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Renewable Energy Development Strategy in Lao PDR

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Renewable Energy Development Strategy in Lao PDR ( renewable-energy-development-strategy-lao-pdr )

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Figure1.4 Energy consumption by type in Lao PDR (MEM) Energy consumption by sectors shows that residential and transport count for 51% and 26%, respectively, followed by Industrial sector ( Figure1.5) Agriiculture 2% 1% Commercial Industrial 20% Transport 26% Residential 51% Figure1.5 Energy consumptions by sectors (MEM) Lao population is around 6.7 million, average per capita GDP is 960 US$/year, The average domestic GDP growth rate is between 7.8% per annum (2006-2010). During the last five years, growth rate of industry reached 13-14% for 2006-2010. The economic growth rate between 7.5-8 percent during the sixth five-year plan has resulted in rising domestic energy consumption. At present, although economic growth has slowed down as a result of the international financial crisis, energy demand of the country continues to rise. On the consumer side, the demand of energy for transportation is high due to rapid increase of personal vehicle ownership. 1.3.2. Potential of Renewable energy in Lao PDR Although Lao PDR lacks of conventional energy resources (e.g., Oil or Natural Gas) and has some reserve of coal, but there are abundant renewable energy resources, such as Biomass, hydropower, solar energy. In some part of the country there are some potential of wind and geothermal energy (appendix 1). Potential of biomass in Lao PDR includes energy crops and organic wastes. Energy crops comprise Oily crop (Palm, Jatropha, Vernicia Montana, Sun flower, Beans, coconut, etc), sugar and starch (sugarcane, Cassava, corn) and quick growing trees and aquatic cultures. Organic wastes include residues of agriculture-Forestry production, By-products of agro-forestry industry(sawdust, wood chips, rice husk, corn cobs, livestock manures...) and municipal wastes (Households' wastes, communal wastes, food processing wastes...). It was estimated that utilizing 83 of livestock wastes for biogas production could generate around 2.8x10 m of biogas per year, 8 orequivalentto5x10 kWhelectricity(about216MTOE). Hydropower is the most important energy resources in Lao PDR, which technical potential was estimated around 26,000 MW, where yet counted small scale hydropower sites below 15 MW and estimated potential around 2000 MW. In the Lao PDR hydropower projects with capacity bellow 15 MW are classified as small-scale hydropower. 9

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