Vietnam's state-owned power company Electricity of Vietnam (EVN) has signed three agreements to buy power from Laotian companies Phongsubthavy Group and Kong Sup Hydro Development. EVN will buy electricity from Phongsubthavy Group, which is developing the 84 MW Nam Yeuang hydropower project and the 300 MW Nam Phan coal-fired power project in Laos; they are expected to start supplying electricity to Vietnam in 2024 and 2025. In addition, EVN will help Kong Sup Hydro Development set up the 124 MW Nam Neu 1 hydropower, which is also expected to start delivering power to Vietnam in 2024-2025.
In January 2020, EVN signed 5 power purchase agreements (PPAs) with the Laotian groups Phongsubthavy and Chealun Sekong. Vietnam will buy nearly 1.5 TWh/year of electricity from five Laotian hydropower plants with a combined capacity of 363 MW (Nam San 3A, Nam San 3B, Nam Emoun, Nam Kong 2 and Nam Kong 3), beginning in 2021 (for Nam Kong 2, 263 GWh/year) and 2022 (for the other hydropower plants).
According to the government, Vietnam may face severe power shortages as of 2021 due to a lack of energy infrastructure. Electricity demand is expected to surge and to exceed the installed power capacities and new capacity additions. Electricity consumption will exceed power supply by 6.6 TWh in 2021 and by 15 TWh in 2023, corresponding to 5% of the forecast electricity demand.