Australian Embassy
Lao People's Democratic Republic
Km 4, Thadeua Road, Watnak (P.O. Box 292)

Laos and Australia Partner on Sustainable Energy

Vientiane, 15 May 2023

The new Laos-Australia Sustainable Energy Partnership (LASEP) will expand cooperation to support Laos’ sustainable energy transition, with a focus on stronger planning and a greater understanding of renewable energy technology.

On 15 May, Australia’s Minister for Foreign Affairs Penny Wong, joined Laos’ Minister of Energy and Mines, H.E. Mr Phosay Sayasone to sign the Memorandum of Subsidiary Arrangement for LASEP. The signing was witnessed by Laos’ Deputy Prime Minister and Minister for Foreign Affairs, H.E. Saleumxay Kommasith.

The energy sector is pivotal to Laos’ prosperity and the Government’s aim to pursue a green economy that will advance Laos from Least Developed Country status and help achieve its climate commitments.

H.E. Mr Phosay Sayasone, said that “LASEP responds to the development needs regarding sustainable renewable energy in the Lao PDR by assisting in the form of technical capacity building to strengthen and improve understanding of policy planning in the energy sector.

H.E. Paul Kelly said that “Both countries are taking action on the energy transition to drive economic growth and build resilience to climate change. In Australia we are transforming our electricity sector, with 82% of electricity to come from renewable energy by 2030. We have a lot of experience to share in energy planning and low-emissions technology to support Laos’ energy ambitions.”

Australia’s Partnerships for Infrastructure initiative will implement LASEP with Laos’ Ministry of Energy and Mines (MEM). The expected budget for LASEP’s initial phase is A$3 million.

Reflecting our shared commitment to climate change and the energy transition, Australia has delivered preparatory activities which build on longstanding cooperation and establish strong foundations for LASEP. A recent visit to Australia and an ongoing research study are exploring Laos’ potential to develop a hydrogen industry. In 2022, Australia organised an energy roundtable between MEM and the Australian Energy Regulator and a visit to Thailand on sustainable energy development. We also supported The Australian National University to deliver a five week course for Lao officials on the grid integration of renewable energy.

Ahead of Laos’ 2024 ASEAN Chair Year, LASEP will also advance our shared commitment to work together to support ASEAN’s clean energy and climate agenda.