Transcript Intended and Unintended Outcomes of RE Projects in Laos

Intended and Unintended Outcomes of
RE Projects in Laos and Cambodia:
Stories from the field
Hanna Kaisti, Finland Futures Research Center
Seminar on Energy Policy, Climate Change and Ecological
Democracy in the Mekong Region, 3 November, 2008
Content
1. Cambodia – current situation, government
targets and how to get there
2. Three examples of RE projects in Cambodia
3. Laos – current situation and targets.
4. “Is there other than large hydro power?”
5. Challenges yes, but what are the solutions?
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Cambodia
• Wood and char coal main source of energy
• Overall electrifiration rate ~ 20 %
• 87% of electricity used in Phnom Penh, 5 % in
Siem Riep, 8 % in rest of the country
• Electricity is expensive
• Now 200 megawatts
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Government targets
• By 2013: 70 % of people have access to
grid quality electricity
• By 2020: electricity in all villages
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How to achieve the targets?
1) Electricity import from neighbouring
countries;
2) develop hydro power;
3) develop other renewable energy sources
Funding: Donors, government lending,
private investors
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Future plans in Cambodia
• ”900 megawatts in 2012” (Tun Lean, MIME)
• Connection grids from Thailand, Vietnam &
Laos (ADB projects) ~ 180 MW
• 3 new hydropower plants ~330 MW
• Coal power plant, Sihanoukville 200 MW
Also: Transmission lines needed to connect all provinces in Cambodia.
Now no national electricity grid but 21 isolated systems
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• Government’s long term
plans: Hydropower!
• ”In Cambodia 10 000
MW hydro power
potential” (Heng
Kungleang, MIME)
• At the moment 13 project
feasibility study
permissions to analyse
hydro power sites
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For large hydro,
investments come
from China
Fear that there will be
lower environmental
& social standards
than in WB projects
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RE projects in Cambodia
Donor funded RE projects include:
• Solar home systems
• Domestic biogas
• Wood gasification project
• Improved cooking stoves to save fuel wood
Wind is not seen as potential except in the coast
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Domestic biogas programme
• SNV (the Netherlands)
has biogas programmes
both in Cambodia and in
Laos
• Uses dung and other
organic matter
• Target in Cambodia
17.500 households, in
Laos smaller scale
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• Suitable for better-off
families with cattle or
pigs
• 2 (big) cows or 5 pigs is
the bare minimum
• To operate a small biogas
plant 20 kg dung is
needed
• According to the SNV
25% of rural population
in Cambodia has
technical potential to
install a biodigester
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• Biogas plant can
function more than 20
years, only little
maintenance
• Gas used mainly for
cooking ( + lighting),
slurry as organic
fertilizer
• Investment costs 300
– 400 euros;
villagers’ share: 1550%
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Have you ever been
inside of a
biodigester?!
(this one was empty,
fortunately!)
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Wood gasification project
• Community energy
cooperative in Anlong
Tamey village
• SME Cambodia, UNDP,
Canada Fund...
• Initial cost of required
equipment covered by
grants
• Cooperative members
pay 2-5 USD / month for
electricity
• Source of biomass:
locally farmed trees +
corn cores
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• 200 kg of wood + 200
kg of corn per day
• Problems: during wet
season 10 000 kg of
wood per month is
bought from outside (180
USD)
• Village needs more
electricity than the
gasifier can provide:
constant power cuts
• Has not really increased
livelihood options
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Fuelwood saving project:
Improved cooking stoves
• Geres (France)
• Improved cooking
stoves, reforestation,
developing sustainable
char coal from
agricultural waste
• A small project
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• Most households
use wood or
charcoal for
cooking, even in
urban areas
“Charcoal is illegal but still
100.000 tons of charcoal are
used in Phnom Penh alone.
And they are not replanting
the trees. They will be soon
finished.” Rogier van
Mansvelt, WB consultant
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• Improved stoves saves
wood and charcoal
• Stoves are a bit more
expensive than the
traditional stove
(1.25 $ - 3. 75$)
• Widely used in cities
(30% of all stoves) but
not in rural areas
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• The production costs
are higher than in the
traditional one
-> less profit for the
producer
-> problem in Phnom
Penh: donors’
subsidies are
distorting the markets
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Laos
•
•
•
•
Wood and char coal main source of energy
Electrification rate 58 %, in rural areas 20 %
Electricity is cheaper than in Cambodia
Plans to increase the electricity export to
Thailand, Vietnam, Laos, China in the near
future
• Electricity from large hydro power plants is seen
as the most important commodity
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Government targests
• 70% electrification rate by 2010
• 90% electrification rate by 2020
Plus the agreements with Thailand and Vietnam to
export 7000 MW
“ Until 2010 it will be difficult to reach these targets, but
after Nam Theun 2 is completed we will have more
money to invest in the gird extension.The money will
come from selling the electricity from Nam Theun 2.”
(Bouathep Malaykham, MEM)
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“We will have manymany hydro power
plants in the future,
more than 50 medium
and big ones, all over
the country.”
(Bouathep Malaykham,
MEM)
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• Large hydro plant investors from France,
Thailand, Vietnam, China…
• Long agreements to export electricity
• Electricity mostly exported, profits will also
go to the investors
“Power trade is good for Laos. It is an opportunity. And, besides, what other
income do we have? Tourism?” (Prof. Khamphone Nathavong, NUOL)
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Rural electrification programme
(Anousak Phongsavath, Rural electrification division, MEM)
1. World Bank: grid extension and off-grid
programme (solar home systems)
2. Asian Development Bank: grid extension
3. Nedo (Japan): Houay Xe hybdid system
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Solar Home System in Laos
• World Bank’s
programme (lending
to government)
• 9000 households
now
• Different sizes – 50 watt solar
panel costs 3$ per month:
Enough for 3 lamps, TV and CD
(2-3 hours per day)
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Problems
• Batteries: expensive
to buy a new one
every 2-3 years
• Maintenance
• Theft of panels in the
public sites
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Paying for the panel or for the service?
• Payment obligatory
irrespective of use –
difficulties for the
poorest families
• E.g. slash and burn
cultivators go away
from the villages for
months but still pay
for electricity they do
not use
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Conclusions: What are the challenges
for Cambodia and Laos?
• In the near future Laos will be an electricity exporter and
Cambodia importer
• High dependency on donors and foreing investors
• There are many different (failed) pilot projects: donor
projects, government’s own pilot projects, research
projects… Analysis needed why projects tend to fail
• Often no means for upscaling
• Lack of information sharing and coordination between
different RE projects
• Short donor projects can also destroy well-working
systems (cf. Improved cooking stove case)
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• Livelihood aspects should
be integrated to the energy
projects – how the
electricity can be used to
generate income or other
well-being?
• RE needs subsidies:
investment, operational &
maintenance costs high
• Needs capacity-building
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• Main source of
energy is still wood
but donors and
governments not very
interested in fuel
wood saving
initiatives
-> improved stoves
needed also in the
rural areas
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What is needed?
• Good planning and information sharing
• Context-specific planning, not blue print
solutions
• Capacity-building
• Energy projects need long term
maintenance and follow-up
• Not an end itself: Energy projects need to
be connected to another (livelihood
increasing) projects
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• Pro-poor or pro-middle class approach in
electrification projects? Both needed
• Fuelwood saving & replantation projects
in the rural areas as well
• Information how much wood is
consumned
• And what else….? Discussion may begin!
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Thank You!
E-mail: [email protected]
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