Lao Energy Information

Lao Energy Research

- Lao PDR's Energy & Climate Policy Framework: Lao PDR aims to reduce GHG emissions by 60% by 2030, with key policies led by the Ministry of Energy and Mines. The country targets 100% electrification by 2030 and a 10% reduction in final energy consumption. Renewable energy and energy efficiency initiatives are central to these goals, supported by international cooperation.

- Lao PDR's Energy Companies: In Laos, EDL oversees electricity generation (14% capacity), transmission, and distribution. IPPs dominate power production, with key players including Hongsa Lignite, CH. Karnchang, and NTPC. EDL-T, a joint venture with China Southern Power Grid, manages the high-voltage grid. In oil, Medco Energi leads upstream exploration, while Laopec operates a refinery with expansion plans. Lao State Fuel Company leads downstream distribution.

- Lao PDR's Energy Supply & Demand: Laos' energy mix is dominated by hydro (76%) and lignite (24%), with rising consumption and significant electricity exports. The country has substantial hydro and wind potential but faces deforestation challenges. Lignite use has surged, impacting emissions.

- Lao PDR's Energy Use & Price by Sector: "Residential and services sectors account for 43% of the country's final energy consumption, with biomass and electricity being the primary sources. Energy demand has risen, with industry and transport sectors also showing significant consumption. Electricity prices have decreased, enhancing access to clean cooking options, though biomass remains dominant in households." (149 characters)

- Lao PDR's Issues & Prospects: Laos, known as Southeast Asia's "Battery," is expanding its power capacity with hydropower leading, but faces challenges in meeting export targets due to infrastructure limitations. Plans include coal, solar, and wind projects, with significant hydropower developments under construction. Transmission projects aim to enhance regional energy trade, though delays and capacity constraints persist.

Lao Total Energy Production & Consumption

Total energy consumption has been increasing since 2020 (5%/year), reaching 8.2 Mtoe in 2023. Consumption per capita is low, at 1.1 toe in 2023, slightly under the Asian average (1.7 toe). It surged between 2014 and 2018 (+27%/year), with the start of production of the lignite power plants.

Graph: Primary Consumption Trends by Energy Source

Source: Lao energy report

Interactive Chart Lao Total Energy Production & Consumption

Source: Global Energy & CO₂ data

Lao Oil Production & Consumption

In 2007, the Government granted an exploration permit for the Savannakhet area, which is the main zone of interest in the country. Three permits had been granted in the past, but no drillings were carried out and the companies withdrew. Drilling has not started in the Champasak and Saravan PSC.

A small refinery of 20 kb/d was commissioned in 2020. Oil demand is entirely supplied by imports from China, Thailand, and Vietnam.

Source: Lao energy report

Interactive Chart Lao Crude Oil Production & Consumption

Source: Global Energy & CO₂ data

Interactive Chart Lao Refined Oil Products Production & Consumption

Source: Global Energy & CO₂ data

Lao Coal and Lignite Production & Consumption

Lignite production increased four-fold in 2015 and tripled in 2016 with the commissioning of the Hongsa power plant; it reached its highest level in 2018 (16 Mt) and then subsequently decreased until jumping by 16% in 2022 back to its 2018 level (16.3 Mt) and remained at this level in 2023.

In parallel coal and lignite consumption evolved similarly to production as power generation accounts for 95% of solid fuel consumption. The rest is used in industry (mostly for cement).

Source: Lao energy report

Interactive Chart Lao Coal and Lignite Production & Consumption

Source: Global Energy & CO₂ data

Lao Renewable in % Electricity Production

The Renewable Energy Development Strategy (2011) focused on small scale renewables (biofuels, biogas, solar energy, wind, small hydropower). The government aimed to increase their share to 30% of the total energy consumption by 2025 (ambition confirmed in the new PDP 2020-2030). This goal will not be attained as renewables reached 18% of total consumption in 2024 (all met by biomass).

Source: Lao energy report

Interactive Chart Lao Share of Renewables in Electricity Production (incl hydro)

Source: Global Energy & CO₂ data

Lao GHG emissions and CO₂ emissions

In its updated NDC (2021), the country pledged to unconditionally reduce its GHG emissions by 60% in 2030 compared to a BAU scenario. To achieve this goal, Lao PDR aims to reduce LULUCF emissions by 1.1 MtCO2eq/year by reducing deforestation, to instal 7.5 GW of hydropower capacity (to reach 13 GW), and to introduce 50 000 energy-efficient cooking stoves. With international support, the country could increase the forest cover to 70% of total land area (against 40% in 2024) and develop 1 GW of wind and solar and 300 MW of biomass.

Source: Lao energy report

Interactive Chart Lao CO₂ emissions

Source: Global Energy & CO₂ data