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Country Presentation on status of Bioenergy development in Lao PDR
international workshop on bioenergy in
the ASEAN region
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
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?
Fuel Wood
56.00%
Fuel Oil
17%
Electricity
12.00%
Charcoal
12.00%
Coal
3.00%
• Primary Energy Consumption in Lao PDR
Agriiculture
2%
Commercial
1%
Residential
51% Transport
26%
Industrial
20%
• Energy Consumption by Sector
Electricity Situation in the country
320 GWh
822 GWh
10,043 GWh
1,576 GWh
IPP (Dom)
IPP (Exp)
EDL (Dom)
EDL (Exp)
Electricity Generation in Lao PDR
1,160.0 GWh
799.71 GWh
8.838 GWh
173.93 GWh
39.45 GWh
10.42 GWh
882.62 GWh
ທ ີ່ ຢ ີ່ ອາໄສ Residential
ທຸລະກິດ Commercial
ທ/ກ ບັນເທ ງ Entertainment
ສ/ງ ລັດ Gov.offices
ກະສິ ກໍາ Agriculture
ອ/ກ ສາກົນ Embassies
ອຸດສາຫະກໍາ Industry
Electricity Consumption in Lao PDR
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,
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
Policy and Strategy for Renewable Energy
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
Energy Self Sufficiency Village
Pangbong Village
Ngeun District
Xayabury Province
Install Capacity:40 kW
Feedstock: Corn crops 39.74
13
24
58
0
10
20
30
40
50
60
70
2013-2015 2020 2025
Existing (MW)
Target (MW)
CURRENT STATUS OF BIOGAS DEVELOPMENT 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.
Beer Brewery
Waste water treatment
from beer production and
generate the gas about
1,500 m3/day Reduce CO2 about
3,338 ton/y
5,003 2,850
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
BPP 5,003 HHs (2012)/DFL (MAF)
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 m3
6 m3
8 m3
10 m3
Biogas Concept
Biogas system converts existing wastes into clean and valuable household products.
Generates clean Biogas energy
Makes organic fertilizer
Clean, easy, modern
cooking and lighting
With Biogas System
Treats Waste
Healthy house and clean area
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
1 3 3 5 6 6
Number of Districts
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