Key Takeaways
- Copenhagen Infrastructure Partners and Fecon propose a 1 GW wind project in Laos to support Vietnam’s energy needs.
- Cambodia plans to enhance energy imports from Laos and aims for a regional ASEAN power grid by 2040.
- China’s involvement in Laos’ hydropower sector raises environmental and strategic concerns, facing local opposition and legal disputes.
Proposed Wind Project in Laos
Danish firm Copenhagen Infrastructure Partners and Vietnamese company Fecon have proposed a significant 1 GW onshore wind energy project in southern Laos’ Savannakhet province. The primary goal of this project is to supply energy to Vietnam’s manufacturing hubs, aligned with Vietnam’s revised Power Development Plan (PDP). This plan dramatically escalates Vietnam’s renewable energy production target from 43 GW to at least 75 GW, focusing on solar, wind, and biomass by 2030.
Cambodia’s Energy Challenges
Cambodia faces challenges in meeting the energy demands arising from rapid urban growth, particularly in cities like Phnom Penh and Sihanoukville, where energy consumption rose by approximately 14% in 2025. While solar energy has improved energy security, the country still struggles with reliability, exacerbated by global fuel price volatility. Currently, Cambodia imports around 200 MW of hydropower from the Laos-based Don Sahong dam, which has faced criticism for its environmental impact.
The Cambodian government aspires to increase energy imports from Laos to 3 GW by 2030 and maintain that level until 2040. Plans to bolster cooperation include a regional power grid encompassing all ASEAN member states, initiated in 1997. In 2023, Laos and Cambodia took a significant step by activating a high-capacity 500-kilovolt transmission line linking their countries.
Regional Power Integration
Despite not sharing a border with Laos, Malaysia and Singapore benefit from the Laos-Thailand-Malaysia-Singapore Power Integration Project (LTMS-PIP), which aims to integrate their electricity markets. The project began in 2022 and has facilitated multilateral electricity trade across four ASEAN countries. Singapore began importing 100 MW in 2022, increasing to 200 MW in 2026, which supports its climate goals while raising concerns about the environmental effects of hydropower development.
China’s Role in Laos
China’s cross-border power transmission line has recently commenced operations, facilitating access for Laos’ renewable energy to China’s domestic market. This partnership has raised significant concerns regarding environmental impacts and strategic regional influence, fueling public opposition to mega-dam projects. Legal disputes, such as a lawsuit involving the Nam Ou hydropower project, further highlight the complexities of China’s investment in Laos.
Amid plans for additional hydropower projects and strengthened energy exports, the future of Laos as the “Battery of Southeast Asia” remains uncertain, dependent on sustainable practices.
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