The Southeast Asian country of Laos has suspended electricity supply to cryptocurrency mining operations due to drought conditions and payment issues. The state-owned electricity distribution company, Électricité du Laos (EDL), made the announcement, stating that the country experienced a drought in the first half of 2023. The extreme heat resulted in higher electricity demand, while hydropower plants struggled to generate enough power.
Laos heavily relies on hydropower, with 95% of its power coming from hydropower plants. However, the drought and resulting limitations in power generation have forced EDL to suspend electricity supply to crypto mining projects. The country aims to supply electricity locally and export large volumes to Thailand in 2024, but as conditions worsen, its export capacity will be affected.
In addition to the drought, another reason for the suspension is the inability of crypto mining projects to pay their outstanding balances. The EDL employee explained that these projects have failed to meet their financial obligations, leading to the suspension of electricity supply.
It is worth noting that Laos had approved a public-private pilot for crypto mining and trading back in September 2021, aiming to attract industrial-scale miners following China’s crackdown on mining. Six companies were given permission to conduct mining operations in the country under this program.
Meanwhile, in Oman, a $370 million crypto-mining center has been launched in the Salalah Free Zone. The center, run by local company Exahertz and Dubai-based blockchain firm Moonwalk Systems, aims to capitalize on the growing interest in cryptocurrency mining.
In China, a Chinese official named Xiao Yi was sentenced to life in prison for operating a Bitcoin mining enterprise through corruption and abuse of power. Yi was found guilty of covering up the mining operations by fabricating reports and manipulating electricity consumption data.
Overall, the suspension of electricity supply to crypto mining operations in Laos highlights the challenges posed by the drought and payment issues faced by the country. It reflects the wider complexities associated with the growing crypto mining industry and its impact on energy consumption.
