Minister of Industry and Commerce, Mr Malaythong Kommasith.

Electricité du Laos outlines plans to stabilise power distribution 

Electricité du Laos is speeding up the construction of hydro and solar power generation plants, along with upgrading infrastructure and equipment, in a bid to stabilise power distribution amid continuing power cuts.
Speaking at the annual meeting of the state enterprise, its Managing Director, Dr Akhomdeth Vongxay, said construction of the Nam Ngum 3 hydroelectric plant, owned by EDL, is being accelerated, with completion slated for 2027.
The project is part of the 2025-2027 emergency measure designed to supply sufficient power to meet nationwide demand.  
Once it becomes operational, the plant will generate and distribute power to the central region, reducing power imports during the dry season. 
The emergency measure also pushes for the construction of large-scale solar power projects in 12 locations, with a combined installed capacity of 680 megawatts (MW). One of these solar farms, with 50MW installed capacity, is already operational.
In addition, small-scale solar farms are being developed and their generated power will be integrated into the power distribution system.
The emergency measure was introduced with the aim of boosting power supply in Laos amid continuing power outages, although these are declining in number.
During the first six months of 2025, EDL recorded 237 outages and voltage drops across the national transmission system - a drop of 35 year-on-year. Outages and voltage drops in the distribution system decreased by 1,107 to 2,396 year on year. To boost voltage, EDL has replaced small electrical cables with bigger ones and added more transmitters.
Speaking at the meeting, Minister of Industry and Commerce, Mr Malaythong Kommasith, said corrective measures will enable the stable distribution of power.
Dr Akhomdeth also underlined EDL’s ongoing reform, which aims to ensure more effective operation of the state enterprise after years of sustained losses and mounting debts.
Priorities under the reform programme include restructuring electricity prices across all categories, which have caused electricity bills to skyrocket, triggering public complaints.
Announced in February, the new tiered pricing system for the years 2025-2029 has significantly raised the price of electricity in all categories. Households that consume 0-25 kWh per month have seen their bills jump from 355 kip per kWh in January to 679 kip in July, a 91.27 percent increase. Higher energy consumption incurs higher charges.
By 2029, households using 0-25 kWh per month will pay 911 kip per kWh, while those consuming more than 1,500 kWh will face charges of up to 2,223 kip per kWh.
Dr Akhomdeth said the price hike was necessary to match the actual cost of distribution.
The price hike dominated debates at the recent ordinary session of the National Assembly, when lawmakers asked the government to reconsider and reverse the change to ease the burden on households.  
Following the government’s guidance, EDL, which oversees national power distribution, is negotiating with hydropower operators to obtain a lower purchase price.
“Subsidies for low-income households will continue,” Dr Akhomdeth said.
He added that EDL has increased the number of power stations and expanded the electricity grid, so that power can be distributed by 103 power generation plants with a combined installed capacity of 4,930MW, reaching households nationwide. 

By Times Reporters
(Latest Update August 15 , 2025)