1. RENEWABLE ENERGY DEVELOPMENT IN LAO PDR
Institutes of Renewable Energy Promotion(IREP), Ministry of Energy and Mines(MEM).

2. CONTENTS IREP Organization Policy and Strategy
Current stratus of Renewable Energy
Challenges on renewable Energy Development

3. Ministry of Energy and Mines
Energy Efficiency and Conservation Division
Renewable Energy Development Division
Rural Electrification Division
Administration Division
Institute of Renewable Energy Promotion ( IREP)

4. Renewable Energy Strategy Development (2011-2025)
POLICY AND STRATEGY
Objective: Ensure energy security, sustain socio-economic development, and enhance environmental and social sustainability
Financial Incentive for Investors
Develop and Modify Legal documents (laws, regulations and guidelines)
Renewable Energy Strategy Development ( )
Target: increase RE use to 30 % of national demand by 2025 (bio-fuel production to account 10 %)
Bio-Energy
Wind
73 MW
Solar
106 MW
SHP
400 MW
For Electricity
Biomass
Biogas
Waste
58 MW
51 MW
36 MW
Heat
Biomass
Biogas
113 ktoe
178 ktoe
Biofuels (ML)
Ethanol
150
Biodiesel
300
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

5. Renewable Energy Strategy Development (2011-2025)
- Develop legal documents
- Study & development models
- Market assessment and energy source studies
- Promote the RE energy technology industry,
- Formulate a clear framework for a midterm program (increased competition)
- Support the full development of RE
- Increased competition and reduced dependency
- Promote new, economically viable, RE technologies
- Encourage full competition based on equality.

6. CURRENT STATUS OF SOLAR DEVELOPMENT
Type of System
Unit
Ins Cap (kW)
Supporter
Remark
SHS
16,570
459.57
JICA, WB
End of 2013
BCS 3 8
JICA
Hybrid 1
100/70
NEDO
(Solar for Pump + MH)
110/40
(MH + Solar for Pump)
36/60/1.5
Private
(MH/Gen-set/Solar)
Stand alone
6.5
EEP/FONDEM
Luang Prabang Prov
4.8/5
FONDEM
Solar + Diesel
Solar roof
236
Wattay Airport
178
EDL’ Building (UC)
Solar crop dryers 2
ACMEC/ University
For community and university
Telecom
155
57 station

7. CURRENT STATUS OF SHP DEVELOPMENT
Potential: 2,000 MW (Less than 15 MW)
MOU 170 Projects, 1,036 MW
Exiting Projects: 23 projects, 76 MW, Connected to the grid
Under Construction: 18 projects, 166 MW
Under study: 142 projects, 1,263 MW

8. CURRENT STATUS OF BIOMASS DEVELOPMENT
Mit Lao Sugar Mill
Xaibury, district
Savannakhet Province
Install Capacity: 9.7 MW
Feedstock: Bagasse
Hoang Anh Sugar Mill
Phouvong, district
Attapeu Province
Install Capacity: 30 MW
Feedstock: Bagasse

9. CURRENT STATUS OF BIOGAS DEVELOPMENT
Biogas Project/ DFL (MAF) 5,003 HHs in Year 2012
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

10. CURRENT STATUS OF BIOFUEL DEVELOPMENT
Biodiesel-Makao Oil Lao Co., Ltd
Luangprabang, district
Luangprabang Province
Facility Capacity: ,000 L/d
Feedstock: Vernicia Montana
Lao-Agrotech Co., Ltd
Naxaythong, district
Vientiane Capital
Facility Capacity: 10,000-20,000L/d
Feedstock: Palm oil

11. CURRENT STATUS OF WIND DEVELOPMENT
Completed Pre-feasibility study of the wind potential in Laos at Nong and Xonbuly districts of Savannakhet Province with 64 MW
GoL Signed MOU, PDA with Impact Energy Asia Limited: 600 MW in Xekong Province
GoL Signed MOU with Sinethieng Green Energy(China): 15 MW in Khammoaune Province.
GoL Signed MOU with Phongsapthavi, Sahamit and Asain Investment Limited Domestic Companies for feasibility study of the wind potential in middle and southern part of Lao. MW

12. 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

13. Thank you for your Attention