In 2023, more than three-quarters of electricity consumed in Laos came from low-carbon sources, almost entirely hydropower. Hydropower supplied about 76.5% of electricity, while total low-carbon sources accounted for nearly 77%. Fossil fuels supplied the remaining 23%, all from coal. Laos therefore has a strong clean electricity foundation, with further opportunities to replace coal and reduce the associated climate impacts and air pollution.

Is Electricity Growing in Laos?

Electricity consumption per person in Laos grew modestly in 2023, reaching a record of about 6,820 kWh—roughly 70 kWh, or 1%, above the previous record in 2022. Low-carbon electricity generation per person also set a record, rising to about 5,230 kWh, around 90 kWh or 2% above its 2022 peak. These are welcome gains, especially because clean electricity grew faster than total consumption per person. Continued expansion would help meet future demand from electrification and new industries.

Suggestions

Laos can build on its hydropower foundation by expanding solar electricity and considering nuclear generation as a longer-term source of clean electricity. Pakistan offers a useful regional example: solar supplies about a quarter of its electricity and nuclear another 13%. Sri Lanka generates 15% from solar, providing another relevant Asian reference, while nearby China generates about 12% from solar. Laos could learn from these places’ experience with solar deployment and grid integration. For nuclear development, France and Slovakia demonstrate its potential to supply roughly two-thirds of electricity; Laos could explore international partnerships, workforce training and the infrastructure needed for a nuclear programme. Combining additional solar and potential nuclear generation with existing hydropower would support a larger, more diversified low-carbon electricity supply.

History

The supplied history shows that Laos’s low-carbon electricity expansion has been driven by hydropower. Following a small reduction in 1987, annual generation increased by about 0.5–1 TWh in each of 1998, 1999 and 2000. Changes during the rest of the 2000s were relatively small, before major gains of about 5 TWh in 2010 and 4.5 TWh in 2011. Further expansion followed in 2013 and from 2016 through 2018. The strongest sustained growth came in 2020–2023: annual hydropower generation increased by almost 9 TWh in 2020, about 4 TWh in 2021, nearly 6 TWh in 2022 and another 1.3 TWh in 2023. These substantial additions underline Laos’s success in expanding clean electricity and provide a strong foundation for further growth.

Electricity Imports and Exports

Balance of Trade