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Renewable energy use fuels debate
Government officials, the private sector, experts and organisations with an interest in the energy sector gathered in Vientiane on Friday to look at the crops and policies needed to develop renewable energy sources in Laos.
The government's goal is for 90 percent of all households to have electricity by 2020, for renewable energy to meet 30 percent of total energy demand by 2025, and for 10 percent of fossil fuel imports to be replaced with renewable energy sources.
This means energy experts have to investigate crops that have the potential to be processed for bio-fuel, and for support policies to be formulated.
Deputy Director General of the Department of Electricity, Ministry of Energy and Mines, Mr Hatsady Sysoulath, who heads the committee responsible for drafting the national renewable energy strategy, presided over the workshop.
A draft strategy to promote the use of renewable energy is in the process of being approved by the government, he said.
“We are here to discuss and find out what we need to do to boost the renewable energy sector when the strategy is approved by the government. We also need to know how to use the strategy so that it is beneficial.”
Mr Hatsady said the number of vehicles in Laos is increasing annually, so the need for fuel is growing accordingly. In 2007, Laos imported about 540 million litres of fuel, and about 640 million litres in 2009.
“It is expected that the increase will grow much more rapidly in the future because of economic growth. This means our fuel imports are rising every year,” he said.
“So, it is important to find sources of renewable energy and reduce fuel imports.”
Mr Hatsady pointed to some of the challenges for renewable energy development in Laos. He cited the general lack of awareness about energy, limitations to the participation in energy development by all parties, and the lack of policy and regulations to promote renewable use such as loans, price guarantees and taxes. He also pointed to the high investment cost in producing renewable energy because of the technology involved, and its maintenance.
“The way to boost the development of renewable energy is sound policy. That's why we're here - to discuss and learn from each other's experience.”
The workshop also heard about the experiences of Philippine and Thai experts in developing renewable energy.
The Philippines has a law to encourage the development of biofuel. For example, it mandates the use of biofuels by blending a minimum of 1 percent biodiesel by volume into all diesel engine fuel distributed and sold in the country, since the law came into effect in 2007. In 2009 a minimum of 2 percent biodiesel was introduced, and in 2009 a blending of 5 percent bio-ethanol in total gasoline volume was initiated.
There are also incentives for the production, distribution and use of locally produced biofuels. The tax rate is zero for the biofuels component, and sales of raw materials used in the production of bio-fuels are exempt from value added tax. Also, government financial institutions give high priority to entities that engage in the production, storage, handling and transport of biofuels and biofuel feedstock.
The workshop also heard about research and analysis from renewable energy experts and the private sector with experience in the field. The production of biofuel from jatropha was also raised for discussion in the workshop.
vientiane times
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