This page describes energy and electricity production, consumption and import in Laos.
Fossil fuel
The Hongsa Thermal Power Station is an 1,878-megawatt (MW) coal-fired power station in Hongsa District, Sainyabuli Province. It is a "mine mouth" facility, fueled by lignite from an adjacent mine. Its three power generating units came on line in 2015–2016.
In February 2021, the Lao government announced that two lignite-fired power plants will constructed in Sekong Province. Work is to begin in 2021 and be completed by 2025. The electricity generated will be sold to Cambodia for 7.2 US cents per kWh. The first plant will be built by Phonesack Group in Kaleum District. It will have an installed capacity of 1,800MW. The company will invest between US$3–4 billion, including the construction of transmission lines to export electricity to Cambodia. The second coal-fired, 700 MW plant will be built in La Mam District by a Chinese company that will invest over US$1 billion in the project. The government claims that coal reserves adjacent to the plants are sufficient to power the plants for the entire 25-year concession period.
Environmental impact
The combustion of fossil fuels, particularly coal, is the main contributing factor to the increase in carbon dioxide (CO2) emissions in Laos. In 2015, coal started to be consumed by the power sector. Consequently, Laos's CO2 emissions increased sharply in 2015. The CO2 to GDP intensity increased by 9.8% per year, from 68 kg CO2 per thousand dollars PPP to 278 kg CO2 per thousand dollars PPP. As of 2021, despite cheap hydro power for electricity production, Laos continues to rely on fossil fuels, coal in particular.
Hydropower
In 2010, Laos petitioned the Mekong River Commission (MRC) to approve their proposal for 11 new dams. This move resulted from the government's intention to become the "battery of Southeast Asia", as Laos currently exports an estimated two-thirds of its hydropower. This goal can be attributed to the geographical region of Laos being situated in the lower Mekong Basin (LMB), which includes a 35% of Mekong's total inflows. According to the Strategic Environmental Assessment (SEA) of the MRC, if the proposed dams are built, they will generate 15,000 MW of power, which is projected to fill 8% of the regional demand by 2025. Additionally, the SEA reports hydropower in Laos can result in a gross income of $3.8 billion per year. With the SEA research, the Lao government's decision to develop hydropower plants is explained by its economic benefit. The Lao Government has ongoing plans for 50+ new hydropower plants for electricity export. However, hydropower development may have large environmental and social consequences beyond national borders. Non-governmental organizations such as International Rivers has raised concerns over these developments in the Mekong.
Hydropower has brought in significant foreign exchange reserves to Lao. Much of the Lao hydropower has been exported to Thailand, which in turn has benefited from Lao hydropower in developing its poorer areas, especially in Thailand's northeast.
Xayaburi Dam
The US$3.8 billion (£2.4bn) proposed hydroelectric Xayaburi Dam has caused tension among Mekong region countries: Laos, Vietnam, Cambodia, and Thailand. In April 2012 a contract was signed for a Thai company, C H Karnchang, to build the dam. The Lao government has pledged to resolve the environmental issues. The government says two big issues—fish migration and sediment flow—will be addressed. Critics say the hydro-electric dam project at Xayaburi would harm the river's eco-system.
Finnish engineering firm Pöyry supported the Lao government's hydropower construction proposal by arguing that no international agreement is needed. Pöyry Engineering in 2012 supported the Xayabar hydropower plant that was opposed by Cambodia, Vietnam and non-governmental organisations. Pöyry admitted it had not assessed all environmental risks (fish, ecosystem). According to Pöyry they have no responsibility for their reports: Olemme pelkkä konsultti ('We only consult') it said in June 2012.