IES inks USD692 million loan agreement for the iconic 600MW “Monsoon Wind Power Project”, the first wind project in Lao PDR and the largest renewable energy plant in Southeast Asia positioned as a key platform for regional connectivity and decarbonization.
On 24 February 2023, Impact Electrons Siam Limited (IES), Asia Pacific’s leading renewable energy solutions provider, as the developer of the Monsoon Wind Power Project (Monsoon Wind), signed USD692 Million financing documents for a non-recourse project financing for Monsoon Wind together with other shareholders among them are ACEN Renewables International Pte. Ltd., STP&I Public Company Limited and SMP Group. Customary CPs are expected to be satisfied shortly. Monsoon Wind will construct, own, and operate a 600MW wind power plant and its dedicated 500kV transmission line in the Sekong and Attapeu provinces located in southeastern provinces of the Lao PDR.
Monsoon Wind is the first wind power project in Lao PDR and the first cross-border project in Southeast Asia. Under the 25-year power purchase agreement, the electricity generated will be sold to Vietnam Electricity (EVN) through the Project Company’s 500kV transmission line. The project will be co-financed by the Asian Development Bank (ADB) as lead arranger, Asia Infrastructure Investment Bank (AIIB), Japan International Corporation Agency (JICA), the ExportImport Bank of Thailand (Thai EXIM), Sumitomo Mitsui Banking Corporation (SMBC), Hong Kong Mortgage Corporation Limited (HKMC), Kasikornbank, and Siam Commercial Bank.
“As a pioneer of sustainable solutions, we are keen to be a part of the global fight against climate change by embarking on a green energy journey starting from our home region. Laos possesses natural resources for renewable energy generation. This project also shows the carbon credentials of Lao PDR. We are part of the journey to uplift the well-being and happiness of the local communities in which we operate,” Mr. Peck Khamkanist, CEO of IES, said.
Monsoon Wind is one of the key projects in the Vietnamese government’s electricity development plan. The project will contribute to the strengthening of connectivity in the ASEAN region through the provision of cross-border electricity sales. The Lao government will benefit from the project in various ways such as receiving revenue in foreign currency from royalty fees and other sources based on the Concession Agreement. The project will also promote local employment during both the construction and operation periods. Furthermore, the sponsor’s community and ethnic group development program will uplift people’s livelihoods by targeting measures in the health, education, and economy sectors.
“Under the 25-year Power Purchase Agreement of Vietnam Electricity and the Concession Agreement with the Government of Laos PDR, the 600MW Monsoon Wind Power will be the largest wind farm and the first of its kind to trade wind power across the border in the region. Monsoon Wind Power Company is very proud to represent all sponsors, to have a close collaboration with the lender group, and be able to execute the extra-ordinary non-recourse financing documents in such a short period of time,” Mr. Nat Hutanuwatr, Managing Director of Monsoon Wind, said.
IES plans to expand an additional 1,000MW nearby the existing Monsoon Wind’s site. The project, including the expansion, has potential to offset over 50 million tons of carbon dioxide throughout its lifetime. Wind energy projects will diversify Lao PDR’s main source of renewable energy generation, hydropower, which is mainly generated during the wet season. By building and integrating renewable sources with complementary generation profiles, coupled with regional connectivity network, the combination can supply stable, clean, and affordable electricity to ASEAN nations throughout the year.
About Impact Electrons Siam Limited
Impact Electrons Siam Limited (IES), is a regional renewable energy solution firm headquartered in Thailand with over 1,900 MW of wind, solar energy and regional connectivity projects in development and operation in Thailand, Japan, Lao PDR and Vietnam. IES is a privately owned company that was established in 2011. IES develops clean, affordable and reliable renewable energy solutions and is a pioneer of visionary innovation in the renewable energy sector with a vision to build a better future for local communities across the region.
For more information, please visit http://www.impactelectrons.com/ and https://www.monsoonwindasia.com