Laos Signs $1.45bn Clean Energy Deal with China – EQ
In Short : Laos signed a $1.45 billion clean energy deal with China to build a 500kV power interconnection project. Set for completion in 2026, it will enable 1.5 million kW two-way power exchange, supplying 3 billion kWh annually. The project strengthens China-Laos energy ties, supports ASEAN energy connectivity, and advances Laos’ goal of becoming a regional clean energy hub.
In Detail : Laos has signed a $1.45 billion agreement with China Western Power Industrial and a Singapore-based construction company to build a 1,800-megawatt clean energy project in southern Laos.
The project, which will be completed by 2030, will help Laos shift to clean energy, increase its renewable energy capacity, and strengthen its position as a key power exporter.
The agreement involves designing, supplying, and constructing the Xekong Thermal Power Plant. Though the exact energy sources are not disclosed, the project aligns with Laos’ plan to diversify its energy mix and reduce reliance on hydropower.
Hydropower accounts for about 80% of Laos’ electricity, but the government plans to expand solar and wind energy production.
Shares of China Western Power rose by 9.9% after the announcement. The company’s stock has increased by 46.3% in 2025, reflecting confidence in Laos’ energy sector and its growth potential.
This agreement is part of China Western Power’s expanding presence in Laos. In 2022, the company signed a $409 million deal with a Laotian power firm. Last year, another Chinese company secured an agreement to develop a wind and solar energy base in northern Laos.
These deals highlight China’s critical role in Laos’ clean energy transition. Laos has traditionally relied on hydropower for most of its electricity. However, the country has faced challenges scaling up solar and wind energy.
The government’s focus on clean energy reflects its broader goal to become a renewable energy leader in Southeast Asia. Laos already exports electricity to Thailand and Vietnam and plans to increase these exports.
This new project will help reduce Laos’ dependence on fossil fuels and increase its green energy exports. It is a crucial step toward a low-carbon future and positions Laos as a leader in clean energy innovation. The project will also help meet the region’s growing demand for renewable energy.
