SE4All Consultation Workshop 14 June 2015 Litthanoulok Laspho

1. Lao Rural Electrification
Litthanoulok LASPHO
Ministry 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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2. 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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3. 1. Development History
 By 1975
Only 3 hydropower plants
with 32 MW, 240 GWh.
Population ~3 million
Only 5 main cities electrifed
Estimated less than 10% of
families have access to
electricity
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4. 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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5. 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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6. 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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7. 7

8. 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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9. 3. Existing model rural electrification development
Household connected to grid and P2P prject
Household not connected
Energy for Off-Grid Area
Grid
Off-grid
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10. 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
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11. 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.

12. Power to the Poor (P2P) program
Addressing 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 12
Grid Model

13. Power to the Poor (P2P) program
Instrument
Funds from
EdL, IDA, GEF, AusAID
EdL P2P
Revolving Fund
EdL Operational
Account
Contractors for
house wiring
Monthly bill
P2P 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 $
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14. 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 P2P
Program scale up country-wide
started March/April 2010 14

15. 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) / PMU
Fund
Manager
Technical Service & Collecting
Tariff
Tariff
Cluster
Plan Installation
(Village Energy Manager)
Implementation and Management Model for Off-Grid
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16. Institutional Structure (REF Secretariat)
Advisory
Committee
Fund Manager
Secretariat
Office
Consultant
IREP
Permanent
Staff
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17. 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.
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18. 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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19. 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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20. Solar photovoltaic Mini Grid
Project is Location in Phakeo Village Phoukhoun District
Luangphabang Province, installed capacity 4.8 kWp
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21. Reverse Running pump Turbine
Micro Hydropower
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22. Utilization Pico hydropower in Lao PDR
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23. 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
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24. References:
• Dr Daovong Phonekeo, 2nd GMS Power
Summit, Vientiane Cap. Laos, May 20, 2015
• Syvang Xayyavong, U.S.-ASEAN Rural
Electrification with Distributed Renewable
Energy Workshop.
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