Électricité du Laos (EDL), the state-owned electricity distribution firm in Laos, has declared that it will cease electricity delivery to crypto mining activities in the country, citing numerous reasons such as the inability to generate enough power during drought circumstances.

According to the announcement, drought has hit Laos in the first half of 2023. The excessive heat increased demand for electricity, causing hydropower generators to struggle to provide adequate power.

Aside from that, the EDL stated that hydropower facilities contribute 95% of the country's power and that it intends to deliver electricity locally while also exporting substantial amounts to Thailand by 2024. As the situation worsens, the country's export capacity would suffer as well.

An EDL employee told the Laotian Times in an interview that another reason for the suspension of supply for crypto mining operations is their inability to "pay their outstanding balances."

The Laotian government approved a public-private pilot to investigate crypto mining and trading on September 11, 2021. The effort intends to capitalize on China's mining crackdown, which has resulted in industrial-scale miners looking for a new location for operations.

As part of the scheme, six companies were allowed to conduct mining activities in Laos at the time.

Sources:

https://cointelegraph.com/news/laos-halts-crypto-mining-electricity-amid-drought

https://www.cryptopolitan.com/laos-cuts-electricity-to-miners-amid-drought/

https://tokenist.com/laos-suspends-electricity-for-crypto-miners-amid-drought-missed-payments/

https://edl.com.la/announce_Post.php?id=64&fbclid=IwAR1Yqq3OJ4HuqE7IYf7mumEPGCsutOBHDJhDr9vzVQTLlvmBlybeNyouFag