Laos plans to pull plug on crypto miners by early 2026

By Sudarshan Varadhan and Ashley Tang KUALA LUMPUR (Reuters) -Laos is considering halting electricity supply to cryptocurrency miners by the first quarter of 2026, as it seeks to redirect domestic power to industries that contribute more to economic growth, the country's deputy energy minister told Reuters. Crypto operators, drawn by cheap non-fossil energy, flocked to the landlocked Southeast Asian nation following a 2021 policy shift that triggered a rapid expansion in mining activity. But the government now aims to prioritise power for sectors such as AI data centres, metals refining and electric vehicles, its deputy energy minister Chanthaboun Soukaloun said on Thursday. Laos has already begun scaling back supply to crypto miners, who currently consume around 150 megawatts of electricity, down 70% from a peak of 500 MW in 2021 and 2022, Soukaloun said. BETTER VALUE FOUND ELSEWHERE "Crypto doesn't create value compared to supplying it to industrial or commercial consumers. We proposed to the government in 2021 to supply to crypto mining due to the oversupply of electricity domestically," Soukaloun told Reuters, adding that the industry creates few jobs and does not have a supply chain that benefits the economy. Soukaloun said that Laos had initially planned to end supply this year, but continued due to abundant rainfall that boosted hydropower output and enabled increased exports to neighbouring Thailand and Vietnam. "I think by the end of the first quarter of 2026, we might stop (supply to crypto) entirely," he said on the sidelines of the ASEAN energy ministers meeting. Reuters was unable to find associations representing the crypto mining industry, or ascertain which miners operate there. Laos, often dubbed the "battery of Southeast Asia" for its hydropower export potential, plays a key role in the region’s clean energy transition. Hydropower exports are crucial for decarbonising neighbouring countries that face challenges scaling up solar and wind. Laos, which exports most of its hydropower to independent power producers in cross-border deals with Thailand and Vietnam, is considering further increasing its bilateral export capacity to Vietnam from 8,000 MW currently, Soukaloun said. CHINA ARBITRATION, EXPORTS TO SINGAPORE Soukaloun said Laos has had bilateral talks with China about an arbitration suit filed by a unit of state-owned Power Construction Corp of China against its state utility Electricite du Laos (EDL), seeking $555 million in unpaid dues from its $2.73 billion hydropower project. "It's their right to do so (sue) under the power purchase agreement. We have to move on until the process is completed or unless the claimant withdraws the claim," Soukaloun said. He declined to comment on whether Laos had sought a revision of the claims, citing confidentiality, but said the dues stemmed from a mismatch between projected and actual demand. Laos also expects exports to Singapore through the Lao-Thailand-Malaysia-Singapore (LTMS) power transmission corridor to "resume soon," Soukaloun said, without providing further details. Exports through the corridor had been halted as Thailand is yet to finalise terms of an extension to the deal, Thai and Singapore authorities said last year. On Thursday, the four countries issued a joint statement reaffirming their commitment to continue advancing multilateral cross-border power trade and continue discussions, but did not specify when exports would resume. (Reporting by Sudarshan Varadhan and Ashley Tang, Editing by Louise Heavens)

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