China Western Power Signs $1.45 Billion Clean Energy Project Contract with Laos

China Western Power Industrial Co., Ltd. has signed a landmark $1.45 billion agreement with Laos’ Xekong Thermal Power Plant Co., Ltd to advance clean energy infrastructure in Laos. China Western Power is responsible for the design, procurement and equipment supply of the contract project power plant. The deal was announced in a stock exchange filing on March 24. The agreement also involves a Singaporean construction company, which commissioned the consortium to design, supply and build a 1,800-megawatt clean energy power generation project in southern Laos. According to the filing, the entire project is scheduled to be completed in early 2030.

The move comes as Laos seeks to meet the challenge of scaling up solar and wind power generation to move away from its reliance on traditional hydropower. In addition to the major energy projects, China Western Power also reached a $228.8 million transmission agreement with the Lao company, further consolidating the comprehensive partnership between the two parties. The agreement aims to improve the efficiency and reliability of power distribution within Laos and support the country’s growing energy infrastructure.

This latest agreement builds on previous cooperation between China Western Power and Laos. In 2022, China Western Power signed a $409 million supply and services agreement with another Laotian power company, indicating that the relationship between the two sides continues to develop.

Laos is a landlocked, mountainous country that has generated about 80% of its electricity from hydropower for the past decade. The country is known as the "Battery of Southeast Asia" because of its strategic location and abundant water resources. It is an important electricity exporter to neighboring Thailand and Vietnam.

The country is currently actively pursuing energy diversification to ensure energy security and sustainability. The shift to clean energy such as solar and wind power reflects broader global trends and is in line with Laos' long-term development strategy. China Western Power's investment and expertise will play a key role in achieving these goals.