IEEJ: 2009年5月掲載

Country Report on Energy Policyin Lao PDR
Mr. Lamphone DIMANIVONG
Electrical Engineer
Power Sector Planning Division
Ministry of Energy and Mines
Department of Electricity

Japan 7, April 20091

IEEJ: 2009年5月掲載

Contents
1.Background of Lao PDR
2.History of Power Sector Development
3. Power Sector Policy.
4. Existing of Energy Policy.
5. Demand and Supply Balance .
6.Conclusion.

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IEEJ: 2009年5月掲載

1.Background of Lao PDRMountainous area with major
tributaries of the Mekong River
covering 35% of total MekongRiver basin.
Relatively high annual rainfall.
Situated amongst neighboring
countries where demand forelectric power is steadily
increasing.
Experience in electric power
exchange with neighboring
countries.

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IEEJ: 2009年5月掲載

1.Background of Lao PDR (cont’d)Area of 236800 km sq.
Population of 6.1 million
Still poor( LDC status)
GDP of USD 4.1 billion
GDP per Capita of USD 670
 Hydropower potential say 23000 MW
Existing installed capacity of 672 MW (3%)
 Produced energy of 3500 GWh/Y Produced energy per capita of 700kWh/Y Exported energy per capita of 320 kWh/Y4IEEJ: 2009年5月掲載

2.History of Power Sector Development


Memorandum of Understanding on the power exchange program wassigned with the Royal Thai Government in 1993 and 1996 under which
3,000 MW is to be supplied to Thailand and subsequently increased 7,000
MW is agreed;In 1998 and 2006 MOUs were signed with the Government of Vietnam for3000 MW and subsequently 5000 MW is agreed;In 1999 Agreement on Cooperation in Power Sector was signed withCambodia;

Power Sector Strategy developed and updated from time to time;Power sector opened to private foreign direct investment;Legal framework has been improved from time to time to meetinternational financing requirements.
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IEEJ: 2009年5月掲載

3. Power Sector Policy

Maintain and expand affordable, reliable and sustainable electricity supply
to promote economic and social development;Promote power exports as well as domestic power supply to earn revenues
to meet Government development objectives with particular emphasis on
poverty eradication.

Develop and enhance the legal and regulatory framework to facilitate
power sector development by either public, private or public private
partnership;

Gain capacity building through international technical know-how andexpertise;Ensure accountability and transparency of environmental and social
impacts and thereby achieve sustainable development.
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IEEJ: 2009年5月掲載

Objective of the Power Sector Development
Provide a source of foreign exchange to fund economic and social
development and alleviate poverty.

Meet the commitments under intergovernmental MOUs and Agreementswith 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 wholewith international communities trough its power exchange programs andforeign direct investment.

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5. Existing of Energy PolicyThis policy base on three principles
of sustainability and applies to alllarge hydropower dams, wherelarge dams are defined as having
installed capacity of higher than 50
MW or inundation more than 1000
ha of land at their fully supply level.
This national policy also applies tohydropower project constructed
after 1990.
An integrated approach to riverbasin management will be practiced
for multiple projects planned todam a single river.

8IEEJ: 2009年5月掲載

Three importance principles of hydropower
sector sustainable development
1.

2.

3.

4.

Economic sustainability relies upon the maintenance of the renewable
resource base, and the use of non-renewable resource rent to support thedevelopment of other factors of production.
Social sustainability is based upon the principle of inclusiveness, mutual
understanding and consensus.
Ecological sustainability relies upon the avoidance of irreversible
environmental impact such as the loss of biodiversity accumulation ofpersistent pollutants or disruption of ecological cycle.
Renewable energy Policy now is under drafting by Finland .

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6.Demand forecast
1: Summary of Demand forecast for Northern area
ActualDescriptions
Energy Demand , GWh
System Losses, GWh
Energy Demand (Including system losses), GWh
Peak Load, MW
Load Factor

2006
26.03
7.55
22%
33.59
12.78
30%

Forecast
2007
32.90

9.25
22%
42.15
15.16

32%

2010
50.88
13.00
20%
63.88
18.56
39%

2015
865.6148.53
5%914.15155.2067%

Average Growth per annum

2007-2020

Energy Demand, GWh
Energy Demand (Including system losses), GWh
Peak Load, MW

68.3
71.8
11.4

Growth Rate
2020 2006-10 2006-15 2006-20
921.39
18%
48%
29%
54.70
6%
976.1017%44%27%162.98
10%
32%
20%
68%

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IEEJ: 2009年5月掲載

2: Summary of Demand forecast for Central1 area
ActualDescriptions
Energy Demand , GWh
System Losses, GWh
Energy Demand (Including system losses), GWh
Peak Load, MW
Load Factor

2006
794.8
230.6
22%
1,025.4
216.1
54%

Forecast
2007
902.8
245.7
21%
1,148.6
242.2
54%

2010
1,669.5301.2
15%
1,970.7374.0
60%20153,531.9
408.3
10%
3,940.2
683.5
66%

Average Growth per annum

2007-2020

Energy Demand, GWh
Energy Demand (Including system losses), GWh
Peak Load, MW

280.5
299.7
49.1

Growth Rate
2020 2006-10 2006-15 2006-20
4,549.0
20%
18%
13%
495.5
10%
5,044.5
18%
16%
12%
880.6
15%
14%
11%
65%

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IEEJ: 2009年5月掲載

3: Summary of Demand forecast for Central2 area
ActualDescriptions
Energy Demand , GWh
System Losses, GWh
Energy Demand (Including system losses), GWh
Peak Load, MW
Load Factor

2006
464.3
54.6
11%
518.9
83.671%

Forecast
2007
645.3
73.3
10%
718.6
117.7
70%

2010
923.2
92.6
9%
1,015.8
168.7
69%

2015
1,469.2
128.1
8%
1,597.3
271.0
67%

Average Growth per annum

2007-2020

Energy Demand, GWh
Energy Demand (Including system losses), GWh

7985

Growth Rate
2020 2006-10 2006-15 2006-20
1,671.0
19%
14%
10%
147.7
8%
1,818.7
18%
13%
9%
313.7
19%
14%
10%
66%

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4: Summary of Demand forecast for Southern area
ActualDescriptions
Energy Demand , GWh
System Losses, GWh
Energy Demand (Including system losses), GWh
Peak Load, MW
Load Factor

2006
115.5
33.522%
149.0
36.9
46%

Forecast
2007
130.4
36.7
22%
167.0
40.647%

2010
390.7
52.0
12%
442.7
87.1
58%

2015
491.2
66.5
12%
557.8
106.5
60%

Average Growth per annum

2007-2020

Energy Demand, GWh
Energy Demand (Including system losses), GWh
Peak Load, MW

38.4
41.7
6.8

Growth Rate
2020 2006-10 2006-15 2006-20
629.3
36%
17%
13%
80.5
11%
709.7
31%
16%
12%
129.5
24%
13%
9%
63%

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IEEJ: 2009年5月掲載

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Balance Sheet15

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IEEJ: 2009年5月掲載

7.Conclusion.
Due to Laos is abundant of hydropower potential, the mainenergy source is base on hydropower electric only it cause ofshortage power during dry season.
 The grid extension is not connected from Northern part toSouthern part that why we need a huge budget to extend agrid .
 A demand of each region is very difference, the grid extension
is not efficiency but GOL have to do .
 Lack of Resource person.
 Lack of fund.
17

IEEJ: 2009年5月掲載

The expectation from this training course All policy that concerning about energy .
 Market principle in energy field .

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IEEJ: 2009年5月掲載

Thank you for your attention !
Kopchai.
Arikato.
お問合せ: report@tky.ieej.or.jp

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