Lao PDR (Laos) is transforming its energy and transport sectors through clean energy policies and promoting electric vehicles (EVs). In 2023, the country’s electricity landscape features a generation mix dominated by hydropower and significant cross-border energy exchanges. The emerging EV ecosystem signals a critical infrastructure transition. Our analysis reveals that EV adoption could increase electricity demand by ~2.2 times by 2055, potentially straining the current system. However, this shift offers substantial benefits, including reduced fossil fuel dependence, potential fuel import savings that can compensate for electricity imports, and lower carbon emissions. To address Laos’ energy transition challenges, policymakers should focus on improving regional transmission capacity and developing strategic EV adoption plans.