The Laos government has signed a new concession agreement with CGN Laos Taven Power Sole Company Limited, part of China’s state-owned China General Nuclear (CGN) Group arm CGN Energy International Holdings Company Limited, for the construction of Phase I of a 1,000 MW solar farm in Xay and Namor districts, Oudomxay province, northwest Laos.
The project, located near the Laos China border, will contribute to the former’s goal to increase renewable energy development consumption to 30 per cent by 2025, and forms a part of the larger Northern Clean Energy Connection project that aims to increase energy security and promote renewable energy development. The solar farm will supply electricity to the existing 500 kV transmission line linking Laos and China’s Yunan province, and a second planned 500 kV line between the two countries. It is part of China’s ‘One Belt, One Road’ initiative to enhance regional energy interconnection, and is expected to drive local economic growth, reduce carbon emissions, and deepen bilateral ties.