The Government of Laos has signed a USD1.45 billion agreement with China Western Power Industrial Co Ltd to develop a 1,800 MW clean energy project in southern Laos. The deal, signed with Xekong Thermal Power Plant and a Singapore-based construction firm, includes design, supply, and construction, with completion expected by 2030. Additionally, a USD228.8 million power transmission agreement was signed on the same day.
China Western Power’s stock surged 9.9 per cent following the announcement, continuing a 46.3 per cent rise in 2025. Laos, heavily reliant on hydropower for electricity exports to Thailand and Vietnam, is pushing to expand its clean energy capacity. This follows previous Chinese investments in Laos’ energy sector, including a USD409 million supply deal in 2022 and a renewable energy expansion agreement in 2024.