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The government will facilitate and provide appropriate incentives and risk guarantee for investments in the renewable energy sector. Investments in 2025 is projected to reach around USD 1,799 million , of which USD 17 million is from the public sector, USD 36 million from domestic investors and USD 1746 million from foreign investors (see table 2.1): Table 2.1: Investment in renewable energy sector Item 1 1.1 1.2 1.3 1.4 1.5 1.6 2 2.1 2.2 C T otal Public investment Public Enterprise Investment Private Investment Phase 2015 2020 MW MUSD MW MW 140 491 243 1105 80 288 134 629 22 41 36 90 13 24 24 52 10 21 19 45 9 48 17 105 6 55 12 120 ML MUSD ML ML 2 5 41 33 2 9 50 33 56 10 491 1105 5 10 10 22 476 1073 2025 MUSD MW 725 1799 400 1010 48 144 58 72 51 192 36 168 73 168 MUSD ML 79 63 79 63 17 1799 17 36 1746 Description Electricity Small Hydropower Solar Biomass Biogas Municipal solid waste Wind Biofuels production Ethanol Biodiesel Research & Development The investment to renewable energy is still high, so the government of Lao will invest on research and development pilot demonstration projects. The initial fund would be provided by government and international organization support. 2.10 Potential Benefits The potential benefits of the realization of this strategy are the following (Table 2.2): Economic • reduction of fossil fuel imports; • promotion of private sector investments; • creation of employment opportunities in related industries; • generation of added income through carbon financing; • reduction of public investments; • increased economic growth from development of the industrial biofuel sector. Social • additional job opportunities in rural areas resulting in less migration into cities; • increase in income from fuel crop cultivation. Environment • reduced emissions of environmental pollutants; • reduce emission of green house gases. 27PDF Image | Renewable Energy Development Strategy in Lao PDR
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