Did you understand that Laos exports hydropower though the country is landlocked?
The Lao People’s Democratic Republic is on course to change into the “Battery of Southeast Asia” by taking key steps to appreciate its hydropower potential. With a possible of around 26 GW, a 3rd of its capability has been utilized up to now, and a number of other ongoing projects are planned to extend hydropower generation, mainly for export to neighboring countries similar to Thailand, Vietnam, Cambodia and China.
In 2019, Laos added 1.89 GW of hydropower capability, the third largest on this planet after China and Brazil, due to the launch of enormous projects similar to the Xayaburi Hydroelectric Project (HEP), Nam Ngeip1 HEP and Don Sahong HEP. The Government of Laos intends to further promote sustainable hydropower, aiming to extend energy exports while reducing electricity prices.
The Lao PDR occupies a big portion of the Mekong River basin and its tributaries, playing a key role in providing roughly 35% of the full Mekong River inflow. Hydropower has change into an inexpensive energy option for Laos. With the federal government’s decision to open the energy sector to foreign investment in 1993, the country experienced a rapid increase in installed hydropower capability. Previously, there have been only 4 operational hydroelectric power plants with a complete installed capability of 206 MW. The growth of Lao’s hydropower sector is driven by demand for electricity exports to neighboring countries similar to Thailand and Vietnam. As a result, these countries provided support for the event of hydropower projects in Laos.
Laos is committed to developing its abundant hydropower potential to not only supply electricity domestically but additionally to export it to other countries. The government is concentrated on pursuing a sustainable approach to hydropower development while expanding the electricity grid to rural areas. The Laos Energy Development Plan sets ambitious goals to extend the country’s hydropower capability to greater than 14 GW by 2025, while increasing coal-fired power capability to 2.5 GW. By 2025, total electricity production is anticipated to achieve roughly 82,733 GWh.
There are targets to extend the share of renewable energy in the general energy mix to 30% by 2025, with hydropower playing a big role in achieving this goal. In addition, it has set itself the goal of accelerating energy exports to fifteen,000 MW by 2030.
Over the past 20 years, Laos’ electrification rate has increased significantly due to investment from neighboring countries. In 1995, only 15% of the population had access to electricity, but in 2015 this percentage had already reached almost 90%. It must be noted, nonetheless, that the remaining areas without access to electricity are positioned in distant and difficult-to-reach regions. In addition, Laos’ gross domestic product (GDP) might be significantly increased by energy and mining exports, that are currently the biggest contributors. These sectors have the potential to generate almost one third of the country’s GDP by 2020.
Hydropower provides an inexpensive and reliable technique of accessing electricity, which is crucial for sustainable development, poverty reduction and economic growth. Moreover, unlike fossil fuel-based energy, hydropower is environmentally friendly and renewable. Laos’ plans to develop hydropower have been incorporated into its Intended Nationally Determined Contribution (INDC) to the United Nations Framework Convention on Climate Change (UNFCCC). By 2025, greater than 50 hydroelectric power plants are expected to be operational in Laos.
The development of hydropower is a top priority of national energy policy, geared toward stimulating regional energy trade and optimizing the energy mix in ASEAN. Nevertheless, achieving this goal requires optimal and sustainable development of the country’s hydropower resources so that every one stakeholders can profit from its multi-faceted benefits.
Reference:
Zachau, Ulrich, Vientiane Times. (2015). Can we make hydropower work for everybody in Laos? world Bank
Mega trends and analyses. (2020). Laos promotes hydropower to change into the battery of Southeast Asia. Reglobal: Analysis and perspective for CXOs
Hydropower.org. (2022). Country profile: Laos
Tan, Florence. (2014). Interview: Laos’ hydropower generation capability will almost quadruple by 2020. Reuters.com
