Ayala Corporation’s listed energy platform ACEN is making a big move into Laos with the financing of Monsoon Wind’s 600 MW wind power project.
This landmark project is set to be the first wind power initiative in Lao PDR and the first cross-border wind project in Southeast Asia.
ACEN Renewables International Pte. Ltd., ACEN’s subsidiary, signed the financing documents for the Monsoon Wind project, which has a cost of almost $1 billion.
ACEN is set to take a 24 percent stake in the project, with a 25-year power purchase agreement in place to sell the electricity generated to Vietnam Electricity (EVN) via a transmission line.
The Monsoon Wind project will also construct, own and operate a a 500 kiloVolt transmission line in the Sekong and Attapeu provinces in southeastern Lao PDR.
This key project is part of the Vietnamese government’s plan to address electricity supply-demand challenges while pushing towards decarbonization goals.
It is a joint effort with BCPG Public Company Limited, Impact Electrons Siam Limited, Mitsubishi Corporation, and SMP Consultation and STP&I Public Company Limited. Funding will be provided by the Asian Development Bank, Asia Infrastructure Investment Bank, Japan International Corporation Agency, the Export-Import Bank of Thailand, Hong Kong Mortgage Corporation Limited, Sumitomo Mitsui Banking Corporation, Kasikornbank, and Siam Commercial Bank.
ACEN chief executive officer Patrice Clause said Vietnam’s demand for power has been growing strong post-COVID, and the Monsoon Wind project provides a new avenue to deliver more power to Vietnam while catalyzing cross-border power sharing in the region.
With this project, ACEN is well on its way to establishing itself as a leading player in Southeast Asia’s renewable energy industry.
