Why did Laos suspend electricity supply to crypto mining projects?

Laos suspended electricity supply to crypto mining projects primarily due to drought conditions that have severely impacted hydropower generation, which accounts for 95% of the country's electricity. The extreme heat increased local electricity demand, making it difficult for hydropower plants to meet both local needs and export commitments.

How does the drought affect Laos's electricity generation?

The drought has led to reduced water levels in reservoirs, which directly affects the output of hydropower plants. As these plants struggle to generate sufficient power, the government must prioritize local consumption and exports, resulting in the suspension of electricity supply to less critical sectors like crypto mining.

What are the implications for crypto mining companies in Laos?

Crypto mining companies in Laos face significant operational challenges due to the suspension of electricity supply. They must either find alternative energy sources or halt operations until power is restored. Additionally, companies with outstanding balances may face further complications in resuming their activities.

What percentage of Laos's power is generated from hydropower?

Approximately 95% of Laos's electricity is generated from hydropower. This heavy reliance on hydropower makes the country particularly vulnerable to fluctuations in water availability caused by droughts, impacting both local consumption and export capabilities.

What was the government's stance on crypto mining before the suspension?

Before the suspension, the Laotian government had authorized a public-private pilot program in 2021 to explore crypto mining and trading. This initiative aimed to attract industrial-scale miners relocating from China due to regulatory crackdowns, allowing six companies to operate mining activities in Laos.

What future plans does Laos have for its electricity exports?

Laos plans to enhance its electricity export capacity, particularly to Thailand, by 2024. However, this ambition may be hindered by ongoing drought conditions that affect power generation. The government is focused on balancing local needs with export opportunities while managing environmental challenges.

Why did Laos suspend electricity supply to crypto mining projects?

Laos suspended electricity supply to crypto mining projects primarily due to drought conditions that have severely impacted hydropower generation, which accounts for 95% of the country's electricity. The extreme heat increased local electricity demand, making it difficult for hydropower plants to meet both local needs and export commitments.

How does the drought affect Laos's electricity generation?

The drought has led to reduced water levels in reservoirs, which directly affects the output of hydropower plants. As these plants struggle to generate sufficient power, the government must prioritize local consumption and exports, resulting in the suspension of electricity supply to less critical sectors like crypto mining.

What are the implications for crypto mining companies in Laos?

Crypto mining companies in Laos face significant operational challenges due to the suspension of electricity supply. They must either find alternative energy sources or halt operations until power is restored. Additionally, companies with outstanding balances may face further complications in resuming their activities.

What percentage of Laos's power is generated from hydropower?

Approximately 95% of Laos's electricity is generated from hydropower. This heavy reliance on hydropower makes the country particularly vulnerable to fluctuations in water availability caused by droughts, impacting both local consumption and export capabilities.

What was the government's stance on crypto mining before the suspension?

Before the suspension, the Laotian government had authorized a public-private pilot program in 2021 to explore crypto mining and trading. This initiative aimed to attract industrial-scale miners relocating from China due to regulatory crackdowns, allowing six companies to operate mining activities in Laos.

What future plans does Laos have for its electricity exports?

Laos plans to enhance its electricity export capacity, particularly to Thailand, by 2024. However, this ambition may be hindered by ongoing drought conditions that affect power generation. The government is focused on balancing local needs with export opportunities while managing environmental challenges.

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Laos halts electricity supply to crypto mining projects amid drought

August 11, 2025August 11, 2025

Laos state-owned electricity distribution business Électricité du Laos (EDL) has actually announced that it will suspend electrical energy supply to crypto mining operations in the country, pointing out various reasons such as the battle to generate adequate power amidst dry spell conditions.According to the announcement, Laos experienced drought in the first half of 2023. The extreme heat resulted in higher need for electricity and triggered hydropower plants to struggle to generate adequate power. Official announcement of suspension of electrical power supply to crypto mining jobs. Source: Électricité du LaosApart from this, the EDL said that hydropower plants produce 95% of the nations power, and it intends to provide electricity locally and export big volumes to Thailand in 2024. The countrys export capacity will likewise be affected as conditions end up being more extreme. In an interview with a regional media outlet, the Laotian Times, an EDL staff member said that another reason for the suspension of supply for crypto mining tasks is their failure to “pay their outstanding balances.” On Sept. 11, 2021, the Laotian government authorized the public-private pilot to explore crypto mining and trading. The relocation intends to take advantage of Chinas crackdown on mining, leading to industrial-scale miners attempting to find a different location for operations. At the time, six companies had actually been allowed to conduct mining operations in Laos as part of the program. Related: Laos federal government apparently focuses on blockchain technology for digital transformationIn other news, the Sultanate of Oman, a nation located on the southeastern coast of the Arabian Peninsula, has released a $370 million crypto-mining center. On Aug. 22, the center was opened in a special financial zone called the Salalah Free Zone. A local business, Exahertz, will run the center with the Dubai-based blockchain firm Moonwalk Systems. Meanwhile, a Chinese authorities was sentenced to life in jail for corruption in running a Bitcoin mining business. On Aug. 22, Xiao Yi, a Chinese politician, was given a prison sentence for abuse of power and corruption. According to district attorneys, Yi concealed the mining operations by instructing departments to produce reports and change the electrical energy consumption. Gather this article as an NFT to preserve this moment in history and show your assistance for independent journalism in the crypto space.Magazine: Chinas 180M digital yuan airdrop, Devastation in Turkey, Laos CBDC: Asia Express

Laos state-owned electricity distribution business Électricité du Laos (EDL) has actually revealed that it will suspend electrical energy supply to crypto mining operations in the nation, pointing out various factors such as the battle to produce enough power in the middle of drought conditions.According to the announcement, Laos experienced drought in the first half of 2023. Main statement of suspension of electricity supply to crypto mining jobs. At the time, 6 business had actually been permitted to carry out mining operations in Laos as part of the program.

Other Questions People Ask

What led to Laos halting electricity supply to crypto mining projects amid drought?

Laos has suspended electricity supply to crypto mining operations primarily due to severe drought conditions affecting hydropower generation. The Électricité du Laos (EDL) reported that the country faced significant challenges in producing enough power, as hydropower plants, which generate 95% of the nation's electricity, struggled under extreme heat and increased demand. Additionally, some mining operations failed to settle their outstanding electricity bills, further complicating the situation.

How does the drought impact Laos's ability to support crypto mining projects?

The ongoing drought in Laos has severely limited the capacity of hydropower plants, which are crucial for electricity generation in the country. With the first half of 2023 experiencing extreme weather, the EDL announced that it could not sustain electricity supply for crypto mining projects. This situation not only affects local mining operations but also threatens Laos's plans to export electricity to neighboring countries like Thailand in 2024.

What are the implications of Laos's decision to halt electricity supply for crypto miners?

The suspension of electricity supply to crypto mining projects in Laos signifies a strategic shift in energy management amid environmental challenges. It highlights the government's prioritization of local electricity needs and export capabilities over supporting the crypto industry. As a result, miners may need to seek alternative locations or adapt their operations to comply with new regulations and energy availability.

What role did Électricité du Laos play in the suspension of power to crypto mining operations?

Électricité du Laos (EDL) is at the forefront of the decision to halt electricity supply to crypto mining projects, citing both environmental and financial reasons. The EDL emphasized that the drought has made it increasingly difficult to generate sufficient power, while also noting that some mining companies have not paid their outstanding balances. This dual concern has prompted EDL to prioritize local energy needs over the demands of the crypto sector.

How might Laos's energy strategy evolve following the suspension of crypto mining electricity supply?

Following the suspension of electricity supply to crypto mining projects, Laos may focus on enhancing its energy strategy to better manage resources during drought conditions. The government is likely to prioritize local consumption and explore alternative energy sources or technologies that can mitigate the impact of climate change on hydropower generation. Additionally, as Laos aims to increase its electricity exports, it may reassess its approach to crypto mining and other energy-intensive industries in light of sustainability goals.

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