Total installed solar photovoltaic (PV) capacity in Laos was approximately 59 MW.⁹

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By 2030, Laos aims to achieve a total installed capacity of 1 GW for solar and wind power combined. This goal is part of a broader strategy to diversify its renewable energy portfolio and reduce reliance on hydropower.

Despite the ambitious target, projections suggest that Laos may fall short of this capacity due to challenges such as infrastructure limitations and investment barriers.

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• Hydropower: – $0.05-$0.06/kWh
• Solar energy – $0.08/kWh

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• Hydropower: 83%
• Coal: 16%
• Solar energy: less than 1%

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The average daily availability of electricity from the national grid in Laos is impacted by power outages and distribution losses.

Typically, the average daily availability of electricity is about 21.5-22 hours per day, although this can vary based on location and season. Distribution losses are also significant, reported at around 24% in certain areas, further affecting overall availability.

Approximately 25,000 households have installed rooftop solar systems in Laos, particularly in remote off-grid areas where traditional electricity access remains limited. ¹³

There are currently 58 solar power plants in Laos, with a total capacity of 7,656 MW. Eight of these plants have been completed and operational, while 50 are under construction. ¹⁴

There are at least 15,000 households in Laos utilizing off-grid solar home systems (SHS) for their electricity needs. These installations are part of an off-grid electrification scheme supported by the Laos government and the World Bank, providing power to rural areas where grid access is limited. The SHS typically consist of small solar panels that supply electricity directly to homes, allowing users to pay a monthly fee based on the system’s size and payback period. ¹⁵

As of 2023, Laos has made limited progress in grid-connected solar systems, with only eight small solar farms operational, with only one existing rooftop solar system installation to date: a 236kW plant at Wattay International Airport. ¹⁰

The government aims for 1 GW of solar and wind capacity by 2030, and plans include expanding rooftop solar to 3.61 GW by 2025. Notable projects include a 64MW solar plant under construction and a planned 240MW floating solar farm. ¹⁶

However, progress has been slow due to regulatory challenges and infrastructure issues. Rising energy prices could boost demand for solar solutions, especially if feed-in tariffs are implemented to make solar more competitive against hydropower. ¹⁷

• The average monthly salary in Laos is approximately $209. ¹⁸
• Solar Engineer: the average monthly salary is approximately $206. ¹⁹
• Structural Engineer: the average monthly salary is approximately $191. ²⁰
• Installer: the average monthly salary is approximately $61.5. ²¹

The current population of Laos is 7,825,477. ²²

Estimate for Factory Rent ²³

The average monthly rent for warehouses in Laos ranges approximately $1.2-3 per square meter.

Industrial Electricity Rates ⁶

The average electricity price in Laos ranges from $0.0275 to $0.0328 per kWh depending on usage levels.

Water Costs ²⁴

In Laos, water tariffs for businesses vary depending on the provider and specific location. The average water tariff for non-domestic users (businesses) is approximately $0.19 per cubic meter.

The tariff system typically includes a rising block tariff scheme, which means that the cost per cubic meter increases with higher consumption levels. This structure is designed to encourage efficient water use and manage demand effectively.

It is projected that an average annual increase of about 4% will be necessary to maintain the financial viability of water supply operations in Laos.

Salaries and Wages ¹⁹²⁰

Monthly salaries of workers in solar industry in Laos ranges from $191 to $206, depending on the position.

Rent for Office Space ²⁵

In Laos, the price for office space rental varies significantly depending on the location and property specifics. The average monthly rent for office space can range from $700 to $5,000 per month, depending on size and amenities.

Insurance ²⁶

The average spending per capita for non-life insurance in Laos is expected to reach $127 in 2025.

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Energy Mix

Laos primarily relies on hydropower. Non-renewable energy sources, such as coal and oil, make up around 16% of the total demand, with coal being a significant contributor to electricity production in recent years due to projects like the Hongsa Thermal Power Station and planned lignite-fired plants.

Key Institutions

The energy sector in Laos is overseen by several key institutions:

• Ministry of Energy and Mines (MEM): Responsible for policy formulation and regulation.
• Electricité du Laos (EDL): The state-owned utility company managing electricity generation and distribution.
• Various private companies involved in hydropower projects, including Nam Theun 2 Power Company and international partners like EDF and Thai entities.

Export / Import

Laos has positioned itself as a major exporter of electricity, particularly to neighboring countries like Thailand. The country exports about two-thirds of its hydropower output. The government aims to increase exports further through the development of additional hydropower projects, which are expected to generate substantial revenue.

Policy Goals

The Lao government has set ambitious goals to enhance its energy infrastructure:

• To become the “battery of Southeast Asia” by expanding hydropower capacity.
• A target of 30% of total energy production from small-scale renewable sources by 2025.
• Implementation of a Clean Energy Transportation Strategy to promote electric vehicles and reduce petroleum reliance.

Key Projects

Several significant projects are underway or planned:

• Nam Theun 2 Hydropower Project: A flagship project that has greatly contributed to the national grid and export capabilities.
• Ongoing construction of coal-fired power plants in Sekong Province, with substantial investments aimed at exporting electricity to Cambodia.
• Plans for over 50 new hydropower plants, which are expected to generate around 15,000 MW of power by 2025.

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Licensing and Regulation: Solar energy production in Laos is governed by specific regulations outlined in the Decree on Solar Energy Development. This decree mandates that:

• Commercial solar energy production requires licensing from the relevant authorities, specifically the Provincial Department of Mines and Energy for projects up to 5 MW and the Ministry of Energy and Mines for larger projects.
• Developers must submit a comprehensive application that includes site location, business plan, technical design, financial plan, environmental certificate, and operation maintenance plan.

Technical and Safety Standards: The installation and utilization of solar energy facilities must comply with technical and safety standards set by the Ministry of Energy and Mines. Regular inspections are conducted by the District Office of Energy and Mines to ensure compliance with these standards.

Electricity Law Compliance: According to the Electricity Law, solar power is subject to the same regulatory framework as other forms of electrical power. This includes government approval for all projects, with specific thresholds determining whether approvals are handled at provincial or national levels. Projects under 100 kW may not require a concession agreement but must still comply with existing laws.

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Profit Tax Exemptions: The Lao government offers profit tax exemptions for solar energy projects, which can vary from 10 to 20 years depending on the investment size and sector. This is part of the broader Investment Promotion Law aimed at attracting foreign and domestic investments in renewable energy.

Import Duty Exemptions: Solar panel producers benefit from exemptions on import duties for production machinery, equipment, and raw materials necessary for solar energy production. This initiative is designed to lower the initial investment costs for solar projects.

Income Tax Holidays: Investors in the solar sector may receive income tax holidays ranging from one to ten years, depending on the specific investment sector and location within Laos. This incentive encourages investments in areas that require socio-economic development.

Rural Electrification Fund (REF): Developers of solar energy projects can apply for financial assistance from the REF, especially if their projects are located in remote areas with no other viable electrification alternatives. This fund aims to promote renewable energy access in underserved regions.

Subsidies for Solar Home Systems: The government provides subsidies for solar home systems under the Rural Electrification Program, which helps to reduce costs for households adopting solar technology.

International Collaboration and Technical Support: The Ministry of Energy and Mines is collaborating with international organizations to develop solar energy technology and provide technical assistance for installation and operation. This includes training programs for local authorities and stakeholders involved in solar energy development.

Pricing Incentives: To promote solar energy, the government has introduced a special rate for solar power generated from experimental projects, set at $0.08 per kilowatt-hour, which is higher than the rates for hydropower. This initiative aims to make solar energy more competitive and attractive for investors.

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SAPP Solar Power Project

• Capacity: 76 MW
• Location: Attapu, Laos
• Year: Expected commercial operation in 2025
• Investor: Nvalid Precision Engineering
• Details: This ground-mounted solar project is expected to generate approximately 128,000 MWh of electricity annually, offsetting around 47,900 tons of CO2 emissions. The generated power will be sold to Electricité du Laos under a 30-year power purchase agreement for an offtake capacity of 50 MW.

EDL-GEN Lao Solar PV Park

• Capacity: 100 MW
• Location: Vientiane, Laos
• Year: Commissioned in February 2017
• Investor: EDL-Generation Public Co. and Pattana Energy Absolute Co. Ltd.
• Details: This ground-mounted solar project is owned by EDL-Generation (60%) and Pattana Energy Absolute (40%). It was developed in multiple phases and is part of Laos’s efforts to expand its renewable energy portfolio.

50 MW Solar Project

• Capacity: 50 MW
• Location: Vientiane, Laos
• Year: Operational since 2022
• Investor: Various local and international investors
• Details: This project represents one of the largest solar ventures in Laos to date, contributing significantly to the country’s energy mix and demonstrating the government’s commitment to diversifying energy sources beyond hydropower.

Floating Solar Farm

• Capacity: 240 MW
• Location: Exact location TBD
• Year: Pre-construction phase as of 2025
• Investor: EDF (Electricité de France)
• Details: This ambitious floating solar project is expected to enhance Laos’s renewable energy capacity significantly and is part of the broader strategy to utilize water surfaces for solar energy generation.

64 MW Solar Plant

• Capacity: 64 MW
• Location: Exact location TBD
• Year: Currently under construction as of 2025
• Investor: Various local developers
• Details: This project is part of the ongoing expansion of solar infrastructure in Laos, aiming to increase the share of renewable energy in the national grid and reduce reliance on hydropower.

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SolarSpace

• Headquarters: Xuzhou, China
• Website: https://www.solarspace.com/
• Details: SolarSpace recently launched a 5GW high-efficiency PV cell factory in Laos. The company employs advanced automation technologies and aims to enhance the clean energy sector in Laos while positioning itself strongly in the international market.

VL Energy Laos Company Ltd

• Headquarters: Vientiane, Laos
• Website: https://www.vlenergy.co.in/VLELCL.php
• Details: VL Energy is focused on developing renewable energy projects in Laos, with plans for up to 2000 MW of solar capacity. They have successfully initiated a project for 100 MW and are working on expanding their presence in the renewable energy market.

Gstar PTE. LTD.

• Headquarters: Vientiane, Laos
• Website: https://www.gstarsolar.com/
• Details: Gstar is establishing a 7GW photovoltaic aluminum frame and mounting system manufacturing base in Laos. This project enhances their supply chain capabilities and positions them as a significant player in the solar industry across Southeast Asia.

Indigo Energy

• Headquarters: Yangon, Myanmar
• Website: https://www.indigoenergy.net/
• Details: Indigo Energy specializes in multi-junction and PERC solar cells, emphasizing innovation and sustainability. Their focus on research and development has made them a notable contributor to the local solar market.

Solar Power Solutions

• Headquarters: Vientiane, Laos
• Website: https://www.solarpspl.com/solar-company-in-laos
• Details: Solar Power Solutions Pvt Ltd is one of leading solar installation companies in Laos, specialized in designing and implementing customized solar projects for residential, commercial, and industrial clients. They provides range of services including solar installation, manufacturing and supplying high-quality solar panels.

Indochina Energy Group

• Headquarters: Singapore / Vietnam
• Website: https://indochina-ep.com/
• Details: The Indochina Energy Group engages in various renewable energy projects, including solar initiatives aimed at increasing the share of renewables in the national grid.

SunLabob

• Headquarters: Ceredigion, United Kingdom
• Website: https://www.sunlabob.com/
• Details: Sunlabob provides full-spectrum support for renewable energy projects, from consultancy, design, training and monitoring services to supply, installation and maintenance. They’re experienced in both on and off-gridelectrification, including rooftops, solar farms as well as decentralized mini-grids.