Laos is about to cut off electricity for cryptocurrency mining, prioritizing AI and electric vehicles

From early 2026, Laos will stop supplying electricity to cryptocurrency mining activities to focus energy on higher-value industries such as AI, metal refining, electric vehicles and electricity exports.

The cryptocurrency industry creates few jobs and does not create a supply chain that benefits the Lao economy - Photo: REUTERS

On October 16, Reuters news agency quoted Lao Deputy Energy Minister Chanthaboun Soukaloun as saying that the country plans to stop supplying electricity to cryptocurrency mining in the first quarter of 2026, in the context that Vientiane seeks to redirect electricity to industries that contribute more to economic growth.

“Cryptocurrencies don’t create value compared to providing to industrial or commercial consumers… I think by the end of the first quarter of 2026, we could stop (providing to cryptocurrencies) completely,” Mr. Soukaloun said.

Laos had initially planned to cut off power supplies this year, but continued as abundant rainfall helped boost hydropower output and allowed increased exports to neighboring Thailand and Vietnam, according to the Lao deputy minister.

Cryptocurrency mining has boomed in Laos following a policy change in 2021, consuming about 500 megawatts of electricity in 2021-2022.

Mr. Soukaloun said the electricity supply for cryptocurrency mining at that time was due to a domestic oversupply. However, the industry created few jobs and did not create a supply chain that benefited the economy.

Instead, Laos wants to prioritize electricity for sectors such as data centers, artificial intelligence (AI), metal refining, electric vehicles and electricity exports.

Laos, often called the “battery of Southeast Asia” for its hydropower export potential, is key to the region’s clean energy transition, playing a key role in offsetting carbon emissions for neighboring countries struggling to scale up solar and wind power.

The country exports most of its hydropower to independent power producers through cross-border agreements with Thailand and Vietnam. Laos is considering increasing bilateral exports to Vietnam from the current 8,000 MW, according to Mr. Soukaloun.

Laos also expects exports to Singapore via the Laos-Thailand-Malaysia-Singapore (LTMS) power transmission corridor to "resume soon." Last year, Thai and Singaporean authorities said exports via the corridor had been suspended as Thailand had yet to finalize terms for extending the agreement.

TRAN PHUONG

Source: https://tuoitre.vn/lao-sap-cat-dien-cho-dao-tien-ao-uu-tien-cho-ai-va-xe-dien-20251016225237528.htm