National Stakeholders Workshop on Accessible and Affordable Sustainable Energy. Brief Report

Transcription

1 ASIAN AND PACIFIC CENTRE FOR TRANSFER OF TECHNOLOGY (APCTT) National Stakeholders Workshop on Accessible and Affordable Sustainable Energy February 2014 Vientiane, Lao People's Democratic Republic Organized by Asian and Pacific Centre for Transfer of Technology (APCTT) of the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) New Delhi, India in cooperation with and hosted by Department of Technology & Innovation (DTI), Ministry of Science & Technology (MOST), Vientiane, Lao People's Democratic Republic Background Brief Report Strengthening South-South Cooperation to increase the Affordability of Sustainable Energy Options in Asia and Pacific an ESCAP project funded by the United Nations Development Account (UNDA) aims to contribute to the United Nations Secretary General s Sustainable Energy for All (SE4 All) initiative to achieve universal access to modern energy services, doubling the global rate of improvement in energy efficiency and doubling the share of renewable energy in global energy mix by This project has the following specific objectives: Strengthen the capacity of policy makers and other relevant stakeholders especially in Least Developed Countries, Landlocked Developing Countries and Small Island Developing States to develop and/or strengthen national policy frameworks that promote enabling policy and business environments for increased affordability and accessibility of sustainable energy products and services; and Support implementation and dissemination of good practices and successful business models among the countries in the region to provide sustainable energy products and services. To achieve the above objectives, APCTT-ESCAP is in the process of developing national sustainable energy strategies for Indonesia and Lao People's Democratic Republic. The strategy reports present: (a) an analysis of salient features of, challenges and opportunities in the current national enabling environment and technology innovation eco-system for sustainable energy; (b) key elements of technology delivery and business models for increasing affordability of and access to sustainable energy and energy saving products, paying particular attention to the role of South- South cooperation; (c) sustainable energy options in the context of the enabling environment in the countries, identifying specific projects/case studies that could be successfully implemented as

2 pilot/demonstration projects making sustainable energy affordable and accessible; and (d) recommendations on policy approaches, programmes, delivery mechanisms and business models to implement the national strategy with examples from other developing and least developed countries. In the above context, a draft national assessment framework on enabling environment and technology innovation eco-system was prepared by the project s international consultant. This framework provides a basis for the national consultants to collect and organize relevant information to assess the current enabling environment and technology innovation ecosystem for sustainable energy options. The findings of the assessment and learning from experiences of other countries would be utilized to develop a national strategy report of Indonesia and of Lao People's Democratic Republic. Objectives This workshop organized in Lao People's Democratic Republic had the following objectives: To present and discuss the national assessment framework on enabling environment and technology innovation eco-system for making sustainable energy options affordable and accessible for Lao People's Democratic Republic; To share experiences of other developing countries in promoting sustainable energy products and services through strengthening of technology enabling environment and technology innovation eco-system; and To deliberate on the challenges and opportunities in deploying sustainable energy projects and programmes aimed at off-grid population in urban and rural areas. Major Outputs Inaugural Session In his welcome address, Mr. Nanjundappa Srinivasan from APCTT-ESCAP spoke about the project undertaken to develop National Strategy Reports for Lao People's Democratic Republic and Indonesia. He also explained the objectives behind organizing the workshop, stressing on the importance of experience-sharing among developing countries in order to promote sustainable energy products and services through South-South cooperation for strengthening enabling environment and technology innovation eco-system. Mr. G.M. Pillai, the international consultant, highlighted the need and importance of transitioning towards sustainable energy options and sustainable development for an energy secure future. He shared his thoughts about the assessment of energy options for Lao People's Democratic Republic, including the huge hydropower potential available in the country, possibility of sustainable transportation using renewable energy and the scope for rooftop solar installations. He added that the National Strategy Report will be framed based on the data collected during the stakeholder interaction meeting and based on the input provided by the national consultants. Technical Session I Mr. Krishnan S. Raghavan, In-charge of Technology Transfer, APCTT-ESCAP, described the United Nations ESCAP resolution on energy security and his institution s work programme on renewable energy. He also introduced the salient features and activities carried out to develop the Renewable Energy Cooperation-Network for the Asia-Pacific (RECAP). In his presentation, the international consultant Mr. Pillai briefly explained the concept of sustainability and sustainable development. He pointed out that sustainable development can be achieved only if sustainable energy is available. A transition to a sustainable energy scenario is

3 necessary due to three important reasons: depletion and extinction of fossil fuels, energy autonomy/ independence, and climate change. Mr. Pillai then briefly touched upon the leading commercial renewable energy technologies such as wind power, solar photovoltaic, concentrated solar thermal power and their importance in providing solutions in the scenario of fossil fuel depletion. Technical Session II Mr. Surendra Pimparkhedkar, the resource person from World Institute for Sustainable Energy (WISE), India, presented some selected national programmes aimed at SE4 All initiative with the help of three case studies from Sri Lanka, Norway and India which are relevant to the action areas identified under the SE4 All initiative, as well as for Lao People's Democratic Republic. Thereafter, he presented three case studies from India and Thailand to illustrate the role of technology and business enabling environment and innovation ecosystem in sustainable development. The International consultant Mr. Pillai then presented the National Assessment Framework on Technology and Business Enabling Environment and Ecosystem for sustainable energy prepared by WISE for facilitating data collection by the national consultants in Lao People's Democratic Republic. He then briefly explained the six sections under the national assessment framework, namely: (1) National Scenario for Sustainable Energy, (2) Technology Enabling Environment and Ecosystem, (3) Business Enabling Environment and Ecosystem, (4) Business Models for SET Delivery, (5) Social and Economic Factors, and (6) South-South Cooperation. Mr. Andy Schroeter, CEO of Sunlabob Renewable Energy Ltd., Lao People's Democratic Republic, made a presentation highlighting his company s specialization in providing rural renewable energy-based solutions and clean water. He described some of the projects that the company executed in the country, and then highlighted the major barriers in promoting renewable energy (RE), which include: least developed country status with one of lowest income levels in the world, challenge of reaching population in off-grid remote areas, poor roads and infrastructure, competing with large hydropower and coal-fired plants, cheap on-grid electricity rates, risky market for lending from foreign banks, and lack of transparency. He pointed out key aspects that are favorable for developing the RE sector in the country, such as decision-makers and policy leaders who are open-minded to new approaches and new technologies, and increased level of capacity and knowledge about RE options among policymakers, vocational schools, end-users, etc. He opined that actions from the government will be required to encourage the private participation in the RE sector, including a clear strategy (30% share of RE in the country by 2025), removal of import/ export taxes on RE goods, streamlined regulatory and permit frameworks, a level-playing field for RE with feed-in-tariff for selling electricity to central grid, and government acting as a loan guarantor. In his presentation, Mr. Ludovic Branlant, Project Manager, Lao Institute for Renewable Energy (LIRE), explained LIRE s focus area of work in Lao People's Democratic Republic. He pointed out that the Institute is actively involved in conducting short- and medium-term assignments, studies and pilot project implementation, policy development, capacity building and training, community facilitation, and survey. He briefly presented the projects implemented by LIRE in biodiesel, biogas, pico-hydropower, solar water supply, and improved cooking stove. He also mentioned that the Institute is developing a biogas technology to be implemented at community level and small and medium enterprise level in Lao People's Democratic Republic. Technical Session III Technical Session III was designed to cover Sustainable Energy Enabling Environment and Technology Innovation Ecosystem in Lao People s Democratic Republic. Resource persons from various government institutions in Lao People s Democratic Republic made presentations in the session.

4 Mr. Chantho Milattanapheng, Deputy Director General, Institute of Renewable Energy Promotion, presented RE development in Lao People s Democratic Republic, covering various aspects including the current policy and challenges in developing RE. He briefly covered the country s RE development strategy ( ), which targets to increase RE use to 30% of national demand by 2025, and emphasized on the establishment of a biofuels standard committee in the country. He then outlines the financial, administrative, socio-cultural and technical challenges facing the development of RE in the country. While concluding his presentation, he pointed out the need for providing sustainable financial support for RE in the country. Ms. Thamma Phetvixay, Deputy Director General of Investment Promotion Department, Ministry of Planning and Investment, discussed development goals set up by the national government, source of fund, and challenges and opportunities for investment promotion in sustainable energy development. She pointed out that both foreign and domestic investments have played important roles in the economic development of the country. Lao People s Democratic Republic provides both financial and non-financial incentives to investors based on different sectors and zones. While discussing opportunities and challenges for promoting RE in the country, she maintained that the biggest opportunity for the country is adoption of established technology and knowledge on alternative energy from developed countries. However, she explained that the relatively high cost of alternative energy technologies with respect to conventional technologies is leading to lower profit for developers in remote areas. She suggested attracting private investment to compensate for the lack of government funding in the sector. Mr. Vilaiporn Visounarath, Deputy Director, Transmission and Substation Department, Electricite Du Laos (EDL), explained the organizational structure within the Ministry of Energy and Mines and the role of EDL as a state-owned corporation that owns and operates the country's main generation, transmission and distribution assets in Lao People s Democratic Republic. He then briefly touched upon the present status of power sector in the country, future demand forecasts, electricity service industry, future network development plans, ASEAN power grid plan, etc. He concluded his presentation by flagging some of the important issues like the need for international and national regulations, necessity of grid code, performance standard, hardware and software, operation and maintenance, commercial issues (taxation, tariffs), institutions/human resources co-ordination, and sharing experiences. Mr. Chanseaveng Boungnong, Deputy Director General, Department of Energy Policy and Planning, Ministry of Energy and Mines, Lao People s Democratic Republic, covered the provisions under the Policy on Sustainable Hydropower Development (PSHD) notified by his Ministry. He described the current legal and institutional arrangements, the implementation experience, and the policy for hydropower development that applies to all hydropower projects larger than 15 MW throughout the project development process (planning, construction, operation, and transfer/closure stages). Mr. Bounchanh Douangvilay, Deputy Director General of Renewable Energy and New Materials Institute, Lao People s Democratic Republic, focused his discussion on domestic and international challenges, and opportunities for development of RE in Lao People s Democratic Republic. He described the challenges for development of RE, which include lack of specific policies or strategies on RE promotion, inadequate public funding for the RE sector, insufficient information on RE potential at the provincial level, and the dependence on foreign donors and investors for funds. He then discussed the opportunities for renewable energy in Lao People s Democratic Republic, and pointed out the priority that the government accords to providing financial incentives to clean energy investors and formulating and improving laws and regulation to facilitate RE development. The government also encourages small-scale RE development in rural areas and urges the rural population to make use of RE technologies to enhance self-sufficiency, he added.

5 See Annex I for the programme Recommendations and Conclusions Lao People s Democratic Republic meets most of its power needs through electricity generated from its ample hydropower, which is green and renewable. However, there is a general consensus among the stakeholders that in the long term the country needs to diversify its generation portfolio and formulate a policy for development of other potential RE sources like solar, wind, biomass and bio-fuel. The use of decentralized renewable based off-grid projects and sustainable energy services is important from the point of view of providing electricity to the 10% population located in remote areas that are off electricity grid. In order to promote grid-connected and off-grid renewable power projects, appropriate type of legal, policy and regulatory support has to be put in place along with providing sustainable finance. The role of institutions involved in the implementation of RE-based power projects would be vital in this. Sharing of experience of other developing countries in promoting sustainable energy products and services through strengthening of technology- and business-enabling environment and innovation eco-system will be important for designing the future energy strategies for Lao People s Democratic Republic. The following are some of the major conclusions and recommendations that evolved from the intense discussions held during various sessions: A scientific potential assessment is needed for grid-tied and off-grid RE sources such as wind, solar (including rooftop solar), biomass, etc. A policy needs to be adopted for encouraging sustainable transportation using renewable energy, and rooftop solar installations on government-owned and commercial buildings in urban areas. There is a need for a clear national RE policy, which states the targets for grid-connected and off-grid RE projects and sustainable energy applications, with clear identification of the roles and responsibilities of the various implementation agencies involved. It is important to treat RE as a separate sector and make budgetary allocation in the Five- Year National Socio-Economic Development Plans formulated by the Ministry of Planning and Investment. A legal policy and regulatory framework for the promotion of RE sources in the country is urgently needed. A pricing mechanism like the feed-in-tariff for RE resources shall provide guaranteed price and off-take for the electricity generated. Regulations on net metering will encourage individuals to install solar roof top systems on roofs. It is important to have a simplified procedure for getting various clearances for setting up RE power projects, besides simplified norms for availing duty/tax-related incentives offered by the Ministry of Planning and Investment. There is a need to frame grid code and interconnectivity standards for connecting REbased projects to the grid, performance standards for the distribution utility, and regulations on hardware and software, operation and maintenance, etc. At present, Lao People s Democratic Republic provides both financial and non-financial incentives to investors based on different sectors and zones. However, to establish RE manufacturing base in the country, the role of small and medium enterprises (SMEs) will be critical. Therefore, a special incentive structure needs to be devised to encourage the participation of SMEs in RE manufacturing. Government s budgetary provision for RE development needs to be increased, as at present the development depends mostly on foreign funding and the private sector (independent power producers).

6 A review of lending policies and practices in the RE sector is required. RE financing should be included under priority sector lending, and local banks need to be encouraged to finance sustainable energy options and services. Government support is required for R&D in RE and sustainable energy applications, and it is important to encourage academic institutions to take up technology innovation related to RE and sustainable energy applications. There is a need to explore the possibilities of unbundling the vertically integrated Electricite Du Laos into separate generation, transmission and distribution entities. It is important to have a Central Transmission Utility for transfer of power from the generation plants to load centres away from generation areas. An independent electricity regulator is needed to decide on the tariff and manage the operation of the power system in the country. It is important to have information on appropriate technologies and sustainable business models for promoting sustainable energy options and services in Lao People s Democratic Republic. South-South cooperation and experience-sharing with other developing countries need to be encouraged to promote sustainable energy products and services through strengthening of technology-enabling environment and innovation eco-system. There is need for knowledge dissemination and institutional capacity building at provincial/ district level with regard to sustainable energy options and services. Participants A total of 32 participants, including policy makers and experts from ministries and departments of the Government of Lao People s Democratic Republic, participated in the workshop.