For people living off-grid in remote villages in Laos, solar energy offers a clean, sustainable way to bring electricity for all, and the promise to transform their lives.
Renewable energy here is the sum of hydropower, wind, solar, geothermal, modern biomass and wave and tidal energy. Traditional biomass – the burning of charcoal, crop waste, and other organic matter – is not included.
Renewable Energy Development Strategy in Lao PDR 853.47 KB. Document Summary: This strategy aims to develop new renewable energy resources which are not yet widely explored in Lao PDR to replace resources that will be exhausted in the future, also known as "non-renewable energy" (fossil fuels, coal, natural gas etc).
Expanded access to modern and affordable sources of energy and more efficient use of energy resources are needed for the Lao People''s Democratic Republic to achieve its development goals. This publication provides an overview of the country''s energy sector, examines its performance, the challenges it faces, and
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USAID supports the Ministry of Energy and Mines (MEM) to improve planning for energy generation and distribution, hydro resource development, renewable energy integration and modeling of energy systems. Improving MEM''s planning capacity supports the Government of Laos'' objectives to increase renewable energy use and promote sustainable economic development.
USAID engages MEM to strengthen its power sector policy and regulatory capacity. LES is supporting MEM''s development and implementation of a clear legal, institutional, and regulatory framework that will promote responsible and sustainable energy sector development. The tools and capacity developed by USAID will help Laos enforce its energy-related policies, laws, and regulations and promote private investment.
USAID partners with Électricité du Lao (EdL) – the state-owned enterprise controlling and managing electricity distribution in Laos – to improve their technical and financial operations through development of monitoring tools and capacity building. USAID is helping to identify and mitigate the contractual and operational challenges they face in order to increase their financial viability.
ASEAN Centre for Energy (ACE) is an intergovernmental organisation within ASEAN structure that represents the 10 ASEAN Member States'' (AMS) interests in the energy sector.
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Sunny Southeast Asia has made significant strides in solar energy, with solar farm capacity exceeding 20GW across ASEAN countries. Despite this rapid growth and ambitious renewable goals, nations in the region face diverse challenges. These range from supply chain disruptions and political dynamics to issues like anti-dumping tariffs and internal instability. Dialogue Earth explores the successes and obstacles faced by Southeast Asian nations in their journey towards sustainable energy solutions.
Cambodia aims to achieve 70% of renewable energy generation by 2030, with hydropower expected to contribute 55%. Current solar capacity stands at 432MW set to more than double to 1GW, with projections reaching 3.2GW by 2040.
The Kingdom operates eight small solar farms, ranging from 5-80MW each, with three more under construction and three others planned, the largest of which is a 225MW farm in Kampong Speu.
While Cambodia plans to expand its portfolio with large-scale solar farms, the growth of small-scale rooftop and industrial solar has been sluggish due to policy challenges. The country prohibits net metering and net billing, though recent regulatory changes aim to replace capacity charges with new tariffs in an effort to boost rooftop solar initiatives.
Despite plans to achieve carbon neutrality by 2050, Cambodia has experienced severe power shortages in recent years, affecting as many as 43% of businesses. Rooftop solar could provide a solution for industries and help transform the lives of residents across the 245 villages yet to be connected.
Chinese companies play a key role in Cambodia''s solar development. In 2018, Hengtong Optic-Electric secured the rights to build the country''s second-largest solar farm, which has a capacity of 200MW. Additionally, late last year, the China Datang Corporation announced a $600 million investment in solar and wind projects in Cambodia.
Solar PV has a longstanding history in Indonesia, dating back to the 1980s, when it was regarded as a regional pioneer. Although progress was initially slow, recent years have seen a resurgence.
In 2021, the Ministry of Energy and Mineral Resources (MEMR) identified a solar potential of 3294GW. The government set ambitious targets: 3.61GW of rooftop solar by 2025, 26.65GW of floating solar and a 4.68 GW large-scale solar power plant by 2030.
By December 2023, rooftop solar had reached only 140MW, well below the national target. Large-scale solar, per Global Energy Monitor, stood at 21MW, placing Indonesia eighth among 11 ASEAN countries.
Despite challenges, Indonesia inaugurated the Cirata floating solar plant in West Java in late 2023, with a capacity of 192MW. It is Southeast Asia’s largest and the world’s third-largest floating solar plant, a collaboration between Indonesia’s state-owned PLN and Abu Dhabi-based Masdar.
In January 2024, the MEMR revised regulations on solar power integration, removing capacity limits on rooftop systems, while implementing a quota system overseen by the ministry for feeding electricity into the PLN grid.
Laos, blessed with abundant sunshine, has significant solar energy potential. However, hydropower still dominates its renewable energy sector, accounting for about 73% of electricity generation. As of 2023, solar energy made up less than 1% of the energy mix.
The Laotian government has set ambitious goals to diversify its renewable energy portfolio. By 2030, Laos aims to achieve a combined solar and wind capacity of 1GW as part of a broader strategy to reduce dependence on hydropower and enhance energy security. However, current projections suggest it is expected to fall well short of this target.
In 2017, Laos marked a milestone in its renewable energy journey by opening its first solar farm in Vientiane with a capacity of 10MW. Building on this initial success, Laos embarked on its largest solar venture to date in 2022, with a 50MW solar project. Reports indicate that eight smaller plants are now operational across Laos, signalling a slow but steady expansion in solar infrastructure.
However, a report from Global Energy Monitor indicates that Laos'' total operational solar capacity may not be as substantial as these developments suggest. Nevertheless, significant projects are in the pipeline: a 64MW solar plant is currently under construction and a huge 240MW floating solar farm, by French energy giant EDF, is in the pre-construction phase.
In 2020, Myanmar set up a tender for 29 ground-mounted solar projects, 28 of which were won by Chinese companies totalling 1.06GW of solar power. However, following a military takeover in February 2021, all tenders in the war-torn country were cancelled by 2022, with only three projects in any phase of development.
Solar and wind contribute just 1% of domestic energy production, with ground-mounted solar accounting for 192MW, according to a 2023 World Bank Report. With the lowest electrification rate in Southeast Asia, less than half of Myanmar''s population has access to the public grid and regular power outages plague most factories. As of December 2022, 22% of Myanmar businesses had invested in off-grid power systems like solar, the World Bank''s Myanmar business survey found.
Nevertheless, ground-mounted solar projects in Myanmar are still being planned. Late last year, China signed a power-purchase agreement with Myanmar''s junta for three solar projects, developed by PowerChina Resources, totalling 90MW. Under the junta, Myanmar''s energy sector remains under strict military control.
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