Vietnam plans to import more electricity from Laos to address its projected energy shortages, Lao local media reported.

Vietnam is purchasing electricity from energy plants built by Lao and Vietnamese investors, local daily Vientiane Times on Thursday quoted Deputy Minister of Energy and Mines Daovong Phonekeo as saying.

"From now until 2025, Vietnam will purchase 3,000 MW of electricity from Laos at a price of 6.95 U.S. cents per kWh. It is expected that the amount of electricity sold to Vietnam will rise to 5,000 MW between 2026 and 2030, with the price to be re-determined," he said.

Daovong said Laos has huge potential to produce energy from hydro, solar and wind-powered plants for sale to Vietnam and Cambodia.

Laos currently has 78 hydropower plants with a combined installed capacity of 9,972 MW in operation, which greatly exceeds domestic consumption needs. There is also a coal-fired power plant, four biomass projects, and six solar power plants.

Electricity is one of Laos' main income earners, especially through sales to Thailand, Vietnam, Cambodia and Myanmar.

Meanwhile the demand for electricity in Laos grew significantly in 2019 due to the increase in the population and the growing number of factories, according to the report.

In 2019, domestic consumption was 1,222 MW, and the Lao Ministry of Energy and Mines said consumption is expected to increase to 1,800 MW between 2020 and 2025.