Mr. Phaysone Phouthonesy Technical officer Department of Energy Policy and Planning Ministry of Energy and Mines, Lao PDR www.laoenergy.la Email: phutonesi@yahoo.com

Energy Policy Training Program (B)

NO. J1504286/ID.1584585 Course Period in Japan :

From June 21 2015 to July 11, 2015

Energy Policy of Lao PDR 2015

IEEJ:August 2015

Content 1) Country Background 2) Current energy policy and measures 3) Energy demand and supply 4) Outlook of energy demand and supply 5) Major difficulties and bottlenecks currently faced in formulating energy policies 6) Subjects would like to study in the order of priority and the reason

Country Background

Area of 236,800 sq km 26 people /square kilometer; Mountainous area with major

Tributaries of the Mekong River Covering 35% of total Mekong

River basin. Population 2014

Female: 3,389 Millions Total: 7,771 Millions

Total share of GDP GDP/per Capital: 1,628 US$ Growth Rate GDP: 8.0%

Total Share of GDP Agricultural: 23.5% Industry: 33.2% Services: 37.4% Total: 94.1%

Consumer Price Index 2014-2015 Jan: 2.04% Dec: 2.40%

Inflation Rate 2014-2015 Jan: 122.87 Dec: 123.18

Country Background • National Goal to graduate from a least-

development Country status by 2020 • Energy sector is one of important driving forces

to social and economic growth • Upgraded and revised the policy on sustainable

hydro development to ensure that hydropower development is truly sustainable in the longer term and effective mitigation of negative impacts on the local environment and affected population, including protection of the watershed

Current energy policy and measures

Maintain and expand affordable, reliable and sustainable electricity supply to promote economic and social development. Electrification Ratio to exceed 90% by 2020;

Improve and expand transmission networks to support the industrialization and modernization policy, and to integrate the power sector in the ASEAN community through its power exchange programs;

Tap the country’s large hydropower potentials with the participation of private developers;

Promotion of Renewable Energy to reach 30% by 2025 with reasonable feed-in tariff.

Current energy policy and measures

Government has been approval Promulgation of the “Policy on Sustainable Hydropower Development in Lao PDR”. Ministry of Energy and Mines has been

approval guideline Policy on Sustainable Hydropower Development in Lao PDR. Daft Decree on Electrical Tariff Structure

for Support to Agriculture and Industry Growth

Current energy policy and measures Daft Decree on Small Hydropower

Development for implement to guide monitoring in feasibility study of hydropower Development Power Industry Supply Development NPDP • Increase a share of bio-fuel consumption in

Transport Sector up to 30% by 2020; • Establish a National Policy of Renewable

Strategic Policy; • Establish a National Strategic Plan for Bio- fuel

development.

Energy demand and supply 2014

1257.7 Ktoe

82.8 , 3%

160.0 , 6%

1,506.3 , 59%

822.39 , 32%

3.9 , 0%

Energy Supply 2014

Coal

Electricity

Biomass

Petroleum

LPG

4.8 , 0%

317.32 , 13%

1,367.14 , 54%

816.72 , 33%

3.9 , 0%

Energy Demand 2014

Coal

Electricity

Biomass

Petroleum

LPG

Energy demand and supply

8%

31%

12%

48%

1%

Final Energy Consumption 2014

Industry

Transportation

Commercial

Residential

Agriculture

786.2 Ktoe

307.9 Ktoe

1189.7 Ktoe

2% 0% 5%

67%

26%

Industry Final Energy Consumption 2014

Coal

LPG

Fuel Oil

Electricity

Fuel wood

94 Ktoe 0.6 Ktoe 4.8 Ktoe

52.6 Ktoe

134.5 Ktoe

26%

69%

5%

Transportation Final Energy Consumption 2014

Gasoline

Diesel

Jet Fuel

202.4 Ktoe

40.3 Ktoe

202.4 Ktoe

1% 18%

58%

23%

Commercial Final Energy Consumption 2014

LPG

Electricity

FuelWood

Charcoal

178.9 Ktoe

57.3 Ktoe

2.0 Ktoe

69.7 Ktoe

Energy demand and supply

1.3 Ktoe , 0% 122.5 Ktoe ,

10%

999.7 Ktoe , 84%

66.2 Ktoe , 6%

Residential Final Energy Consumption 2014

LPG

Electricity

FuelWood

Charcoal

21.2 Ktoe , 87%

3.1 Ktoe , 13%

Agriculture Final Energy Consumption 2014

Diesel

Electricity

Outlook of energy demand and supply

The most important aspect of the energy outlook of Lao PDR is that the country is net exporter of electricity generation from hydropower using abundant water resource from the Mekong River and tributaries. It is also said that the country has extensive coal resource, which expected to cover almost all domestic demand for coal with the exception of some coal deposits, has not been conducted. On the other hand, it has few petroleum resource, so all petroleum products are imported.

Outlook of energy demand and supply Hydropower Projects is Operating in 2014 - 29 Projects - Capacity: 3200 MW - Install Capacity Generation : 15,270 Gwh

15,270 , 43%

4,456.1 , 13% 1,214.91 , 3%

14,624.97 , 41%

Electricity 2014, GWh

Supply

Consumption

Imports

Exports 9.278 , 0% 204.00 , 5%

13.00 , 0%

540.0 , 12%

1,564.0 , 35%

666.21, 15%

1,424.0 , 32%

35.6 , 1%

Electricity Consumption 2014, Gwh

Entertianment

Gov. office

International organization

Edu.and sport business

Industry

Commercial

Residential

Agriculture

Outlook of energy demand and supply Import Petroleum 100% from Thailand 70% and Vietnam 30%

212,949,578, 22%

688,907,148, 72%

47,866,066, 5%

10,067,350, 1% 2,004,046, 0%

3,510, 0%

Petroleum Import 2014, Liters

Motor gasoline

Diesel

Gasoline by Jet Fuel

Bunker Oil

Lubricant

LPG

817,352,813, 96%

10,067,862, 1% 24,213,568, 3%

Petroleum Consumption by Sector 2014

1.Transportation

2.Commercial

3.Industry

Outlook of energy demand and supply Coal: 2014, Most of all Coal using for industry sector, Especially use in cement factory

438,250 , 66%

54,462 , 8%

168,553 , 26%

Coal 2014, Ktoe

Production

Export (Anthracite)

Consumption

157,780 , 94%

10,773 , 6%

Coal Consumption by Industry 2014, Ktoe

(Lignite)

Anthracite

Major difficulties and bottlenecks currently faced in formulating energy policies

• No integrated national energy policy and no clear on

existing vision to cover all energy sub-sector • Certain energy policy mainly focuses on electricity • Manpower with the sufficient and strong knowledge of

know-how, experiences and skill strategic planning is still limited.

• Responsibilities among related agencies are not clearly descried and coordinated.

• We problem with summary energy data

Subjects would like to study in the order of priority and the reason

How to the formulation of future activities forenergy policy making How to formulate an action plan describing How to prepare energy data base for energy

demand forecast How to Using Simple E What is good tool for energy policy making

Contact : report@tky.ieej.or.jp