Laos’ emphasis on exporting most of the electricity produced by its many hydro-power dams has created an energy shortage for domestic consumption, forcing it to buy back electricity from its neighbors.
Lao officials say, under the agreements with investors, only about 5% t0 10% of the power produced by the dams is reserved for domostic consumption, creating an annual shortage of 12% or about 300 megawatts a year, not counting the need for commercial and industrial production.
To solve the problem, Laos is committed to attaract more foreign investors to develop more hydro-power projects, aiming to increase the number to 29 projects by the year 2020 with a total production capacity of no less than 8,700 megawatts. Of which, 7,700 megawatts will be exported under purchase agreements with neighboring countries.
Listen to our Laos Today report for more details in Lao.