Onshore wind and solar PV to drive renewables development in Laos

Laos is looking to move away from coal-based power generation, with a focus on renewables development, especially onshore wind and solar PV.  The southern region of the country, encompassing the provinces of Sekong, Attapeu, and Champasak, boasts significant wind energy potential. The solar potential is also at estimated at 4.4 kWh per square meter per day, which translates to approximately 1,800 to 2,000 hours of sunlight annually. Against this backdrop, onshore wind power and solar PV are expected to drive growth in Laos’ renewable power capacity, which is forecast to increase to 9.8GW by 2035 at a compound annual growth rate (CAGR) of 17.1% during 2025–35, according to GlobalData.

GlobalData’s latest report, Laos Power Market Trends and Analysis by Capacity, Generation, Transmission, Distribution, Regulations, Key Players and Forecast to 2035, shows that in 2025, onshore wind constituted for nearly 74.3% of Laos’ total renewable power capacity, followed by solar PV accounting for 12.8% share. Onshore wind is projected to increase from 1.5GW in 2025 to 5.1GW in 2035, whereas solar PV capacity is expected to increase from 0.3GW in 2025 to 4GW in 2035.

Attaurrahman Ojindaram Saibasan, Power Analyst at GlobalData, comments: “Onshore wind will play a key role in the country’s renewable development. Following the introduction of onshore wind into Laos’ capacity mix in 2025, with the launch of three wind power plants, the share of renewables increased from 2.6% in 2024 to 14.1% in 2025. However, hydropower is expected to continue to play an important role in the country’s electricity generation mix.”

Despite the potential for solar power development, the geography of Laos poses challenges for the implementation of large-scale, ground-mounted solar projects due to spatial constraints.  However, developing floating solar installations on reservoirs utilized for hydropower generation provides an opportunity for solar power capacity expansion.

Saibasan concludes: “Laos aims to achieve a 75% share of hydropower and an 11% share of variable renewables (specifically solar and wind) by 2030. The country plans to increase its hydropower capacity by an additional 13GW by 2030 and has set a conditional target of achieving 1GW of total solar and wind capacity and 300MW of biopower capacity by the same year. These targets are expected to bolster renewable growth.”