Laos Rural Electrification
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Transcript of Laos Rural Electrification
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Lao Rural Electrification
Litthanoulok LASPHOMinistry of Energy and Mines,
Department of Energy Policy and Planning.
SE4ALL Consultation Workshop: Monitoring the Status of Asia-Pacific 14 June 2015 | Discovery Suites, Ortigas Center, Manila, Philippines
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1. Development History of Power Sector
2. Rural Electrification investment and Development
3. Existing model on Rural Electrification
4. Key Driver of success in Laos on Rural Electrification.
Contents
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1. Development History
By 1975
Only 3 hydropower plants with 32 MW, 240 GWh.
Population ~3 millionOnly 5 main cities electrifedEstimated 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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Provide a source of foreign exchange to fund economic and social development and alleviate poverty;
Meet the commitments under intergovernmental MOUs and Agreements with Thailand, Vietnam and others;
Extend rural electrification to promote better socio-economic development and reach the government target of 70% and 90% by year 2010 and 2020 respectively;
Integrate power sector and maintain its economic development as a whole with international communities trough its power exchange programs and foreign direct investment.
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’) Present day: Population of 6.6 mil. or ~27 people/square kilometers; GDP is US$ 11 Billions (2013) and expected to grow at
an average rate of 7.7%; Electrification ratio reached 87% of total households in
2014, increased 36% from 2000; Per Capita Electricity Consumption of 470 kWh/a but
has been growing at an average rate of more than10% in the last 15 years;
Electricity export ~ 15% of total country’s export revenues; Power sector’s contribution to GDP is projected to increase to ~16% in 2020;
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2. Rural 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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3. Existing model rural electrification development
Household connected to grid and P2P prject
Household not connectedEnergy for Off-Grid Area
Grid Off-grid
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Objectives of Rural Electrification: Expand and improve Main Grid supplies; Expand and improve Off-Grid supplies; Increase energy self-sufficiency and security; Implement power project for maximize long-term sustainability. Develop legal framework for off-grid development; Create institutional arrangement to promote sustainable Off-Grid
electrification.
3. Existing model rural electrification development
Enabling Environment: Power to the Poor (P2P) in Laos
• Social impact survey: Pick-up rate in electrified villages only 70%
• Poor households that remained unconnected disproportionately headed by women.
• While female-headed households comprised 8 percent of all households, they accounted for 43 percent of poor households.
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: all female-headed and single parent households automatically eligible for support, as long as the house is safe to electrify
• Gender sensitive communication materials and making the consultative process gender inclusive
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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 $
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% 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 P2PProgram scale up country-wide started March/April 2010 14
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Provincial level
Village level
GOL
WB/IDA/GEF
Central level
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 (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.
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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Rural Electrification (Solar)Year No. operation
1999 257
2000 392
2001 392
2002 1,207
2003 3,531
2004 5,107
2005 6,357
2006 6,183
2007 9,431
2008 8,728
2009 13,339
2010 9,193
2011 13,344
2012 15,546
2013 16,570
BCSSHS
SHS
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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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4. Key Driver of success in Laos on Rural 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