Issues, Challenges and Priorities faced by Regulators in the next 5-10 years (Lao PDR perspectives)

Transcription

1 Issues, Challenges and Priorities faced by Regulators in the next 5-10 years (Lao PDR perspectives) By Dr. Daovong PHONEKEO Deputy Director General Department of Electricity Ministry of Energy and Mines Energy regulation and Climate Change Seminar Bangkok, 5-6 Feb. 2010

2 BACKGROUND OF LAO PDR Area of 236,800 sq km; 16 Provinces + Capital and 139 districts; Population of 5.8 million (2007); GDP of USD 4.1 billion (2007); GDP per Capita of USD 701 (2007); Mountainous area with major tributaries of the Mekong River covering 35% of total Mekong River basin. Relatively high annual rainfall. Hydropower potential: 23,000 MW Existing installed capacity of 1826 MW (7.9%) Produced energy of 9,500 GWh/Y Produced energy per capita of 1,570 kwh/y Exported energy per capita of 1360 kwh/y (Feb. 2010) 2

3 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; 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; Legal frameworks have been improved from time to time to meet international financing requirements. (Feb. 2010) 3

4 Installed Capacity- end 2009 Others, 1.2MW, 0.07% Hydro, 1,826MW, 99.93% Total: 1,827MW (Feb. 2010) 4

5 OWNERSHIP OF POWER GENERATION The country s total installed Capacity: 1,826 MW EdL MW, IPP: 1,442.5 MW EDL MW EDL IPP IPP MW (Feb. 2010) 5

6 MW NATIONAL DEMAND FORECAST 3,000 2,500 2,000 1,500 1,000 Average growth ( ) = 16.3% (Feb. 2010) 6

7 Institutional Structure of Lao Power Sector PRIME MINISTER OFFICE (PMO) Ministry of Planning and Investment (MPI) Ministry of Energy and Mines (MEM) -Dept of electricity (DOE) -Dept. of EPD Ministry of Finance (MOF) Water Resources and Environment Administration (WREA) IPP company for export IPP company for national supply Prov. Electric Supply Co. (PESCO) for off-grid area Electricity du Laos (EDL) -Generation -Transmission - Distribution Lao State Holding Enterprise (LSHE) Electrical Construction & Installation Co. (Feb. 2010) 7

8 Current Structure of Lao PDR Power Sector Power imports (from EGAT, PEA, EVN and Yunnan/China) Privately owned transmission facilities through dedicated section Lao State Holding Enterprise (LSHE) <NT2,HSA, NN3,NNGP1, XPXN, SK4, SK5, NK1, NT1> Electricite du Laos (EDL) Non-integrated Transmission System (115kV) Own and operate 383MW installed hydro capacity Distribution (~58% of households) IPP projects with export to Thailand since 1998 EGAT Single Buyer and Retail IPP projects with export to Vietnam by 2011 EVN Power sales to Cambodia (EDC) Power Exchange with EGAT Domestic IPP in 2011 Large consumers (Feb. 2010) 8

9 Regional Interconnections for future Power Trading 1. Nabong (Laos) - Udon3 (Thailand) 2. BanSok/Hatsan (Laos) Pleiku (Vietnam) 3. Pakse (Laos) - Ubol2 (Thailand) 4. Hongsa (Laos) - MeaMoh (Thailand) 5. Pakmong (Laos) - Yunnan (China) 6. Luangphabang (Laos) - Northern Vietnam 7. Xayabouli (Laos) Khon Ken (Thailand) 8. BanHat (Laos)- StungStreng (Cambodia) (Feb. 2010) 9

10 Electricity Tariff in Lao PDR Month, Year Lao Kip/kWh Jan-08 Jan-09 Jan-10 Jan-11 Residential 0-Œ25 kwh Lao Kip/kWh Œ-150kWh Lao Kip/kWh >150 kwh- Lao Kip/kWh Business Low Volt. Lao Kip/kWh Med. Volt. Lao Kip/kWh Entertainment Lao Kip/kWh 1,095 1,095 1,095 1,095 Government office Low Volt. Lao Kip/kWh Med. Volt. Lao Kip/kWh Inter. Organization Lao Kip/kWh 1,066 1,066 1,066 1,066 Industry (small) Irrigation Exchange Rate 1$=8450 Kip Low Volt. Lao Kip/kWh Med. Volt. Lao Kip/kWh Low Volt. Lao Kip/kWh Med. Volt. Lao Kip/kWh (Feb. 2010) 10

11 Challenge/Priority Challenge: - Preparation for stock market - Restructuring of the Power Industry - Manpower capacity building Priority: - Unbundling of EDL (Generation Co., Retail Co.) - Establisment of Power grid Co. as TSO - Improvement of Performance Standard - Improvement of the Legal Frameworks - Setting up of Independent Power Regulator (Feb. 2010) 11

12 Hydropower Projects Under-Construction Under Construction (3,165 MW) Nam Ngum 2 (615MW) scheduled COD in 2011 C. Kanchang (Thailand) 28.5% EdL (Laos) 25% Ratchaburi (Thailand) 25% Bangkok Express Way (Thailand)12.5% Others 9% Xe Kaman 3 (250MW) scheduled COD in 2011 EdL (Laos) 15% Viet-Lao PIDJ/S (Vietnam) 85% THPP-Expansion (280 MW) scheduled COD in Nordic Hydropower(Norway) 20% - MDX/GMS of Thailand 20% - EDL (Laos) 60% 60 MW will be for domestic market (Feb. 2010) 12

13 Hydropower Projects Under-Construction (con't) Nam Ngum 5 (120MW) COD in 2011 for domestic market - Sinohydro Corp. (China) 95% - EDL (Laos) 5% Nam Lik 1-2 (100MW) scheduled COD in 2011 for domestic market CWE Corp. (China) 90% EDL (Laos) 10% All financing from PR China Hong Sa Lignite ( 1,800 MW ) scheduled COD in BanPu (Thailand) 45% - Ratchaburi (Thailand) 35% - LHSE (Laos) 20% (Feb. 2010) 13

14 Hydropower Projects Under-Development Tariff MOU concluded (460 MW) Nam Ngum 3 (460MW) scheduled COD by 2016 GMS Power (Thailand) 27% LHSE (Laos) 23% Ratchaburi (Thailand) 25% Marubeni Corporation (Japan) 25% (Feb. 2010) 14

15 Hydropower Projects Under-Development Feasibility studies completed/ Tariff negotiation on-going (1,385 MW) COD AFTER 2017 Xe Kong 4 (300 MW) Regional Oil of Russia 85% LHSE of Laos 15% Xe Kong 5 (330 MW) Regional Oil of Russia 85% LHSE of Laos 15% Nam Kong 1 (75 MW) Regional Oil of Russia 85% LHSE of Laos 15% XePian-XeNamNoy( 390 MW ) - SK Eng& Const. of Korea 85% - LHSE of Laos 15% XeKaman 1 (290 MW) Lao-Viet PI&JSC of Viet Nam 85% EDL/LHSE of Laos 15% And ~ 42 projects MOU signed, projects under-f.s study. (Feb. 2010) 15

16 Thank you for your kind Attention (Feb. 2010) 16