IEEJ:August 2015

Energy Policy of Lao PDR
2015

Mr. Phaysone Phouthonesy
Technical officer
Department of Energy Policy and Planning
Ministry of Energy and Mines, Lao PDR
www.laoenergy.la
Email: phutonesi@yahoo.com

Energy Policy Training
Program (B)NO. J1504286/ID.1584585
Course Period in Japan :From June 21 2015 to July 11, 2015

Content
1) Country Background2) Current energy policy and measures3) Energy demand and supply
4) Outlook of energy demand and supply
5) Major difficulties and bottlenecks currently facedin formulating energy policies
6) Subjects would like to study in the order ofpriority and the reason

Country Background

Area of 236,800 sq km
26 people /square kilometer;
Mountainous area with major
Tributaries of the MekongRiver Covering 35% of total MekongRiver basin.
Population 2014
Female: 3,389 Millions
Total:
7,771 Millions
Total share of GDP
GDP/per Capital: 1,628 US$
Growth Rate GDP: 8.0%
Total Share of GDP
Agricultural: 23.5%
Industry: 33.2%
Services: 37.4%
Total: 94.1%
Consumer Price Index 2014-2015
Jan: 2.04%
Dec: 2.40%
Inflation Rate 2014-2015
Jan: 122.87
Dec: 123.18

Country Background• National Goal to graduate from a leastdevelopment Country status by 2020
• Energy sector is one of important driving forces
to social and economic growth• Upgraded and revised the policy on sustainablehydro development to ensure that hydropower
development is truly sustainable in the longer
term and effective mitigation of negative
impacts on the local environment and affected
population, including protection of thewatershedCurrent energy policy and measures
Maintain and expand affordable, reliable andsustainable electricity supply to promote economicand social development. Electrification Ratio toexceed 90% by 2020;
Improve and expand transmission networks tosupport the industrialization and modernization
policy, and to integrate the power sector in theASEAN community through its power exchange
programs;
Tap the country’s large hydropower potentials withthe participation of private developers;
Promotion of Renewable Energy to reach 30% by
2025 with reasonable feed-in tariff.

Current energy policy and measures

 Government has been approval
Promulgation of the “Policy on Sustainable
Hydropower Development in Lao PDR”.
 Ministry of Energy and Mines has beenapproval guideline Policy on Sustainable
Hydropower Development in Lao PDR.
 Daft Decree on Electrical Tariff Structure
for Support to Agriculture and Industry
GrowthCurrent energy policy and measures
 Daft Decree on Small Hydropower
Development for implement to guidemonitoring in feasibility study of hydropower Development Power Industry Supply
 Development NPDP
• Increase a share of bio-fuel consumption inTransport Sector up to 30% by 2020;• Establish a National Policy of Renewable
Strategic Policy;• Establish a National Strategic Plan for Bio- fueldevelopment.
Energy demand and supply 2014
Energy Supply 2014
3.9 , 0%

Energy Demand 201482.8 , 3%

3.9 , 0%4.8 , 0%160.0 , 6%
317.32 , 13%
Coal822.39 , 32%

Coal816.72 , 33%

Electricity

Electricity

Biomass

Biomass

Petroleum

Petroleum
1,506.3 , 59%

LPG

LPG
1,367.14 , 54%

1257.7 Ktoe

Energy demand and supply
Final Energy Consumption 2014

Industry Final Energy Consumption 2014
4.8 Ktoe

2% 0% 0.6 Ktoe
5% 94 Ktoe

1% 8%
Industry
Transportation

1189.7 Ktoe

31%

48%

786.2 Ktoe

26%

Coal

52.6 Ktoe

LPG

Commercial

Fuel Oil

Residential

134.5 Ktoe

Agriculture

67%

12%

Electricity
Fuel wood307.9 Ktoe

Transportation Final Energy Consumption 2014

Commercial Final Energy Consumption 2014
2.0 Ktoe

40.3 Ktoe

5%1%
23%
26%

202.4 Ktoe

18%

57.3 Ktoe

69.7 Ktoe

Electricity

Gasoline

FuelWood

DieselCharcoal

Jet Fuel
58%

69%

202.4 Ktoe

LPG

178.9 Ktoe

Energy demand and supply
Residential Final Energy Consumption 201466.2 Ktoe , 6% 1.3 Ktoe , 0% 122.5 Ktoe ,10%

LPG
Electricity

Agriculture Final Energy Consumption 2014

FuelWood
Charcoal

3.1 Ktoe , 13%

999.7 Ktoe ,84%

DieselElectricity

21.2 Ktoe , 87%Outlook of energy demandand supply
The most important aspect of the energy outlook of
Lao PDR is that the country is net exporter ofelectricity generation from hydropower using
abundant water resource from the Mekong River andtributaries. It is also said that the country has
extensive coal resource, which expected to coveralmost all domestic demand for coal with theexception of some coal deposits, has not been
conducted. On the other hand, it has few petroleum
resource, so all petroleum products are imported.

Outlook of energy demand and supply
Hydropower Projects is Operating in 2014
-29 ProjectsCapacity: 3200 MW
Install Capacity Generation : 15,270 Gwh

Electricity 2014, GWh

Supply14,624.97 ,41%

15,270 , 43%

Electricity Consumption 2014, Gwh
35.6 , 1%

9.278 , 0%Exports
1,214.91 , 3%

13.00 , 0%Entertianment

1,424.0 , 32%

Gov. officeInternational organization
Edu.and sport businessIndustry
Commercial

1,564.0 , 35%
666.21, 15%

Imports204.00 , 5%

540.0 , 12%

Consumption

Residential
Agriculture

4,456.1 , 13%

Outlook of energy demand and supply
Import Petroleum 100% from Thailand 70% andVietnam 30%
Petroleum Consumption by Sector 201410,067,862, 1%

24,213,568, 3%

Petroleum Import 2014, Liters
10,067,350, 1%

1.Transportation
2.Commercial

2,004,046, 0%

47,866,066, 5%

3.Industry

Motor gasoline
212,949,578,22%

DieselGasoline by Jet Fuel
Bunker Oil
Lubricant
LPG 3,510, 0%

688,907,148,72%

817,352,813,96%

Outlook of energy demand and supply
Coal: 2014, Most of all Coal using for industry
sector, Especially use in cement factory
Coal 2014, Ktoe

10,773 , 6%

168,553 ,26%

54,462 , 8%

Coal Consumption by Industry 2014, Ktoe

Production

438,250 ,66%Export (Anthracite)(Lignite)

Consumption

Anthracite

157,780 , 94%

Major difficulties and bottlenecks currently faced informulating energy policies• No integrated national energy policy and no clear on
existing vision to cover all energy sub-sector• Certain energy policy mainly focuses on electricity• Manpower with the sufficient and strong knowledge ofknow-how, experiences and skill strategic planning isstill limited.
• Responsibilities among related agencies are not clearly
descried and coordinated.
• We problem with summary energy data

Subjects would like to study in the orderof priority and the reason
 How to the formulation of future activities forenergy policy making
 How to formulate an action plan describing
 How to prepare energy data base for energy
demand forecast
 How to Using Simple E
 What is good tool for energy policy making
Contact : report@tky.ieej.or.jp