Laos and Vietnam sign agreement for geothermal development and supply
A geothermal power plant is planned in Laos which will then supply power to Vietnam according to an agreement signed between Lao Development and Investment and the Wealth Power Group of Vietnam.
The Lao Development and Investment Co. Ltd. (LDIC) have signed a joint venture agreement with Canadian GEIOS Company and the Wealth Power Group of Vietnam (WPC) for the development of a geothermal project in Laos.
Under the agreement, the planned geothermal power plant will supply 5000 MW of electricity to Vietnam, for which the Lao government will receive an annual dividend of USD 613 million from renewable energy sales. The project is also expected to provide employment and contribute in poverty reduction in Laos.
There has been no significant geothermal development in either Laos or Vietnam in the past. A 25-MW EGS project was previously planned in the Quang Tri province of Vietnam back in 2012, but this was not pursued. At the COP21 UN Climate Change Conference in Paris, Vietnam made a commitment to cutting its greenhouse gas emissions by 8% by 2030 or up to 25% if international support is forthcoming.
Source: Lao News Agency