Although the government has already made significant efforts to develop hydropower projects, it is now increasing its work to ensure that Lao people can enjoy lower costs for electricity in the future.
With 40 hydropower projects currently in operation with a combined installed generation capacity of over 6,000 MW, the ratio of families with access to electricity currently stands at 90%.
“The policy of the government is to develop its electricity industry to make sure that it can contribute to the socio-economic development of the country, and to promote foreign investment in the hydropower industry,” said Minister of Energy and Mines Khammany Inthilath.
The minister admitted that the Lao people are currently using expensive currents even though the country is well-known for its capacity to generate power.
The Lao people are expected to be able to access cheaper electricity once investors have completed their concessional period and consequently transfer the projects to the Lao government for direct supervision and the manufacturing industry emerges because this will increase the amount of electricity supplied to local markets.
The government is accelerating the development of many hydropower projects and the electricity produced will not only significantly contribute to socio-economic development, but also to its march to become the battery of ASEAN and increase the number of power users.
In the middle of this year, the government announced adjustments to its power charging matrix to make sure that the price charged for electricity is more affordable than in neighbouring countries.
The six-tier price matrix included subsidised prices for families with low incomes, for populations using power economically, and for pay-as-you-go users that use a large amount of power, according to the minister, who added that the adjustments have pleased power users.
It is expected that the number of hydropower plants in operation in the country will reach over 90 by 2020.
Source: Lao News Agency