VIENTIANE: The draft amended Electricity Law 2026 has been approved in principle following a seven-day legal conformity review, with the proposed legislation comprising 14 parts, nine chapters and 176 articles.
Of the 176 articles, 86 have been amended, 65 are newly created and 25 retain their original content.
The draft introduces a number of important policies and mechanisms, including the Electricity Regulatory Authority of Laos, self-supply power generation, direct electricity sales, management of concession-end periods, the Lao Grid Code, Renewable Energy Certificates, and the registration of electrical engineers and technicians.
The review meeting took place in Vientiane from Aug 17 to 23, providing an opportunity for relevant agencies and experts to examine the draft in detail and share views on legal and technical issues to ensure that the amended law is practical and effective.
Minister of Industry and Commerce Malaithong Kommasith said the Party and government consider energy to be a strategic pillar of the national economy.
He described electricity generation as the “backbone” and “main artery” supporting the stability and competitiveness of Laos’ economy, stressing the need for the legal framework governing the sector to keep pace with the rapid development of the electricity industry.
Amendment of the 2017 Electricity Law was necessary because the environment around the electricity sector has changed significantly, with new investment models, market mechanisms and emerging technologies not fully covered by the existing legislation, Malaithong said.
These include self-supply power generation and direct electricity sales, as well as preparations for managing independent power producer (IPP) projects whose concession periods are coming to an end.
The amendment also takes into account Laos efforts to reduce dependence on hydropower, diversify energy sources, and strengthen the stability and reliability of the national electricity grid.
Deputy Minister of Justice Khamphan Bounphakhom said the amendments were necessary to ensure the Electricity Law remains aligned with changes in socio-economic conditions and changing circumstances in Laos and internationally.
The meeting considered a number of important issues, including the incorporation of new business models such as Build-Lease-Transfer (BLT) and Lease-Operate-Transfer (LOT), the establishment of an energy regulatory authority, and the application of new technologies to support clean energy development and promote a green and sustainable processing industry.
The new law provides a broader legal framework for the development, regulation and use of electricity while supporting Laos’ transition towards a greener and more sustainable energy system.
Following the review, the committee responsible for amending the law will continue to examine and refine certain issues that have not yet been agreed upon. - Vientiane Times/ANN
