Lights out in Laos as electricity exports surge

Laos, known as the Battery of Southeast Asia, relies heavily on hydropower for electricity, which accounts for 80% of its production. The country exports a significant portion of its electricity to neighboring Thailand and Vietnam, generating substantial revenue for Laos. However, frequent power outages affect Laos' own people, especially during the dry season when hydropower supply dwindles.

The ageing grid and demand for modern infrastructure, such as air conditioning, exacerbate the issue. Power cuts are common, with families using cell phones to navigate in the dark and hospitals facing equipment shutdowns. Despite access to electricity for almost all residents, the outdated grid struggles to meet the increasing demand.

Laos has more than tripled its electricity exports over the past decade, reaching 38 terawatt-hours in 2023, generating $2.65 billion in revenue. The majority of this export is sold to Thailand, with some going to Vietnam. However, Laos often finds itself importing electricity during peak periods, especially when hydropower output is low.

The situation has strained the country's main utility, Electricite du Laos, which is grappling with large debts and consumer subsidies. Vietnam has become an increasingly important export market, particularly due to its manufacturing sector and energy needs.