Presentation issued without formal editing

FOR PARTICIPANTS ONLY 14 March 2017

ENGLISH ONLY UNITED NATIONS CENTRE FOR REGIONAL DEVELOPMENT In collaboration with Ministry of Public Works and Transport, Lao People's Democratic Republic Ministry of the Environment (MOE), Japan Partnership on Sustainable, Low Carbon Transport United Nations Economic and Social Commission for Asia and the Pacific, and United Nations Office for Sustainable Development

TENTH REGIONAL ENVIRONMENTALLY SUSTAINABLE TRANSPORT (EST) FORUM IN ASIA, 14-16 MARCH 2017, VIENTIANE, LAO PEOPLE’S DEMOCRATIC REPUBLIC

Implementation of Renewable Energy Projects

(Presentation for EST Plenary Session 5 of the Provisional Programme)

Final Draft

------------------------------------- This presentation has been prepared by Dr. Sermkham Thoummavongsa, Ministry of Energy and Mines, Lao PDR for the Tenth Regional EST Forum in Asia. The views expressed herein are those of the author only and do not necessarily reflect the views of the United Nations. Disclaimer: The designations employed and the presentation of the material in this publication do not imply the expression of any opinion whatsoever on the part of the Secretariat of the United Nations concerning the legal status of any country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries.

15 March 2017, Vientiane, Lao PDR

Intergovernmental Tenth Environmentally Sustainable Transport (EST) Forum in Asia

Deputy Director GeneralInstitute of Renewable Energy Promotion

(IREP) MEM

Renewable Energy and Energy

Efficiency for Low carbon City

Presented by Dr. Seumkham THOUMMAVONGSA

CONTENTS

I. Overview on Energy Consumption

II. National Energy development Plan

III. R.E Policy and Strategy

IV. EE&C Development & its National Policy

V. Benefit/Roadmap on Electric vehicle

VI. Summary on Energy development for Low Carbon City

VII. Challenge

VIII. Need to support

Primary Energy Consumption in Lao PDR by 2014 (MEM)

I. Overview of Energy Consumption

• Energy Consumption (2014): 2,510 KTOE

Residential, 47.40%

Agriculture, 1%

Industrial, 8%

Commercial, 12.30%

Transportation, 31.30%

ENERGY CONSUMPTION BY SECTORS

Fuelwood, 49.10%

Coal, 0.20%Charcoal,

5.40%

Electricity, 12.60%

Fuel Oil, 32.70%

ENERGY CONSUMPTION BY TYPES

0.0

1,000.0

2,000.0

3,000.0

4,000.0

5,000.0

6,000.0

19

90

19

92

19

94

19

96

19

98

20

00

20

02

20

04

20

06

20

08

20

10

20

12

20

14

20

16

20

18

20

20

20

22

20

24

20

26

20

28

20

30

ທ່າອ່ຽງໃນຄວາມຕ້ອງການຊົມໃຊ້ພະລັງງານສ າເລັດຮູບ, kTOE

ອຸດສາຫະກ າ ຂົນສົົ່ ງ ທຸລະກິດ ທ ົ່ ຢ ົ່ອາໄສ ກະສິກ າ

ສະຖິຕິໃນໄລຍະຜົ່ ານມາ

Existing statistic

ການຄາດຄະເນ

Future predict

5,600 kTOE

2,510 kTOE

Industrial

Transport

Business

Residential

Agriculture

Trend of Total Energy Demand

• Lao PDR is 91% electrified

• Promote energy efficiency and conservation by Reduce

10% of energy consumption in 2030 (Compare to BAU)

• Provide clean energy to sustain economic growth andPoverty alleviation

• Increase power Export for revenue earning

• Expand access to electricity services up to 95% ofhouseholds by 2020

• Increase RE use to 30 % of national energyconsumption by 2025

Main target on Energy Sector

Total Install Capacity 6,400 MW, 44 Project

Thermal Power 1800 MW

Hydro Power 4556.5 MW

Solar Power 3.5 MW

Biomass 40 MW

Almost 72% of power in Lao PDR are generating from

Renewable Energy : 4,600 MW

Power Generation Share

II. National Energy Development Plan

National Energy Development

Plan

1.Power

Development Plan

2.Energy Efficiency Plan

3.Renewable Energy Development plan

4.Others alternative Energy Development Plan

5.Gas Development

Plan

6.Oil Development

Plan

Wind

73 MW

SHP

400 MW

For Electricity

Biomass Biogas Waste

58 MW 51 MW 36 MW

Biofuels (ML)

Ethanol 97.64

Biodiesel 194.44

Financial Incentive

for Investors

Renewable Energy Strategy

Development (2011-2025)

Develop and Modify Legal

documents (laws, regulations

and guidelines)

Target: increase RE use to 30 % of national demand by 2025 (bio-fuel production to account 10 %)

Objective: Ensure energy security, sustain socio-economic development, andenhance environmental and social sustainability

Bio-Energy

• Establish Renewable Energy Fund

• Financial Mechanism:

- Import duty free on production machinery, equipment and raw materials

- Import duty free on chemical materials necessary for biofuels production within 7 years

- Profit tax is divided in to 3 categories: 20%, 15% and 10%. Profit tax exemption is possible for a certain period depending

on activities, investment areas and size investment

• Subsidies on unit product price depending on energy type and times period

Support

Mechanism

Heat

Biomass Biogas

113 ktoe 178 ktoe

Solar

106 MW

III. R.E Policy and Strategy

Lao-Agrotech Co., LtdNaxaythong, districtVientiane Capital

Plantation-Area Harvest-Area

Palm oil

300+800 ha 60 ha (2016)

FFB 173,640 kg

CPO 33,000 L

B100 20,000 L

Biodiesel Plant: 20,000 L/day

Extraction Plant: 20 tons/day

Vernicia Montana

12,350 3,000 ha

Fruit collection 75,000 kg

B100 18,000 L

Biodiesel Plant: 1,000 L/day

Extraction Plant: 2 tons/dayIn 2017 new Plant 2 units; Each unit 15 t/day

B100 18,000 L

Biodiesel-Makao Oil Lao Co., LtdLuangprabang, districtLuangprabang Province

100,000 105,000

120,000

63,500 63,500

38,000

-

20,000

40,000

60,000

80,000

100,000

120,000

140,000

2011 2012 2013 2014 2015 2016

Current Statute Bio-Diesel Production B100 (liter)

Bio ethanol: June 2014The GOL signed MOU with 2 local private company to conduct feasibility study of bio ethanol production from cassava (each 200,000 L/day)

Biofuel Development

IV. EE&C Development & its National Policy

The National EE&C Policy towards 2030, aimingto achieve the following goal:

- Reduction of national energy demand by 10% (year 2030)

- Reduce energy consumption level by around 1% per year on

average (BAU)

- GHG reduction (2.6 Mil.tco2 in 2030)

4 areas of focus:

• Industry

• Residential

• Building & office

• Transportation

What’s up next:……

2,000

2,500

3,000

3,500

4,000

4,500

5,000

5,500

6,000

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BAU

Target

560

kTOE

reduce

Target 5,040

kTOE

BAU 5,600

kTOE

V. Benefit/Roadmap on Electric vehicle

Benefits

To promote use of potential clean energy of country to

transportation system

To shift mode conventional transportation system to

environmental friendly system

To reduce a gap of deficit on energy by reducing fuel oil

import

To Promote green growth and sustainable development with

all relates sectors

Road Map

Plan for charging station set up

Tax scheme for EV and electric motor-cycles

Campaign for CO2 reduction with EV

Almost of energy using in Lao PDR areindigenous

Main source of power generation is hydropower

To reduce pollution from transportation sectorthere are some measure issuing:- Biofuel development, Bio-diesel and Ethanol

- Using additive technology to the fuel oil

- Develop EV transportation system

Super clean cook stove are putting in place forusing in many communities

Study of Mini/Micro-grid with RE

VI. Summary on Energy development for Low carbon city

EV development plan have to include in the socialeconomic development plan

All relates technologies are import

Huge amount of capital is needed for infrastructuredevelopment on shift mode transportation

Local capacity development including awareness raising istaking time and making cost

Coordination mechanism including scope of work withcross sectors have to set

Additional specific legislation tools to support EE&C intransportation sector have to develop

VII. Challenge

1. Budget for study research and development

2. Technology transfer including experience

3. Capacity development to both ministries such MEM &

MPWT

4. Develop coordination mechanism across relates

Ministries include: MEM, MPWT, MOST, MOIC

5. Develop specific legislation tools to manage all EV and

relates parts importing to the country

6. Others activities…

VIII. Need to support

15

Thank you