State-owned electricity distribution company Électricité du Laos (EDL) announced that it will suspend electricity supply to crypto mining operations in the country. The decision comes as a result of various factors, including the struggle to generate enough power due to drought conditions.
Laos experienced a drought in the first half of 2023, which led to higher demand for electricity as extreme heat prevailed. Unfortunately, this increased demand placed a burden on hydropower plants, making it difficult for them to generate enough power. As a result, EDL decided to suspend electricity supply to crypto mining projects.
The suspension is also attributed to the fact that hydropower plants currently generate 95% of the country’s power. The objective for EDL is to supply electricity locally and export large volumes to Thailand in 2024. However, as the conditions worsen, the country’s export capacity will also be affected.
An EDL employee mentioned in an interview with local media outlet Laotian Times that another reason for the suspension is the failure of crypto mining projects to pay their outstanding balances. It seems that these operations have fallen behind on their payments, contributing to EDL’s decision to halt their electricity supply.
It is worth noting that this development comes after the Laotian government approved a public-private pilot program in September 2021, allowing crypto mining and trading activities in the country. This decision was made as China cracked down on mining activities, leading many industrial-scale miners to seek alternative locations. Six companies were granted permission to conduct mining operations in Laos as part of this program.
In other news, the Sultanate of Oman has recently launched a $370 million crypto-mining center in the Salalah Free Zone. The center, operated by local company Exahertz and Dubai-based blockchain firm Moonwalk Systems, aims to capitalize on the growing interest in crypto mining.
Meanwhile, a Chinese official named Xiao Yi was sentenced to life in prison for corruption related to a Bitcoin mining enterprise. Yi was found guilty of abusing his power and engaging in corrupt practices. Prosecutors revealed that he had instructed departments to fabricate reports and manipulate electricity consumption to cover up the mining operations.
In conclusion, Électricité du Laos has decided to suspend electricity supply to crypto mining projects due to the struggles faced by hydropower plants in generating enough power amid drought conditions. This development highlights the challenges faced by the crypto mining industry in certain regions and the importance of sustainable power sources. Meanwhile, other countries like Oman continue to embrace and invest in the crypto mining sector, while China cracks down on illegal mining activities.
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