Laos stops power supply to cryptocurrency mining businesses

Cryptocurrency machines in Champasack province. (Photo: AIF Group)

Electricite du Laos (EDL) has announced that it will no longer supply electricity to cryptocurrency mining operations in Laos, local media reported.

The notice, issued by EDL on August 24, states that Laos experienced drought conditions during the first six months of 2023, with extreme heat causing high electricity demand, while hydropower plants struggled to generate enough electricity.

According to EDL, 95% of the nation’s electricity is generated by hydropower plants through its system, and it plans to supply electricity locally, as well as export large volumes to the Electricity Generating Authority of Thailand (EGAT) to supply the Thai power grid through the upcoming dry season in 2024.

The Governor of EGAT said that if the drought in Laos becomes severe, hydropower plants in Laos will generate less electricity, reducing export capacity.

Meanwhile, Lao authorities said that cryptocurrency mining operations have failed to repay mounting debts.

In September 2021, the government of Laos authorised six companies to trade and mine cryptocurrencies to trial mining and trading cryptocurrencies such as Bitcoin, Ethereum, and Litecoin./.

VNA