Page 1
Regional workshop onSustainable Bioenergy Production and Use in Southeast Asia:
Lessons Learnt and Future Opportunities
Bioenergy Use in Lao PDR
PHONEPASONG SITHIDETH
Institutes of Renewable Energy Promotion
16-17 November 2017La Casa Hotel
Hanoi – Viet Nam
Page 2
CONTENTS
I. Introduction
II. Overview on Energy Consumption
III. Renewable Energy RE Current Status
IV. Challenge
V. Conclusions
Page 3
Introduction
• Area : 236,800 km2
• Capital: Vientiane
• Population 2015
• Total 6.5 millions
• Density 27 person/km2
• Total Share of GDP 2015
• GDP per Capita 1,947 US$
• Growth rate of GDP: 7.56%
• Share of GDP 2015
• Agricultural: 21.80%
• Industry: 32.70%
• Services: 35.95%
• Taxes on products
and Import duties, net: 9.55%
Page 4
Power potential in Lao PDR
HYDRO POWER POTENTIAL OF ABOUT 26,000 MW.
Small Hydro Power ≤ 15 MW: 2,000 MW
Solar: irradiation 3.6-5.5 kWh/m2 (1800-2000hrs/y)
Biomass > 938 MW
Biogas >313 MW
Wind 182,000 MW, very good 2,800 MW
o600 MW (phase 1: 250MW; phase 2: 350 MW) under negotiation for
development in Sekong Prov.
Page 5
- Total Install Capacity 6,264.9 MW [November 2016]
Power Generation Share
79%
Solar
0%
Biomass
1%
Biogas
0%
Coal
20%
POWER GENERATION SHARE [%]
0
500
1000
1500
2000
2500
3000
3500
4000
4500
50004972.41
0.4853 39.7 0.29
1252
Power Generation Share (MW)
Page 6
Primary Energy Consumption in Lao PDR by 2014 (MEM)
II. Overview of Energy Consumption
• Energy Consumption (2014): 2,510 KTOE
Residential, 47.40%
Agriculture, 1%
Industrial, 8%
Commercial, 12.30%
Transportation, 31.30%
ENERGY CONSUMPTION BY SECTORS
Fuelwood, 49.10%
Coal, 0.20%Charcoal, 5.40%
Electricity, 12.60%
Fuel Oil, 32.70%
ENERGY CONSUMPTION BY TYPES
Page 7
• Lao PDR is 94% electrified
• Promote Energy Efficiency and Conservation (EE&C) by
Reduce 10% of energy consumption in 2030
• Provide clean energy to sustain economic growth and Poverty
alleviation
• Increase power Export for revenue earning
• Expand access to electricity services up to 95% of households
by 2020
• Increase Renewable Energy (RE) use to 30 % of national energy
consumption by 2025
Main target on Energy Sector
Page 8
Wind
73 MW
SHP
400 MW
For Electricity
Biomass Biogas Waste
58 MW 51 MW 36 MW
Biofuels (ML)
Ethanol 97.64
Biodiesel 194.44
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 %)
Objective: Ensure energy security, sustain socio-economic development,and enhance environmental and social sustainability
Bio-Energy
• 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
Support
Mechanism
Heat
Biomass Biogas
113 ktoe 178 ktoe
Solar
106 MW
Renewable Energy Policy and Strategy
Page 9
0.0
1,000.0
2,000.0
3,000.0
4,000.0
5,000.0
6,000.0
19
90
19
92
19
94
19
96
19
98
20
00
20
02
20
04
20
06
20
08
20
10
20
12
20
14
20
16
20
18
20
20
20
22
20
24
20
26
20
28
20
30
ທາອຽງໃນຄວາມຕອງການຊມໃຊພະລງງານສ າເລດຮບ, kTOE
ອດສາຫະກ າ ຂນສງ ທລະກດ ທ ຢອາໄສ ກະສ ກ າ
ສະຖຕໃນໄລຍະຜານມາExisting statistic
ການຄາດຄະເນFuture predict
5,600 kTOE
2,510 kTOE
Industrial
Transport
Business
Residential
Agriculture
Trend of Total Energy Demand
Page 10
CURRENT STATUS OF BIOMASS DEVELOPMENT
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
Sun paper holding
Phin, district
Savannakhet Province
Install Capacity: 60 MW
Feedstock: Industrial Waste
Page 11
Biomass consumption
Residential, 81.20%
Commercial, 14.50%
Industrial, 4.30%
FUELWOOD
Commercial51%
Residential49%
Charcoal
Page 12
Using Biomass and agri-waste for energy
Salt production factory
Firewood fuel in alcohol distillation
Institution cooking
Source: Mr. Houmpheng THEUAMBOUNMY (MOST)
Page 13
Using Biomass and agri-waste for energy
Rice husk stove for salt production Saw dust stove for salt production
Corn cobs as fuel in corn drying
factory Rice husk stove for institution
Source: Mr. Houmpheng THEUAMBOUNMY (MOST)
Page 14
CURRENT STATUS OF BIOGAS DEVELOPMENT
Pig Farm Viravong.
• 30 kW
• Viengkam District
• Vientiane UD Pig Farm
• 260 kW
• Phohong District• Vientiane Province
5,0032,850
25,000
50,000
0
10,000
20,000
30,000
40,000
50,000
60,000
2013-2015 2020 2025
Existing Household with biogas
Target houusehold for biogas utilization
10
19
51
0
10
20
30
40
50
60
2015 2020 2025
(MW)
Target
Biogas Project/ DFL (MAF) 5,003 HHs in Year 2012
Beer Brewery Waste water treatment from beer
production and generate the gas
about 1,500 m3/day Reduce CO2 about 3,338 ton/y
Page 15
BIOFUEL DEVELOPMENT
Lao-Agrotech Co., Ltd
Naxaythong, district
Vientiane Capital
Plantation-Area Harvest-Area
Palm oil
300+800 ha 60 ha (2016)
FFB 173,640 kg
CPO 33,000 L
B100 20,000 L
Biodiesel Plant: 20,000 L/day
Extraction Plant: 20 tons/day
Vernicia Montana
12,350 3,000 ha
Fruit collection 75,000 kg
B100 18,000 L
Biodiesel Plant: 1,000 L/day
Extraction Plant: 2 tons/dayIn 2017 new Plant 2 units; Each unit 15 t/day
B100 18,000 L
Biodiesel-Makao Oil Lao Co., Ltd
Luangprabang, district
Luangprabang Province
Bio ethanol: June 2014
(IREP cooperation with UNIDO?
The GOL signed MOU with 2 local
private company to conduct
feasibility study of bio ethanol
production from cassava (each
200,000 L/day)
Ethanol Pilot project
Page 16
Future Opportunities
• Lao import 100% of oil for transport sector
• GOL set target to reduce oil import 10% in 2025
• Lao is agriculture country
• Renewable Energy and Energy Efficiency-Conservation
• Environment Impact Mitigation
Page 17
Challenges
• Bioenergy Development Plan
• All relates technologies are import
• Limited of domestic financial institution support
• Biomass resource location far each other
• Human resource
Page 18
Conclusion
Improvement of Data collection in provincial level
Master plan Bioenergy
Subsidies on unit product price (adder or FIT)
Carry out resource assessment to estimate potential
Knowledge and Information sharing
Conduct demonstration project, especially bioenergy