1 Policy and Measures on Energy Efficiency and Conservation in Lao PDR By: Houmphan Vongphachan, Deputy chief of Electric Power Management Division Department of Electricity Ministry of Energy and Mines Singapore, June 2007

2 Outline  General situation of Energy Consumption in the country  The necessity for developing Energy Efficiency and Conservation  Past Activities on Energy Efficiency and Conservation  The difficulties and Challenges for promoting Energy Efficiency and Conservation  Plan for Energy Efficiency and Conservation  Draft Policy on Energy Efficiency and Conservation

3 General situation of Energy Consumption in the country  Electricity: GWh consumed in1990 & GWh consumed in 2005 increased 5.5 times; Import also increased: 14,048,316 US$ (2005) Import price in some places is higher than those sell to customers  Biggest electric consumers: Residential: 50.4% & Industrial: 23.4%;  Oil and Gas: 318 mill. liters (2000), 390 mill.liters (2004), mill.US$ spent for import in 2001

4 The necessity for developing Energy Efficiency and Conservation  Decrease the energy import;  Promoting sustainable use of natural resource and protecting the environment;  Reducing capital or spending on energy in doing work, business, service & etc aiming at ability with international competition;  Raising public awareness and providing information on economic, correct and efficient use of energy;  Making energy consumption in the country controllable by the government.

5 Past Activities on Energy Efficiency and Conservation  Cooperation with ASEAN since 2003 to now;  Projects by Electricite du Laos 2004;  DANIDA projects ;  Others:

6 Cooperation with ASEAN  Project entitle: PROMOTION of Energy Efficiency and Conservation (PROMEEC) cooperation of ASEAN and Japan;  The project covers: Building, Industry and Energy Management;  Project’s objective: training (class room and on the job training) on EEC, Establishing Technical Directory and EEC database; around 100 officials attending the trainings including the training in Japan.

7 Cooperation with ASEAN (cont’)  Conducted energy audits in Nam Ngum hydropower plant (2002) & Aphonelao garment factory (2004), Lao Plaza hotel (2004), Lane Xang hotel & Don Chan Palace (2005)  Participating in AEAN competition awards on EE&C Buildings;  Holding 4 seminars in the country on EE&C;

8 Projects by Electricite du Laos  Project on Demand Side Management or DSM) supported by World Bank: study on DSM potential, study tours in Vietnam, Thailand and Malaysia;  Public campaign on electricity saving;  Study on Electricity lost: Technical and Commercial lost.

9 DANIDA projects  National Capacity Strengthening: providing 4 trainings in Energy Audit for Building and Industry

10 Others  Lao Women Union: Producing information brochures on Energy Saving and using Efficient Stoves;  Science, Technology and Environment Agency: training on EE&C for officials of Department of Electricity;  National University of Laos: Conducting Seminars on EE&C.

11 The difficulties and Challenges for promoting Energy Efficiency and Conservation  Responsible agency has lack of staff, experience and expertise;  Public awareness and participating willingness on EE&C are still low;  Majority of energy consumers lack knowledge of correct and efficient use of energy;  Efficient equipment is expensive which most people cannot afford and do not know about efficient equipment;  No existing agency directly responsible for EE&C  Public campaign on EE&C is limited.

12 Plan for Energy Efficiency and Conservation  Establishing policy on EE&C;  Establishing decree and guidelines on EE&C;  Establishing agency responsible for EE&C;  Disseminating and campaign EE&C;

13 Draft Policy on Energy Efficiency and Conservation  Establishment of agency responsible for EE&C in Ministry of Energy and Mines  Setting up the plan targeting to government offices in reducing energy consumption by 10% in the period of ;  Establishment of legal documents: Decree, Guidelines and rules on EE&C;  Proposing all sectors to have plans and measures for reducing energy consumption.

14 Draft Policy on Energy Efficiency and Conservation (cont’)  Proposing large sectors to have energy officers to be responsible for managing energy consumption and EE&C;  Proposing large sectors to collect and report on energy situation to Ministry of energy and Mines;  Promoting ESCOs.

Thank you for your attention