China General Nuclear Power Group (CGN) [1816:HK] has reached an agreement with the government of Laos to establish a renewable energy base in the northern region of the country, as reported by Reuters on September 18. This renewable energy facility will incorporate energy storage systems for wind, solar, and hydropower generation, with the primary purpose of transmitting renewable energy from Laos to China. This transmission will be facilitated through an existing power line that connects the two nations. Additionally, CGN intends to construct an additional 500-kilovolt (kV) power line to enhance power transfer capacity between the two countries.

Chinese energy companies have been expanding their involvement in renewable energy projects within Laos. The country derives over 10% of its GDP from electricity exports, primarily leveraging its abundant hydropower resources, particularly from the Mekong River. However, the limited availability of transmission lines, distribution networks, and energy storage infrastructure has posed challenges to further expanding electricity exports. As a participant in China’s Belt and Road Initiative (BRI), Laos has received support from China Southern Power Grid [003035:CH] in 2021 to develop a 230-kilowatt (kW) power grid and establish a cross-border electricity network connecting neighboring countries. Additionally, PowerChina [601669:CH], a prominent player in China’s electricity sector, signed an agreement with the Lao government in November to construct the country’s first wind power project, along with associated transmission lines. This project, with a planned capacity of 600 megawatts (MW), is slated to export clean electricity to neighboring Vietnam.

Sources:

https://www.reuters.com/business/energy/china-general-nuclear-enters-agreement-develop-renewable-energy-base-laos-2023-09-18/

https://www.globaltimes.cn/page/202211/1280715.shtml

https://global.chinadaily.com.cn/a/202304/26/WS6448cc9ba310b6054facfea8.html