Laos’ large hydropower to reach 16 GW in 2035 - Asian Power
Published November 22, 2025
Laos’ Large Hydropower Capacity Expected to Reach 16 GW by 2035
Laos is poised to significantly enhance its hydropower generation capacity, aiming to reach an impressive 16 gigawatts (GW) by the year 2035. This ambitious target is part of the country’s broader strategy to leverage its abundant water resources for sustainable energy production and economic growth.
The government of Laos has identified hydropower as a cornerstone of its energy policy, recognizing the potential for this renewable resource to not only meet domestic energy needs but also to facilitate electricity exports to neighboring countries. With its extensive river systems, including the Mekong River, Laos has become a focal point for hydropower development in Southeast Asia.
Current Hydropower Landscape in Laos
As of now, Laos has an installed hydropower capacity of approximately 9.6 GW. The country has made significant strides in developing its hydropower infrastructure over the past decade. Major projects such as the Nam Theun 2 and Xayaburi dams have contributed to this capacity, providing a substantial portion of the electricity consumed domestically and exported to countries like Thailand and Vietnam.
The government’s commitment to expanding hydropower generation aligns with its goals to achieve energy security and reduce reliance on fossil fuels. The Lao Ministry of Energy and Mines has laid out a comprehensive plan that includes the construction of new dams and the expansion of existing facilities to meet the projected demand for electricity.
Future Projects and Investments
To achieve the target of 16 GW, Laos has outlined several key projects that are currently in various stages of planning and development. Among these projects are the Pak Lay, Luang Prabang, and Sanakham hydropower plants, which are expected to add significant capacity to the national grid.
The Pak Lay Hydropower Project, located on the Mekong River, is anticipated to contribute around 1.3 GW to the grid. This project has garnered attention not only for its capacity but also for its potential environmental impact, prompting discussions about sustainable practices in hydropower development.
The Luang Prabang Hydropower Project, another major undertaking, is expected to have a capacity of around 1.4 GW. This project is strategically important as it aims to enhance energy exports while ensuring that local communities benefit from the economic opportunities generated by the new infrastructure.
In addition to these large-scale projects, the Sanakham Hydropower Plant is projected to add approximately 1.2 GW of capacity. This project is part of a broader initiative to modernize Laos’ energy sector and improve the reliability of electricity supply throughout the country.
Regional Energy Cooperation
Laos’ hydropower ambitions are closely tied to regional energy cooperation efforts. The country is a key player in the Greater Mekong Subregion (GMS) energy cooperation framework, which aims to enhance energy security and promote sustainable development across Southeast Asia.
Through collaboration with neighboring countries, Laos is positioning itself as a vital energy hub. The electricity generated from its hydropower plants is expected to be exported to Thailand, Vietnam, and potentially other countries in the region. This not only supports Laos’ economic growth but also contributes to the energy needs of its neighbors.
Environmental and Social Considerations
While the expansion of hydropower in Laos presents significant economic opportunities, it also raises important environmental and social considerations. The construction of large dams can lead to ecological disruptions, affecting local wildlife and altering river ecosystems. Additionally, the displacement of communities living near these projects remains a critical issue that requires careful management and mitigation strategies.
The Lao government, in collaboration with international partners, is working to address these challenges through comprehensive environmental impact assessments and community engagement initiatives. Ensuring that local populations benefit from hydropower development is a priority, as is the preservation of biodiversity in sensitive areas.
Conclusion
As Laos progresses toward its goal of achieving 16 GW of hydropower capacity by 2035, the country stands at a pivotal moment in its energy development journey. By harnessing its rich water resources, Laos aims to not only meet its domestic energy needs but also play a significant role in the regional energy landscape.
The successful implementation of planned projects, coupled with a commitment to sustainability and community engagement, will be crucial in realizing the full potential of Laos as a leader in renewable energy in Southeast Asia.
With ongoing investments and strategic partnerships, Laos is well-positioned to make substantial contributions to the renewable energy sector, ultimately fostering economic growth and enhancing energy security for its citizens and neighboring countries.
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