$BNB 🔥🔥🔥🔥Cryptocurrency Mining and Unstable Rainfall Challenge Laos' Power Supply🔥🔥🔥🔥
According to Odaily, Somboun Sangxayarath, an advisor to the state-owned Electricite du Laos (EDL), has stated that the country's power demand has increased due to cryptocurrency mining and unstable rainfall, leading to power shortages. This indicates that Laos' prospects as a hydropower exporter in Southeast Asia are facing challenges. Laos, known as the 'battery' of Southeast Asia due to its hydropower export potential, provides the cheapest and most stable clean energy, which is crucial for the Southeast Asian region striving to expand solar and wind energy scales for decarbonization.
Sangxayarath mentioned that the policy of establishing data centers in 2021 led to the boom of cryptocurrency mining business, which currently accounts for more than a third of Laos' power demand. Reduced rainfall has suppressed hydropower output, leading to power outages. Over the past decade, hydropower has accounted for 80% of Laos' power generation, most of which is sold by independent power producers through cross-border transactions with Thailand and Vietnam.
Sangxayarath added that in the domestic market, EDL is the power supplier and has become a net importer since 2021, requiring up to 600 megawatts (MW) of additional capacity during peak demand periods, which has more than doubled the company's costs. Last year, Laos stated that it would not supply power to cryptocurrency projects that have not yet started operations. Although this order is still in effect, Sangxayarath said that it is still actively considering new investment proposals and seeking to increase power supply.
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