Laos faces power shortages due to the cryptocurrency mining boom and reduced rainfall, said Somboun Sangxayath, an advisor to the state-owned Electricity of Laos (EDL). Laos is regarded as the "battery" of Southeast Asia and is known for its hydropower export potential, but the current increase in electricity demand and decline in hydropower production pose a challenge to its prospects as a hydropower exporter. Sangxayath pointed out that cryptocurrency mining currently accounts for more than a third of Laos' electricity demand, while erratic rainfall further suppresses hydropower production. In addition, Laos has become a net electricity importer and requires up to 600 megawatts of additional power capacity to meet peak demand, resulting in increased costs for power supplier EDL. Laos announced last year that it would not supply electricity to new cryptocurrency projects, but is still considering new investment proposals to boost power supply.

Odaily Planet Daily News: Somboun Sangxayarath, an advisor to the state-owned Electricity Company of Laos (EDL), said that the increase in electricity demand in Laos due to cryptocurrency mining and erratic rainfall has led to power shortages, indicating that the country's prospects as a hydropower exporter in Southeast Asia face challenges.
Laos is known as the "battery" of Southeast Asia for its hydropower export potential. The cheapest and most stable clean energy it provides is essential for decarbonization in Southeast Asia, which is working to expand solar and wind power.
Sangxayarath said that the policy push to build data centers in 2021 has led to a boom in cryptocurrency mining, which currently accounts for more than a third of Laos' electricity demand, while reduced rainfall has suppressed hydropower production, leading to power outages. Hydropower accounted for 80% of Laos' electricity generation in the past decade, most of which was sold by independent power producers through cross-border transactions with Thailand and Vietnam.
Sangxayarath added that in the domestic market, EDL is an electricity supplier and has become a net importer since 2021, requiring up to 600 megawatts (MW) of additional capacity during peak demand hours, which has more than doubled the company's costs.
Laos said last year it would not supply electricity to cryptocurrency projects that had not yet begun operations. Sangxayarath said that while the order remains in effect, it is still actively considering new investment proposals and seeking to increase electricity supply. [Reuters]

Laos faces power shortages, crypto mining and erratic rainfall to blame