SEE2006 Sustainable Energy and Environment Conference

Transcription

1 SEE2006 Sustainable Energy and Environment Conference November 2006 Bangkok The Energy Situation and Policy and Programs on Sustainable Energy Development in Lao PDR. Lloyd Osborne CFO Sunlabob Rural Energy co.

2 Outline Country overview Current status of power generation Power sector policy Power potential in Lao PDR Development plans Sunlabob. Making off-grid renewable energy affordable and sustainable.

3 Country overview Country: Centrally located in GMR Area = 236,800 km2 Mountainous, land locked and tropical Population: 5.7 millions 80% in rural areas 2.7% annual pop. growth Economy: Narrow base - resource exploitation GDP per capita of US$350 GDP growth of 7% annually 52% of GDP from agriculture 23% of GDP from industry 25% of GDP from services

4 Current status of power generation Total Installed Capacity: MW 660 MW from Large Hydropower (95.8%) About 4.2% from other sources (Small/Mini Hydro, Solar PV, Diesel and Pico-hydro) 47% of households electrified (2004) Government plans to increase to 90% by 2020

5 IPP POWER PLANT DEVELOPMENT Hongsa Lignite 1400MW Nam Ngum 3 HPP 460MW (waiting PPA) Nam Ngum 2 HPP 600MW (waiting PPA) Nam Mo 105 MW Nam Ngiep-1 HPP 260MW (waiting PPA) Nam Theun 1 HPP 400MW (waiting PPA) Theun-Hinboun EXT. 210MW (waiting PPA) Nam Theun 2 HPP 1,080MW (in 2010) More than 30 large hydro electric project have been studied at various stages and are waiting for future development and investment Xe Kaman 3 HPP 250 MW

6 Power sector policy Maintain and expand an affordable, reliable and sustainable electricity supply in Lao PDR to promote economic and social development; Promote power generation for export to provide revenues to meet GOL development objectives; Develop and enhance legal and regulatory framework to effectively direct and facilitate power development; and Strengthen institutions and institutional structures to clarify responsibilities, strengthen commercial functions and streamline administration

7 Power potential in Lao PDR Resource Reserves Use potential Hydro Coal (lignite) Coal (bituminous & anthracite) Solar Biomass Theoretical potential of 26,000MW (exc. mainstream Mekong) About 810m tones proven reserves in the north-west. 530m tones deemed economically recoverable. 8-10MJ/Kg About 100m tones proven reserve. Dispersed throughout Lao PDR. Exploration ongoing NJ/Kg. Annual solar radiation received in Lao PDR about 1800KWh/m2 Resources dispersed throughout the country Exploitable potential, including mainstream Mekong, around 23,000MW Sufficient reserves for about 2,000MW installed capacity. Possible long term option for around 500MW installed capacity. Potential for around 150,000 photovoltaic modules for remote applications. Currently contributes about 88% of total energy consumption. Could have potential for self supply facilities. Bio fuel Jatropha Curcas could easily be integrated into existing farming systems or grown as plantations on degraded land for bio fuel production Potential for use in generators for hybrid grids throughout Laos. Geothermal No significant known resources. Limited potential for power generation. (source: Asia Pro Eco project TH/Asia Pro Eco /05 (101302)

8 Government policy re. Renewable Energy in rural areas Electricity Law : No.02-97/NA, I2/4/ Article38 : the Government encourage the development of electricity in the rural areas. -Article 40 :.Private entrepreneur or partnership does the construction and installation and later transfers the control of such facilities to the province, Prefecture, a special-zone, or a district; - Article 41 : The government facilitates funds and loans to support tile construction, installation, and electricity development in the local and rural areas. In addition, the government may allow exemption or reduction of taxes and may provide benefits of mobilization of equipment and materials essential for construction and operation of electricity in the local and rural areas. Established : Rural Electrification Fund ( 8/2005 )

9 Promotion of investment Incentives for investors Tax exemption /reduction for the equipment Long term tax holiday Promotion of assembly and manufactory the equipment for renewable energy Promotion of establish many electric service companies ( ESCO ) The investment and subsidy from the government Establishment of Renewable Energy Fund /improve the existing fund PPA Standard for promotion of Renewable Energy Establishment of Renewable Energy Information Center Establish the incentive regulation, management and administrative of Renewable Energy Promotion of Renewable Energy Technology Promotion of research and Development Promotion of capacity building for Renewable Energy Technology Promotion of community ownership in the local areas for Renewable Energy Promotion private companies, NGO, International organization to support / implement Renewable Energy

10 OFF-GRID Status and potential Small / Micro Hydro 26 existing projects (2005) with a capacity of 5,259Kw 62 potential additional sites listed Around 40 out of use hydro plants that could be re-commissioned Hybrid grids 180kw plant installed in Oudomxay Province (NEEDA) 200kw plant being installed in Nam Kha (Sunlabob co.) Potential for??? of which Sunlabob co. intends to install 15. Solar systems World Bank / Government JICA Sunlabob co.

11 What is Sunlabob? A Lao Company operating in the field of RE, registered in 2000 A Private Energy Provider for remote villages A Business Developer for its local partners A Facilitator for investments in remote areas A Social Investor for public community units

12 Our Mission...to be competent in logistics and operational handling

13 Our Mission... to be competent in providing commercially viable energy services

14 Our Mission... to be competent in reaching the remotest areas in Lao PDR

15 The Operational Setting Increasing numbers of franchised small entrepreneurs as sales agents Head office in Vientiane 30 people Sunlabob provides surveys, equipment, trainings, quality control and networking

16 Renting out Solar Home Systems for individual households The majority of Rural Households can afford Solar Lighting for at least 20 years Affordable and Steady Financial commitment for Households Avoid Dependence on Subsidies Financial Flexibility (non sitting on expensive investments) for Households Operate a Rental Service Long-term capital for purchasing equipment Reliable and fast technical servicing Reliable and Cheap Collection of Rents A Rental Fund as an investment opportunity Franchised Network of service agents of Sunlabob Competent Village Energy Committees trained by Sunlabob

17 High Lights Sunlabob rental service for solar equipment is among the final winners of the Development Marketplace of the World Bank Finalists for the BBC WorldChallenge Award 2006 See: and vote for us!

18 Renting out Community Systems for Villages The majority of Rural Households can afford Solar Lighting for at least 20 years Affordable and Steady Financial commitment for Villages Avoid Dependence on Subsidies Financial Flexibility (non sitting on expensive investments) for Villages Operate a Rental Service Long-term capital for purchasing equipment Reliable and fast technical servicing Reliable and Cheap Collection of Rents A Rental Fund as an investment opportunity Franchised Network of service agents of Sunlabob Competent Village Energy Committees trained by Sunlabob

19 Community Systems I For public use (e.g. schools, health posts, meeting halls, ) to improve the living conditions in the village

20 Community Systems II For productive use (e.g. water pumps, rice mills, ice producing machines, ) to generate income in the village

21 Public Private Partnership + Solar pumps / drip irrigation for commercial production in remote Lao villages

22 PPP For Remote Village Grids Operate PV Rental Service + Pico/Micro Hydro PV Bio fuel Genset Operate Hybrid Generation Movable assets Rent out DC System Private Energy Provider Sell 220 Volt KWh Private Public Partnership Village Electrification with Hybrid System Remote Village No Grid Remote Village With Grid Fixed assets

23 Hybrid village grid as viable business 1. The typical situation

24 Hybrid village grid as viable business 2. Public-Private cooperation for hydro

25 Hybrid village grid as viable business 3. Boost grid with solar and bio-fuel genset hybrid

26 Hybrid village grid as viable business 4. Boost system for productive uses

27 Head office in Vientiane 30 staff franchised small entrepreneurs as district grid operators trained village technicians as village grid operators

28 Private-Public Partnership for Village Grid T Households Village enterprises sells kwh Investments by individuals Village Energy Committee T hires owns dams, intake, channel generator housing village grid service Public Investments sells kwh trains Village Technician T Public Private Partnership T Franchised small entrepreneur trains repairs, maintains operates Private Investments T Private Energy Provider (Sunlabob) owns penstock, turbine, generator, solar panels, bio-fuel generators chargers, inverters batteries

29 End-user training... It is important that End-users understand how they can efficiently use energy.

30 Entrepreneur training... It is important to have motivated and competent service agents. Sunlabob identifies the best small-enterpreneurs-trainees to become the franchise service agents.

31 Village Energy Committee training... It is important to have well trained VECs, able to support and manage the operation of the hybrid village grid

32 Village Technician training... The Village Technicians are an early warning system. They crucially contribute to the long-life-operation of the systems.

33 Sunlabob staff... It is essential to have experienced and skilled trainers, supervisors, managers and technicians on central level. Continuous upgrading training based on the newest technical and management developments to all staff members is assured.

34 Catalyzing Social Change through village electrification Solar Home Systems Community Systems (Schools, Health posts..) Productive Use Systems (Pumps, Mills, Driers, Telecom,..) Village Grids Improved school performance of children Home industry ( for instance weaving) Improved health service Evening adult education classes Evening community events Income generation Public- Private Partnership at village level Job creation in the service chain based on regular local need Skill development for local good governance at village level

35 Solar Home System: Investment option 1 - Potential in total for Laos units - Market share for Sunlabob Rental Service units - The investment requires 15 million USD

36 Investment option 2 Village Community System ( for productive use): - Sunny Water (rental solar pumps with drip irrigation) - Potential in Laos units at least - Investment requires 3,5 million USD

37 Investment option 3 Hybrid Village Grid: - 40 existing broken Micro- Hydro units - Rehabilitating into a viable hybrid grid.( combination of Hydro, PV and Genset) - The investment requires up to 10 million USD.

38 Investment option 4 Small-Hydro Power Plants: - 10 surveyed locations for feeding into the national grid. - Concessions are available between years - Investment requires between million USD

39 PPP Investment program for Rural Electrification in South East Asia

40 Thank you for your attention Sunlabob, Rural Energy Systems Co., Ltd P.O.Box 9077, Vientiane /Lao PDR Tel: Fax