An article released on May 16th sheds light on the challenges faced by Laos as a hydropower exporter in Southeast Asia, due to increased electricity consumption from crypto mining and unpredictable rainfall patterns.
Laos, often referred to as the “battery of Southeast Asia” because of its vast hydropower capacity, heavily relies on hydropower for its electricity needs. However, a recent report by Reuters reveals that the surge in demand from bitcoin mining, which allegedly consumes over a third of the country’s power, combined with reduced rainfall, has strained the power grid.
Somboun Sangxayarath, an advisor at Electricite Du Laos (EDL), highlighted in the Reuters’ report that the country has been compelled to import more electricity to meet the rising demand, resulting in significantly higher costs for the state-run utility. The report also mentions that Laos is working towards increasing its hydropower capacity by 720 megawatts by the end of next year and aims to diversify its energy sources.
To counteract the impact of erratic rainfall, the government plans to increase the proportion of non-hydro generation to 30% by 2025, up from the current 20%, as detailed by Reuters. Over the years, Laos has experienced a threefold increase in extreme rainfall events (over 150 mm in a single day). Additionally, the trend of crypto mining activities in Laos has gained significant momentum in 2021.
What are your thoughts on the reports suggesting that crypto mining and heavy rainfall are straining the power grid in Laos? Feel free to share your opinions and insights on this matter in the comments section below.
