Laos: In early 2026, Laos launched two major power transmission projects to strengthen domestic and regional electricity connectivity. The 230 kV Thavieng-Mahaxay line, which connects northern and central Laos, broke ground on 1 January under Électricité du Laos Transmission Company (EDL-T), a joint venture in which China Southern Power Grid holds a 90 % stake.
Meanwhile, the China–Laos 500 kV cross-border interconnection is entering its final stage. Designed as a high-voltage backbone for long-distance power trade, it is currently 86 % complete and will allow high-volume electricity exchange with Yunnan province, supporting seasonal stability and wider regional integration.
Laos, known for its hydropower potential along the Mekong River, produced 38.8 TWh in 2023, 76 % of its total electricity output. Despite being a net exporter, weak internal grid connectivity has forced the country to spend $177 M on seasonal imports in 2024. The 500 kV line enables two-way power flows with China, helping to reduce reliance on imports during dry periods.
Chinese investment in Laos’ grid marks a shift from infrastructure projects like the Lao–China railway to integrated power system management. Under a 2020 agreement, China holds a 90 % stake and a 25-year concession to manage transmission assets, gaining a strategic role in regional electricity flows.
This development coincides with the LTMS-PIP regional agreement, allowing Laos to export up to 200 MW of clean electricity to Thailand and Malaysia. Together, these projects reinforce Laos’ ambition to become the “Battery of Southeast Asia” while highlighting China’s growing influence over Southeast Asian power networks.
Source: China Global South Project
