Crypto Mining Surge and Erratic Weather Strain Laos' Power Grid

A report released on May 16 highlights how increased electricity consumption due to crypto mining and inconsistent rainfall have led to power shortages in Laos, challenging its goals as a hydropower exporter in Southeast Asia.

Reuters: Increased Crypto Mining Strains Laos’ Hydropower Grid

Laos, often called the “battery of Southeast Asia” for its extensive hydropower capacity, depends heavily on hydropower for its electricity. However, Reuters reported on Thursday that heightened demand from bitcoin mining, which allegedly uses more than a third of the nation’s power, coupled with reduced rainfall, has strained the power grid.

Somboun Sangxayarath, an advisor at Electricite Du Laos (EDL), noted in the Reuters’ report that the country has been importing more electricity to meet demand, significantly raising costs for the state-run utility. The report also mentions that Laos is working to increase its hydropower capacity by 720 megawatts by the end of next year and aims to diversify its energy sources.

To mitigate the effects of erratic rainfall, Reuters detailed that the government plans to boost the share of non-hydro generation to 30% by 2025, up from the current 20%. Since the fifties, there has been a threefold increase in extreme rainfall events (over 150 mm in a single day) in Laos. Moreover, the trend of crypto mining activities in Laos began gaining significant traction in 2021.

What do you think about the reports that say crypto mining and heavy rainfall has been putting a strain on the grid in Laos? Share your thoughts and opinions about this subject in the comments section below. #Write2Earn