Laos and hydropower
Laos, officially known as the Laos People's Democratic Republic, is a Southeast Asian nation that has increasingly relied on hydropower for its energy needs, especially since the 1990s. The country generates a significant portion of its electricity from hydropower dams situated along the Mekong River and its tributaries, with over 70 percent of its energy produced from this source as of 2022. Historically, the population had limited access to electricity, with only 19 percent having mains energy access prior to 1996. However, by 2022, this figure rose to 100 percent, although cooking primarily relied on wood for a large part of the population.
The development of hydropower in Laos gained momentum after the 1990s, supported by foreign investment and agreements to export surplus energy to neighboring countries like Thailand and Vietnam. Major hydropower plants, such as the Xayaburi and Nam Theun projects, contribute significantly to Laos's energy production capacity. Additionally, Laos aims to establish itself as the "battery of Southeast Asia," with plans to harness its vast hydropower potential, estimated at 23,000 megawatts. As of 2024, the government continues to expand its hydropower infrastructure, with ongoing projects and plans for additional dams, reflecting its strategic energy development goals.
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Laos and hydropower
Official Name: Laos People’s Democratic Republic.
Summary: Laos relies heavily on hydropower for energy production, although the population still uses wood as its main source of energy for cooking. The nation exports most of its surplus energy to Thailand and Vietnam.
Energy coverage in Laos is limited. Prior to 1996, only 19 percent of Laos’s population had access to mains energy (the general-purpose electric power supply). By 2022, 100 percent of the total population had access to electricity; however, in 2013 more than 96 percent of the population still used wood as the main source of energy for cooking. Electricity was reserved primarily for light and entertainment.
Electricity production in Laos has made a rapid transition to hydropower since the 1990s. As of 2024, the country received the majority of its electricity from dozens of hydropower dams located on various tributaries of the Mekong River. Prior to the 1990s, electricity was provided mainly through diesel generators and coal. The electricity generated was consumed mostly in the capital, Vientiane. For petroleum to supply its generators, Laos was heavily dependent on imported fuel from the Soviet Union. To ensure an uninterrupted supply of fuel, a pipeline was laid from Laos to the coast of Vietnam in 1989.
Laos began to develop its coal industry in 1996, and coal production increased 4.9 times between 1996 and 2006. Coal is produced from a number of small mines scattered across the country. The coal produced is heavily used by the cement industry. In 2022, it was estimated that Laos produced 14.845 million metric tons of coal.
Laos’s hydropower potential was first explored in the 1960s. The first large-scale dam, the Nam Ngum 1 Dam, began operation in 1971 with 30 megawatts of electricity. Because of war, the mountainous geography of the region, and a lack of financing, only three hydropower dams had been developed and brought into operation by 1993, the same year that the power sector was opened up to foreign investment. Shortly after the shift to the independent power producer (IPP) model, the government of Laos signed a memorandum of understanding (MOU) with Thailand to supply 1,500 megawatts of electricity from hydropower. In 1999, the government of Laos signed an MOU with Vietnam to supply 2,000 megawatts. However, the Asian financial crisis in the 1990s caused the demand for electricity in the region to stagnate. The development of the hydropower sector in Laos was further slowed by a shift away from large-scale dam development by key financiers such as the World Bank and the Asian Development Bank. This shift was due to a growing concern for the environmental and the social costs of large-scale dams.
With the resurgence of the Asian economies, the IPP model has allowed the government of Laos to raise the financial capital required to develop its hydropower potential and meet the energy demands of its wealthier neighbors. As of 2022, more than 70 percent of Laos's energy was produced from hydropower. Its five largest hydropower plants as of 2024 were Xayaburi (1,285 megawatts); Nam Theun 2 (1,070 megawatts); Nam Theun 1 (650 megawatts); Nam Ngum 2 Hydroelectric Power Project (615 megawatts); and Nam Theun (523 megawatts). The country's hydropower expansion was part of the government’s plan to become the battery of Southeast Asia by eventually harnessing the 23,000 megawatts of potential hydropower from the Mekong River and its tributaries. As of 2022, Laos had 70 dams and 30 more under construction, along with a plan to build 200 more. On June 23, 2022, Laos began exporting 100 megawatts of hydropower to Singapore through Thailand and Malaysia. It was Singapore's first import of renewable energy.
Bibliography
"Laos." The World Factbook, Central Intelligence Agency, 31 July 2024, www.cia.gov/the-world-factbook/countries/laos/. Accessed 4 Aug. 2024.
“Laos: Electricity Facts.” The Laotian Times, 10 Jan. 2017, laotiantimes.com/2017/01/10/laos-latest-electricity-facts/. Accessed 4 Aug. 2024.
“Mekong Mainstream Dams.” International Rivers, 2024, www.internationalrivers.org/campaigns/mekong-mainstream-dams. Accessed 4 Aug. 2024.
Powering Progress, Department of Energy Promotion and Development, Laos Ministry of Energy and Mines. “History of Hydropower in Lao PDR.” http://www.poweringprogress.org/index.php?option=com‗content&view=article&id=88&Itemid=126. Accessed 4 Aug. 2024.
Yong, Ming Li. "Opinion: Energy Importers Must Consider True Sustainability of Laos Hydropower." Dialogue Earth, 23 Aug. 2022, dialogue.earth/en/energy/opinion-energy-importers-must-consider-true-sustainability-laos-hydropower/. Accessed 4 Aug. 2024.