Laos is facing electricity shortages, as cryptocurrency mining and erratic rainfall strain its hydropower capacity.
Sombun Sangksiyarath, a consultant at Electricite Du Laos (EDL), points to the boom in cryptocurrency mining, which now accounts for more than a third of energy demand, coupled with a decline in hydropower production due to reduced rainfall.
According to Reuters reports, Laos, known as Southeast Asia’s battery for its hydropower potential, is struggling with power supply amid rising demand from cryptocurrency mining and unpredictable rainfall patterns. Hydropower, which has accounted for 80% of Laos’ electricity for a decade, is facing restrictions, pushing state utility EDL into net importer status since 2021. This shift is driving up costs, requiring an additional capacity of 600 Megawatts during peak demand.
Laos is seeking to alleviate energy shortages by expanding hydropower projects, with a goal of adding 720 megawatts by next year. Laos is opting for hybrid solar, hydroelectric and wind power plants over coal due to environmental concerns and financing challenges.
This diversifies its energy portfolio. Despite the suspension of energy supplies to cryptocurrency projects that have not yet started operations, Laos is seeking new investment proposals to boost energy availability, Sangxiarath asserts.
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