Energy

Greater Mekong Subregion countries are in varying stages of economic development but share common goals concerning energy security and environmental protection. Progress have been made in promoting renewable energy, clean fuels, and energy efficiency, but new energy solutions remain crucial to the subregion’s advancement.

The GMS Economic Cooperation Program Strategic Framework 2030 (GMS-2030) emphasizes cross-border power trade, establishment of regional grid codes, development of regional markets, and expanding clean energy investments with a greater role for the private sector. GMS-2030, endorsed and adopted at the 7th GMS Summit of Leaders in September 2021, aims to provide a new setting for the development of this subregion for the next decade.

The Regional Power Trade Coordination Committee (RPTCC) managed regional power trade in the subregion from 2004–2022. In July 2022, at the 29th RPTCC meeting, the committee formally transitioned to the GMS Energy Transition Taskforce (ETTF).

The ETTF pursues activities across the following workstreams:

  1. 1. Sustaining GMS cooperation on regional power trade
  2. 2. Technology capacity building programs on renewable energy, energy storage in improving grid stability; leveraging electric vehicles
  3. 3.Accelerating energy efficiency programs to promote more competitive industries through energy cost savings
  4. 4.Training on green financing and green bonds to support GMS countries in raising finance for their transition to cleaner energy

New Energy Solutions Needed for the GMS

Demand for energy is surging, and by some estimates demand for energy in the lower Mekong countries – Cambodia, the Lao People's Democratic Republic, and Viet Nam – is expected to nearly triple from 317 terawatt-hours in 2012 to 815 terawatt-hours in 2025.

Rapidly improving economies have allowed GMS countries to respond to this demand with extensive power generation projects. Gas-fired plants are expected to nearly double to about 54 plants with 24,000 megawatts during the same period. Renewable sources such as solar, wind, and biomass are not yet prevalent in the subregion, but the number of projects is increasing rapidly.

GMS countries are addressing the complexities of meeting this surging energy demand by taking a regional approach that allows for the most cost-efficient projects using a diverse range of energy sources. They are also sharing experiences and lessons learned.

Countries are enhancing the regional coordination of power trading, including the exchange of information on energy sector plans and projects. The ultimate goal is to provide an adequate supply of energy throughout the subregion at an affordable price, and to bring the economic benefits of a reliable energy supply to people in rural areas, while at the same time encouraging investment.
GMS countries are addressing the complexities of meeting this surging energy demand by taking a regional approach that allows for the most cost-efficient projects using a diverse range of energy sources.They are also sharing experiences and lessons learned.

Works are underway for greater integration of renewable energies in countries’ energy development. In July 2021, an ADB knowledge and support TA: Accelerating the Clean Energy Transition in Southeast Asia (SEA) was approved to support countries in SEA to accelerate transition to cleaner forms of energy.

Facilitating Power Trade in the Greater Mekong Subregion, published in 2022, reflects a 5-year endeavor among government officials and representatives from utilities with the support of international experts to reach an agreement on a range of complex technical and institutional issues in establishing a common Regional Grid Code (RGC) for the GMS. The report addresses the technical and operational issues of interconnections along with the steps that are required to harmonize national grid codes within an overarching regional structure of the RGC.

The GMS Road Map for Expanded Cooperation in the Energy Sector is helping guide efforts in planning and implementing projects for power generation, cross-border interconnections, and for improving country transmission systems. National projects are being developed with an eye toward the development of regional power trade arrangements that will increase efficiency and lower energy costs for consumers.

The Update of the GMS Regional Master Plan for the period 2009-2025 (i) simulated the regional power system with existing and potential planned power interconnections, (ii) ran simulations of the model for a variety of regional power system scenarios, (iii) identified the potentially beneficial regional interconnection projects based on the Master Plan, and (iv) compiled a list of priority projects according to their merits.

Related

• Facilitating Power Trade in the Greater Mekong Subregion

• GMS Road Map for Expanded Energy Cooperation

• Update of the GMS Regional Master Plan

• Study: Building a Sustainable Energy Future - The Greater Mekong Subregion

• Regional Power Trade Coordination Committee (RPTCC)

Contact Persons

Focal Persons at the Asian Development Bank

  • Hyunjung Lee (lead) 
    Energy Sector Office
    Sectors Group

  • Atsumasa Sakai 
    Energy Sector Office
    Sectors Group

Other Concerned Staff & Consultants

  • Joao Aleluia 
    Energy Sector Office
    Sectors Group

  • Architrandi Priambodo 
    Energy Sector Office
    Sectors Group

  • Minnie Zarah Ramas 
    Energy Sector Office
    Sectors Group

  • Jeffrey Almera 
    Energy Sector Office
    Sectors Group

  • Pinsuda Alexander 
    Regional Cooperation and Integration Unit
    Southeast Asia Department 

  • Rafaelita Jamon 
    Regional Cooperation and Integration Unit
    Southeast Asia Department/GMS Secretariat 

Send inquiries to GMS Secretariat. 

ADB Signs Loan for First Cross-Border Wind Power Project in Asia, First Plant in Lao PDR and Largest in Southeast Asia

The Asian Development Bank (ADB) and Monsoon Wind Power Company Limited (Monsoon) signed a $ 692.55 million nonrecourse project financing package to build a 600-megawatt wind power plant in Sekong and Attapeu provinces in the southern region of the Lao People’s Democratic Republic (Lao PDR) to export and sell power to neighboring Viet Nam. Comprising 133 wind turbines, the project will be the largest wind power plant in Southeast Asia and the first in the Lao PDR.

ADB President Masatsugu Asakawa visits the National Solar Park on 11 November. Photo by ADB.

ADB-supported National Solar Park in Cambodia Connects to Grid

A partnership between the Asian Development Bank (ADB) and Electricite du Cambodge (EDC), Cambodia’s national power utility, to develop a 100-megawatt (MW) National Solar Park reached a milestone with the park’s first 60 MW solar photovoltaic (PV) power generation plant connecting to the national grid. ADB President Masatsugu Asakawa marked the occasion with a visit to the solar park on 11 November, during which he initiated the start of power delivery.

Power lines from the 1070 MW Nam Theun 2 hydropower plant in Lao PDR. 95% of the power produced by the plant is exported to Thailand, and the rest are consumed locally. Photo by Ariel Javellana/ADB.

Lao PDR Ramps Up Electricity Exports to Viet Nam

The Government of the Lao People’s Democratic Republic is increasing its electricity exports generated from its hydropower projects to its neighbors in the Greater Mekong Subregion, including Viet Nam. Lao PDR and Viet Nam have signed MoUs targeting to export 8,148 MW from Lao PDR to Viet Nam by 2030. Lao PDR also signed contracts with Viet Nam Electricity (EVN) to implement 25 projects with a combined capacity of 2,180 megawatts.  

Power lines in Lao PDR. Photo by Ariel Javellana/ADB.

PRC, Lao PDR Achieve Two-way Energy Trade

The People’s Republic of China and the Lao People’s Democratic Republic have successfully conducted two-way transmission of electricity on 20 June 2022, marking a milestone in their energy trade. The Nam Tha 1 Hydropower Station, Lao PDR, sent electricity to Yunnan province, PRC. 

China Southern Power Grid (CSG) and Electricite du Laos (EDL) signed a 115 kV power trade agreement in March 2022 to help consume Lao PDR’s surplus hydropower during the rainy season. During the dry season, CSG will export power supply to northern Lao PDR. 


Lao PDR Foreign Minister Saleumxay Kommasith and Cambodia Deputy Prime Minister, Minister of Foreign Affairs and International Cooperation Prak Sokhonn. Photo by Lao PDR Foreign Ministry

Electricity Trade Boosts Cambodia-Lao PDR Bilateral Trade

Electricity trade between Cambodia and the Lao People’s Democratic Republic raised the annual value of bilateral trade to more than $100 million in 2020 from a previous value of $10 million-$20 million. This was noted by Cambodia Deputy Prime Minister, Minister of Foreign Affairs and International Cooperation Prak Sokhonn and Lao Foreign Affairs Minister Saleumxay Kommasith in their meeting on 16 February. Mr. Kommasith was in Phnom Penh, Cambodia, from 15-17 February 2022 to attend the ASEAN Foreign Ministers’ Retreat.  

Viet Nam President Undertakes First Official State Visit to Lao PDR

Viet Nam President Nguyen Xuan Phuc and Lao PDR President Thongloun Sisoulith pledged to continue to give the highest priority to their bilateral cooperation, and noted the need to closely coordinate in Mekong subregional cooperation mechanisms. The Viet Nam President was in Lao PDR on 9-10 August for his first official overseas visit. On 9 August, he held talks with his counterpart.

Meeting photo via Viet Nam Plus

Second Mekong-U.S. Partnership Ministerial Meeting Underscores U.S. Commitment to the Subregion

The second Mekong-U.S. Partnership Ministerial Meeting held on 2 August 2021 unveiled four flagship projects under the Mekong-U.S. Partnership, and noted the 8.5 million vaccine doses and over $58 million in U.S. COVID-19 assistance to the Mekong subregion countries.

Viet Nam Electricity Signs Power Purchase Agreement with Lao PDR Wind Farm

Viet Nam Electricity and Impact Energy Asia Development (IEAD) Limited signed the 25-year Power Purchase Agreement (PPA) for the Monsoon Wind Project on 12 July 2021. The 600-megawatt wind energy project will be the largest wind farm in Southeast Asia and the first cross-border wind energy project. It will be located in Sekong and Attapeu provinces in Southern Lao PDR, and export green energy to Central Vietnam through a 500 kilovolt transmission line. Construction is expected to begin in 2022, with commercial operation aimed for 2025.  

Transmission tower in Lao PDR. Photo by IG (CC BY 2.0).

Lao PDR Signs Concession Agreement with Electricity Joint Venture

The Government of Lao PDR and the Electricite du Laos Transmission Company Limited (EDL-T), the joint venture between China Southern Power Grid and Electricite du Laos of the Lao PDR, have signed a Concession Agreement on 11 March. The agreement states that EDL-T will serve as the country's national power grid operator under the supervision of the Government of Lao PDR. It will invest, construct, and operate power grids (230 kilovolts and above), and implement grid interconnection projects between Lao PDR and its neighbors.  

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