Buyers' Toolkit

Laos is the largest electricity exporter in Southeast Asia and is committed to becoming the "Battery of Southeast Asia." Its electricity exports in 2021 brought the country nearly US$2 billion in revenue, including participation in China's Belt and Road Initiative, the Lancang-Mekong Cooperation, and the LTMS-PIP cross-border electricity sales project. Hydropower used to be the sole source of electricity exports in Laos until the 600-MW Monsoon Wind Project signed with Power China in 2022, marking the country's first wind power export project.

Laos faces a number of obstacles in the development of renewable energy. The first is the high cost of investment and financing issues, which have stalled many projects due to a lack of funds or uncertainties in long-term planning. Moreover, there is a lack of laws and regulations for the investigation, evaluation, and development processes. Lastly, inadequate national grid, transmission, and distribution systems have constrained the planned development of many regions with significant renewable energy potential.

Laos seeks to diversify its renewable energy sources, such as solar and wind power. Laos boasts 30,000 MW of solar power potential, half that of hydropower, coupled with huge wind power potential due to its strong winds and its location in a monsoon climate zone. In late 2021, Électricité de France (EDF) evaluated the feasibility of building a hybrid floating solar plant on the reservoir of the Khammouane province in Laos. Construction of the project began in 2022 and operations are expected to commence in 2024. In addition, Laos has also approved several wind projects in the south of the country, with investments coming from Japan, China, and Thailand.