30 C
Vientiane
Monday, June 9, 2025
spot_img

Lao Government Unveils Four Strategies to Boost Domestic Power Generation

This Week

The Lao government has announced four key strategies aimed at accelerating domestic power generation, to address the country’s ongoing electricity shortage. 

Speaking at a National Assembly session on 9 June, Prime Minister Sonexay Siphandone outlined the first measure: completing the Nam Ngum 3 Hydropower Plant project. 

This state-owned initiative, led by Electricité du Laos (EDL), is currently over 80 percent complete. The dam is expected to become operational and begin generating electricity in early 2027. The project is receiving domestic funding to remain on schedule and is expected to significantly increase national power capacity, according to the Prime Minister.

Another measure focuses on promoting large-scale solar projects across various locations, Sonexay said. Twelve major developments totaling 650 MW capacity are underway. A 50 MW solar project in Khammouane province, built by China Gezhouba Group Co., Ltd. (CGGC), began commercial operations on 1 March. Located in Thakhek and Xabangfai districts, the project is now actively supplying electricity to the national grid.

A third initiative encourages the development of small-scale solar projects under 5 MW in capacity. These localized installations are aimed at addressing power shortages in specific areas, improving grid stability in underserved regions.

The final measure involves closely monitoring and promoting the progress of existing hydropower and other generation projects that have signed power purchase agreements with EDL, to ensure they are completed on schedule.

The government has also directed EDL to revise its electricity supply planning for digital mining operations. As of May 2025, the allowed power usage for mining has been reduced from 250 MW to 135 MW.

Often referred to as the “battery of Asia” for its hydropower exports, Laos still faces electricity shortages and high domestic prices. In 2024, electricity exports continued to lead Laos’ export revenues, generating nearly USD 980 million and accounting for 15.35 percent of total exports, according to the Department of Foreign Trade.

Latest article