Lights out in Laos as power exports surge
AgenciesIsolated, under-developed Laos brands itself the “Battery of Southeast Asia”, powering its neighbors with dozens of hydroelectric plants, but frequent power outages leave i...
Laos, known as the "Battery of Southeast Asia," is exporting large amounts of electricity to neighboring countries, which has led to frequent power outages affecting its own population. Although Laos has made significant strides in expanding its power infrastructure, its ageing grid and reliance on hydropower make it vulnerable to seasonal fluctuations.
In 2023, Laos exported approximately two-thirds of its generated electricity, amounting to 38 terawatt-hours and generating $2.65 billion in revenue. The country's main export market is Thailand, but it is also diversifying its clients, including Vietnam. However, Laos faces challenges such as inadequate distribution grid and insufficient supply during the dry season.
The aging infrastructure, combined with increasing demand from tourism, infrastructure development, and air conditioning, strains the existing system. Despite offering electricity access to almost all its population, Laos is grappling with large debts and subsidies for consumers. Laos's energy exports are being used to increase its influence over neighboring countries, particularly Vietnam, which is increasing its imports, including wind power from Laos's Monsoon Wind project.
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