Laos, designated by the United Nations as a least developed country (LDC), faces both environmental and economic vulnerability. However, the increasing presence of hydroelectric power in the region is freeing the country of its dependence on China for imported power. Laos hydro power projects like Nam Long allow for economic diversification and inclusive financial growth, providing opportunities for new jobs and poverty alleviation. The Nam Long Hydropower project is located in northern Laos, sharing a northern border with China. On a tributary of the Mekong River, this 5 MW run-of-river (ROR) hydropower project supplies electricity to the local grid. ROR electricity is a type of renewable power that provides little or no water storage, ideal for rivers or streams that can sustain a minimum flow. The project adds to the region’s energy security and reduces the supply gap to provide enough electricity to support the area’s demand.
As with most hydropower projects, this project displaces power generation that would otherwise be provided by fossil fuel based sources such as coal, reducing CO2 emissions. Reduced coal combustion also avoids regional air and water pollutants such as sulfur dioxide and mercury. Other associated co-benefits, such as the creation of construction jobs and ongoing employment, were seen with the project start. General infrastructure improvements to the region, including reliable baseload power supply, also promotes sustainable development.
The project was developed and launched in 2013 by Climate Bridge Ltd. and Nam Long Hydropower Co., Ltd. Numerous stakeholder consultation meetings were held at the project site, and community members had frequent opportunities to listen to project operation reports and review the project contribution to the surrounding area. Stakeholders recognized the project’s contribution to local development and supported the project crediting period renewal in 2021. The project did not receive any grant funding or special incentives, and its validation process determined through an investment analysis that the project was not attractive without revenue from the sale of carbon credits.
PROJECT TYPE: Small scale Hydropower
LOCATION: Lao People’s Democratic Republic
STANDARD: Gold Standard
RELATED SUSTAINABLE DEVELOPMENT GOALS (SDGs): This project contributes directly to the achievement of the Sustainable Development Goals (SDGs) set by the United Nations:
The United Nations’ Sustainable Development Goals (SDGs) are an urgent call for action by countries in global partnership to end poverty, protect the planet, and ensure that by 2030 all people enjoy peace and prosperity.
Co-benefits
By harnessing hydropower, this project significantly decreases the region’s reliance on fossil fuels like coal, contributing to a reduction in carbon emissions.
The construction of the project created job opportunities for local residents, with some long-term positions provided to local people to maintain the hydropower project during operation.
During construction, stakeholder comments requested that the project owner improve local road conditions for both construction transportation and to benefit the community long term. Since the project began, roads have been paved to improve transportation access for the community.
The project owner installed a clean water supply system. A total of 8 pumps were installed in the villages, ensuring access to water for over 231 households with a population of 1,045 people.
