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TRANSCRIPT
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Electricity Access in Lao PDR
Litthanoulok LASPHOMinistry of Energy and Mines,
Department of Energy Policy and Planning.
Seminar on Supporting Sustainable Development Goal 7, Target 7.1“By 2030 ensure universal access to affordable, reliable and modern energy services”, UNCC, CR-4, Bangkok, Thailand21 - 23 June 2016.
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1. Development History of Power Sector2. Electrification investment and Development3. Key Driver of success in Lao PDR on
Electrification.
Contents
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1. Development History
q By 1975
ØOnly 3 hydropower plants with 32 MW, 240 GWh.
ØPopulation ~3 millionØOnly 5 main cities electrifedØEstimated less than 10% of
families have access to electricity
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1. Development History (Cont’)
1. Earn foreign exchange through electricity export to finance the country’s economic and social programs;
2. Increase access to electricity by grid extensions and off-grid rural electrification;
3. Maintain an affordable tariff to promote economic and social development;
4. Replace dependence on imported fuels for energy generation.
1st Power Sector Policy was formulated in 1990:
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ØProvide a source of foreign exchange to fund economicand social development and alleviate poverty;
ØMeet the commitments under intergovernmental MOUsand Agreements with Thailand, Vietnam and others;
ØExtend electrification to promote better socio-economicdevelopment and reach the government target of 70%and 90% by year 2010 and 2020 respectively;
ØIntegrate power sector and maintain its economicdevelopment as a whole with international communitiestrough its power exchange programs and foreign directinvestment.
In early 2005, the power sector played more significant and strategic role when the Govt’ laid out important targets in the NSEDP:
1. Development History (Cont’)
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1. Development History (Cont’)q Present day: Ø Population of 6.6 mil. or ~27 people/square kilometers;Ø GDP per capita US$ 1,903 (2015) and expected to grow
rate of 7.6%;Ø Electrification ratio reached 89.81% of total households
in 2015, increased 36% from 2000;Ø Per Capita Electricity Consumption of 470 kWh/a but
has been growing at an average rate of more than10% inthe last 15 years;
Ø Electricity export ~ 15% of total country’s exportrevenues; Power sector’s contribution to GDP isprojected to increase to ~16% in 2020;
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Households Electrification Ratio
Source: http://www.edl.com.la/
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2.Electrification Investment and Development
§ Public Investment§ Private Sector Investment based on
Build Financing and Transfer§ Community Partnership and others§ Mini Grid
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Power to the Poor (P2P) programAddressing the equity and gender dimension of rural electrification
• A program designed to support the poorest households with a gender focus, to bring the benefits of access to electricity to the poor
Instrument• Interest-free credit to
qualifying households for payment of the upfront connection changes on installment plan basis
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Grid Model
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Power to the Poor (P2P) programInstrument
Funds from
EdL, IDA, GEF, AusAID
EdL P2P Revolving Fund
EdL Operational Account
Contractors for house wiring
Monthly billP2P RepaymentElectricity
tariff
Address the affordability of the upfront connection charges , with a sustainable Revolving Fund
Poor Households
K700k
Kip 700,000 ~90$
Kip20,000/month~2.5 $
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Targeting the poor Initial results and looking forward
Pilot program results (2008-2009)§ 537 households in 20 pilot villages
connected utilizing P2P credit§ Average connection rate increased
from 65% to 95% in the pilot villages§ Connection rate among female-
headed HH increased from 63% to90%
Example: PHONSAAD Village:electrified in 2002, 63 out of the 270households not connected by 2008, andall the 63 households were connected tothe grid in Feb-Mar 2009 with the P2PProgram scale up country-widestarted March/April 2010 11
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Provinciallevel
Village level
GOL
WB/IDA/GEF
Centrallevel
Ministry of Energy and Mines (MEM) /Institute of Renewable Energy Promotion (IREP)
Customers (Rural Community Households, Enterprises)
IDA/GEF/AusAid
Special Ac count
Electricity from SHS / VHGS Electricity
Contract
Contract
(Village Energy Advisory Committee)
REF
VOPS
PDEM
VEAC
PESCOs
VEM
Rural Electrification Division (RED) / PMUFund Manager
Technical Service & Collecting Tariff
Tariff
Cluster Plan Installation
(Village Energy Manager)
Implementation and Management Model for Off-Grid
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Institutional Structure (REF Secretariat)
Advisory Committee
Fund Manager
Secretariat Office
ConsultantIREP
Permanent Staff
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REF Source GOL established the REF in order to support (provideGrant Aid or Soft Loan) all activities to promote ruralelectrification developments. The rural electrificationdevelopment fund could come from:§ Government budget;§ Co-finance by the Government and Villagers;§ State Enterprises;§ Villagers;§ Donations from local and international agencies.
In supplementary, GOL also provides tax exception orreduce tax for import equipment, construction andoperation of rural electrification project.
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Solar Home System(SHS) for Off-Grid Villages
Solar Home System is very widely use within Lao PDR and today people are well acknowledge.
Installation: 20 – 50 Wp
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Solar photovoltaic Mini Grid
Project is Location in Phakeo Village Phoukhoun District Luangphabang Province, installed capacity 4.8 kWp
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Reverse Running pump Turbine
Micro Hydropower
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Utilization Pico hydropower in Lao PDR
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3. Key Driver of success in Lao PDR on Electrification.
1. Sustained national commitment with substantial financial support by GoL
2. Utility-driven grid-based electrification, complemented by off-grid program
3. Financial support from International donors
4. Private participation and Communities
5. Incentive for Investor and Implimentors
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• Contact:Litthanoulok LASPHO• DepartmentofEnergyPolicyand
Planning• MinistryofEnergyandMines,LaoPDR• Email:[email protected]• Visit:www.laoenergy.la