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This page describes energy and electricity production, consumption and import in Laos.
The Hongsa Thermal Power Station is an 1,878-megawatt (MW) coal-fired power station in Hongsa District, Sainyabuli Province. It is a "mine mouth" facility, fueled by lignite from an adjacent mine. Its three power generating units came on line in 2015–2016. [1]
In February 2021, the Lao government announced that two lignite-fired power plants will constructed in Sekong Province. Work is to begin in 2021 and be completed by 2025. The electricity generated will be sold to Cambodia for 7.2 US cents per kWh. The first plant will be built by Phonesack Group in Kaleum District. It will have an installed capacity of 1,800MW. The company will invest between US$3–4 billion, including the construction of transmission lines to export electricity to Cambodia. The second coal-fired, 700 MW plant will be built in La Mam District by a Chinese company that will invest over US$1 billion in the project. The government claims that coal reserves adjacent to the plants are sufficient to power the plants for the entire 25-year concession period. [2]
The combustion of fossil fuels, particularly coal, is the main contributing factor to the increase in carbon dioxide (CO2) emissions in Laos. In 2015, coal started to be consumed by the power sector. Consequently, Laos's CO2 emissions increased sharply in 2015. The CO2 to GDP intensity increased by 9.8% per year, from 68 kg CO2 per thousand dollars PPP to 278 kg CO2 per thousand dollars PPP. [3] : xiii As of 2021, despite cheap hydro power for electricity production, Laos continues to rely on fossil fuels, coal in particular. [4]
In 2010, Laos petitioned the Mekong River Commission (MRC) to approve their proposal for 11 new dams. [5] This move resulted from the government's intention to become the "battery of Southeast Asia", as Laos currently exports an estimated two-thirds of its hydropower. [6] This goal can be attributed to the geographical region of Laos being situated in the lower Mekong Basin (LMB), which includes a 35% of Mekong's total inflows. According to the Strategic Environmental Assessment (SEA) of the MRC, if the proposed dams are built, they will generate 15,000 MW of power, which is projected to fill 8% of the regional demand by 2025. Additionally, the SEA reports hydropower in Laos can result in a gross income of $3.8 billion per year. [7] With the SEA research, the Lao government's decision to develop hydropower plants is explained by its economic benefit. The Lao Government has ongoing plans for 50+ new hydropower plants for electricity export. [8] However, hydropower development may have large environmental and social consequences beyond national borders. Non-governmental organizations such as International Rivers has raised concerns over these developments in the Mekong. [9] [10] [11]
Hydropower has brought in significant foreign exchange reserves to Lao. [12] : 221 Much of the Lao hydropower has been exported to Thailand, which in turn has benefited from Lao hydropower in developing its poorer areas, especially in Thailand's northeast. [12] : 221
The US$3.8 billion (£2.4bn) proposed hydroelectric Xayaburi Dam has caused tension among Mekong region countries: Laos, Vietnam, Cambodia, and Thailand. In April 2012 a contract was signed for a Thai company, C H Karnchang, to build the dam. The Lao government has pledged to resolve the environmental issues. [13] The government says two big issues—fish migration and sediment flow—will be addressed. Critics say the hydro-electric dam project at Xayaburi would harm the river's eco-system. [14]
Finnish engineering firm Pöyry supported the Lao government's hydropower construction proposal by arguing that no international agreement is needed. Pöyry Engineering in 2012 supported the Xayabar hydropower plant that was opposed by Cambodia, Vietnam and non-governmental organisations.[ citation needed ] Pöyry admitted it had not assessed all environmental risks (fish, ecosystem).[ citation needed ] According to Pöyry they have no responsibility for their reports: Olemme pelkkä konsultti ('We only consult') it said in June 2012. [9]
The aim was to supply electricity mainly to Thailand by a Thai company and to provide export income to the government of Laos. However, the Mekong River Commission recommended suspending the project. According to Finnish media, the Finnish government is among the main financiers of the river commission.[ citation needed ] As of 2012, the Mekong River downstream is free of dams. Approximately 60 million people live in the area in Laos, Vietnam, and Cambodia. U.S. Secretary of State Hillary Clinton visiting the ASEAN countries in July 2012, demanded environmental investigations of the project. During her visit, the Lao government made the first official announcement of project cancellation. [15]
Aside from large-scale hydro power, Laos has also significant small-scale hydro and solar energy potential. [16] Laos adopted the Renewable Energy Development Strategy in 2011 and set a target of 30% small-scale renewable energy in the energy production by 2025; to achieve the target Laos could improve renewable energy governance, adopt a feed-in tariff, build an effective regulatory framework and facilitate market entry for foreign investors. [16]
The Mekong River is the largest river in Southeast Asia, with a length of 4,350 km flowing through six countries: China, Myanmar, Thailand, Lao PDR, Cambodia, and Vietnam. The Mekong River Basin (MRB) incorporates a large area and can be defined by seven physiographic regions: Tibetan Plateau, Three Rivers Area, Lancang Basin, Northern Highlands, Khorat Plateau, Tonle Sap Basin, and the Mekong Delta. The Tibetan Plateau, Three Rivers Area and Lancang Basin form the Upper Mekong Basin while the Northern Highlands, Khorat Plateau, Tonle Sap Basin and Mekong Delta make up the Lower Mekong Basin. [17] Laos is in the Lower River Basin, which has a catchment of 25% of the MRB—approximately 202,000 km2 of water. The region of Laos contains 35% of Mekong's total inflows. [18]
The Lower Mekong Basin provides a wide range of benefits: drinking water, freshwater food supplies, biodiversity hotspots, agricultural irrigation, transport, and industrial uses (such as hydropower development). The Tonle Sap region of Cambodia, the largest freshwater lake in Southeast Asia, is critical for food security as it provides areas for agriculture and aquaculture in the surrounding wetlands and flooded forests. This region is the center of Cambodia's fishing industry and rice fields on which 40% of the population depend. Additionally, the Tonle Sap region consists of a variety of habitats and biomes, resulting in an area of biodiversity. Another region of the Lower Mekong Basin is the Mekong delta, a resource vital to Vietnam's rice production.
The construction of dams in the Mekong Basin greatly impact fish migration and local fisheries. Generally, the development of a hydropower dam results in altered flow patterns and creates a large physical barrier, thus disrupting the fish and their breeding habitats within the river. This is particularly impactful in the Mekong as 40-70% of fish catch is from migrating species, where most hunted fish can potentially fail to reach historic fishing areas with dams impeding upstream migration. Looking at a 2008 study of Hydropower dams in the Lower Mekong Basin, planned dams will have a major impact on fisheries and "disrupt upstream migration of economically and biologically important species". [19] Additionally, the downstream drift of fish eggs that sustain lower fisheries will be blocked by the construction of dams. Trying to apply modern solutions to fish passage can partially mitigate the impact; however, the scale of fish migration on the Mekong stream involves over 50 different species which current methods cannot support. [19] [20] With the addition of more hydropower dams, local fisheries must adapt to different flow conditions and be prepared for unexpected floods with the potential to wash away assets. [21]
With Laos planning over 50 dams on the Mekong and its tributaries, the physical barrier of hydropower dams disturbs natural sediment flow downstream. This barrier can cause water levels to rise and creates a trap for sediment behind walls. Investigations note 26,400 tons of nutrient is sent into the Mekong floodplains per year through sediment loads. [22] With dams in place, the floodplains and agricultural lands that are reliant on a certain level of sediment will be deprived. A report by the International Center for Environmental Management suggest, "current nutrient load will be reduced by seventy-five percent by 2030" if all proposed dams are built. A block to nutrient-carrying sediment sets off a chain reaction that will inevitability impact all nations downstream, lowering food security and putting millions of livelihoods at risk. [21]
The continual development of Hydropower has positive effects such as flood control, irrigation, and river navigation; conversely, the development of Hydropower plants can negatively affect the 3 million Laotians relying on the Mekong for livelihood and food security. With dams blocking the migration of fish, many communities will experience a loss of fish population. Over the last few years, the development of hydropower dams have caused a 10-20% population loss while during a period of 2001–2003, the Thai-Lao border showcased a 50% catch decrease, greatly affecting local communities and their livelihood. [21] With the hydrology of the Lower Mekong forcefully altered, agricultural lands will experience a new river regime—variability in its discharge—that can negatively affect farms. The most notable change for the population near the Mekong is the loss of agricultural land due to flooding from hydropower dams. Flooding can cause a loss of crop, productivity, livestock. With an increase of floods near agricultural land there can be a loss of nutrition, an input to the productivity of nearby agriculture.
The rural communities of a riparian country like Laos rely heavily on fishing for food security. [23] Hydropower development affecting the migration of fish and productivity of fisheries are a great threat to food security. Local communities are not the ones impacted, a study done by the Mekong River Commission showcased, "Fisheries do not only benefit the people living next to the river or the floodplains, but all of the Lower Mekong Basin countries." [24] Hydropower development indirectly impacts human development on many scales. [21]
Power companies responsible for energy and electricity production in Laos include: Electricite du Laos, Glow Energy (a subsidiary of GDF Suez), Lao Holding State Enterprise and Nam Theun 2 Power Company, a consortium comprising French-owned EDF (40% ownership), Thai (35%) and Lao (25%) entities.
Cambodia is a country in mainland Southeast Asia. It borders Thailand, Laos, Vietnam, the Gulf of Thailand and covers a total area of approximately 181,035 km2 (69,898 sq mi). The country is situated in its entirety inside the tropical Indomalayan realm and the Indochina Time zone (ICT).
The Mekong or Mekong River is a trans-boundary river in East Asia and Southeast Asia. It is the world's twelfth-longest river and the third-longest in Asia with an estimated length of 4,909 km (3,050 mi) and a drainage area of 795,000 km2 (307,000 sq mi), discharging 475 km3 (114 cu mi) of water annually. From its headwaters in the Tibetan Plateau, the river runs through, Myanmar, Laos, Thailand, Cambodia, and southern Vietnam. The extreme seasonal variations in flow and the presence of rapids and waterfalls in the Mekong make navigation difficult. Even so, the river is a major trade route between Tibet and Southeast Asia. The construction of hydroelectric dams along the Mekong in recent decades causes serious problems for the river's ecosystem, including the exacerbation of drought.
Tonlé Sap is a lake in the northwest of Cambodia. It belongs to the Mekong River system. It is the largest freshwater lake in Southeast Asia and one of the most diverse and productive ecosystems in the world, designated as a Biosphere Reserve by UNESCO in 1997 due to its high biodiversity. Entering the 21st century, the lake and its surrounding ecosystems are under increasing pressure from deforestation, infrastructure development and climate change.
The Mekong River Commission (MRC) is an "...inter-governmental organisation that works directly with the governments of Cambodia, Laos, Thailand, and Vietnam to jointly manage the shared water resources and the sustainable development of the Mekong River". Its mission is "To promote and coordinate sustainable management and development of water and related resources for the countries' mutual benefit and the people's well-being".
Dams and reservoirs in Laos are the cornerstone of the Lao government's goal of becoming the "battery of Asia".
The Mekong giant catfish, is a large, threatened species of catfish in the shark catfish family (Pangasiidae), native to the Mekong basin in Southeast Asia and adjacent China. It is considered critically endangered due to overfishing and habitat loss.
The Nam Theun 2 Hydropower Project, or simply NT2, is a hydroelectric dam on the Nam Theun River in Laos. Commercial operation of the plant began in April 2010. The scheme diverts water from the Nam Theun, a tributary of the Mekong River, to the Xe Bang Fai River, enabling a generation capacity of 1,075 MW, from a 350 m (1,148 ft) difference in elevation between the reservoir and the power station.
The Nam Ngum Dam is a hydroelectric dam on the Nam Ngum River, a major tributary of the Mekong River in Laos. It was the first hydropower dam built in the Lao PDR.
Pöyry PLC, which merged in 2019 with Swedish company ÅF into AFRY, was an international consulting and engineering firm that served clients globally across the energy and industrial sectors and provided local engineering services in its core markets. Its focus sectors were power generation, transmission, and distribution; forest industries; chemicals and biorefining; mining and metals; transportation and water. It changed its name from Jaakko Pöyry Group in 2006. The company was listed on the Helsinki Stock Exchange and was headquartered in Vantaa, Finland.
The Jullien's golden carp is a species of endangered freshwater ray-finned fish in the family Cyprinidae found in Southeast Asian river basins. Its existence is being threatened by various economic activities, such as large-scale agriculture and the building of dams for hydropower.
The estimated hydropower potential of the lower Mekong Basin is 30,000 MW, while that of the upper Mekong Basin is 28,930 MW. In the lower Mekong, more than 3,235 MW has been realized via facilities built largely over the past ten years, while projects under construction will represent an additional 3,209 MW. An additional 134 projects are planned for the lower Mekong, which will maximize the river's hydropower generating capacity. The single most significant impact—both now and in the future—on the use of water and its management in the Mekong Region is hydropower.
The Sirindhorn Dam is in Sirindhorn District, Ubon Ratchatani, Thailand. It impounds the Lam Dom Noi River, and its reservoir is the province's largest water resource. The dam was commissioned in 1971 to serve as a hydropower facility as well as to supply irrigation water. The dam was named after Princess Royal Sirindhorn. All of the electricity generated by the dam is destined for domestic markets. The dam was constructed and is owned and operated by the Electricity Generating Authority of Thailand and is located in the Mekong River Basin, just upstream from the controversial Pak Mun Dam.
The Sambor Dam is a proposed dam and hydroelectric power station on the Mekong River south of Sambor village in Prek Kampi District, Kratie Province, Cambodia. If built, it would be the lowest dam of the Mekong's mainstream dams, and largest in Cambodia.
The Lower Se San 2 Dam is a hydroelectric dam under development on the Se San River in Stung Treng Province, northeastern Cambodia. The Se San River is a major tributary of the Mekong River. The dam site is located 25 kilometres (16 mi) east of the provincial capital, also named Stung Treng. The first turbine began producing electricity in November 2017. The dam was officially opened on December 18, 2018.
The Stung Treng Dam is a proposed hydroelectric dam on the Mekong River in Stung Treng Province, Cambodia. It would be located on the mainstream of the Lower Mekong River. The project is controversial for several reasons, including its possible impact on the fisheries, as well as other ecological and environmental factors.
The Xayaburi Dam is a run-of-river hydroelectric dam on the Lower Mekong River, approximately 30 kilometres (19 mi) east of Sainyabuli (Xayaburi) town in northern Laos. Commercial operation of the dam started in October 2019. The main purpose of the dam is to produce hydroelectric power, 95% of which is to be purchased by the Electricity Generating Authority of Thailand (EGAT). The project is surrounded in controversy due to complaints from downstream riparians and environmentalists. Preliminary construction began in early-2012, but work on the dam itself was suspended shortly thereafter due to complaints from Cambodia and Vietnam downstream. After making modifications to the dam's design, Laos started construction with a ceremony on 7 November 2012. The Xayaburi Dam is the first of the 11 dams planned on the lower Mekong.
The Don Sahong is a hydroelectric dam commissioned in 2020 on the Mekong River in Siphandone area of Champasak Province, Laos, less than two kilometers upstream of the Laos–Cambodia border.
The Houay Ho is a dam located in the Samakkhixay District of Attapeu Province, Laos, 160 km (99 mi) east of Pakse and 30 km (19 mi) northwest of Attapeu. The project is considered the first privately financed joint venture 'build-operate-transfer' (BOT) hydropower project in Laos. It has installed capacity of 152.1 megawatts (204,000 hp), almost all of which is exported to Thailand.
Laos is a nation with plentiful surface water and broad rivers, but outside of cities there is little infrastructure to make that water clean and accessible. Very little improvement has been made since the end of the Laotian Civil War in 1975, especially compared to peer nations such as Thailand. By 2015, 76% of Laotians nationwide were estimated to have access to “improved” water, while 71% were estimated to have access to “improved” sanitation.
The Nam Ou cascade hydropower project is a series of seven hydroelectric dams along the Nam Ou river which are located in the provinces of Phongsaly and Luang Prabang in northern Laos. The project is managed by the Power Construction Corporation of China (PowerChina) and the Lao government. The project is the series of dams include seven levels of reservoirs in an attempt to mitigate ecological deterioration. The construction of the hydropower project is being completed in two phases. Phase I of the dams, including Nam Ou 2, Nam Ou 5, and Nam Ou 6 began operating on May 12, 2016. Phase II of the dams, including Nam Ou 1, 3, 4, and 7 is expected to be completed in 2020.
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