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.

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). Among other things, the transition to ETTF ushers in closer energy cooperation with the Association of Southeast Asian Nations (ASEAN) and its initiatives, such as the ASEAN Power Grid.

 

New Energy Solutions Needed for the GMS

 

Energy consumption in the GMS countries has grown intensively as their economies develop, driven mostly by residential and industrial sectors. Demand is forecasted to increase materially over the medium term.

GMS countries have used different approaches to increase access to reliable, affordable, and low-carbon energy.

  • Power generation. Coal and gas remain prominent in installed capacity, but there is a diverse, complementary, and growing mix of renewables across GMS countries. Focus on specific types of renewables varies based on each country’s natural resource endowment but hydropower is fundamental to the subregion. In July 2021, ADB approved a technical assistance to support countries in Southeast Asia to accelerate transition to clean energy.
  • Power sector planning. Key themes that have emerged in the recent power development plans of GMS countries include the following: (i) development of grid infrastructure, battery energy storage system (BESS) and pumped storage hydropower; (ii) resource-oriented supply build-out; (iii) renewable-enabling policies and (iv) electric vehicle targets and planning.
  • Regional cooperation.Through the GMS platform, cooperation with ASEAN and other avenues for energy cooperation, GMS countries are working together to meet the subregion’s demand for new energy solutions. They share knowledge, experiences and lessons learned, and pursue initiatives that enhance and overcome challenges to cross-border electricity trade.

 

See initiatives of the GMS Energy Transition Task Force to promote energy security in the subregion in a sustainable manner.

 

Related

 

Key Energy Resources

 

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

  • 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. 

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.  

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.  

Representative image only. Photo by ADB.

Lao PDR to Export Wind Power and Supply Viet Nam with Renewable Electricity

Mitsubishi Corporation of Japan will invest in an onshore wind farm in the Lao People’s Democratic Republic (PDR) that will supply electricity to Viet Nam. The facility is set to have power generation capacity of 600 megawatts (MW) and is eyed to become the largest onshore wind farm in Southeast Asia. The project will be Lao PDR’s first endeavor in exporting wind power.   

Cambodia, Lao PDR, Viet Nam Leaders Vow to Boost Cooperation against COVID-19 and Strengthen Trade

Cambodia Prime Minister Hun Sen, Lao PDR Prime Minister Thongloun Sisoulith, and Viet Nam Prime Minister Nguyen Xuan Phuc held a virtual discussion on 10 March 2021. They lauded their growing relationship and agreed to further strengthen their cooperation in the fight against COVID-19 and in other sectors, including connectivity, energy, and trade and investment.  

Lao PDR expressed appreciation for Cambodia’s medical supply donation to help them combat COVID-19.  

The Joint Declaration adopted at the 11th CLV Summit provides a foundation for the socio-economic development plan until 2030. Photo by VNA.

11th CLV Summit Commits to Strengthen Development Triangle Area

Cambodia, Lao PDR, and Viet Nam (CLV) Leaders expressed their firm commitment to strengthen the CLV Development Triangle Area (DTA) in order to accelerate economic growth, alleviate poverty, and promote socio-cultural progress in the subregion. At the 11th CLV Summit held online on 9 December, they adopted a Joint Declaration that provides a foundation for the subregion’s socio-economic development plan until 2030 and the Tourism Development Plan. They also adopted the Development Plan for Sustainable Rubber Industry.  

At the grounbreaking ceremony of the V1-2 wind power plant. Photo by VNA via Viet Nam Plus

Construction of Viet Nam-Thailand Wind Power Plant Begins

The joint venture V1-2 wind power plant between the Truong Thanh Viet Nam Group and the Sermsang Power Corporation Public Company Limited of Thailand launched construction in Tra Vinh, Viet Nam, on 14 August. The 48 MW peak facility consists of 12 wind turbines to be built on 1,220 hectares in the Truong Long Hoa commune, Duyen Hai town. The project is estimated to cost around $96 million (2.23 trillion VND), and is expected to generate around 163 million kWh of electricity each year.