Regional workshop onSustainable Bioenergy Production and Use in Southeast Asia:

Lessons Learnt and Future Opportunities

Bioenergy Use in Lao PDR

PHONEPASONG SITHIDETH

Institutes of Renewable Energy Promotion

16-17 November 2017La Casa Hotel

Hanoi – Viet Nam

CONTENTS

I. Introduction

II. Overview on Energy Consumption

III. Renewable Energy RE Current Status

IV. Challenge

V. Conclusions

Introduction

• Area : 236,800 km2

• Capital: Vientiane

• Population 2015

• Total 6.5 millions

• Density 27 person/km2

• Total Share of GDP 2015

• GDP per Capita 1,947 US$

• Growth rate of GDP: 7.56%

• Share of GDP 2015

• Agricultural: 21.80%

• Industry: 32.70%

• Services: 35.95%

• Taxes on products

and Import duties, net: 9.55%

Power potential in Lao PDR

HYDRO POWER POTENTIAL OF ABOUT 26,000 MW.

Small Hydro Power ≤ 15 MW: 2,000 MW

Solar: irradiation 3.6-5.5 kWh/m2 (1800-2000hrs/y)

Biomass > 938 MW

Biogas >313 MW

Wind 182,000 MW, very good 2,800 MW

o600 MW (phase 1: 250MW; phase 2: 350 MW) under negotiation for

development in Sekong Prov.

- Total Install Capacity 6,264.9 MW [November 2016]

Power Generation Share

79%

Solar

0%

Biomass

1%

Biogas

0%

Coal

20%

POWER GENERATION SHARE [%]

0

500

1000

1500

2000

2500

3000

3500

4000

4500

50004972.41

0.4853 39.7 0.29

1252

Power Generation Share (MW)

Primary Energy Consumption in Lao PDR by 2014 (MEM)

II. Overview of Energy Consumption

• Energy Consumption (2014): 2,510 KTOE

Residential, 47.40%

Agriculture, 1%

Industrial, 8%

Commercial, 12.30%

Transportation, 31.30%

ENERGY CONSUMPTION BY SECTORS

Fuelwood, 49.10%

Coal, 0.20%Charcoal, 5.40%

Electricity, 12.60%

Fuel Oil, 32.70%

ENERGY CONSUMPTION BY TYPES

• Lao PDR is 94% electrified

• Promote Energy Efficiency and Conservation (EE&C) by

Reduce 10% of energy consumption in 2030

• Provide clean energy to sustain economic growth and Poverty

alleviation

• Increase power Export for revenue earning

• Expand access to electricity services up to 95% of households

by 2020

• Increase Renewable Energy (RE) use to 30 % of national energy

consumption by 2025

Main target on Energy Sector

Wind

73 MW

SHP

400 MW

For Electricity

Biomass Biogas Waste

58 MW 51 MW 36 MW

Biofuels (ML)

Ethanol 97.64

Biodiesel 194.44

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 %)

Objective: Ensure energy security, sustain socio-economic development,and enhance environmental and social sustainability

Bio-Energy

• Establish Renewable Energy Fund

• Financial Mechanism:

- Import duty free on production machinery, equipment and raw materials

- Import duty free on chemical materials necessary for biofuels production within 7 years

- Profit tax is divided in to 3 categories: 20%, 15% and 10%. Profit tax exemption is possible for a certain period depending

on activities, investment areas and size investment

• Subsidies on unit product price depending on energy type and times period

Support

Mechanism

Heat

Biomass Biogas

113 ktoe 178 ktoe

Solar

106 MW

Renewable Energy Policy and Strategy

0.0

1,000.0

2,000.0

3,000.0

4,000.0

5,000.0

6,000.0

19

90

19

92

19

94

19

96

19

98

20

00

20

02

20

04

20

06

20

08

20

10

20

12

20

14

20

16

20

18

20

20

20

22

20

24

20

26

20

28

20

30

ທາອຽງໃນຄວາມຕອງການຊມໃຊພະລງງານສ າເລດຮບ, kTOE

ອດສາຫະກ າ ຂນສງ ທລະກດ ທ ຢອາໄສ ກະສ ກ າ

ສະຖຕໃນໄລຍະຜານມາExisting statistic

ການຄາດຄະເນFuture predict

5,600 kTOE

2,510 kTOE

Industrial

Transport

Business

Residential

Agriculture

Trend of Total Energy Demand

CURRENT STATUS OF BIOMASS DEVELOPMENT

Hoang Anh Sugar Mill

Phouvong, district

Attapeu Province

Install Capacity: 30 MW

Feedstock: Bagasse

Mit Lao Sugar Mill

Xaibury, district

Savannakhet Province

Install Capacity: 9.7 MW

Feedstock: Bagasse

Sun paper holding

Phin, district

Savannakhet Province

Install Capacity: 60 MW

Feedstock: Industrial Waste

Biomass consumption

Residential, 81.20%

Commercial, 14.50%

Industrial, 4.30%

FUELWOOD

Commercial51%

Residential49%

Charcoal

Using Biomass and agri-waste for energy

Salt production factory

Firewood fuel in alcohol distillation

Institution cooking

Source: Mr. Houmpheng THEUAMBOUNMY (MOST)

Using Biomass and agri-waste for energy

Rice husk stove for salt production Saw dust stove for salt production

Corn cobs as fuel in corn drying

factory Rice husk stove for institution

Source: Mr. Houmpheng THEUAMBOUNMY (MOST)

CURRENT STATUS OF BIOGAS DEVELOPMENT

Pig Farm Viravong.

• 30 kW

• Viengkam District

• Vientiane UD Pig Farm

• 260 kW

• Phohong District• Vientiane Province

5,0032,850

25,000

50,000

0

10,000

20,000

30,000

40,000

50,000

60,000

2013-2015 2020 2025

Existing Household with biogas

Target houusehold for biogas utilization

10

19

51

0

10

20

30

40

50

60

2015 2020 2025

(MW)

Target

Biogas Project/ DFL (MAF) 5,003 HHs in Year 2012

Beer Brewery Waste water treatment from beer

production and generate the gas

about 1,500 m3/day Reduce CO2 about 3,338 ton/y

BIOFUEL DEVELOPMENT

Lao-Agrotech Co., Ltd

Naxaythong, district

Vientiane Capital

Plantation-Area Harvest-Area

Palm oil

300+800 ha 60 ha (2016)

FFB 173,640 kg

CPO 33,000 L

B100 20,000 L

Biodiesel Plant: 20,000 L/day

Extraction Plant: 20 tons/day

Vernicia Montana

12,350 3,000 ha

Fruit collection 75,000 kg

B100 18,000 L

Biodiesel Plant: 1,000 L/day

Extraction Plant: 2 tons/dayIn 2017 new Plant 2 units; Each unit 15 t/day

B100 18,000 L

Biodiesel-Makao Oil Lao Co., Ltd

Luangprabang, district

Luangprabang Province

Bio ethanol: June 2014

(IREP cooperation with UNIDO?

The GOL signed MOU with 2 local

private company to conduct

feasibility study of bio ethanol

production from cassava (each

200,000 L/day)

Ethanol Pilot project

Future Opportunities

• Lao import 100% of oil for transport sector

• GOL set target to reduce oil import 10% in 2025

• Lao is agriculture country

• Renewable Energy and Energy Efficiency-Conservation

• Environment Impact Mitigation

Challenges

• Bioenergy Development Plan

• All relates technologies are import

• Limited of domestic financial institution support

• Biomass resource location far each other

• Human resource

Conclusion

Improvement of Data collection in provincial level

Master plan Bioenergy

Subsidies on unit product price (adder or FIT)

Carry out resource assessment to estimate potential

Knowledge and Information sharing

Conduct demonstration project, especially bioenergy