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Workshop for Annex-7“Hydropower Competence Network for Education and

Training (HCN)”

Presented by:

Phonesavanh PHIMMASONE

Civil Engineer

Hydropower Generation in Lao PDR

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I. Introduction1.1 Objective1.2 General

• The area of country has 236,800 km2• Population of about 5.2 million• Over 80% of which lives in rural areas • Gross National Product (GDP) about US$ 350 per annum

II. Power Energy Electric• 90% by using of fuel wood• Theoretical hydroelectric potential of about 26,500 MW• Less than 3% of the country’s hydropower potential has

been developed

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• In 2001, total energy generations were 1,553.5 GWh• 710.3 GWh was supplied to domestic consumption• The remainder (796.3 GWh) was export to Thailand • Electricity was also imported from Thailand and Vietnam

182.5 GWh (year 2001)

3.1.1 Power generation� Total of installed capacity in Lao is 641.1 MW � 624.1 MW is Hydropower � 17 MW is diesel

III. Power Supply3.1 Electric Power Supply System

• Electric power supply in Laos is carried out by EdL• more than 90% of Electricity is supplied from hydropower

plant

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3.2 Electric Tariff

400387373361349337325314304294284274Industry & Handicrafts

167161158150145140136131127122118114Irrigation

400387373361349337325314304294284274Government office

563546530515500485471458444431419407Entertainment

450437424412400388377366355345335325Commercial & Services

Organizations ($/kWh)

0.0990.0990.0990.0990.0990.0990.0990.0990.0990.0990.0990.099

Embassies and International

433419405391378365353341329318307297Over 200 kWh/month

200193187180174168163157152147142137101-200 kWh/month

13312912412011611210810510198959151-100 kWh/month

5655535250494746444342411-50 kWh/month

Residential

121110987654321

TariffCategory

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3.3 Power supply and demandDepartment of Electricity has increased rural connection as part of the provincial grid Integration project; the second phase of which envisages continuing to extend coverage of the rural areasThese may include decentralized diesel-generation, Isolated small and mini-hydro generation, solar home system

• Power Transmission The electricity supply system in Lao PDR comprises two major characteristics as for domestic supply and for export supply or interconnection

• Distribution lineThe sub-transmission circuit from the step down substations is then fed from 22 kV; distribution lines network and controlled by supervisory system

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3.3.1 Domestic supply system:• Northern areas:

Includes Phongsaly, Louangnamtha, Houaphanh, Bokeo, and Oudomxai supplied by small Hydropower (Nam Ko 1.5 MW), diesel and import from neighbor country as from Vietnam to supply to Houaphanh Province by 35 kV, to Bokeo Province by 22 kV from Thailand, to Louangnamtha by 35 kV from China.

• Central 1 areas:comprises of the province of Vientiane-mun, Vientiane Pro., Luangprabang, Xayabouli, Xiengkhouang, Bolikhamxay, and Xaysomboune; it is supplied largely by the Nam Ngum1 Hydro-power plant by 115 kV of transmission line, and the Nam Dong small hydro-power station; Nam Leuk Hydro Power Plant 115 kV transmission line (HHP), some from Thailand supply to Xayabouli and from Vietnam supply to Xiengkhouang

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• Central 2 areas:Includes Savannakhet and Khammouane Provinces, currently supplied by Nam Phao hydropower plants, a few quantity from Nam Theun- Hinboun HHP and mainly from imports from Thailand .

• Southern areas:Includes Champasak; Saravane; Sekong and AttapeuProvinces, currently supplied by the Xeset and Selabam Hydro-electric schemes, supplemented in a few quantities from Houay-Ho Hydropower project, because this project is design to export to Thailand

3.3.2 Electricityconnection line(See Map)

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Theun Hinboun Hydropower Plant

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Houay Ho Hydropower Plant

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IV. LOAD FORECAST 4.1 Energy consumption forecast • Domestic Energy consumption will increase 21.2% from here

to the end 2001, and gradually decrease the rate to 10.1% in 2010. After nine years from 2001 to 2010, the annual grow rate will decrease gradually some 10.1%/years .the average increase rate from 1998 to 2010 will be 14.1%/year

• There are two reasons why the grow of energy consumption will grow high level for after five years; one is the increase of the customers of EdL in accordance with expending transmission and distribution network system and growing up electrification ratio. The other is the increase of par capita energy consumption in accordance with their life styles

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V. Human Resource Development

The extension of electricity to the rural area of the country isthe main target of the Lao Government to achieve in electricity development. Because the accomplishment of electricity development in the rural area needs a lot of funds and the efforts on the part of the Government, the Government mobilizes the local and international participation in the process. Meanwhile, the export of the electricity is also necessary for the country, as it is a way ofearning the foreign currency for the country

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VI. Current Status of Education and Training in Power Sector

The education and Training activities are provided: short course training and long-term education in country or outside country. A brief description of Lao institution is in order up to standard for the B.S degree program, that less than 1% has a university degree and about 5% completed middle level Vocation/Technical School. The situation reflects the state low level of education. The education and training activities provided human resource development program, which will introduce a training program and an education upgrading program

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VII. Power Sector PolicyThe following objectives currently influence power development policy within Lao PDR:• Provide a source of foreign exchange to fund economic and social development and alleviate poverty;• Meet the commitments specified in inter-governmental MOUswith Thailand and Vietnam;• Expand the customer base through grid extensions and satisfy growth in domestic demand, currently running at 8% to 10% annually.• Explore the mutual benefits of cross border exchanges and sales of electricity with the People’s Republic of China, Cambodia and other countries of the region.• Extend off-grid rural electrification to promote better socio-economic conditions within isolated communities;• Replace dependence on imported fuels for energy generation;• Ensure environmental protection in the project implementation.

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VII. Ministry of Industry and Handicrafts (MIH)• Provide advice to the Minister on policy and planning.• Manage studies leading to the development of a power

development plan.• Review proposals, studies and contracts received from IPP

groups for the quality and appropriateness of their technical, commercial and legal content.

• Through its representation on LNCE, participate in negotiations with IPP groups and power purchasers in connection with MOUs, Power Purchase Agreements (PPA), Concession Agreements and other contracts, as appropriate.

The Department of Geology & Mines within MIH is involved in the approval process for IPP projects. Its responsibilities include review of geological aspects of projects, assessment of lignite mining proposals (thermal generation) and examination of project areas for possible alienation of energy or mineral resources.

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