurement and results of the pre-feasibility study, an area in Dak Cheung district, Sekong Province and Sanxay district, Attapeu Province was considered as the highest potential location for large scale wind development with the potential development scale up to 600 MW. After the pre-feasibility study was approved by the GOL, IEAD was granted exclusive rights to develop the first wind project in Lao PDR under a Project Development Agreement (“PDA”) executed with the GOL on 7 August 2015. The development area covers approximately 68,000 ha with promising wind resource in Sekong and Attapeu provinces.
The Project site is located at an elevation of 1,200-1,600m above sea level and is hilly with limited forest and currently limited land use. The Project was officially nominated by the GOL to the Ministry of Industry and Trades of Vietnam (“MOIT”) in July 2017 under a collaboration in the energy sector between Lao PDR and Vietnam, making it the first renewable energy project being offered cross border in ASEAN. On 21 July 2020, the Prime Minister of Vietnam approved the plan for importing power generated from the Project to Vietnam’s power system via a 500kV grid connection and approved the addition of a 500kV transmission line from the Project to the Thanh My Substation to the Revised Power Development Plan VII of Vietnam. The Power Purchase Agreement was successfully executed with Vietnam Electricity (“EVN”) on 12 July 2021 and the Commercial Operation Date is targeted for the end of 2025.
MOU executed between the GOL and IEA, which granted IEA exclusive rights to develop a wind farm in a defined 68,000-hectare area and set out the process for IEA to conduct a preliminary Feasibility Study and Environmental, Social, and Health Impact Assessment.
Wind monitoring, with support from an international wind consultant, commenced in Sekong.
Based on the preliminary Feasibility Study, IEA identified that Sekong and Attapeu provinces were the most promising areas to develop a large-scale wind project. The Project Development Agreement was executed between the GOL and IEA, which confirmed IEA’s exclusivity to develop the Project.
MOU between Governments of Lao PDR and Vietnam for supply of 5,000MW renewable power from Lao PDR to Vietnam
The GOL offered the Project’s electricity generation to Vietnam (“Nomination Letter”) and Vietnam formally accepted the nomination under an MOU on cooperation in the energy sector between Lao PDR and Vietnam.
Following the completed and endorsed village and provincial consultations, the draft Environmental, Social, and Health Impact Assessment was submitted to the Ministry of Natural Resources and Environment (“MONRE”) for approval.
In parallel, IEA commenced engagement with the Institute of Energy of Vietnam to conduct the Grid Impact Study and to identify potential locations for the Project to connect to the Vietnam grid system.
The Grid Impact Study was completed and approved by Vietnam Electricity (“EVN”) and the Ministry of Industrial and Trade (“MOIT”). This confirmed that the Project should connect at 500kV at the Thanh Mi Substation and that there were no negative implications to the Vietnam grid resulting from the Project.
Following the EVN’s Board Approval, the Tariff MOU was signed, and IEA commenced PPA discussions with EVN. IEA also commenced discussions with Vietnam’s Central Government on the approval process to import power from the Project into Vietnam, which includes obtaining approval from six ministries and ultimately, the Prime Minister’s Office.
Following approval by six ministries, the Prime Minister of Vietnam granted approval for the import of power from the Project to Vietnam, which included the required 500kV transmission line in Vietnam’s Power Development Plan.
IEAD engaged ERM, an international environmental and social consultant, to ensure compliance with international lenders’ safeguard policies.
PPA signed with EVN.
January 2022: Amended and restated PPA signed with EVN.
May 2022: The international ESHIA was successfully disclosed on the Asian Development Bank’s website.
June 2022: The main text of the Concession Agreement was initialed by the GOL.
December 2022: Concession Agreement signed with GOL.
The Monsoon Wind Power Project is a 600MW wind power project located in the Sekong and Attapeu provinces in Southern Lao PDR. The Project will deliver the generated renewable energy to Central Vietnam through its 500kV transmission line.
The Project is situated in Dak Cheung district, Sekong province and in Sanxay district, Attapeu province. The Project area is on Dak Cheung Plateau with its elevation ranging from 1,100 m to 1,700 m above sea level and consisting of moderate complex to complex terrain. The surrounding area appears to be predominantly composed of undulating forested areas, farmland and scattered local villages.
The Project can be accessed by Route No. 16B which the road is an economic route connecting Thailand, Laos, and Vietnam from west to east. From Sekong town in Lamam district, the distance to the Project area is approximately 60 km. The civil infrastructures (including a Sekong bridge, road and small bridges) around the Project area are constructed by local contractor. Currently, the route to the Project was already completed around 75 km including a main bridge crossing Sekong river. Another 40 km to the Laos-Vietnam border is almost finished, only the last 7 km still being completed.