IEEJ : August 2014

Energy Sector Development
Din
Lao PDR
By: Vimala BU
ULYAPHOL
Technical Official of Department ofo Energy Policy and Planning
Ministry off Energgy and Mines

Conteents
Country Background

Current Policy and Measures

Energy Sector Development

Existing Hydropower Plants

Energy Demand and Supply Current Situattion and Outlook
Major difficulties and bottlenecks currentlly faced informulating energyCountry Baackgroundackground Area of 236,800 sq km
 Population of 6.4 mil. or ~26
people/square kilometers; MountainousMt iarea withith majorjtributaries of the MekongRiver covering 35% of total
Mekong River basin.
 GDP per capita was US$ 1,200(2013) and GDP is expected togrow at an average rate of 8%
during 2013‐2015;

Country Backg
ground (Cont’)() National Goal to graduate froom a least‐developed country
statust t bby 2020.
2020
 Energy sector is one of important driving forces toeconomic growth.
g Upgraded and revised the po
olicy on sustainablehydropower development too ensure that hydropower
development is truly sustainaable in the longer term andeffective mitigation of negattive impacts on the localenvironment and affected poopulation, including protection
off theth watershed.
t h d

Current Energy Po
olicy and Measures

There are four basic concepts for national policy
plisted below:
 Maintain and expand affordable, reliable
e and sustainable electricity supply;
Electrification Ratio to exceed 90% by 20020.
 Improve and expand transmission networks to support the industrialization andmodernization policy, and to integrate thet power sector in the ASEAN community
th gh itthrough
its power exchange
h g programs.
g Tap the country’s large hydropower pottentials with the participation of private
developers.
gy to reachh 330% byy 20255 with reasonable feed‐in Promotion of renewable energy
tariff.

Current Energy Policy and Measures (Cont’)

National policy on Environmentt and Social Sustainability ofHydropower:
 Was adopted in 2005
 During
i 2006‐2012,
6a numberb off laws,
lregulations
l irelatedl d tothe implementation of nation
nal policy and the utilization ofnatural resource have been changedc
 Government has updated thee national policy on
Environment and Social Sustainability of the Hydropower
Sector in Lao PDR to be in lin
ne with the current situationand shall be officially launche
ed within June 2014.

Current Energy Policy and Measures (Cont’) Aims to p
provide p
policyy g
guid
dance to the related
agencies for overseeing th
he implementation of
investment projects.
 Informs and encourage prroject developers/investors
to be aware of the Govern
nment ppolicyy towardachieving sustainable deve
elopment in Lao PDR.

Current Energy Policy and Measures (Cont’)

The main aspect
pof this policp cyy includes
 Environmental Perspecttive
 Social Perspective
 Technical Perspective
 Economic/Financial
Ei /Fii l Pers
P spectiveiEEnergy
SectorS tDeveDllopmentt iin LaoLPDR In 1993,
1993 Lao PDR and Thailannd signed the first MOU tosupply electricity of up to 1,500 MW to Thailand.
ended the MOU for manyy times
 Two Governments have exte
and newly agreed in 2007 to supply the electricity toThailand up to 7,000 MW by 2020.
 InI 1998,8 Lao
L PDR andd Vietnam
Vi t m hhas alsol signed
id MOU forf
exporting electricity 2,000 MW
M and increased to supply upto 5,000 MW
 In 1999, the Agreement on Cooperation
Cin Energy Sector
was signed with the Governm
ment of Cambodia.

Energy Sector Developm
ment in Lao PDR (Cont(Cont’)) By 2013, about 3,217 MW ofo the capacity had beendeveloped and is operational for both domestic
consumption for 25% and export
eto Thailand andVietnam for 75%.
75
 There are 23 hydropower plants
pin the country inoperation.
 Further 33 projects with ann installed capacity of
5 570 3 MW or expected e
5,570.3
energy generation of29,882.3 GWh are under coonstruction.

Existingg Hydropowe
y p er Plants in Lao PDR
 Hydro Power Plants are wholly owned by Electricity
du Lao (EDL) and EDL
EDL‐GenGenn are as follow:
No.

Power Plant

Installed Capacity

1

Nam Ngum 1

155

2

Nam Mang 3

40

3

Nam Leuk60

4

Nam Ko

1.2

5

Nam Dong

16

Nam Ngay

121.2

7Xeset 1

458Xeset 276

9Xelabam510

Nam Song

711

Nam Sheir

0.08

12Nam Mong

0.08

Existing Hydropower Plants in Lao PDR (Cont’) Hydropower Plants are whholly owned by Independent
Power Plants are as followw:
No.

Power Plant

Installed Capacity (MW)1

Nam Nhone32

Nam Tha 3

1.5

3NNam
Lil 1/2/100

4Nam Phao

1.85

Nam Ngum 5120

6Nam Theun Hin
nboun

500

7Nam Theun 2

1,088

8Houy Ho

152

9

Nam Nguem 2615

10Nam Gnuang 860

11Xekaman 3250

Energy Demand and Su
upply Current Situation
 During 2012, the residential secctor accounted the biggest sharein the total electricity consum
mption which was 39.29%
39 29% (1,160(1 160GWh), followed by commerccial sector: 28.97% (800 GWh),Wh), Government’s offices: 5.83%
Industry sector: 23.43% (681 GW(173 GWh).
28.97%
39.29%
Residential
Commercial
Entertainment
Gov.offices

5.83%

Agriculture

0.37%

Embassies

1.81%

Industry
23.43%
0.30%
0 30%

Energy Demand and Su
upply Current Situation

1400
1200
1000

GWh

800
600
400
200
000
2001

Residential

2002002003
003

Commercial

2004002005005

Entertainment

2006

Gov. offices

2007002008
008

Agriculture

20090092010
0 0Embassies

20110

Industry

The country’s power consumption hass divided into 7 categories as shownin the figureg2 below. The total consummptionp
in 2012 was 2,873, 73 GWh.

20120

Energy Generation and Trade
14,00012,000Generation

GWWh

10,0008,000

Export
6,000

4,000

Supply2,000

Import‐200520062007

200820092010

2011 In 2012,, Laos has ggenerated 12,760,GWhh,, exportedp10,320,3 GWh,, supplied
pp
for its
consumers 2,874 GWh and imported 1,3329 GWh of power electricity.
 Except for Myanmar, 4 of the 5 countrie
es in GMS are already trading electricity.
Amongg the 4 countries,, Lao PDR was thhe net exporterpbeingg able to exportpabout 80% to Thailand.

2012Energy Expoort vs Import
14,000.0
12 000 0
12,000.0

GWh10,000.0
8,000.0
6,000.0

Export4,000.0
2 000 02,000.0‐

2005
Export 2,506.
Import 330.2

Import2006
2,487.
628.1

2007
1,741.
793.4

2008
2009
2,315.
1,920.
844.5
1,175.
Years

2010
6,646.
1,209.

2011
10,668904.3

2012
10,3191,329.

Energy Import

1,400.0

Thailand

China

V
Vietnam

2006
14 2
14.2
4.9
609.1

2007
19 6
19.6
14.6
759.3

2008
2009
22 6
22.6
25 4
25.4
17.8
21.6
804.1 1,128.2
Years

1,200.0GWh

1,000.0,000.0
800.0
600.0
400.0
200.0
‐
Vietnam
China
Thailand

2005
14 9
14.9
4.5
310.7

2010
31 7
31.7
75.3
1,102.7

2011
34 0
34.0
112.5
757.8

2012
36 5
36.5
112.7
1,179.9

Energy Domestic Dema
and and Supply Outlook
25,000.00

Domestic Demand andaSupply
pp y Forcast

20,000.00

15,000.00

10,000.00

5 000 00
5,000.00

‐

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

supply4,081.16

4,251.81

4,770.91

5,725.74

10,100.77

13,355.77

16,185.77

16,444.07

16,519.07

16,519.07

16,519.07

demand2,874.20

5,020.00

6,517.00

8,075.00

10,072.00

12,608.00

13,934.00

15,001.00

19,496.00

19,491.00

20,270.00

supplydemandThe domestic demand grows gradually from 2014 to 2022, as a result, it
would be shortage of supply from thee hydropower for domestic supply.
supplyMajor difficulties and bottlenecks currently
faced in formu
ulating energy

 No
N integrated
i t
t d nationalti
l ene
ergy policyli andd no clear
lon
existing vision to cover all energy sub‐sector.
 Certain energy policy mainnly focuses on electricity.
 Manpower with the sufficiient and strong knowledgeof know‐how, experiencess and skills in strategicplanning is still limited.
 Responsibilities among rellated agencies are notclearly described and coorrdinated.

Expectation from the Trraining Understand the concept,
p ,mmethod and critical issue inthe design of Energy Policy.
 Build the capacity on how to address and oversee theimplementation the Policyy.

Thannk you for yourkkind
attention

Contact : report@tky.ieej.or.jp