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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variety and appropriateness of technologies for the development of renewable energy have not yet been seriously considered. 1.3.6. Domestic challenges Key challenges and constraints on the development of renewable energies in Lao PDR are as follows: • No specific policies or strategies on renewable energy promotion; • Lack of coordination between stakeholders in renewable energy projects; • Renewable energy policy has not yet been clearly stated in the National Socio- economic Development Plans or in strategies on growth and poverty reduction, as well as five year plans of the government; • Lack of specific regulations and laws on renewable energies; • It was not clear yet, who responsible for approval of renewable energy projects; • Users have insufficient knowledge and understanding on renewable energies; • Lack of public funding support for the renewable energy sector, especially for research and development; • Absence of energy pricing regulation is a risk for investors; • Rural households prefer grid electricity rather than off-grid one; • Insufficient information on renewable energy potential for provincial level; • Electricity access rate in remote areas is still low due to high cost of grid extension. 1.3.7. International Cooperation in renewable energy South-East Asia is abundant of natural resources. In particular renewable energy resources, such as hydropower, Biomass energy, solar energy, geothermal power, Wind power, etc. Therefore, there should be strengthened cooperation among ASEAN nations in order to secure energy self-sufficiency. SEAN member countries have agreed on construction of SEAN Power Network. Lao PDR would get benefit from this network by supplying power from its renewable resources, particularly hydropower. Natural conditions and geographical location of Lao PDR are favorable for development of renewable energy resources for domestic consumption and export. Lao government has had plans to development its abundant hydropower to meet needs of neighboring countries and domestic demand. 1.3.8. Future trend of Renewable energy in Lao PDR The total domestic energy demand is anticipated to increase by 3.6 percent per annum, increasing from 1.8 million TOE in 2005 to 3.9 million TOE in 2025 (Figure1.6). Despite the fact that the overall demand of energy in various economic sectors will remain high until 2025, the share of household sector declines from 77.8 percent in 2005 to 48.5 percent in 2025. Energy demand in the industrial sector is increasing at around 8 percent per year or from 6.1 percent share to 16.9 percent during the period 2005 to 2025, while the transportation sector grows at 6.8 percent per annum during that period. 12

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