Hydropower comprises the majority of power development in Lao PDR due to the country’s large potential. Lao PDR has modest targets for non-large hydro RE to be achieved by 2025 and no purchasing tariffs for RE power, and the country has just begun to develop solar power which can contribute to achieving its existing renewable energy targets. The Ministry of Energy and Mines intends to adopt a national solar target following a solar auction and analysis of the value of solar in displacing imports.
Lao PDR also has significant renewable energy potential, but with 98 percent of current generation based on large hydropower dams, significant efforts will be needed to introduce alternative generation technologies. Domestic demand has been increasing on average 15 percent per year, partially driven by growing access to the grid, increasing from 36 percent in 2000 to 91% in 2016 and a renewable energy strategy developed in 2011 includes a 30 percent renewable energy target. In the coming year, the Ministry of Mines and Energy intends to adopt a national solar target following a solar auction and analysis of the value of solar in displacing imports.