Anousak PHONGSAVATHDeputy Director General

Research Institute of Energy and Mines (RIEM)

Ministry of Energy and MinesE-mail: anousak_pv@yahoo.com and anousakp@laotel.com

Tel: +856 20 555 09714.

POLICY OF RENEWABLE ENERGY PROMOTIONAND RURAL ELECTRIFICATION IN LAO PDR

CONTENTS

1. OVERVIEW

2. DEVELOPMENT PROJECTS

3. EXPERIENCES AND LESSONS

LEARN

4. SUMMARY

Government has systematically advanced the process of industrialization and modernization of Lao PDR following the liberation in 1975

• 1986 - policy to steer from centrally planned system to market based economy. Subsequently Govt. introduced development programs anchored by ambitious targets – National Growth and Poverty Eradication Strategy (NGPES)

– Periodic National Socioeconomic Development Plans (2001-2005-2010)

• Targeted poverty alleviation projects in 47 poorest districts

• Graduate from the Least-Developed Country grouping by 2020

3

OVERVIEW

• PRIORITY TO ALTERNATIVE/RE ENERGY

DEVELOPMENT FOR: SOCIAL ASPIRATIONS AND

MICRO/ MACRO ECONOMIC DEVELOPMENT;

• MAINTAIN AND EXPAND AN AFFORDABLE,

RELIABLE AND SUSTAINABLE ENERGY SUPPLY;

• PROMOTE ENERGY FOR EXPORT TO GENERATE

REVENUE TO MEET DEVELOPMENT OBJECTIVES

GOL POLICY APPROACHES

Provide reliable, affordable and sustainable

electricity to sustain economic growth and

poverty alleviation

– Hydropower Development

• Sustain economic growth

• export for revenue earning

– Expand access to electricity services

• to 70% (>73%) of households by 2010

• to 90% of households by 20205

POLICIES AND PRIORITIES FOR THE POWER SECTOR

Solar+ Wind 106 MW

Solar 33 MW

Wind 73 MW

SHP

400 MW

Bio-Energy

Biomass Biogas Waste

58 MW 51 MW 36 MW

113 ktoe 178 ktoe -

Biofuels (ML)

•Ethanol 150

• Biodiesel 300

Renewable Energy Development Plan

Financial

Incentive for

Investors

Renewable Energy Strategy Development (2011-2025)

Develop and Modify

Legal documents (laws,

regulations and guidelines)

Target: increase RE use to 30 % (of national demand) by 2025 (bio-fuel production

to account 10 %)

0%

10%

20%

30%

40%

50%

60%

70%

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

1993 1995 1997 1999 2001 2003 2005 2007 2009*

Households electrified Rate of Electrification

15%

65%

Source: Ministry of Energy and Mines, Lao PDR, and Électricité du Laos7

HISTORICAL RURAL ELECTRIFICATION

- fast expansion of access to electricity

Historical Information

- Rural Electrification

Projects (Off-Grid)

Project: SPRE Project: REPIJICA

Installed of 10,000 hh

Installed of 660 hh

Installed of 4,600 hh

Installed of 15,000 hh

Installation totally of 30,260 HHs

Project: REPII

1998 2001 2007 2012

5

9

Implementation and Management System

Users

VEMs

PESCOs

VEAC

PDEM

IREP/VOPS

MEM

FINANCIAL PROCEDURE

Soft loanRepayment

Account

IREP/MEM Bank

Equipment

ESCO

VEAC VEM VEACVEM

Consumers Consumers

Check

Accessory

incentive

incentiveincentive

VOPS

DEVELOPMENT PROJECTS

Generation Projects

At present, 61 Power Plants with total Installed Capacity 7.193 MW:

• 53 Hydropower plants, total installed capacity 5.267,90 MW;

• 1 Thermal Power plant, 1.878 MW;

• 5 Solar PV Grid Connected, total installed capacity 22,2 MWp; and

• 2 Biomass Power Plants, total Installed Capacity 25 MW.

DEVELOPMENT PROJECTS

Grid Extension Off-Grid Program

• Southern Rural

Electrification Project

(WB);

• Norther Rural

Electrification Project

(ADB); and

• Local Government

Development projects

• Rural Electrification

Off-Grid Program

(WB); and

• Other Development

Agency Projects

(ODA, NGOs and

Donations …)

Power

Development

Plan (PDP)

2010-2020

13

TOTAL INSTALLED CAPACITY

2520

210 210

1,849 1,855 2,282

4,769

9,817

95 224

279

374

33 201 425 471

671 616716

688

1,719

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

1975 1995 2000 2005 2010 2011 2012 2015 2020

EDL

Public

IPP

3,221 MW

5,735 MW

11,910 MW

2,566 MW

MW

CURRENT STATUS OF

ENERGY ACCESS(December, 2018)

▪ 96% of households have

access to electricity service

4

Solar PV Roof-Top

“Cool Earth

Partnership” (Japan

– Lao PDR)

16

260 kWp Grid Connected System at the Wattai International Airport, Vientiane Capital

170 kWp Grid Connected System at the EdL’s Office, Vientiane Capital

17 of 8

Images of Off-Grid Electrification – Lao PDR

SUMMARY

1. Although Electricity grid arrived to villages, about 20% can

not afford for connection fee;

2. End mile villages electrification are more high costs for

investment ;

3. Appropriated Technology and Business Models should be

introduced; and

4. LESSONS LEARN from the past projects need to take in to

account “Integrated Rural Development Plan” is essential to

meet National Sustainable Development Goal.

THANK YOU

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