ACEN Corp., the energy arm of the Ayala group, said it signed through a subsidiary a deal for the non-recourse project financing for the Monsoon Wind, the first wind power project in Laos and first cross-border wind farm in Southeast Asia.
Monsoon Wind will build, own, and operate a 600-megaWatt wind farm and its 500 kiloVolt transmission line in the Sekong and Attapeu provinces located in southeastern provinces of the Laos. Output of the wind farm will be sold to Vietnam Electricity under a 25-year power purchase agreement.
The wind farm is expected to be at full commercial operation by the end of 2025.
It is one of the key projects in the Vietnam’s electricity development plan and is expected to alleviate the electricity supply-demand challenges in Vietnam and push its clean energy agenda. The project will also help strengthen the connectivity in Southeast Asia through cross-border electricity sales.
ACEN partnered with BCPG PCL, Impact Electrons Siam Ltd, Mitsubishi Corp. and SMP Consultation and STP&I PCL for the Monsoon Wind project. The project will be co-financed by the Asian Development Bank as lead arranger, 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 has become a primary mover in Vietnam, whose tariff system for renewable energy makes it a priority market for the company. ACEN has been building solar and wind projects in Vietnam since 2017 and owns a total of 637 MW of attributable capacity.
