toward successful governance for renewable energy in ldc

29 July 2013 Edited by Kim, Hyunjung

Toward Successful Governance��for Renewable Energy in LDC��: Laos Development Strategy with Korea’s ODA !

by Team 5, Helaos

2013 Int’l Environmental Expert Training Program

Team Member: Hyun-Jung Kim, Hye-In Kim, Hye-Ji, Kim, Sena Nam

Table of contents

•  Favorites setup – the slide finder 3 •  Dividers 4 •  Text 7 •  Tables 12 •  Organizational and Gantt charts 45 •  Processes 68 •  Graphs 100 •  think-cell 172 •  Practice-related slides 252 •  Custom graphics 283 •  Maps 326

Page

Section

Research Interest : Renewable Energy  Less polluting Energy which can be Replenished in a short period of time  Sources: Biomass/ Solar/ Geothermal/ Wind/ Water  Increasing Contribution of Renewable Energy in world

Abstract

29 July 2013 1/35 Team 5, Helaos

Research Question & Aims:

How To Aid Least Developed Countries To Relieve “Energy Poverty and Inequality”?

Recommendation for Strategy of

Korea’s Renewable Energy ODA in LDC

Abstract


•  Environment focus of Aid by Sector in 2010-2011 (OECD, 2013)

I. Introduction

Aid in Support of Renewable Energy


•  Environment focus of Aid by Sector in 2010-2011 (OECD, 2013)

Aid in Support of Renewable Energy I. Introduction


Regional Distribution of ODA

II. Targeting Country

Region 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Asia 156 150 178 197 156 229 251 292 553 588

Africa 6 19 28 39 48 70 104 95 140 178

S. Ame. 9 11 15 20 26 55 69 56 64 64

MW 6 42 81 178 72 71 31 21 34 41

Europe 19 3 7 3 31 17 13 46 39 21

Oceania 1 5 0 1 1 4 2 2 6 4

Not Distributed

10 15 22 26 43 45 70 69 65 97


Regional Distribution of ODA: Centered on Asia


Region 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Asia 156 150 178 197 156 229 251 292 553 588

Africa 6 19 28 39 48 70 104 95 140 178

S. Ame. 9 11 15 20 26 55 69 56 64 64

MW 6 42 81 178 72 71 31 21 34 41

Europe 19 3 7 3 31 17 13 46 39 21

Oceania 1 5 0 1 1 4 2 2 6 4

Not Distributed

10 15 22 26 43 45 70 69 65 97


55% 20%

10%

10%

5% Supporting Region

Asia

Africa

Central/Southern America Middle East

Oceanea


Regional Distribution of ODA: Centered on Asia




Lao DPR-KOICA plan to establish strong partnership!

Country Information

•  Low population density (6.5 million) •  Mountainous •  Ethnically diverse •  Poor – Least Developed Country •  Socialist government •  Highly dependent on foreign investment/aid •  Strong economic growth and energy demand

Source: KIEP/LIER Area: 236,800 km2(Total) GDP(PPP): $3,004/capita GDP(nominal): $1,320/capita

Lao People's Democratic Republic



  Increasing domestic demand for electricity: 425MW (2005) 2863 MW (2025)   High potential of renewable energy development  Government’s aim to share renewable energies up to 30% by 2025

Source: LIRE- the Lao Institute for Renewable Energy, 2011

Renewable Energy in Laos II. Targeting Country


Korea’s Renewable Energy ODA in Laos

0

2000

4000

6000

8000

10000

2009 2010 2011 2012

UK Norway U.S.A Germany Korea Japan

Korea’s Energy ODA in Laos

0

2

4

6

8

10

12

2000 2005 2010 2011

USD 100

  Increase in Korea’s ODA in Laos   BUT Decrease in Korea’s Energy ODA in Laos (2009- 2012)


Source: OECD Query Wizard for International Development Statistics

Korea’s ODA in Laos


1.  In 2012, 239 MW of renewable energy projects with private participation reached financial closure in the country, with total project costs of USD 501 million.

2.  For pipeline projects the total potential installed capacity reached 4,347 MW.

3.  The most active sponsor in renewable energy was Sinohydro of China, with 1,156 MW in pipeline, and 173 MW, or USD 430 million in closed projects.

4.  Large Hydro was the most active technology, totaling 4,339 MW in pipeline, and 239 MW or USD 501 million in closed projects.

Current Situation in Laos

Source: World Bank


Highlights in Renewable Energy Sector


1.  7th National Socio-Economic Development Plan (2011-2015) - Battery of ASEAN plan: Modernization & Industrialization 2.  Renewable Energy Development Strategy(Oct. 2011) - Biofuel and biomass, Pico/micro hydro/Waste water and biogas/Solar and water supply

Mainly Focus on Centralized Hydro Power Supply in NSEDP

1. Environmental Destruction 2. Electricity Dissipation & Inefficiency 3. Weak Local Diversity & Autonomy

4. Some Bottlenecks for Renewable Energy


Energy Policy in Lao DPR

Problem


Bottlenecks for Renewable Energy in Lao DPR

Lack of Information

Lack of local resources

Insufficient follow-up

Limited focus on helping the poor

Lack of consistent field data Lack of sharing of information Limited funds for bottom-up market development Limited renewable energy sector

Many pilot sites, but few sustainable models Lack of monitoring and evaluation Technology-driven, rather than demand-driven

Limited monetary income in rural areas Inadequate understanding of rural energy situation

Source: LIER



ODA Project Comparison

Germany (GTZ, 현재 GIZ)

Actual Disbursement : 18.3 % (FY 11/12) Renewable ODA : Solar lantern rental systems, solar-powered environmental education bus, Grid connection project

PPP , grid infrastructure

Korea (KOICA)

Actual Disbursement : 11.0% (FY 11/12) ODA Project : Hinheup irrigation project, water and sanitation facility in Sebang Fai

HRD, ODA/EDCF

Actual Disbursement : 30.6 % (FY 11/12) Renewable ODA : project improvement of power sector, the project for introduction of clean energy by solar electricity generation system

standard, capacity building

Japan (JICA)

ODA/EDCF project with PPP + capacity building

III. Devising Korean ODA strategy


Effectiveness

Efficiency Relevance

Impact Sustainability

Action &Feedback

Country Partnership Strategy(CPS) +α

Existing five OECD/DAC evaluation criteria+ α

Quantitative evaluation criteria & quasi self-assessment

Qualitative evaluation criteria on values and attitude &

comprehensive assessment

HOW?? Contemplating on the goals and values of the ODA


1. Prioritizing on Energy

Lack of knowledge in energy importance

Mainly food aid for poverty eradication

Emphasize key point of renewable energy in poverty eradication

Connect between MDGs & NSEDP



Energy and other cross-cutting issues

Application on Laos

•  Poverty eradication, •  Link energy with MDGs •  Consider domestic policies and national laws on energy •  Consider energy potential (ex. Solar radiance)

•  National Appropriate Mitigation Action (NAMA) of Laos , decree on solar energy development, rural electrification master plan (REMP)

•  Energy potential and government recommendation on ODA •  Busan Partnership for Effective Development Cooperation •  small power development for self sufficiency, grid connected solar PV systems, solar PV hybrid systems, thermal application

III. Devising Korean ODA strategy - 1. Prioritizing on Energy


(1) FOREIGN AID IMPLEMENTATION REPORT (FAIR) Ministry of Planning and Investment Department of International Cooperationhttp://www.rtm.org.la/documents/RTM%202011/FAIR_Final.pdf

Ministry of Natural Resources & The Environment 3.02%

Ministry of Energy & Mines 9.35%

<Percentage of disbursements across Line Ministries>



Central and regional consideration


Natural Resource management and environment 9.1%

<Actual Disbursements by Sector FY 11/12>

<Actual Disbursements by Region FY 11/12>




Goal 7 : Ensure Environmental sustainability 11.2%

<Actual Disbursements by MDGs>



2. Adopting Appropriate Technology Large-scale energy plant

Difficulty in basic material supply

Mainly food aid for antipoverty Unit Project - Instant effect

Mainly food aid for antipoverty Local material with Easy technics



Applicable technology in Laos

Pre-requisites for RE technology •  Locally adaptable •  Directly usable by poverty-stricken region •  Made of local material •  Easy to use, affordable

• Grid systems Solar village grid? • Photovoltaic systems Solar home system (SHS)?

(1) 그린아시아 2011 보고서 참고

III. Devising Korean ODA strategy – 2. Appropriate Tech


(1) Towards a Locally Adapted Rural Electrification Assessment Framework: A Case Study of the Lao PDR http://www.sunlabob.com/data/documents/energy_issues/O-10-08-Rural_Electrification_Assessment_Framework.pdf


3. Market Based Approach

Lack of self-efficiency low economic independence

Aim -  Rapid extension of Ren

ewable energy product

-  Sustainable Economy



III. Devising Korean ODA strategy – 3. Market Based Approach


•  Customer Needs •  Easy to Repair •  Arrange Quality St

andard/Certificate

•  Diversify Products (household-facility)

•  Low interest policy, microcredit

•  Condition of Priority Area for Energy Supply

•  Distribution Market Formation Support

•  Campaign and Advertisement

•  Brand and Logo Making



< Establishing energy efficiency-product market>



4. Building Capacity(R&D)

One-shot support

Lack of maintenance ability

Persistent monitoring

Technology development, Cooperated with University and companies

Education for community and engineering training



Better service by quality certification

< Quality Certification >

< Technology development with University>

III. Devising Korean ODA strategy – 4. Building Capacity(R&D)


Linkage with energy institutes and universities

• Sustainability and Impact

Government

- National strategy on development, enacting new laws, decrees and more.

- Provide technological education to public officers for capacity build up

Industry

- Capacity building vocational ODA with existing HRD ODA

- Vocational training and engineering ETP

Academia

- Capacity building on R &D and further studies

- Provide education on renewable energy and teach how to use them to local community

(1) 그린아시아 2011 – National University of Laos, Renewable Energy department, Techno Peace Corps

III. Devising Korean ODA strategy– 4. Building Capacity(R&D)


5. Working in partnership

Collaboration with various players / multi-stakeholder • Public - Private - Partnership (PPP) +

• multinational development bank (MDB) + •  civil society organization (CSO)

Lao

Institute for RE (LIRE)

National Univ. of Laos

Asian Develo

pment Bank

(ADB)

Sunlabob (private firm)

Ministry of Energy and Mines. Ministry of natural resources and environment Korea Environmental Industry and Technology Institute (KEITI)

Sustainability



Year 1st 2nd 3rd others total

2007 ADB 57.06 IDA

31.65 GFATM 11.62 16.89 132.21

2008 IDA 39.29 ADB

39.20 IFAD 19.24 16.56 147.5

2009 ADB 44.17 IDA

30.5 EU Institutions

25.90 17.07 136.88

2010 IDA 36.66 ADB

24.21 EU Institutions

15.95 15.60 105.51

Amount of International Organizations’ ODA Disbursement to Laos (Net Disbursement, $million)

III. Devising Korean ODA strategy – 5. Building Capacity(R&D)


PPP Dream Team

- Ministry of Energy and Mines.

- Ministry of Agriculture and forestry

-Implementation and management

Recipient

- Department of Renewable energy with Techno Peace Corp consistent R & A and local

adaptation

- CSO feedback and further studies on actual effectiveness

Univ/NPO

-Feasibility test & technological consulting from KEITI

-Memorandum of cooperation

Donor

- Laos-based company on renewable products and servi

ces -Boosting local Economy: Emp

loyment and maintenance

Firm

- Project Financing

- PPP management

- Local contents requirement - Monitoring

IGO

Laos PDR Government

National Univ. of Laos/LIRE ADB Sunlabob KOICA/KEITI

IV. Final Goal


Summary of the project

Korea

Lao PDR Sunlabob

ADB

LIRE/ Nat’l Univ

KEITI

ODA/ EDCF with PPP

Loan & management Product/ service

CSO/academic feedback

Loan Technology consulting

IV. Final Goal
