Southeast Asia Information Port (www.dnyxxg.com) – Electricity du Laos (EDL) is accelerating the construction of hydropower and solar power projects, while simultaneously upgrading its power infrastructure and equipment, striving to stabilize power supply and distribution despite ongoing power outages.
Dr. Akhomdeth Vongxay, General Manager of EDL, revealed at the company's recent annual meeting that construction of the Nam Ngum 3 hydropower station is progressing rapidly and is expected to be completed in 2027. This project is a key component of Laos' 2025-2027 emergency power security measures, with the core objective of providing sufficient power nationwide. Once completed, the generated electricity will primarily be transmitted to the central region, helping to reduce Laos' reliance on power imports during the dry season.
The aforementioned emergency measures also include the construction of large-scale solar power projects at 12 locations, with a total installed capacity of 680 MW. Currently, one of these solar power plants, with an installed capacity of 50 MW, is already operational. In addition, several small-scale solar power plants are under construction, and their generated electricity will be integrated into the distribution system upon completion, further supplementing the power supply.
These emergency measures aim to alleviate Laos's ongoing power outage problem (although the number of outages is currently declining) and improve the stability of the power supply. Data shows that in the first half of 2025, EDL recorded 237 power outages and voltage drops in the national transmission system, a decrease of 35 compared to the same period last year; similar events in the distribution system decreased by 1107 to 2396. To improve voltage stability, EDL has replaced some thin cables with thicker cables and added more transmission equipment.
Minister of Industry and Commerce Malaythong Kommasith stated at the same meeting that the relevant rectification measures will effectively ensure the stability of power distribution. Dr. Akhomdeth also emphasized that EDL is implementing a series of reforms to ensure that this state-owned enterprise, which has been continuously losing money and accumulating debt for many years, can operate more efficiently.
One of the key aspects of the reform plan is the adjustment of various electricity prices – previous price adjustments had already led to significant increases in electricity bills, sparking widespread public complaints. In February of this year, the Lao government announced a new tiered electricity pricing system for 2025-2029, with substantial increases across all categories. For example, households using 0-25 kWh per month saw their electricity bill rise from 355 kip per kWh in January to 679 kip per kWh in July, an increase of 91.27%, with higher consumption resulting in higher bills. Under this system, by 2029, households using 0-25 kWh per month will pay 911 kip per kWh, while households using over 1500 kWh per month will face bills as high as 2223 kip per kWh.
Dr. Akhomdeth stated that this price increase is necessary to align electricity prices with actual distribution costs. However, at a recent parliamentary session, the electricity price increase became a focal point of discussion, with lawmakers urging the government to reconsider and rescind the adjustment to alleviate the financial burden on households.
Following government guidance, the EDL, which oversees the national electricity distribution, is currently negotiating with hydroelectric operators to secure lower electricity purchase prices. Dr. Akhomdeth pledged, "We will continue to provide subsidies to low-income families." He also explained that by increasing the number of power plants and expanding grid coverage, the EDL has now achieved nationwide electricity coverage through 103 power plants (with a total installed capacity of 4,930 megawatts).
