The Lao government has taken a significant step towards bolstering its clean energy capabilities by signing a concession agreement for the development of the Nam Neun 1 Hydropower project, set to produce 124 megawatts of power. This $360.6 million project, located in Xieng Khuang and Huaphan provinces, is a key component of Laos’s strategy to enhance its status as a regional clean energy hub.

The agreement, inked by Deputy Minister of Planning and Investment Dr. Sthabandith Insisiengmay and Nam Neun 1 Hydropower Sole Co Ltd’s Managing Director Mr. Sounthone Sabandith, paves the way for the project's completion expected by 2028. Senior officials from both provinces and the energy sector witnessed the signing, highlighting the project’s importance to national interests.

Once operational, the hydropower plant will contribute significantly to Laos’s energy sector, with an annual generation capacity of 576 GWh of electricity, destined for export to neighboring Vietnam. It will also include the construction of a 33-km transmission line that will link to the Lao-Vietnamese power network.

Beyond energy production, the project is anticipated to have a broad socio-economic impact, promising job creation and infrastructure improvements in the local communities. It will also support environmental goals through a dedicated reforestation initiative aimed at offsetting the ecological impact of construction.

This development aligns with the Lao government’s green growth strategy, emphasizing sustainable development and economic growth through increased reliance on renewable energy sources.