Savan 1 WPP – A Highlight of Vietnam – Laos Energy Cooperation in the Era of Green Transition

Wind turbines developed by T&T Group in Laos. (Photo: T&T Group).

Located in Savannakhet Province (Lao PDR), the Savan 1 Wind Power Plant officially commenced commercial operation on December 26, 2025, transmitting electricity from Laos to Vietnam. This milestone represents a significant step forward in bilateral energy cooperation and contributes to the implementation of agreements between the two governments on expanding electricity imports reached in recent years.

Amid rising energy demand and the growing imperative to transition toward clean and sustainable energy sources, the commercial operation of the Savan 1 Wind Power Plant carries not only technical and economic significance but also demonstrates the effectiveness of cross-border energy cooperation mechanisms between Vietnam and Laos, according to the Vietnamese Ambassador to Laos.

A flagship cross-border renewable energy project

According to the Ambassador, Savan 1 is a flagship cross-border renewable energy project that helps materialize the objective of increasing electricity imports under the Vietnam–Laos intergovernmental agreement. It also highlights the growing prominence of the private sector in large-scale, cross-national infrastructure projects. The project is invested in by T&T Group and is located in Savannakhet Province, an area with favorable wind potential.

Under its design, the Savan 1 Wind Power Plant has a total installed capacity of 495 MW, with a total investment of approximately USD 768 million. In Phase 1, the project was completed and put into operation 48 wind turbines with a combined capacity of 300 MW, corresponding to an investment of over USD 490 million. The Ambassador noted that this is the largest onshore wind power project implemented by T&T Group to date, serving as the first step in the Group’s cross-border energy investment strategy.

Vietnamese Ambassador to Laos Nguyen Minh Tam. (Photo: Embassy of Vietnam in Laos).

The Ambassador further emphasized that the implementation of the Savan 1 project is closely associated with the bilateral legal framework and the strong coordination between relevant authorities and enterprises of both countries.

Previously, in August 2024, the Prime Minister of Vietnam approved the policy on importing electricity from the Savan 1 Wind Power Project, providing a legal basis for the signing of a power purchase agreement between Savan 1 Wind Power One Member Company Limited and Vietnam Electricity (EVN).

Leaders of the Lao Ministry of Planning and Investment present the concession agreement for the Savan 1 Wind Power Project to Mr. Nguyen Thai Ha, General Director of Savan 1 Wind Power One Member Company Limited (second from left). (Photo: Nhat Bac/VGP).

On the Lao side, the Ministry of Planning and Investment granted a concession agreement to T&T Group in January 2025, allowing the investor to design, build, own, and operate the project for a 25-year term, to export electricity to Vietnam. The synchronized approval and implementation of legal procedures by both sides created favorable conditions for the project to be completed on schedule and commence commercial operation as planned.

One notable aspect of the Savan 1 project, according to the Ambassador, is the implementation progress and construction capacity of Vietnamese enterprises involved. Within 14 months, the EPC consortium completed a substantial workload, ranging from topographical surveys and technical design to the transportation of oversized and overweight equipment, installation, and completion of 48 wind turbines. This pace is considered fast compared to similar-scale wind power projects in the region, demonstrating the improving organizational, management, and construction capabilities of Vietnamese enterprises in overseas energy projects.

According to the Vietnamese Ambassador to Laos, one of the most notable aspects of the Savan 1 project is its implementation progress and the construction capacity of Vietnamese enterprises. (Photo: T&T Group).

Alongside plant construction, transmission infrastructure was developed in parallel to ensure effective power evacuation and a stable connection to the Vietnamese grid. The investor completed a more than 50-kilometer-long 220 kV transmission line connecting the Savan 1 Wind Power Plant to the Vietnam–Laos border by the end of August 2025. The simultaneous completion of power generation and grid infrastructure enabled the project to achieve commercial operation on schedule, minimize grid-connection delays, and enhance operational efficiency from the outset, thereby ensuring long-term sustainability and effectiveness.

Ms. Nguyen Thi Thanh Binh, Chairwoman of Savan 1 Wind Power One Member Company Limited, and Mr. Pham Nhu Anh, CEO of Military Commercial Joint Stock Bank (MB), exchanged a financing arrangement agreement for the Savan 1 Wind Power Project. (Photo: Nhat Bac/VGP).

From a financial perspective, the Ambassador noted that the Savan 1 project is based on a viable financial structure with the participation of reputable credit institutions. Military Commercial Joint Stock Bank (MB) acted as the lead arranger, structuring and providing the entire financing package for Phase 1. The involvement of domestic financial institutions reflects confidence in the feasibility, efficiency, and long-term aspects of cross-border renewable energy projects, while also setting a positive precedent for mobilizing capital for large-scale infrastructure projects in the future.

From a single project to long-term economic and policy significance

According to the Ambassador, for Savannakhet Province, the Savan 1 project contributes to job creation for local workers during both construction and operation phases, stimulates supporting economic activities, and partially improves local transport infrastructure serving construction needs. With an expected annual output of over 800 million kWh, the project helps diversify power supply sources, enhance energy security, and promote economic cooperation between Vietnam and Laos.

According to the Vietnamese Ambassador to Laos, Savan 1 is a flagship cross-border renewable energy project developed by a Vietnamese enterprise. (Photo: T&T Group).

Beyond its economic and technical significance, the Ambassador emphasized that the Savan 1 project is closely linked to the implementation of the Politburo’s Resolution No. 68-NQ/TW on private sector development and the “Go Global” Program led by the Ministry of Industry and Trade. The participation of Vietnamese enterprises in investing, EPC contracting, and operating overseas energy projects highlights the increasingly prominent role of the private sector in Vietnam’s integration and internationalization process.

Looking ahead, the Ambassador assessed that the commercial operation of the Savan 1 Wind Power Plant will lay the foundation for further research and implementation of subsequent phases, aiming to reach the full designed capacity of 495 MW. In doing so, the project will continue to contribute to the sustainable energy transition while strengthening Vietnam–Laos energy cooperation in a stable, effective, and long-term manner./.