The Savan 1 wind power plant in Savannakhet province (Lao PDR) officially commenced commercial operation, bringing electricity from Laos to Vietnam on December 26, 2025. This event marks a significant step in energy cooperation between the two countries and contributes to realizing bilateral agreements on increasing electricity imports, which have been agreed upon by the Vietnamese and Lao governments in recent years.

In the context of increasing energy demand, the shift towards clean and sustainable energy sources is becoming a common trend in the region and the world. According to the Ambassador, bringing the Savan 1 wind power plant into commercial operation is significant not only in terms of technical and economic aspects, but also demonstrates the effectiveness of cross-border energy cooperation mechanisms between Vietnam and Laos.

A flagship project in cross-border renewable energy.

According to the Vietnamese Ambassador to Laos, Savan 1 is one of the exemplary projects in the field of cross-border renewable energy, contributing to the concretization of the goal of increasing electricity imports according to the Agreement between the two Governments of Vietnam and Laos, while affirming the increasingly clear role of the private sector in large-scale infrastructure projects with transnational elements. The project is invested by T&T Group and is located in Savannakhet province - an area with favorable wind potential.

According to the design, the Savan 1 wind power plant has a total installed capacity of 495 MW, with a total investment of approximately US$768 million. In phase 1, the project has completed and put into operation 48 wind turbines, with a total capacity of 300 MW, corresponding to a total investment of over US$490 million. According to the Ambassador, this is the largest onshore wind power project that T&T Group has implemented to date, and also the project that kicks off the group's cross-border energy investment strategy.

According to the Vietnamese Ambassador to Laos, the implementation of the Savan 1 project is closely linked to the bilateral legal framework and close coordination between relevant management agencies and businesses of the two countries. Previously, in August 2024, the Prime Minister of Vietnam approved the policy of importing electricity from the Savan 1 Wind Power Plant project, creating the legal basis for signing a power purchase agreement between Savan 1 Wind Power Company Limited and Vietnam Electricity Group.

On the Lao side, the Ministry of Planning and Investment granted a concession contract to T&T Group from January 2025, allowing the investor to design, build, own, and operate the project for a period of 25 years, with the goal of exporting electricity to Vietnam. According to the Ambassador, the agreement and synchronized implementation of legal procedures by both sides have created favorable conditions for the project to be implemented on schedule and put into commercial operation as planned.

One of the notable aspects of the Savan 1 project, according to the Ambassador, is the implementation progress and the construction capacity of the Vietnamese enterprises participating in the project. Within 14 months, the consortium of general contractors completed a large volume of work, from topographic surveys and technical design to the transportation of oversized and overweight equipment, and the installation and completion of 48 wind turbines. This progress is considered fast compared to the average for similar-scale wind power projects in the region, demonstrating the increasingly improved organizational, management, and construction capabilities of Vietnamese enterprises participating in overseas energy projects.

Alongside the construction of the power plant, the power transmission infrastructure is also being invested in synchronously to ensure the ability to evacuate power and stable connection with the Vietnamese power system. The investor completed a 220 kV transmission line over 50 km long, connecting the Savan 1 wind power plant to the Vietnamese border area by the end of August 2025.

The simultaneous completion of power generation and transmission grid infrastructure has helped the project achieve commercial operation on schedule, minimizing the risk of connection delays and improving operational efficiency right from the initial operation phase, thereby contributing to ensuring the long-term sustainability and effectiveness of the project.

From a financial perspective, the Savan 1 project is being implemented based on a feasible financial plan, with the participation of reputable credit institutions. Military Bank (MB) acts as the lead bank arranging and allocating the entire financing package for phase 1 of the project. The participation of domestic financial institutions demonstrates confidence in the feasibility, efficiency, and long-term prospects of cross-border renewable energy projects, and sets a positive precedent for mobilizing capital for large-scale infrastructure projects in the future.

From a specific project to long-term economic and policy implications.

According to the Vietnamese Ambassador to Laos, for Savannakhet province, the Savan 1 project contributes to creating more jobs for local workers during the construction and operation phases, promoting supporting economic activities, and improving some of the transportation infrastructure serving the construction. With an expected electricity output of over 800 million kWh per year, the project contributes to diversifying electricity supply sources, enhancing energy security, and promoting economic cooperation between Vietnam and Laos.

Beyond its economic and technical significance, the Savan 1 project is also linked to the implementation of Resolution No. 68-NQ/TW of the Politburo on the development of the private economy and the "Go Global" program led by the Ministry of Industry and Trade. The participation of Vietnamese enterprises in investing, acting as general contractors, and operating energy projects abroad demonstrates the increasingly prominent role of the private sector in the process of integration and internationalization.

In the coming period, according to the assessment of the Vietnamese Ambassador to Laos, the commercial operation of the Savan 1 wind power plant will create a foundation for the parties to continue researching and implementing the next phases, aiming for a total capacity of 495 MW as designed. Through this, the project will continue to contribute to the sustainable energy transition process, while strengthening energy cooperation between Vietnam and Laos in a stable, efficient, and long-term manner.