Laos can use hydropower to enable new renewables development

Laos map

Laos has supply security afforded by hydropower and is a net exporter of electricity, giving the country the capacity to expedite new renewables development depending on funding support from developed countries, says data and analytics company GlobalData.

Laos has a target to achieve 30% of its energy consumption from renewable sources by 2025.

The “Laos Power Market Size, Trends, Regulations, Competitive Landscape and Forecast, 2022-2035” report from GlobalData reveals that Laos’ total annual generation was 36.8 TWh in 2021, with 27.5 TWh exported to neighboring countries and only 8 TWh consumed domestically. Due to its location along the Mekong River, the government estimates Laos has hydropower potential of 23 GW. Current hydropower capacity in the country is 9.6 GW. There are several upcoming hydropower projects aimed at electricity exports.  

“Laos is diversifying its power mix through renewable expansion, particularly hydro, solar and wind. The country also has set a conditional target to achieve 1 GW of total solar and wind capacity and 300 MW of biopower capacity by 2030 depending on the level of support it receives from developed countries,” said Attaurrahman Ojindaram Saibasan, power analyst at GlobalData. “As per current estimates, the country is expected to achieve 0.6 GW solar PV capacity and 150 MW biopower capacity by 2030, falling short of its targets.”

Laos has shifted toward coal power in recent years, GlobalData said, as it struggles with sovereign debt of $12.6 billion that makes it difficult to avoid the expansion of coal-powered plants. In March 2021, the government signed a $2 billion agreement with Electricite du Laos Transmission Company Ltd. (EDLT), a Chinese-owned company, to manage a significant part of the country’s power grid for the next 25 years.   

“Laos is looking towards foreign investments for renewable power development to avoid coal-power expansion,” Saibasan said. “The country currently has a project pipeline of 3.4 GW of wind capacity, over 1 GW utility-scale solar PV capacity, and over 9.1 GW hydropower capacity.”

GlobalData provides data, expert analysis and solutions to 4,000 companies globally across a range of industries, including healthcare, consumer, retail, financial, technology and professional services.

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