In 2023, more than three-quarters of electricity consumed in Laos came from low-carbon sources, with hydropower alone accounting for about 76.5%. Other clean sources contributed only a very small share. Fossil electricity made up the remaining 23%, entirely from coal. Laos therefore has a predominantly low-carbon electricity mix, but replacing its remaining coal-based electricity with clean generation would further reduce climate-changing emissions and air pollution.

Is Electricity Growing in Laos?

Electricity consumption in Laos is growing, although the latest increase was modest. In 2023, consumption reached a record of about 6,823 kWh per person, exceeding the previous record set in 2022 by 71 kWh per person, or roughly 1%. Low-carbon electricity generation also reached a new high of about 5,234 kWh per person, up 93 kWh per person from its 2022 record—an increase of almost 2%. These gains are welcome, but stronger growth in clean electricity would help meet future demand from electrification and expanding digital infrastructure, including AI.

Suggestions

Laos can increase low-carbon electricity generation by adding solar alongside its substantial hydropower base and considering nuclear electricity as a longer-term option. Relevant Asian examples include Pakistan, where solar supplies about a quarter of electricity and nuclear about 13%, and China, where solar supplies around 12%. Sri Lanka’s roughly 15% solar share also offers a useful regional reference. Laos could study these places’ approaches to solar deployment and grid integration, while learning about nuclear development from South Korea, which generates a quarter of its electricity from nuclear, and France, where nuclear provides about two-thirds. Grid investment, workforce development and international cooperation could help turn these lessons into additional clean electricity for Laos.

History

The history of low-carbon electricity in Laos is largely a story of hydropower expansion, punctuated by some disappointing declines. Generation fell by 0.3 TWh in 1987, then grew by a combined 2.2 TWh across 1998–2000. The listed changes during the rest of the 2000s were small and mixed. Expansion accelerated in 2010 and 2011, with gains totaling 9.6 TWh, followed by another 2.4 TWh increase in 2013. Declines in 2014–2015 interrupted that progress, but generation rebounded strongly in 2016–2018, adding a combined 8.3 TWh. After a 2.6 TWh setback in 2019, growth resumed decisively: hydropower increased by 8.8 TWh in 2020, 4.4 TWh in 2021, 5.8 TWh in 2022 and 1.3 TWh in 2023. This recent expansion is encouraging, even though the latest annual gain was smaller than in the preceding years.

Electricity Imports and Exports

Balance of Trade