MANILA -A subsidiary of the Ayala-led Acen Corp. will lead the development of the Lao People’s Democratic Republic’s (PDR) first wind power project that is slated to have a capacity of 600 megawatts (MW).
In a stock exchange disclosure on Tuesday, Acen said it had signed the financing documents for the $1-billion Monsoon Wind Project through its subsidiary, Acen Renewables Pte. Ltd.
The project will be cofinanced by the Asian Development Bank (ADB) as the lead arranger, Asia Infrastructure Investment Bank, Japan International Corp. Agency, Export-Import Bank of Thailand, Hong Kong Mortgage Corp. Ltd., Sumitomo Mitsui Banking Corp., Kasikornbank and Siam Commercial Bank.
Last month, Acen said ADB signed a $692.55-million loan package with Monsoon Wind Power Co. Ltd. to build the facility in Sekong and Attapeu provinces.
Electricity generated in the project will be sold to Vietnam Electricity through its 500-kilovolt transmission line, making it the first cross-border wind project in Southeast Asia.
“Monsoon Wind is one of the key projects in the Vietnamese government’s electricity development plan. It is expected to alleviate the electricity supply-demand challenges in Vietnam, while the country pushes through with their decarbonization goal,” Acen said in its disclosure.
Monsoon Wind project
Comprising 133 wind turbines, the Monsoon Wind project will be the largest renewable energy platform in Southeast Asia once it begins commercial operations in 2025.
Monsoon Wind aims to help strengthen connectivity in the region through cross-border electricity sales.
For its part, the government of Laos will benefit from the project through revenue from royalty and other sources.
As power demand recovers, Acen International chief executive officer Patrice Clause noted that the agreement between Lao PDR and Vietnam “unlocks a new avenue of providing more power to Vietnam while serving as a catalyst for more cross-border power sharing in the region.”
“Vietnam has significantly scaled up solar and wind over the last few years, which made it an ideal place for sustainable investments,” Clause said.
Acen, the listed energy platform of the Ayala group, owns a total of 637 MW of attributable capacity in Vietnam.
This forms part of the company’s total 4,200 MW capacity from owned facilities in other countries such as the Philippines, Australia and India. INQ