Electricity Access in Lao PDR - access in Lao...1 Electricity Access in Lao PDR Litthanoulok LASPHO…

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<ul><li><p>1</p><p>Electricity Access in Lao PDR </p><p>Litthanoulok LASPHOMinistry of Energy and Mines,</p><p>Department of Energy Policy and Planning.</p><p>Seminar on Supporting Sustainable Development Goal 7, Target 7.1By 2030 ensure universal access to affordable, reliable and modern energy services, UNCC, CR-4, Bangkok, Thailand21 - 23 June 2016.</p></li><li><p>1. Development History of Power Sector2. Electrification investment and Development3. Key Driver of success in Lao PDR on</p><p>Electrification.</p><p>Contents</p><p>2</p></li><li><p>1. Development History</p><p>q By 1975</p><p>Only 3 hydropower plants with 32 MW, 240 GWh.</p><p>Population ~3 millionOnly 5 main cities electrifedEstimated less than 10% of </p><p>families have access to electricity</p><p>3</p></li><li><p>1. Development History (Cont)</p><p>1. Earn foreign exchange through electricity export to finance the countrys economic and social programs; </p><p>2. Increase access to electricity by grid extensions and off-grid rural electrification; </p><p>3. Maintain an affordable tariff to promote economic and social development; </p><p>4. Replace dependence on imported fuels for energy generation. </p><p>1st Power Sector Policy was formulated in 1990: </p><p>4</p></li><li><p>Provide a source of foreign exchange to fund economicand social development and alleviate poverty;</p><p>Meet the commitments under intergovernmental MOUsand Agreements with Thailand, Vietnam and others;</p><p>Extend electrification to promote better socio-economicdevelopment and reach the government target of 70%and 90% by year 2010 and 2020 respectively;</p><p>Integrate power sector and maintain its economicdevelopment as a whole with international communitiestrough its power exchange programs and foreign directinvestment.</p><p>In early 2005, the power sector played more significant and strategic role when the Govt laid out important targets in the NSEDP: </p><p>1. Development History (Cont)</p><p>5</p></li><li><p>1. Development History (Cont)q Present day: Population of 6.6 mil. or ~27 people/square kilometers; GDP per capita US$ 1,903 (2015) and expected to grow</p><p>rate of 7.6%; Electrification ratio reached 89.81% of total households</p><p>in 2015, increased 36% from 2000; Per Capita Electricity Consumption of 470 kWh/a but</p><p>has been growing at an average rate of more than10% inthe last 15 years;</p><p> Electricity export ~ 15% of total countrys exportrevenues; Power sectors contribution to GDP isprojected to increase to ~16% in 2020;</p><p>6</p></li><li><p>7</p><p>Households Electrification Ratio</p><p>Source: http://www.edl.com.la/</p></li><li><p>2.Electrification Investment and Development</p><p> Public Investment Private Sector Investment based on</p><p>Build Financing and Transfer Community Partnership and others Mini Grid</p><p>8</p></li><li><p>Power to the Poor (P2P) programAddressing the equity and gender dimension of rural electrification </p><p> A program designed to support the poorest households with a gender focus, to bring the benefits of access to electricity to the poor</p><p>Instrument Interest-free credit to </p><p>qualifying households for payment of the upfront connection changes on installment plan basis</p><p>9</p><p>Grid Model</p></li><li><p>Power to the Poor (P2P) programInstrument</p><p>Funds from </p><p>EdL, IDA, GEF, AusAID</p><p>EdL P2P Revolving Fund</p><p>EdL Operational Account</p><p>Contractors for house wiring</p><p>Monthly billP2P RepaymentElectricity </p><p>tariff</p><p>Address the affordability of the upfront connection charges , with a sustainable Revolving Fund</p><p>Poor Households</p><p>K700k</p><p>Kip 700,000 ~90$</p><p>Kip20,000/month~2.5 $</p><p>10</p></li><li><p>Targeting the poor Initial results and looking forward</p><p>Pilot program results (2008-2009) 537 households in 20 pilot villages</p><p>connected utilizing P2P credit Average connection rate increased</p><p>from 65% to 95% in the pilot villages Connection rate among female-</p><p>headed HH increased from 63% to90%</p><p>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</p></li><li><p>Provinciallevel</p><p>Village level</p><p>GOL</p><p>WB/IDA/GEF</p><p>Centrallevel </p><p>Ministry of Energy and Mines (MEM) /Institute of Renewable Energy Promotion (IREP)</p><p>Customers (Rural Community Households, Enterprises)</p><p>IDA/GEF/AusAid</p><p>Special Ac count</p><p>Electricity from SHS / VHGS Electricity </p><p>Contract</p><p>Contract</p><p>(Village Energy Advisory Committee)</p><p>REF</p><p>VOPS</p><p>PDEM</p><p>VEAC</p><p>PESCOs</p><p>VEM</p><p>Rural Electrification Division (RED) / PMUFund Manager</p><p>Technical Service &amp; Collecting Tariff</p><p>Tariff</p><p>Cluster Plan Installation</p><p>(Village Energy Manager)</p><p>Implementation and Management Model for Off-Grid</p><p>12</p></li><li><p>Institutional Structure (REF Secretariat)</p><p>Advisory Committee</p><p>Fund Manager</p><p>Secretariat Office</p><p>ConsultantIREP </p><p>Permanent Staff</p><p>13</p></li><li><p>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.</p><p>In supplementary, GOL also provides tax exception orreduce tax for import equipment, construction andoperation of rural electrification project.</p><p>14</p></li><li><p>Solar Home System(SHS) for Off-Grid Villages </p><p>Solar Home System is very widely use within Lao PDR and today people are well acknowledge.</p><p>Installation: 20 50 Wp</p><p>15</p></li><li><p>Solar photovoltaic Mini Grid</p><p>Project is Location in Phakeo Village Phoukhoun District Luangphabang Province, installed capacity 4.8 kWp</p><p>16</p></li><li><p>Reverse Running pump Turbine</p><p>Micro Hydropower </p><p>17</p></li><li><p>Utilization Pico hydropower in Lao PDR</p><p>18</p></li><li><p>3. Key Driver of success in Lao PDR on Electrification.</p><p>1. Sustained national commitment with substantial financial support by GoL</p><p>2. Utility-driven grid-based electrification, complemented by off-grid program</p><p>3. Financial support from International donors </p><p>4. Private participation and Communities </p><p>5. Incentive for Investor and Implimentors</p><p>19</p></li><li><p> Contact:Litthanoulok LASPHO DepartmentofEnergyPolicyand</p><p>Planning MinistryofEnergyandMines,LaoPDR Email:litthanoulok@yahoo.com Visit:www.laoenergy.la</p></li></ul>