An Energy Sector Roadmap to Net zero Emissions for Lao PDR

This report outlines a strategic pathway for Lao PDR to achieve net zero emissions by 2050. It emphasizes diversifying the energy mix beyond hydropower to include solar, wind, and biomass, while implementing energy efficiency and carbon removal technologies like Direct Air Capture. The roadmap highlights the need for grid modernization, financial innovation to manage high public debt, and regional cooperation within ASEAN to ensure a sustainable energy transition.

• Lao PDR has committed to achieving net zero greenhouse gas (GHG) emissions by 2050, a goal declared during COP26 in Glasgow. To reach this, the country must transform its energy sector, which currently faces vulnerabilities due to a heavy reliance on hydropower and a dependence on fossil fuels for industry and transport.
• The 'Net Zero Scenario' developed in the roadmap projects a significant reduction in total energy demand compared to the 'Baseline Scenario', primarily through energy efficiency and a shift to cleaner fuels. In this scenario, the industrial sector is expected to become the largest energy consumer, followed by road transport.
• Achieving the Net Zero Scenario requires a substantial increase in electricity generation capacity, reaching nearly 30 GW by 2030, compared to 18 GW in the Baseline Scenario. This growth is driven by increased demand, hydrogen production, and direct air capture (DAC) processes.
• While hydropower remains the dominant energy source, the roadmap emphasizes diversifying the renewable energy mix. Solar, wind, and biomass are expected to play critical roles, with solar and wind capacity potentially expanding significantly (e.g., up to 13,000 MW of additional wind capacity).
• To offset residual emissions from waste, transport, and industrial processes, Lao PDR will need to implement carbon removal technologies. By 2050, the country must securely store over 6 million tonnes of CO‚ annually, primarily through Solid Direct Air Capture (S-DAC).
• The roadmap identifies critical infrastructure needs to support the transition, including the modernisation of the electricity grid to handle increased demand from electric vehicle (EV) adoption and the electrification of cooking and heating. Energy storage solutions, such as lithium-ion batteries and pumped storage hydro, are deemed essential for reliability.
• Lao PDR's economic stability is currently challenged by high external debt, a depreciating local currency (the Laotian Kip), and a slow recovery from the COVID-19 pandemic, which limits the available financing for sustainable energy projects.
• The report highlights a severe gap in clean cooking access, with only 9% of the population having access to clean cooking solutions in 2022. Most households (97% in 2018) rely on biomass stoves, creating health and environmental risks.
• The roadmap proposes several supply-side interventions for the industrial sector by 2050, including meeting 30% of process heat requirements through electricity, 30% through biomass, 30% through biomethane, and 10% through hydrogen.

APA

Stockholm Environment Institute (n.d.). An Energy Sector Roadmap to Net zero Emissions for Lao PDR. https://leap.sei.org/documents/ACCEPTIILao2025.pdf

Chicago

Stockholm Environment Institute. An Energy Sector Roadmap to Net zero Emissions for Lao PDR. n.d. https://leap.sei.org/documents/ACCEPTIILao2025.pdf.

Wikipedia

{{cite report |author=Stockholm Environment Institute |title=An Energy Sector Roadmap to Net zero Emissions for Lao PDR |url=https://leap.sei.org/documents/ACCEPTIILao2025.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{stockholmenvironmentinstitutendenergy, author = {{Stockholm Environment Institute}}, title = {{An Energy Sector Roadmap to Net zero Emissions for Lao PDR}}, institution = {Stockholm Environment Institute}, url = {https://leap.sei.org/documents/ACCEPTIILao2025.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }