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Power sector policies and regulations, and future plans Vilaysone SOURIGNA Department of Energy Promotion and Development Ministry of Energy and Mines.

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Presentation on theme: "Power sector policies and regulations, and future plans Vilaysone SOURIGNA Department of Energy Promotion and Development Ministry of Energy and Mines."— Presentation transcript:

1 Power sector policies and regulations, and future plans Vilaysone SOURIGNA Department of Energy Promotion and Development Ministry of Energy and Mines

2 2 Topic of Presentation Background Background Power Sector Policy Power Sector Policy Institutional Structure Institutional Structure Challenges/ Priority Challenges/ Priority

3 3 Brief Economic Data Area of 236,800 sq km; 16 Provinces + Capital and 139 districts; Population of 6.48 mio. (7/2011 est.); GDP of USD 6.4 billion (2010); GDP Growth 7.7% GDP per Capita of USD 984 (2010); Hydropower potential ~ 23,000 MW Existing installed capacity of ~ 2560 MW (11%) Produced energy of 11,890 GWh/Y Produced energy per capita of 1,835 kWh/Y Exported energy per capita of 1510 kWh/Y

4 4 Power sector policy 1. Maintain and expand an affordable, reliable and sustainable electricity supply to sustain economic growth and poverty alleviation 2. Promote power generation for export to provide revenues 3. Develop and enhance the legal and regulatory framework to effectively direct and facilitate power sector development 4. Reform institutions and institutional structures to clarify responsibilities, strengthen commercial functions and streamline administration

5 5 HISTORY OF POWER SECTOR DEVELOPMENT Since 1990, the Power sector was opened to private foreign direct investments; Since 1990, the Power sector was opened to private foreign direct investments; Memorandum of Understanding on the power cooperation program was signed with the Royal Thai Government in 1996 and 2006 under which 3,000 MW is to be supplied to Thailand and subsequently increased to 7,000 MW was agreed and have the intention to increase to 8,000 MW; Memorandum of Understanding on the power cooperation program was signed with the Royal Thai Government in 1996 and 2006 under which 3,000 MW is to be supplied to Thailand and subsequently increased to 7,000 MW was agreed and have the intention to increase to 8,000 MW; In 1998 and 2006 MOUs were signed with the Government of Vietnam for 3000 MW and subsequently 5000 MW was agreed; In 1998 and 2006 MOUs were signed with the Government of Vietnam for 3000 MW and subsequently 5000 MW was agreed; In 1999 Agreement on Cooperation in Power Sector was signed with Cambodia and in 2010 Cambodia agree to import electricity from Laos 300 to 400 MW by 2015; In 1999 Agreement on Cooperation in Power Sector was signed with Cambodia and in 2010 Cambodia agree to import electricity from Laos 300 to 400 MW by 2015;

6 6 Current Institutional Structure of Lao Power Sector PRIME MINISTER OFFICE (PMO) -Dept of electricity (DOE) -Dept. of Energy Promotion & Dev. (EPD) Ministry of Energy and Mines (MEM) IPP company for export Electrical Construction & Installation Co. (ECI) IPP company for national supply Lao State Holding Enterprise (LSHE) Ministry of Finance (MOF) Ministry of Natural Resources and Environment (MNRE) Ministry of Planning and Investment (MPI) Electricit é du Laos (EDL) -Transmission - Distribution Prov. Electric Supply Co. (PESCO) for off-grid area EDL –Generation (Public) Power grid construction company Design & Engineering company

7 7 Current Operating Structure of the Power Sector Electricit é du Laos (EDL) Non-integrated Transmission System (230kV and 115kV) (North/Central - South) Distribution (~75% of total households) Single Buyer and Retail Domestic IPP in 2011 Power sales to Cambodia (EDC) IPP projects with export to Thailand since 1998 Privately owned transmission facilities through dedicated section EVN IPP projects with export to Vietnam by 2012 Large consumers EGAT Lao State Holding Enterprise (LSHE) Power Exchange with EGAT and PEA EDL- GEN (public) Subsidiary of EDL, own & operate 387 MW of hydropower Import Power from EVN and China

8 8 Challenges/Priority Challenges: Challenges: - Restructuring of the Power Industry - Manpower capacity building Priority: Priority: - Establishment of Power grid Co. as TSO - Improvement of Performance Standard - Improvement of the Legal Frameworks - Setting up of Independent Power Regulator

9 9 Proposed Institutional Structure at Policy Level PRIME MINISTER OFFICE (PMO) -Dept. of Electricity (DOE) -Dept. of Energy Promotion & Dev. (EPD) Ministry of Energy and Mines (MEM) Ministry of Finance (MOF) Ministry of Natural Resources and Environment (MONRE) Ministry of Planning and Investment (MPI)

10 10 Regional Interconnections for future Power Trading 1. Nabong (Laos) - Udon3 (Thailand) 2. Ban Hatsan (Laos) – Pleiku (Vietnam) 3. Pakse (Laos) - Ubol2 (Thailand) 4. Hongsa (Laos) – Mea Moh (Thailand) 5. Pakmong (Laos) - Yunnan (China) 6. Luangphabang (Laos) - Northern Vietnam 7. Xayabouli (Laos) – Khon Ken (Thailand) 8. BanHat (Laos)- StungStreng (Cambodia)

11 11 Establishment of Power Grid Co. as TSO Modality: Modality: - 100% state owned - Joint-venture (Private Public Partnership) - BOT Priority: Priority: - High credibility for operation - Financially trustworthy - Transparent, Non-discriminatory to all customers - Long term investment

12 12 Thank you for your kind Attention ¢º®Ã¥


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