The Nam Ngum 1 power station supplied the majority of electricity used in Laos until the end of the 20th century, and also exported energy to Thailand.
The reservoir was logged by divers using underwater cutting gear several years after inundation and a fishing industry also developed around the lake.
[citation needed] There are sixteen hydro power projects in Laos that use dams to store or divert water for electricity generation.
The dam and reservoir store water for the 1,070 MW Nam Theun 2 Project, the largest power plant in Laos in terms of generating capacity.
[6] In 2012 construction began on the 1,285 MW Xayaboury hydroelectricity power plant, the first dam to be built in Laos on the mainstream of the Mekong River.
However, both the Xayaboury and Don Sahong Dams have attracted international attention due to the trans-boundary effects of the Mekong River on people and the environment downstream in Cambodia and Vietnam.
Proponents argue that the dams provide a sustainable source of foreign currency vital for economic growth, achieved primarily by selling electricity to neighbouring Thailand.
Opponents argue that local people who suffer upheaval never get properly compensated, that flooding and water diversion adversely affect the environment, and that projects can end up less profitable than expected due to silting and/or market changes.