IEAD to sell electricity to Vietnam
SET-listed BCPG Plc's subsidiary, Impact Energy Asia Development Co (IEAD) -- Asean's largest developer of the Monsoon Wind Farm project in Laos -- has secured a 25-year power purchase agreement (PPA) to sell electricity to state-owned Vietnam Electricity.
The 600MW wind farm, located by the Mekong River opposite Thailand's northeastern province of Ubon Ratchathani, will supply electricity through a 500-kilovolt transmission line to central Vietnam.
BCPG president and chief executive, Bundit Sapianchai, said the Monsoon Wind Project is also the region's first wind power facility to send electricity across the border.
The project, worth US$840 million (27.3 billion baht), will be developed on 400,000 rai of land in the Sekong and Attapeu provinces of southern Laos, according to BCPG, a renewable energy arm of Bangchak Corporation Plc.
The construction is expected to start next year and the wind farm is scheduled to start operations by December 2025. The electricity tariff will be $0.0675 per kilowatt hour.
The supply of clean energy to Vietnam will support the country's growing economy and its efforts to deal with its carbon footprint.
The project is expected to reduce 35 million tonnes of greenhouse gas, a meaningful boost to achieve a net zero goal by the middle of the century.
It will also enhance Vietnam's grid stability as electricity will be mostly produced in the dry season and be a complementary source of power supply for Vietnam where hydropower is generated in the rainy season.
IEAD chairman, Paradai Suebma, said the PPA marked a symbolic collaboration between Thailand, Laos, Vietnam and Japan on a net zero campaign.
Mitsubishi Corporation owns a 43% share in Impact Wind Investment Co, which holds a 55% stake in IEAD. BCPG owns a 45% share in IEAD.