Effective energy efficiency policy implementation targeting “New Modern Energy CONsumers” in the Greater Mekong Subregion

Dr. Khamphone Nanthavong18 November 2014

Bangkok

Funded by UK Research Councils’ Energy Program, the department for International Development (DFID) and the Department for Energy and Climate

Change (DECC), and managed by the Engineering and Physical Sciences Research Council (EPSRC)

Institutional challenges to implement energy efficiency

policy in Lao PDR

TOPIC 1

Effective energy efficiency policy implementation targeting “New Modern Energy CONsumers” in the Greater Mekong Subregion

Contents

Effective energy efficiency policy implementation targeting “New Modern Energy CONsumers” in the Greater Mekong Subregion

• Overview on Current status of EE&C in Lao PDR

• Institutional challenges to implement EE&C policy

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Effective energy efficiency policy implementation targeting “New Modern Energy CONsumers” in the Greater Mekong Subregion

Minister of Energy and Mines (MEM)

Vice minister 1 Vice Minister 2 Vice Minister 3

Dept of Energy Policy and Planning (DEPP)

Institute of Renewable Energy Promotion (IREP)

Division of EE&C

Vice Minister 4

Current status of Energy Efficiency and Energy Conservation in Lao PDR(1): Organization structure

Effective energy efficiency policy implementation targeting “New Modern Energy CONsumers” in the Greater Mekong Subregion

•Ministry of Energy and Mines (MEM)

•Institute of Renewable energy Promotion (IREP) – equivalent to department of MEM

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Effective energy efficiency policy implementation targeting “New Modern Energy CONsumers” in the Greater Mekong Subregion

Current status of Energy Efficiency and energy conservation in Lao PDR (2): IREP

Director General of IREP

Deputy director general 1

Renewable energy development

division

Deputy director general 2

Energy Efficiency & Energy

Conservation division

Deputy director general 3

Rural electrification division

• IREP structure (New)

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Effective energy efficiency policy implementation targeting “New Modern Energy CONsumers” in the Greater Mekong Subregion

• Law on EE&C: none• Regulatory measures: – Regulatory based on the law: none– Other regulatory measures: Decree on Public saving

(Government, 2001)• National Plan for EE&C promotion– MEM is drafting national policy and strategy on EE&C– Established EE&C unit under IREP/MEM– Piloted energy saving measures in public building

Current status of Energy Efficiency and energy conservation in Lao PDR (3): legal framework

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Effective energy efficiency policy implementation targeting “New Modern Energy CONsumers” in the Greater Mekong Subregion

• Financial measures taken by the government in relation to EE&C: – Tax scheme: None– Low-interest loan: none– Subsidies and budgetary measures: issued decrees

to save annual budget expenditure in the governmental organizations

• Energy prices measures: None

Current status of Energy Efficiency and energy conservation in Lao PDR (4): legal framework

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Effective energy efficiency policy implementation targeting “New Modern Energy CONsumers” in the Greater Mekong Subregion

• Japan's energy conservation support:– ASEAN Energy Management System: PROMEEC

(Promotion of Energy Efficiency and Conservation) Project– More than 10 seminar-workshops and on-the job trainings

on energy auditing have been organized for the state and private officials to disseminate the best practice and experiences on energy efficiency and conservation from Japan and ASEAN member nations

– prepared ENERGYMANAGEMENT HANDBOOK for ASEAN

(Final Version at the Stage of Common Handbook)

Current status of Energy Efficiency and energy conservation in Lao PDR (5): some activities

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Effective energy efficiency policy implementation targeting “New Modern Energy CONsumers” in the Greater Mekong Subregion

• World Bank support: DSM project– Pilot of Low-cost/no cost EE measures in public buildings,

schools, hospitals and government buildings – Distribution of 400,000 high quality CFLs for replacement of

inefficient incandescent lamps in residential households and small businesses energy saving 18 GWh over two years and 13% of peak demand reduction.

– Energy Retrofit in 50 public buildings with 15,200 high efficient T5 lamps and 127 high efficient air conditioners energy saving 400 MWh/year

– mm

Current status of Energy Efficiency and energy conservation in Lao PDR (6): some activities

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Effective energy efficiency policy implementation targeting “New Modern Energy CONsumers” in the Greater Mekong Subregion

• ADB support:– Drafting of National policy, Strategy and Action

Plan on EE&C– Drafting of the Prime Minister Decree on EE&C

promotion– Capacity building training on EE&C for staffs of

IREP and its Provincial counterpart-Department of Energy and Mines

Current status of Energy Efficiency and energy conservation in Lao PDR (7): some activities

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Effective energy efficiency policy implementation targeting “New Modern Energy CONsumers” in the Greater Mekong Subregion

• Thailand support: Promotion on Energy Efficiency and Conservation, under ACMECS cooperation project between Lao PDR and Thailand:– Training materials developments– Trainings on EE&C: participants from

governmental, academic and research institutions, as well as private companies

Current status of Energy Efficiency and energy conservation in Lao PDR (8): some activities

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Effective energy efficiency policy implementation targeting “New Modern Energy CONsumers” in the Greater Mekong Subregion

• Institutional support maybe not strong enough – Ability to develop workable or usable regulatory

frameworks – Ability to enforce or disseminate the Legislative framework

• Renewable Energy Development Strategy is a good example– An idea on increase of national electrification rate vs

promotion of EE&C– Allocation of financial resources for implementing EE&C

activities;– Involvement and motivation of private sector

Institutional challenges to implement EE&C policy in Lao PDR

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Effective energy efficiency policy implementation targeting “New Modern Energy CONsumers” in the Greater Mekong Subregion

• Capacity to cope with EE&C policy implementation – Lacking expertise of relevant institutions in

developing regulatory framework and national standards

– Lack of human and financial resources to implement EE&C activities

– Inter-sectoral cooperation and coordination• Electric appliances import and Distribution

Institutional challenges to implement EE&C policy in Lao PDR

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Effective energy efficiency policy implementation targeting “New Modern Energy CONsumers” in the Greater Mekong Subregion

Thank you

(khamphon@fe-nuol.edu.la)