Laos’ Electricity Exports Grow as Regional Energy Demand Accelerates
Electricity exports from Laos to Vietnam increased sharply in early 2026, as Vietnam ramped up imports to meet rising energy demand and enhance supply stability. Vietnam imported approximately 2.92 billion kWh from Laos in the first quarter, nearly 120 percent higher than the same period in 2025, according to Vietnamese energy data. By the end of 2025, Vietnamese authorities had approved electricity imports from 47 Lao energy projects with a combined capacity exceeding 8,260 MW. Of these, projects with a total installed capacity of 2,379 MW were already supplying electricity to Vietnam in 2025, up from around 1,700 MW in 2024.
This growth reflects Laos’ continued strategy of positioning itself as a regional energy exporter under its “Battery of Southeast Asia” strategy. Hydropower remains the backbone of the country’s energy sector, accounting for the majority of its 12.4 GW installed capacity in 2025. At the same time, Laos is expanding investments in renewable energy, particularly in projects oriented toward export markets. Notable developments include the Monsoon Wind Power Project in southern Laos, which exports electricity directly to Vietnam via a dedicated transmission line, and the 80 MW Xekaman 4 Hydropower Project iin Sekong province. The Xekaman 4 project, formalized under a build-operate-transfer (BOT) concession on March 15, involves a Vietnamese-Lao joint venture and is the latest in the broader Xekaman cascade along the Sekong River.
Beyond Vietnam, Thailand remains Laos’ largest electricity trading partner. In recent years, Laos exported more than USD 2.34 billion in electricity to Thailand, while importing between USD 1.5 billion and USD 1.8 billion in fuel products. On May 1, Lao and Thai energy officials met in Bangkok to discuss expanding bilateral energy cooperation. Lao Minister of Industry and Commerce H.E. Malaithong Kommasith and Thai Energy Minister H.E. Akanat Promphan highlighted the energy sector as a central pillar of economic ties. Thai investment in Laos’ energy sector continues to grow, with six power projects under construction totaling 3,613.2 MW and 16 operational projects generating 7,688.9 MW, representing combined investments exceeding USD 14.7 billion. Discussions also emphasized long-term energy security and regional electricity integration, including cross-border power trade under ASEAN connectivity initiatives.
Despite rising export capacity, Laos continues to face domestic energy challenges, particularly during the dry season when reduced water levels constrain hydropower generation and strain the national grid. This seasonal imbalance often forces the country to import electricity, typically from Thailand, at a higher cost. Structural challenges also persist, as earlier investments in large-scale hydropower, often financed through foreign borrowing, have outpaced development of transmission networks, distribution systems, and domestic demand.
To address these issues, Electricité du Laos (EDL), the state-owned power utility, has introduced reforms aimed at strengthening financial sustainability and grid performance. These include investments in grid infrastructure, expansion of solar generation, and debt restructuring. On April 27, EDL also launched a nationwide policy to purchase electricity from residential rooftop solar systems at a rate of LAK 992 (USD 0.04) per kWh under contracts of up to 10 years. The program, capped at 50 MWp through the end of 2026, is designed to reduce reliance on imported electricity and diversify the domestic energy mix. More broadly, Laos aims to increase the share of variable renewable energy, particularly solar and wind, to 11 percent by 2030 as part of its long-term energy transition and climate goals.
