GlobalData forecasts Laos’ hydropower capacity to reach 16 GW by 2035.

Laos aims to increase its hydropower capacity to 20 GW by 2030, with plans to export renewable electricity to neighboring countries. GlobalData projects the country’s large hydropower capacity to reach 16 GW by 2035, growing at a rate of 4.8% annually from 2024 to 2035. This forecast is outlined in the ‘Laos Power Market Outlook to 2035, Update 2025’ report by GlobalData, highlighting the country’s potential in the renewable energy sector.

The Ministry of Energy and Mines in Laos has set ambitious goals to enhance its energy capacity and cater to regional demand. The country’s aim to become a regional electricity export hub to countries like Thailand, Cambodia, Vietnam, Myanmar, and Malaysia is expected to drive the growth of its hydropower sector. By focusing on large-scale hydropower projects, Laos is positioning itself as a key player in the Southeast Asian energy market.

Laos has been successful in establishing itself as the ‘Battery of Southeast Asia’ by surpassing its domestic electricity needs and exporting surplus energy to neighboring nations. The country’s strategy includes long-term power purchase agreements with key recipients like Thailand, Vietnam, China, and Cambodia. Thailand currently stands as the largest importer of Laotian electricity, followed by Vietnam, with plans to increase their imports in the coming years.

Attaurrahman Ojindaram Saibasan, a Senior Power Analyst at GlobalData, emphasized the importance of infrastructure development to support the increasing cross-border electricity flows. He noted that Laos relies heavily on export revenue, making its economy vulnerable to external market fluctuations. To overcome challenges in pricing and infrastructure, the country should invest in energy storage systems and grid upgrades.

Laos has outlined a renewable energy development strategy to increase the share of renewables in its energy mix to 30% by 2025. Hydropower and biomass energy are the primary focuses of this strategy, aligning with the country’s natural resources and potential for sustainable energy production. By enforcing effective policies and setting clear targets, Laos can bridge the gap towards achieving its renewable energy goals.

The country’s commitment to becoming a significant player in the regional energy market is evident in its export targets. Laos plans to export 9 GW of electricity to Thailand by 2025 and 5 GW to Vietnam by 2030. These goals demonstrate Laos’ ambition to leverage its renewable energy resources for economic growth while meeting the energy demands of its neighbors in the region.