Phongsupthavy Group Chairman Mr Phongsavath Senaphuan (right) and EDL Managing Director Mr Souksavart Sosouphanh (left) exchange the signed documents on Tuesday.

Phongsupthavy Group, EDL sign MoU to advance clean energy cooperation

Phongsupthavy Group Sole Co., Ltd. and Electricité du Laos (EDL) have signed a Memorandum of Understanding (MoU) to cooperate on a feasibility study for the purchase of electricity from the Phongsupthavy Group’s energy-mix power generation facility, to be supplied to the EDL grid.
The MoU was signed on the evening of Tuesday, September 22, at the Souphattra Hotel in Vientiane by Phongsupthavy Group Chairman Mr Phongsavath Senaphuan and EDL Managing Director Mr Souksavart Sosouphanh. The ceremony was presided over by Deputy Minister of Industry and Commerce Dr Chansaveng Bounyong.

Mr Phongsavath Senaphuan.

Mr Souksavart Sosouphanh.

The agreement seeks to explore opportunities to integrate electricity from multiple clean energy sources into the national grid, strengthening the domestic power supply and potentially paving the way for future exports to neighbouring countries.
Mr Phongsavath said that the purpose of this cooperation agreement is to study the pooling of electricity from an energy mix — hydropower, wind power, solar power, thermal power and geothermal power — combined through modern technology and supplied into the EDL grid to make it more stable.
He explained that the Lao PDR has great clean energy potential, but that this potential is not yet used in a systematic way: at some times there is not enough electricity, while at others there is a surplus. For this reason, Phongsupthavy Group recognises the importance of this issue and wishes to cooperate with EDL and other domestic power producers in order to pool electricity together and export it to neighbouring countries, in particular the Socialist

(Seated from left) Deputy Minister of Finance Mr Soulivath Souvannachoumkham, Deputy Minister of Industry and Commerce Dr Chansaveng Bounyong, Chairman of EDL’s Board of Directors Dr Akhomdeth Vongsay and other guests witness the signing ceremony.

Republic of Viet Nam, Thailand and Singapore. We regard the cooperation on exporting clean energy to the Republic of Singapore, with a capacity of 500 MW, as a strategic direction of great significance under this Memorandum of Understanding. Within this framework of cooperation, Électricité du Laos and Phongsupthavy Group will jointly study the Singapore electricity market together with the relevant agreements and contracts, and will jointly negotiate the power purchase agreement with partners in the Singapore electricity market. For this purpose, the two Parties will jointly establish a joint venture company (JV) to act as the contracting party in signing the power purchase agreement and the relevant agreements with the relevant parties of the Singapore electricity market. The export of electricity and the establishment of the joint venture company shall be carried out in compliance with the laws and regulations of the Lao PDR and shall be subject to the approval of the Government. This cooperation will open the opportunity for the Lao PDR to make the fullest use of its clean energy potential, to generate foreign currency revenue and to contribute to power interconnection within the ASEAN region, without affecting the domestic electricity supply.
EDL Managing Director Mr Souksavart Sosouphanh described the MoU as a significant step forward in implementing the National Socio-Economic Development Plan and the energy development plan of the Ministry of Industry and Commerce, as it would strengthen EDL’s capacity to purchase electricity from a range of power producers with large generation capacity.
He stressed that developing domestic energy sources is a key foundation for the country’s industrial development.
Mr Souksavart acknowledged that EDL currently faces a number of challenges, including funding constraints and difficulties in attracting investors to sell electricity to EDL from large-scale installations of several hundred megawatts, owing to its loan repayment obligations for power system development, its payment capacity and other factors.
“Through this partnership, EDL will have sufficient electricity for domestic consumption, beginning with an initial capacity of 200 to 300 megawatts, particularly to meet demand in the northern and central provinces and supply substations across these regions,” he said.
He added that a more reliable power supply would also support the continued growth of the processing industry.
Mr Souksavart said the partnership could also open up future opportunities for Laos to sell electricity to neighbouring and regional countries, including Thailand, Malaysia and Singapore.
“Most importantly, this cooperation will help establish EDL as a model for electricity purchasing,” Mr Souksavart said.
He noted that the partnership would also guide EDL in advancing electricity trading and in negotiating benefits and tariffs in line with the relevant laws and international market mechanisms, to the mutual benefit of all parties.
Also attending the ceremony were Deputy Minister of Finance Mr Soulivath Souvannachoumkham, Chairman of EDL’s Board of Directors Dr Akhomdeth Vongsay and representatives of the public and private sectors.

By Advertorial Desk
 (Latest Update September 24, 2026)