Should Laos manage its own power grid?

A better path forward would be for Laos to manage its own power grid to increase the efficacy of its growing electricity exports, along with much-needed revenue, and help develop its domestic grid for more solar power on its path to net zero in 2050. Tim has been working in energy markets in the Asia-Pacific region for more than ten years.

Why does Laos suffer from energy instability?

However, Laos generally suffers from energy instability because most of its power plants are owned by international businesses and generate electricity for export. It even has two electricity grids, one for exporting power and one for domestic usage.

How much does electricity cost in Laos?

To its credit, state-run electricity company Electricité du Laos (EDL) is trying to encourage more solar power development by offering a tariff rate of USD 0.08 per kilowatt-hour (kWh). That’s higher than the rate for hydropower-generated electricity, which ranges from USD 0.05 to 0.06 per kWh.

How many solar power plants are there in Laos?

However, by the end of last year, only eight solar power projects and four biomass power plants were in operation, with an installed generation capacity of 116 MW, representing just 1% of the country’s total electricity production. As of early 2023, Laos produced power from 76 hydropower dams, with another 43 still under construction.

Does Laos have a grid problem?

Laos has also struggled to maintain grid integrity, which could cause future grid curtailment as it seeks to develop more renewable energy sources. A World Bank report found that EDL has generally lacked resources for grid system maintenance and upgrades.

How will a power distribution improvement project help Laos?

On June 1, 2023, the World Bank approved a Power Distribution Improvement Project to increase the capacity and efficiency of Laos’ domestic electricity grid. The project should also strengthen EDL’s financial management.