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Laos officially launches the Monsoon Wind Farm to export wind power to Vietnam. (Photo: Power China)
After more than a decade of negotiations, Laos’ first and ASEAN’s largest onshore wind project, the Monsoon Wind Power Project, has officially started transmitting electricity to Vietnam as of July.
This milestone marks the successful realization of ASEAN’s first cross-border wind power initiative and sets a new precedent for the ASEAN Power Grid (APG) and regional electricity trading across Southeast Asia.
Bureaucratic hurdles slowed progress, developers say
Located near the Laos–Vietnam border, the Monsoon Wind farm consists of 133 wind turbines with a total installed capacity of 600 MW. A newly built transmission line delivers the power to Vietnam.
Nat Hutanuwatr, COO of Thai renewable energy developer Impact Electrons Siam (IES), which initiated the project, described the bureaucratic burden as overwhelming. It was like “climbing a series of Everests,” he said, referring to the endless paperwork and delicate diplomatic processes.
In an interview with Bloomberg, Hutanuwatr recalled his first meeting with Vietnam Electricity (EVN). When EVN heard Hutanuwatr wanted to import electricity from a neighboring country, “they looked at us like we were crazy,” he said. EVN demanded that IES secure approval from both the Vietnamese Prime Minister and the Lao National Assembly before the project could proceed.
ASEAN, composed of ten member states, faces challenges in pursuing large-scale collaborative projects due to differing national priorities and a lack of regional consensus. With no existing framework for cross-border energy trading, renewable developers are left to navigate disparate technical standards and political roadblocks on their own.
In addition to IES, key stakeholders in the project include Thai energy conglomerate Bangchak’s renewable arm BCPG, Thai steel manufacturer STP&I, Philippine-based Ayala Group’s energy subsidiary ACEN, Japan’s Mitsubishi Corporation, and Lao-based consultancy SMP Consultation.
ASEAN has outlined 18 interconnection projects under the ASEAN Power Grid plan, aiming for full grid integration by 2045. However, more than half remain in early planning stages, with minimum construction timelines of two years and some lacking a defined completion date altogether.
Read more: Cross-border power grids: ASEAN’s lessons for Taiwan’s energy transition
Located near the Laos–Vietnam border, the Monsoon Wind farm consists of 133 wind turbines with a total installed capacity of 600 MW. (Image: Mitsubishi Corporation)
Fragmented market, grid standards hamper regional grid progress
Nadhilah Shani, Manager of Power and Energy Connectivity at the ASEAN Centre for Energy, noted that the absence of a unified regional electricity market and standardized grid protocols remains a key barrier to further integration.
As ASEAN Chair this year, Malaysia has been pushing for momentum. In mid-July, Deputy Prime Minister and Minister of Energy Transition and Water Transformation Fadillah Yusof stated that discussions on the ASEAN Power Grid roadmap have made meaningful progress. He expects it to be finalized at the ASEAN Ministers on Energy Meeting this October, with implementation set to begin in 2026.
Singapore, which has limited domestic renewable resources, is also seen as a key driver of grid integration. Manpower Minister Tan See Leng, who oversees energy and technology, told Lianhe Zaobao that a fully connected ASEAN Power Grid could reduce electricity costs by 3% to 4% and foster regional economic growth. The Singaporean government is currently evaluating the economic viability of both overland and subsea transmission as it considers scaling up power imports.
Source: Bloomberg, Laotian Times, Monsoon, Vietnam+, Power China, Lianhe Zaobao
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