To maintain power supply stability, she suggested that Laos diversify its sources of power to include more solar and wind energy. The price of both has dropped globally and, based on data collected by the Stimson Centre, the price of these renewables is also getting cheaper in the Mekong region.
Although a small percentage compared to total consumption in Laos, the amount of re-imported energy tells a bigger story: According to data from EDL, the state-run firm sells electricity to neighboring countries such as the Electricity Generating Authority of Thailand (EGAT) at a slightly lower price than what it pays to re-import from it.
Laos Explores New Electricity Pricing Model for 2024-2028 to Ensure Energy Sector Sustainability The Ministry of Energy and Mines (MEM) is considering adjustments to electricity pricing for the 2024-2028 period to sustain long-term electricity generation and supply in Laos.
"The production cost of electricity in Thailand is probably higher than in Laos because of the contribution of oil and gas generation,” said a senior official at the Energy Policy and Planning Department, Ministry of Energy and Mines, adding that EDL has been negotiating with EGAT to make sure that the export and import price is about the same.
As there were many power plants in Lao PDR generating electricity for export in 2019, the export figure reached 25,048 gigawatt-hours (GWh) or equivalent to 2.15 Mtoe. This amounted to more than half of all electricity consumed in the country and 77% of total hydropower generation.
Biomass consumption is the most abundant energy resource in the country and often does not need to be purchased. In 2013, biomass consumption was 1.27 MToe, which made up 51.3 percent of TPEC. The second highest consumed energy source was oil products. There are no oil refineries in Lao PDR, so imports come from Thailand and Vietnam.
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