Laos is moving to update its electricity sector as the government prepares to adopt a revised Electricity Law aimed at supporting a greener, more modern and sustainable energy system.
The current Electricity Law, adopted in 2017, no longer fully reflects changes in how electricity is generated, traded and managed, according to officials.
A seven-day meeting to review the revised law ran from 17 to 23 August.
Minister of Industry and Commerce Malaithong Kommasith said the government has long considered energy a strategic sector of the national economy, with electricity serving as the “backbone” of economic stability and competitiveness.
He said Laos needs to revise the 2017 law because the electricity sector has developed rapidly, with new investment models, market mechanisms and technologies emerging that the existing legislation does not fully cover.
Laos is working to change how it produces and uses electricity. The government wants to make it easier for households and businesses to generate their own power or buy electricity directly from producers. It also plans to prepare for power projects whose concessions will expire and return control to the state.
Resource Diversity
Another big plan is to diversify the country’s energy resources. This will help Laos not depend so much on hydropower.
Deputy Justice Minister Khamphan Bounphakhom also emphasized that the Electricity Law needs to be updated to reflect the changing times, both in terms of the economy and society, as well as keeping pace with developments in Laos and globally.
The meeting discussed several proposed changes, including new business models such as Build-Lease-Transfer (BLT) and Lease-Operate-Transfer (LOT), the establishment of an energy management agency, and measures to promote new technologies, clean energy and greener industries.
The revised draft contains 14 parts, nine chapters and 176 articles. Of these, 86 articles have been amended, 65 are new provisions and 25 remain unchanged.
The draft also introduces several new policies and mechanisms. These include an Electricity Regulatory Authority, rules for self-supply and direct electricity sales, and new measures for managing power projects when their concessions expire.
It would also establish a Lao Grid Code and Renewable Energy Certificates, while introducing registration requirements for electrical engineers and technicians.
Following the meeting, the revision committee will continue working on areas where officials disagreed to ensure the final law can be implemented effectively.
Broater Energy Transition
The proposed law comes as Laos begins to diversify its electricity system beyond its long-standing reliance on hydropower.
In April, Electricité du Laos (EDL) introduced a nationwide program to buy electricity from household rooftop solar systems at LAK 992 (USD 0.04) per kilowatt-hour, with contracts lasting up to 10 years. The program allows households with single-phase connections to install systems of up to 5 kilowatt-peak, while those with three-phase connections can install up to 10 kWp. EDL set an initial nationwide limit of 50 MWp for the program.
The government is also encouraging people to switch to electric vehicles.
In May, it suspended imports of most fossil-fuel-powered vehicles until the end of 2026 while introducing price controls for electric vehicles to keep them affordable. The measures aim to reduce fuel imports, make transportation cleaner and strengthen the country’s long-term energy security.
They form part of a broader push to build a cleaner and more sustainable transport system.
These policies match with the broader energy transition plan outlined in the revised Electricity Law. The draft would establish rules for self-supply, direct electricity sales and renewable energy certificates, while also creating a Lao Grid Code and a framework for managing power projects as existing concessions expire.
Following the recent seven-day review, the revision committee will continue working on areas where officials disagree before finalizing the draft for implementation.
