The drought the country experienced in the first half of 2023 resulted in low power generation capacity of hydroelectric power plants and increased electricity demand.

Laos state-owned electricity distribution company Électricité du Laos (EDL) has announced that it will suspend electricity supply to cryptomining operations in the country, citing the difficulty of generating enough power due to drought conditions.

According to the announcement, Laos experienced drought in the first half of 2023. The extreme heat caused increased demand for electricity and made it difficult for hydroelectric power plants to produce enough power.

In addition, EDL stated that 95% of the country’s electric power is produced by hydroelectric power plants and it aims to supply electricity locally and export large amounts of electricity to Thailand by 2024. As conditions get more difficult, the country’s export capacity will also be affected.

In an interview with a local media outlet called The Laos Times, an EDL employee said that one of the reasons for suspending electricity supply to crypto mining projects was “the inability to pay their outstanding balances”.

On the other hand, the Sultanate of Oman, located in the southeast of the Arabian Peninsula, has launched a $370 million crypto mining hub. On August 22, the center opened in a special economic zone called the Salalah Free Zone. Local company Exahertz will operate the center with Dubai-based blockchain firm Moonwalk Systems.

Meanwhile, a Chinese official has sentenced his Bitcoin mining business to life in prison for corruption. On August 22, Chinese politician Xiao Yi was sentenced to prison for abuse of power and corruption. According to prosecutors, Yi covered up his mining operations by instructing departments to issue reports and adjust electricity consumption.