Laos is selling wind power to Vietnam at about 6 US cents: inside Asia's first cross border wind farm and the rush that follows

Does Laos sell electricity to Vietnam? Yes, and now it sells wind power too. Laos' 600 megawatt Monsoon Wind Power Project, the first cross border wind project of its kind in Asia, sells its electricity exclusively to Vietnam's national grid through dedicated transmission lines, according to AFP reporting published by CNA. Its 133 Chinese built turbines rise from the ridgelines of Sekong province in southern Laos.

The price is what makes the project matter. An industry adviser estimates Vietnam's state utility pays about 6 US cents per kilowatt hour for Monsoon's power, two to four cents less than it pays for wind generated inside Vietnam. With Vietnam's factories hungry for electricity and Laos running out of good dam sites, experts say a wind rush is starting, much like the hydropower boom of two decades ago.

How Asia's first cross border wind farm works

Monsoon began operating in August 2025. It was built by a Chinese state firm, is owned by a Thai led consortium and sells all its output to Vietnam via dedicated transmission lines, with the Asian Development Bank as financial arranger. In effect, it is a power plant in one country plugged straight into another country's grid.

Vietnam was already importing hydropower from Laos, its poorest neighbour. But hydropower output drops in the dry season, and dams have drawn criticism for their ecological impacts on the Mekong and its tributaries. Wind gives Vietnam a source of clean power that does not depend on rainfall, diversifying a supply that has been vulnerable to drought.

Tristan Bellingham, technical programme lead at nonprofit EnergyLab Asia, said "the economics are moving in favour of wind". He described Monsoon as a bankable case study that other developers are now following. "Similar to hydro 20 to 30 years ago, there's a bit of a rush to secure concessions and development rights" for new wind projects, he said.

Why Vietnam wants Lao electricity

Vietnam's economy is the fastest growing in Southeast Asia, and its electricity demand is rising with it. The country suffered severe blackouts in 2023 when drought cut hydropower output, and in September the government warned of the risk of electricity shortages from 2027 because of delays in planned power projects and increasing demand.

Price is the other attraction. "Wind power is being sold significantly cheaper to Vietnam than what Vietnam is buying wind power for locally," said Thomas Jakobsen, managing director at Indochina Energy Partners. He estimated that EVN pays Monsoon around 6 US cents per kilowatt hour. Representatives of Monsoon Wind, EVN and the ADB declined to share the rate.

The imports also help Vietnam's climate goals. Ninh Xuan Hiep, an official at EVN's National Power Transmission Corporation, said the project is key to reaching net zero emissions by 2050, and that by 2030 imports from Laos would equal nearly 10 percent of Vietnam's total installed capacity. That is a large share for a single neighbour, and a sign of how closely the two grids are becoming linked.

Vietnam needs cheap, clean power fast. Laos has wind, water and land. The border between them is turning into a power line.

Vietnam's growth push makes the energy question urgent. The country is aiming for growth above 10 percent this year, and every new factory, data centre and apartment block adds to demand, as covered in our report on Vietnam's near double digit growth.

The wind rush across Laos

Laos already hosts 90 hydropower plants, and there are dozens more in neighbouring countries, leaving few good dam sites. Bellingham said other wind farms are now riding "the coattails of Monsoon", and one Lao official pointed to 10 to 15 wind projects under development nationwide.

Monsoon itself plans to add 1,000 megawatts and is working to ensure some of the extra power is used inside Laos, said general manager Narut Boakajorn. "Laos has so much natural resources", wind, hydro and solar, he said. "Not many countries have all the good renewable energy in the same place. Laos has something unique."

The Lao government is set to receive 180 million dollars over the 25 year contract period, including taxes and community development and environmental protection funds, Narut said. For a heavily indebted state, power exports are one of the few reliable sources of foreign currency, which explains the government's enthusiasm for new projects.

Chinese manufacturers are central to the boom. Monsoon's turbines were built by a Chinese state firm, and Chinese equipment makers have driven down the cost of wind turbines worldwide, which is part of why wind projects in Laos can now compete on price with older energy sources.

What villagers near the turbines say

For 23 year old Toukta Phonsala, who lives with 18 family members in Dak Wai village near the turbines, Monsoon has brought new roads and better access to fresh water and healthcare. "The view is beautiful. They're bigger than trees," she said. What it has not brought, residents say, is reliable power: outages still hit during heavy storms because Laos' own grid is outdated and the state utility is heavily in debt.

Narut said nobody was forced to relocate and that 1,600 grievances, mainly from farmers seeking compensation for construction damage to crops, were resolved. AFP noted that public dissent is severely restricted in communist Laos. Toukta said she was still glad Laos can export power. "It's better for development and can bring prosperity," she said. The key facts about Laos' energy exports include:

• Laos hosts 90 hydropower plants, with few good sites left
• Monsoon is Asia's first cross border wind project of its kind
• 10 to 15 more wind projects are under development
• Lao imports could equal nearly 10 percent of Vietnam's capacity by 2030
• The Lao government expects 180 million dollars over 25 years

The contrast between exporting power and lacking it at home is a familiar one in resource rich developing countries. Monsoon's plan to direct some of its expansion to the Lao grid would help, but Laos will need investment in its own transmission network for villagers to benefit fully.

What it means for Southeast Asia's energy market

For the region, Monsoon is a working example of the cross border power trade that ASEAN has discussed for decades. Similar ideas, from the Laos, Thailand, Malaysia and Singapore power integration project to proposed subsea cables, depend on proving that electricity can be bought and sold reliably across borders.

For investors, wind in Laos offers a combination of strong resources, a guaranteed buyer next door and development finance from institutions such as the ADB. The risks include Laos' debt problems, the strength of its institutions and the need for transmission lines that can carry growing volumes. For Vietnam, which just cut retail electricity prices for the first time in nearly 20 years, as covered in our report on Vietnam's electricity price cut, cheap imported wind is part of how it hopes to keep power affordable.

Laos' Monsoon wind farm shows how Southeast Asia's energy map is changing: wind from Lao ridgelines powering Vietnamese factories at a lower price than Vietnam's own wind. A rush of new projects is following, but for Laos the challenge is to make sure its own people benefit from the power it sells abroad.