A report published on May 16 highlights the challenges faced by Laos as increased electricity consumption from crypto mining and inconsistent rainfall patterns have caused power shortages, impacting its role as a hydropower exporter in Southeast Asia.

Reuters reported on Thursday that Laos, known as the "battery of Southeast Asia" due to its extensive hydropower capacity, heavily relies on hydropower for its electricity. However, heightened demand from bitcoin mining, which allegedly consumes more than a third of the nation’s power, combined with decreased rainfall, has strained the power grid.

According to Somboun Sangxayarath, an advisor at Electricite Du Laos (EDL), the country has been forced to import more electricity to meet demand, significantly increasing costs for the state-run utility. Laos aims to increase its hydropower capacity by 720 megawatts by the end of next year and diversify its energy sources.

To address the impact of erratic rainfall, the government plans to increase the share of non-hydro generation to 30% by 2025, up from the current 20%. Laos has seen a threefold increase in extreme rainfall events since the fifties, with over 150 mm of rainfall in a single day. Crypto mining activities in Laos gained significant traction in 2021.

What are your thoughts on reports indicating that crypto mining and heavy rainfall are straining the grid in Laos? Share your opinions in the comments sectioA report published on May 16 highlights the challenges faced by Laos as increased electricity consumption from crypto mining and inconsistent rainfall patterns have caused power shortages, impacting its role as a hydropower exporter in Southeast Asia.

Reuters reported on Thursday that Laos, known as the "battery of Southeast Asia" due to its extensive hydropower capacity, heavily relies on hydropower for its electricity. However, heightened demand from bitcoin mining, which allegedly consumes more than a third of the nation’s power, combined with decreased rainfall, has strained the power grid.

According to Somboun Sangxayarath, an advisor at Electricite Du Laos (EDL), the country has been forced to import more electricity to meet demand, significantly increasing costs for the state-run utility. Laos aims to increase its hydropower capacity by 720 megawatts by the end of next year and diversify its energy sources.

To address the impact of erratic rainfall, the government plans to increase the share of non-hydro generation to 30% by 2025, up from the current 20%. Laos has seen a threefold increase in extreme rainfall events since the fifties, with over 150 mm of rainfall in a single day. Crypto mining activities in Laos gained significant traction in 2021.

What are your thoughts on reports indicating that crypto mining and heavy rainfall are straining the grid in Laos? Share your opinions in the comments section below.n below.