Electricity Access in Lao PDR

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1 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, Thailand June Electricity Access in Lao PDR Litthanoulok LASPHO Ministry of Energy and Mines, Department of Energy Policy and Planning. 1

2 Contents 1. Development History of Power Sector 2. Electrification investment and Development 3. Key Driver of success in Lao PDR on Electrification. 2

3 1. Development History q By 1975 ØOnly 3 hydropower plants with 32 MW, 240 GWh. ØPopulation ~3 million ØOnly 5 main cities electrifed ØEstimated less than 10% of families have access to electricity 3

4 1. Development History (Cont ) 1 st Power Sector Policy was formulated in 1990: 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. 4

5 1. Development History (Cont ) In early 2005, the power sector played more significant and strategic role when the Govt laid out important targets in the NSEDP: ØProvide a source of foreign exchange to fund economic and social development and alleviate poverty; ØMeet the commitments under intergovernmental MOUs and Agreements with Thailand, Vietnam and others; ØExtend electrification to promote better socio-economic development and reach the government target of 70% and 90% by year 2010 and 2020 respectively; ØIntegrate power sector and maintain its economic development as a whole with international communities trough its power exchange programs and foreign direct investment. 5

6 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% in the last 15 years; Ø Electricity export ~ 15% of total country s export revenues; Power sector s contribution to GDP is projected to increase to ~16% in 2020; 6

7 Households Electrification Ratio Source: 7

8 2.Electrification Investment and Development Public Investment Private Sector Investment based on Build Financing and Transfer Community Partnership and others Mini Grid 8

9 Grid Model Power to the Poor (P2P) program Addressing 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 9

10 Power to the Poor (P2P) program Instrument Address the affordability of the upfront connection charges, with a sustainable Revolving Fund Funds from EdL, IDA, GEF, AusAID EdL Operational Account EdL P2P Revolving Fund Kip 700,000 ~90$ Kip20,000/month~2.5 $ Electricity tariff Monthly bill P2P Repayment Poor Households K700k Contractors for house wiring 10

11 Targeting the poor Initial results and looking forward Pilot program results ( ) 537 households in 20 pilot villages connected utilizing P2P credit Average connection rate increased from 65% to95% in the pilot villages Connection rate among femaleheaded HH increased from 63% to 90% Example: PHONSAAD Village: electrified in 2002, 63 out of the 270 households not connected by 2008, and all the 63 households were connected to the grid in Feb-Mar 2009 with the P2P Program scale up country-wide started March/April

12 Implementation and Management Model for Off-Grid Ministry of Energy and Mines (MEM) / Institute of Renewable Energy Promotion (IREP) GOL WB/IDA/GEF Central level Rural Electrification Division (RED) / PMU Fund Manager VOPS Contract REF IDA/GEF/ AusAid Special Ac count Provincial level PDEM PESCOs Cluster Plan Installation Contract Village level VEAC VEM (Village Energy Advisory Committee) Tariff (Village Energy Manager) Technical Service & Collecting Tariff Customers (Rural Community Households, Enterprises) Electricity from SHS / VHGS Electricity 12

13 Institutional Structure (REF Secretariat) Advisory Committee Fund Manager Secretariat Office Consultant IREP Permanent Staff 13

14 REF Source GOL established the REF in order to support (provide Grant Aid or Soft Loan) all activities to promote rural electrification developments. The rural electrification development 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 or reduce tax for import equipment, construction and operation of rural electrification project. 14

15 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: Wp 15

16 Solar photovoltaic Mini Grid Project is Location in Phakeo Village Phoukhoun District Luangphabang Province, installed capacity 4.8 kwp 16

17 Micro Hydropower Reverse Running pump Turbine 17

18 Utilization Pico hydropower in Lao PDR 18

19 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 offgrid program 3. Financial support from International donors 4. Private participation and Communities 5. Incentive for Investor and Implimentors 19

20 Contact: Litthanoulok LASPHO Department of Energy Policy and Planning Ministry of Energy and Mines, Lao PDR litthanoulok@yahoo.com Visit:

Contents 1. Country Background 2. Lao Power Sector 3. Power Sector Policy 4. Current Electric Power Situation (statistics) 5. Demand Forecasting 6. Ex

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