STP&I Public Company Limited (“STP&I”), established in 1975 and a listed company in the Stock Exchange of Thailand, has continued to achieve its VISION of “to continue sustainable growth which create value added to all parties” by investing along with high-expertise partners in the Iconic 600 MW Monsoon Wind Power Project in Lao PDR with approximately USD 960mn total investment, the first wind power project in Lao PDR to export and sell power to neighboring Vietnam, the largest renewable energy project in Southeast Asia, and a platform for regional connectivity and decarbonization. This is a big leap into building a sustainable growth and value added business in clean energy to our shareholders and stakeholders which is also a pathway to a healthy, livable planet today and for generations to come.
On 24 February 2023, STP&I together with Impact Electrons Siam Limited (IES), the developer of the Monsoon Wind Power Project (Monsoon Wind), and other shareholders among them are ACEN Renewables International Pte. Ltd. and SMP Group signed financing documents for a USD 692 million non-recourse project financing for Monsoon Wind. Customary CPs are expected to be satisfied shortly.
Monsoon Wind will construct, own, and operate a 600MW wind power plant and its dedicated 500kV transmission line in the Sekong and Attapeu provinces located in southeastern provinces of the Lao PDR. Monsoon Wind is the first wind power project in Lao PDR and the first cross-border project in Southeast Asia. Under the 25-year power purchase agreement, the electricity generated will be sold to Vietnam Electricity (EVN) through the Project Company’s 500kV transmission line.
The project will be co-financed by:
- the Asian Development Bank (ADB) as lead arranger,
- Asia Infrastructure Investment Bank (AIIB),
- Japan International Corporation Agency (JICA),
- the Export-Import Bank of Thailand (Thai EXIM),
- Sumitomo Mitsui Banking Corporation (SMBC),
- Hong Kong Mortgage Corporation Limited,
- Kasikornbank,
- Siam Commercial Bank, and
- Some infrastructure and climate private funds.
Monsoon Wind is one of the key projects in the Vietnamese government’s electricity development plan. It is expected to alleviate the electricity supply-demand crunch and combat climate change in Vietnam. The project will contribute to the strengthening of connectivity in the ASEAN region through the provision of cross-border electricity sales. The Lao government will benefit from the project in various ways such as receiving revenue in foreign currency from royalty fees and other sources based on the Concession Agreement. The project will also promote local employment during both the construction and operation periods. Furthermore, the sponsor’s community and ethnic group development program will uplift people’s livelihoods by targeting measures in the health, education, and economy sectors.
Mr. Masthawin Charnvirakul, Managing Director of STP&I, said “STP&I believes that the renewable energy sources are all around us and we are proud to involve in switching to clean sources of energy including wind power, in addition to solar energy that we have invested before. These should help address not only the climate change, but also air pollution and health concerns“.
STP&I is keen to be part of the future development of clean energy projects in order to serve the many more thousand-megawatt demands of the Southeast Asia region and to decarbonize our world by building on the strong fundamentals of this Monsoon Wind Project. Currently, we are exploring an additional 1,000MW wind power project nearby the existing Monsoon Wind’s site. The projects, including the said potential expansion, could offset over 50 million tons of carbon dioxide throughout their lifetime.
