Laos Faces Power Crisis from Crypto Mining, Low Rainfall

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As an analyst with extensive experience in the energy sector, I find it concerning that Laos is experiencing electricity shortages due to the surge in cryptocurrency mining and erratic rainfall patterns affecting its hydropower capacity. The situation is particularly troubling given Laos’ reputation as Southeast Asia’s battery due to its significant hydropower potential.

In simple terms, Laos encounters electricity supply issues due to the increased demand from cryptocurrency mining and unpredictable rainfall affecting its hydroelectric power generation capabilities.

Somboun Sangxayarath, a consultant at Electricite Du Laos (EDL), highlights two significant factors contributing to more than one-third of the electricity demand in the country: the increase in cryptocurrency mining and the decrease in hydropower production due to scant rainfall.

Based on Reuters news articles, Laos – known for its substantial hydropower resources in Southeast Asia – is experiencing power shortages due to increasing demands from cryptocurrency mining and the uncertainties of rainfall patterns. For over a decade, hydropower has accounted for 80% of Laos’ electricity production. However, this source now faces limitations, causing the national utility, EDL, to become a net importer since 2021. This change results in higher costs and a requirement for an additional 600 MW capacity during peak periods, as reported by Sangxayarath.

To address power deficits, Laos is expanding its hydropower initiatives, intending to generate an additional 720 MW by the upcoming year. In contrast to coal-fired power plants, Laos favors solar-hydro and wind-hydro hybrid schemes due to environmental considerations and financial constraints.

Laos is looking for new investment opportunities to broaden its power sources, as it has temporarily cut off electricity to crypto projects that have not begun operations yet (Sangxayarath confirmed).

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2024-05-17 07:00