Download Issues, Challenges and Priorities faced by Reguletors in

Power sector policies and
regulations, and future plans
Vilaysone SOURIGNA
Department of Energy Promotion and Development
Ministry of Energy and Mines
Topic of Presentation
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Background
Power Sector Policy
Institutional Structure
Challenges/ Priority
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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
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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
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HISTORY OF POWER SECTOR DEVELOPMENT
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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;
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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)
EDL –Generation
(Public)
-Transmission
Lao State
Holding
Enterprise
(LSHE)
Electrical
Construction &
Installation Co.
(ECI)
- 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
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Current Operating Structure of the Power Sector
Electricité du Laos (EDL)
EDL- GEN (public)
Subsidiary of EDL,
own & operate 387
MW of hydropower
Non-integrated Transmission System (230kV
and 115kV) (North/Central - South)
Power sales to
Cambodia (EDC)
Power Exchange
with EGAT and PEA
Distribution (~75% of total households)
Single Buyer and Retail
Large consumers
Import Power from
EVN and China
Lao State Holding
Enterprise (LSHE)
<NT2,HSA, NN3,
NNGP1, XPXN,
SK4, SK5, NK1,
NT1>
Privately owned
transmission
facilities through
dedicated
section
IPP projects
with export to
Thailand since
1998
IPP projects
with export to
Vietnam by
2012
EGAT
EVN
Domestic IPP
in 2011
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Challenges/Priority
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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
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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)
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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)
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Establishment of Power Grid Co. as TSO
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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
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Thank you for your kind Attention
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