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Power sector policies and regulations, and future plans

Power sector policies and regulations, and future plans. Vilaysone SOURIGNA Department of Energy Promotion and Development Ministry of Energy and Mines. Topic of Presentation. Background Power Sector Policy Institutional Structure Challenges/ Priority. Brief Economic Data.

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Power sector policies and regulations, and future plans

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

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

  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. 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. HISTORY OF POWER SECTOR DEVELOPMENT 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; 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;

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

  7. Current Operating Structure of the Power Sector Power sales to Cambodia (EDC) Electricité du Laos (EDL) Non-integrated Transmission System (230kV and 115kV) (North/Central - South) Distribution (~75% of total households) Single Buyer and Retail EDL- GEN (public) Subsidiary of EDL, own & operate 387 MW of hydropower Power Exchange with EGAT and PEA Large consumers Import Power from EVN and China Lao State Holding Enterprise (LSHE) <NT2,HSA, NN3, NNGP1, XPXN, SK4, SK5, NK1, NT1> IPP projects with export to Thailand since 1998 IPP projects with export to Vietnam by 2012 Domestic IPP in 2011 Privately owned transmission facilities through dedicated section EGAT EVN

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

  9. Proposed Institutional Structure at Policy Level PRIME MINISTER OFFICE (PMO) Ministry of Planning and Investment (MPI) Ministry of Energy and Mines (MEM) Ministry of Finance (MOF) Ministry of Natural Resources and Environment (MONRE) • Dept. of Electricity (DOE) • Dept. of Energy Promotion & Dev. (EPD) • Dept. of Energy Policy and Planning (EPP) • Dept. of Energy Regulatory (DER) • Dept. of Energy Business (DEB) • Institute for Renewable Energy Promotion (IREP)

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

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

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