In 2023, more than three-quarters of electricity consumed in Laos came from low-carbon sources, overwhelmingly hydropower. Low-carbon electricity accounted for about 77% of the total, with hydropower alone supplying roughly 76.5%. Fossil fuels provided the remaining 23%, entirely from coal. Laos therefore already has a predominantly clean electricity mix, but replacing coal with additional low-carbon generation would help reduce climate pollution and improve air quality.

Is Electricity Growing in Laos?

Electricity consumption per person in Laos reached a new record in 2023, rising to about 6,820 kWh from 6,750 kWh in 2022. That increase of 71 kWh per person represents growth of about 1%—a welcome advance, though modest given future electrification needs. Low-carbon electricity generation per person grew faster, reaching about 5,230 kWh, up 93 kWh, or almost 2%, from its previous record in 2022. These figures show continued progress in both electricity consumption and clean generation, although they do not by themselves establish how total national consumption changed.

Suggestions

Laos can build on its hydropower foundation by expanding solar electricity and considering nuclear power as a longer-term source of dependable low-carbon generation. Pakistan offers a useful Asian example: solar supplies about 24% of its electricity, while nuclear supplies another 13%. Sri Lanka, where solar provides 15%, also offers a relevant example for developing solar in a tropical setting. Laos could learn from these places through rooftop solar, larger solar projects, and grid investment that allows solar and hydropower to work together. For nuclear development, France and Slovakia demonstrate the substantial contribution possible, with nuclear supplying roughly two-thirds of electricity in each. Laos could begin by assessing suitable projects, developing technical expertise, and establishing regulatory and regional partnerships to support a more diverse clean electricity supply.

History

The supplied history shows that low-carbon electricity growth in Laos has been driven by hydropower, with occasional disappointing declines amid substantial expansion. Generation fell by 0.3 TWh in 1987, then increased by a combined 2.2 TWh across 1998–2000. The 2000s brought smaller gains and setbacks, before major increases of 5.1 TWh in 2010 and 4.5 TWh in 2011. Further expansion followed in 2013 and 2016–2018, interrupted by declines in 2014–2015 and a larger 2.6 TWh drop in 2019. Growth then accelerated strongly: hydropower increased by 8.8 TWh in 2020, 4.4 TWh in 2021, and 5.8 TWh in 2022. Another 1.3 TWh increase in 2023 extended that encouraging run, although at a slower pace than the preceding three years.

Electricity Imports and Exports

Balance of Trade