international workshop on bioenergy in the ASEAN region Country Presentation on status of Bioenergy development in Lao PDR 23-24 July 2014 Plaza Athenee Bangkok, Thailand
Overview of Bioenergy Lao PDR is an agricultural based country. There are a lots of wastes generated every year from agro-forestry production, Municipal wastes/organic industrial wastes are among the important biomass energy resources. High potential of energy crops, which can be used as feedstock for biofuels production. Energy use in the country is mainly in the form of traditional fuels, i.e. the use of biomass such as wood and charcoal for cooking and heating in rural areas
Energy situation in the country Primary Energy Consumption in Lao PDR Charcoal 12.00% Coal 3.00% Energy Consumption by Sector Agriiculture 2% Commercial 1% Electricity 12.00% Fuel Wood 56.00% Industrial 20% Fuel Oil 17% Transport 26% Residential 51% Data collection What is the legal basis and procedure to collect energy/agricultural data? Who uses the data and how? What are the main issues?
Electricity Situation in the country Electricity Generation in Lao PDR 320 GWh 1,576 GWh 822 GWh IPP (Dom) 10,043 GWh IPP (Exp) EDL (Dom) EDL (Exp) Electricity Consumption in Lao PDR ທຢ ອາໄສ Residential 882.62 GWh 799.71 GWh 1,160.0 GWh ທ ລະກ ດ Commercial ທ/ກ ບ ນເທງ Entertainment ສ/ງ ລ ດ Gov.offices 10.42 GWh 39.45 GWh 8.838 GWh 173.93 GWh ກະສ ກ າ Agriculture ອ/ກ ສາກ ນ Embassies ອ ດສາຫະກ າ Industry
Agriculture situation in the country Main food crops produced - Rice, corn, Cassava, sugarcane, Job tears.. Main export staples - Rice, Corn Crop residues/waste produced - Rice husk, Corn crops, sugarcane crops /Animal Waste Agriculture strategy What are the main issues? (land, water, production, - storage, export, policy,
Policy and Strategy for Renewable Energy Objective: Ensure energy security, sustain socio-economic development, and enhance environmental and social sustainability Financial Incentive for Investors Renewable Energy Strategy Development (2011-2025) Develop and Modify Legal documents (laws, regulations and guidelines) Target: increase RE use to 30 % of national demand by 2025 (bio-fuel production to account 10 %) Bio-Energy Wind Solar SHP For Electricity Heat Biofuels (ML) 73 MW 106 MW 400 MW Biomass Biogas Waste 58 MW 51 MW 36 MW Biomass Biogas 113 ktoe 178 ktoe Ethanol 97.64 Biodiesel 194.44 Support Mechanism Establish Renewable Energy Fund Financial Mechanism: - Import duty free on production machinery, equipment and raw materials - Import duty free on chemical materials necessary for biofuels production within 7 years - Profit tax is divided in to 3 categories: 20%, 15% and 10%. Profit tax exemption is possible for a certain period depending on activities, investment areas and size investment Subsidies on unit product price depending on energy type and times period
CURRENT STATUS OF BIOMASS DEVELOPMENT Energy Self Sufficiency Village 70 Pangbong Village Ngeun District 60 Xayabury Province Install Capacity:40 kw 50 Feedstock: Corn crops 39.74 40 30 24 58 Existing (MW) Target (MW) 20 10 0 13 2013-2015 2020 2025 Hoang Anh Sugar Mill Phouvong, district Attapeu Province Install Capacity: 30 MW Feedstock: Bagasse Mit Lao Sugar Mill Xaibury, district Savannakhet Province Install Capacity: 9.7 MW Feedstock: Bagasse
CURRENT STATUS OF BIOGAS DEVELOPMENT 60,000 50,000 40,000 30,000 20,000 10,000 0 Existing Household with biogas 50,000 Target houusehold for biogas utilization 5,003 2,850 25,000 2013-2015 2020 2025 BPP 5,003 HHs (2012)/DFL (MAF) 60 50 40 30 20 10 (MW) 10 Target 19 51 Beer Brewery Waste water treatment from beer production and generate the gas about 1,500 m3/day Reduce CO2 about 3,338 ton/y TBEC (Lao) Sole Co. Ltd Waste water treatment from Cassava and produce biogas 7 million m3/y Production of biogas 90 Million (Nm3) or million normal cubic meters (Nm3), approximately at 175 million liters, of heavy fuel oil (HFO) reducing as much as 300,000 tones of greenhouse gas per year and 60,000 tones of CO2 on an annual basis. 0 2015 2020 2025
Biogas for Electricity Generation Data U.D. Farm; Mai Village, Phonetong District, Vientiane Province. Amount of waste 270 cu.m./day Biogas production 2,090 cu.m./day Engine and Gen-set capacity 260 kw Total Project investment cost $357,345 Potential profit per year $80,428 Energy Production 2,927 kwh/day Operating hours 11.2 Hrs/day Payback period(no loan and no subsidy) 4.5 years Status: Under construction will be finished in Feb. 2015
Family scale of Biogas Lao-Neth Model 4 m 3 6 m3 8 m3 10 m3
Biogas Concept Clean, easy, modern cooking and lighting Healthy house and clean area Generates clean Biogas energy Makes organic fertilizer Treats Waste With Biogas System Biogas system converts existing wastes into clean and valuable household products.
Statistic for Family scale of Biogas Installation Year 2007 2008 2009 2010 2011 2012 Total Number of Biogas 110 188 650 1000 1330 1725 5003 Number of Provinces Number of Districts 1 3 3 5 6 6 4 15 21 29 41 45
CHALLENGES ON RENEWABLE ENERGY DEVELOPMENT Awareness barriers among policy makers, consumers, suppliers etc Lack of knowledge concerning opportunities, reliability and lifetime of technologies; Lack of knowledge concerning impacts on environment from renewable energy production; Lack of information on resources available and sustainability, in particular with regard to biomass Financial challenges: The high investment cost and scare resources support Renewable energy is hardly variable economically unattractive to provide investor Lack of financial institutional support and absence of appropriate financing Administrative challenge: Long processing/take many paper work for tax exemption Lack of coordination among government agencies and the private sector which hampers renewable energy development and promotion in Lao PDR Socio-cultural challenge Lack of renewable energy specialist among the decision makers meaning that policy makers are not be fully aware of characteristics and benefits of renewable energy No local production Limited public awareness of renewable energy advantage in daily life Technical challenge Some of renewable energy has low energy generation compare to other energy Need large area Lack of local standards for renewable energy equipment and systems as renewable energy technologies are relatively new to the market Environmental and social impacts Lack of effective measures to prevent the adverse social and environmental impacts of large scale hydropower projects
Improvement of Data collection in provincial level Master plan and action plan for Bioenergy Subsidies on unit product price (adder or FIT) Carry out resource assessment to estimate potential Business Model TA
Thank you