China is strengthening energy cooperation with Laos, signing an electricity agreement with the country, in a bid to address local long-abandoned water and electricity facilities, as well as promoting green development in both countries.

Promoted by China's National Energy Administration and the Ministry of Energy and Mines of Laos, China Southern Power Grid (CSG) signed an electricity agreement with Electricite du Laos (EDL) on Wednesday, highlighting the establishment of electricity grid interconnections in the Lancang-Mekong Region, in a move to set up a shared electricity market in the region.

Laos is rich in electricity resources, with a total installed hydropower capacity of nearly 10,000 megawatts and an average annual power generation of more than 50 billion kilowatt-hours, but its deployment capacity is seriously insufficient, thus leading to huge abandoned water and electricity facilities, Chinese Ambassador to Laos Jiang Zaidong said.