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ENERGY SERVICE WITH PHOTOVOLTAIC HYBRID GRIDS FOR
DOMESTIC AND PRODUCTIVE USE IN THE PROVINCE OF LUANG PRABANG,
LAO PDR
The potential for rural electrification to contribute to economic
development and poverty reduction has not been fully realized.
The traditional political approach on village and irrigation
electrification targets has inhibited the delivery of modern
energy service to business and communities. Consequently nearly
two-thirds of rural households lack electricity supply. Where
service is available, supply is unreliable and of poor quality,
imposing additional costs on households. Subsidized price
pose a serious financial burden to both provincial and national
government, creating a disincentive to invest in electrification.
A distorted rural tariff structure discourages efficient use
of electricity. These factors combined with political interferences
and weak incentives for increasing efficiency of providers,
have resulted in a system that is financially unviable, especially
in rural areas.
Up to now, DRE projects, based on micro-hydro and Solar Energy
(Solar Home Systems), have been implemented in Luang Prabang
province.
These projects were led in a purely 100% public subsidized
way. They made it possible to make the inhabitants of rural
areas aware of solar technology and involve the Provincial
authorities. Main obstacle for long-term operation of the
existing DRE infrastructures is the short-term perspective
on investment of the installation. The operational costs and
a sound operational strategy with affordable tariffs for rural
electrification – which allow a high quality service
for a profitable private operator - have to be considered
more deeply in these approaches for r, which have been a reliable,
motivated and well informed partner in these projects. The
province of Luang Prabang is active in rural electrification
and renewable energies fields rural electrification with DRE.
Therefore a new approach (cf. general approach), within the
framework of a public and private partnership, is proposed
for developing an economic sector in rural solar electricity
service in two priority zones in Lunag Prabang province.
Delta PRO RES partners propose a feasibility study on bankable
project implying a partnership between private and public
sectors to finance it, and allow the company in charge of
the operation (operator) to be profitable, to reinvest and,
in such a way, to increase the number of beneficiaries.
During the seminar, the project was presented and a specific
session was dedicated to the Binh Phuoc project.
The presentation
of the project and the minutes
of the session are on line.
Moreover,
in introduction of the session, preliminary presentation were
done:
- Public
Private Partnership with Rural Electrification Funds
- Data
and discussions about Lao Delta PRO RES proposal
EXCUTIVE
SUMMARY OF LUANG PRABANG PROJECT
Stakeholders
of the project:
MARKET
DESCRIPTION
Context:
Population targeted by this project lives in rural areas in
villages off the electricity grid. The houses are centered
around village community structures and create a dense habitation.
About 89% of the population in Vienghkam and 65% in the district
Phoukoune are still not connected to the power grid. Electricity
of Laos (EdL) plans to reach some in both districts, but the
majority will be not connected during the next 10 years.
Therefore, the project focused on those households that EdL
does not plan on connecting.
The number of such households is evaluated at the moment at
1 700, and are spread out over 2 districts. They represent
the priority group of Delta PRO RES action.
Number of clients reached: 1
700 households (approx. 10.000 people)
Project lifetime: 15
years
TECHNOLOGY : PV Diesel Hybrid village grids for domestic
and productive use
Service
and technology offer
According
to the technical-economic optimisation which was realised
the following pricing option result from the calculations
for each scenario to achieve a profitable operation for the
operator company (including investment and amortisation/depreciation
for initial generators and batteries and their replacement
during 15 years of operation).
FINANCIAL
SCHEME FOR VIENGHKAM (only moveable assets):
FINANCIAL SCHEME FOR PHOUKOUNE (only moveable assets):
Contacts
Households in a straight line along the roadside in Viengkham zone
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