EVN and Laos’ Phongsubthavy Group sign power purchase agreements for two hydropower projects

Vietnam News

Jan 4, 2020

The Electricity of Vietnam (EVN) and Phongsubthavy Group signed power purchase agreements (PPA) for the 69MW Nam San 3A and 45MW Nam San 3B hydropower plant projects on January 4, 2020 in Hanoi.

The signing ceremony took place as part of the 42nd Viet Nam – Laos Inter-Governmental Committee and was witnessed by Vietnamese Prime Minister Nguyen Xuan Phuc and Laos PDR’s Prime Minister Thongloun Sisoulith.

Nam San 3A and Nam San 3B hydropower plants have been operating with total installed capacity of 114MW and annual average electricity output of 364 million kWh/year for Nam San 3A, and 232 million kWh/year for Nam San 3B.

These are two out of 11 hydropower plant projects under the Nam Mo Group of Hydropower Plant Projects being developed by Phongsubthavy Group in order to sell electricity to Viet Nam.

Power will be transferred through the 220kV transmission line which will be co-invested by Phongsubthavy Group for the section in Lao territory and EVN for the section in Viet Nam’s territory. The transmission line is scheduled to be completed in 2022.

In February 2019, the Vietnamese Ministry of Industry and Trade and Laos Ministry of Energy and Mines completed the negotiations and signed the agreement on cooperation in development of electricity and mine projects during the official visit of the Vietnamese General Secretary, President Nguyen Phu Trong.

On June 24, 2019, Phongsubthavy Group, the first power plant developer in Laos, signed a PPA with EVN for the Nam Sum 3 hydropower project located in Houaphan Province of Laos, with total capacity of 156MW, providing 626 million kWh per year.

Importing electricity from neighbouring countries, including Laos, is one measure taken to help Viet Nam meet electricity demand for socio-economic development. — VNS