The state-owned <a href="https://ultramining.com/news/en/crypto-mining-with-flare-gas-a-green-solution-or-environmental-setback/">electricity</a> distribution company of Laos, Électricité du Laos (EDL), has suspended power supply to cryptocurrency mining operations in the country. The announcement comes amid a severe drought that hit Laos in the first half of 2023. The extreme heat has ramped up <a href="https://ultramining.com/news/en/crypto-mining-with-flare-gas-a-green-solution-or-environmental-setback/">electricity</a> demand, putting pressure on the country's hydropower plants which generate 95% of the nation’s <a href="https://ultramining.com/news/en/crypto-mining-with-flare-gas-a-green-solution-or-environmental-setback/">electricity</a>, according to <a href="https://cointelegraph.com/news/laos-halts-crypto-mining-electricity-amid-drought">cointelegraph</a>. 
This move comes as a jolt, especially after the Laotian government had approved a public-private pilot for crypto mining and trading on September 11, 2021. The initiative was an effort to take advantage of <a href="https://ultramining.com/news/en/immersion-cooling-transforms-chinas-crypto-mining-landscape/">China</a>'s crackdown on crypto mining. Six companies had previously been permitted to run mining operations in Laos under this program. 
According to an EDL employee, inability to clear "outstanding balances" is another reason for the suspension of power supply to crypto mining projects. The company had previously aimed to export large volumes of <a href="https://ultramining.com/news/en/crypto-mining-with-flare-gas-a-green-solution-or-environmental-setback/">electricity</a> to Thailand by 2024, a goal that now seems jeopardized. 
The abrupt change in policy casts doubt on Laos’ strategy to balance emerging technologies with urgent infrastructural needs. The government had even incentivized energy consumption for crypto mining, setting a minimum usage of 10 megawatts and offering exemptions on <a href="https://ultramining.com/news/en/crypto-mining-with-flare-gas-a-green-solution-or-environmental-setback/">electricity</a> transmission fees and import taxes. Now, however, the focus is shifting. 
EDL is re-strategizing to bolster local <a href="https://ultramining.com/news/en/crypto-mining-with-flare-gas-a-green-solution-or-environmental-setback/">electricity</a> supplies and also earmark large volumes for export to Thailand’s <a href="https://ultramining.com/news/en/crypto-mining-with-flare-gas-a-green-solution-or-environmental-setback/">Electricity</a> Generating Authority in 2024. The pivot follows the government’s acknowledgment of unmet debt obligations within the crypto-mining sector. The situation raises questions about Laos' ability to provide consistent <a href="https://ultramining.com/news/en/crypto-mining-with-flare-gas-a-green-solution-or-environmental-setback/">electricity</a> supply to both its domestic population and foreign markets, while also leveraging new technologies for economic growth. 
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Laos Halts Crypto Mining Amid Energy Crisis and Unpaid Debts

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