The proposed Project will implement 5.5 Mega Watts (MW) of distributed off-grid capacity with (i) solar photovoltaic (PV) home systems; and (ii) mini-grids powered by RETs (PV, micro/pico-hydro and mini-wind). It will also include institutional and beneficiary capacity building in procurement, operation and maintenance (O&M), and monitoring.
|Project Name||Renewable Energy Development in Remote Communities Project|
|Country||Lao People's Democratic Republic
|Project Type / Modality of Assistance||Technical Assistance
|Source of Funding / Amount||
|Strategic Agendas||Environmentally sustainable growth
Inclusive economic growth
|Drivers of Change||Gender Equity and Mainstreaming
|Sector / Subsector||
Energy / Renewable energy generation - solar
|Gender Equity and Mainstreaming||Effective gender mainstreaming|
|Description||The proposed Project will implement 5.5 Mega Watts (MW) of distributed off-grid capacity with (i) solar photovoltaic (PV) home systems; and (ii) mini-grids powered by RETs (PV, micro/pico-hydro and mini-wind). It will also include institutional and beneficiary capacity building in procurement, operation and maintenance (O&M), and monitoring.|
|Project Rationale and Linkage to Country/Regional Strategy||
Energy poverty constrains opportunities for sustainable social development, especially in rural remote communities, where women-headed households (HHs) and indigenous and ethnic minorities are remarkably vulnerable. This limited access to rural electricity services needs boosting in areas with hard topographic conditions, by promoting sustainable off-grid options. These include solar home systems (SHS) and mini-grids powered by Renewable Energy Technologies (RETs) to replace contaminating kerosene lighting, diesel generation, and conventional grid-extension, alternatives with high financial cost and externalities. The proposed Project will address these issues and assist the Government of Lao PDR (GoL) in pursuing its ambitious target of electrifying 80% of villages and 90% of HHs by 2020.
The Asian Development Bank (ADB), through its Energy Policy, Energy for All Initiative and Sector Roadmap for Lao PDR, has promoted improving the country's energy security and access to clean energy. So far, ADB's key Assessment Strategy and Roadmap (ASR) for the Energy Sector in Laos PDR has promoted sector development by implementing new power generation capacity and extending and interconnecting provincial distribution grid-infrastructure. Nevertheless, the ASR scope needs to now include pro-poor clean distributed generation of electricity in its menu of options, especially SHS and mini-grids powered by RETs as one of the best technological and cost-effective alternatives to conventional grid extension in remote rural areas of Lao PDR. In figures, in developing countries grid extension cost can be estimated on average at $8,000 $10,000/ kilometer (km) and in difficult topographies at about $22,000/km. Besides, the Project will enhance ADB's regional experience and be the first of its kind in Lao PDR.
The midterm review 2007-2011 Country Strategy Program (CSP) for Lao PDR, recommends accelerating the electrification rate, mainly in the Northern Provinces. This will help to achieve the GoL's national electrification targets, mainly by targeting rural remote communities difficult to reach and with low capacity of payment for energy services. These HHs are not yet included in any ongoing electrification plans of the GoL and development partners. The Ministry of Energy (MEM) and its Department of Electricity (DOE) support this argument.
In the Northern Provinces the electrification rate is much lower compared to the national average of 60% (measured in 2010). Barely electrified remote areas will offer the best environment to demonstrate the suitability of RETs for bringing access to clean electricity services and social development. Sustained by this rationale and assisted by the Project Team, the MEM and DOE, proposed the selection of project implementation sites in the Provinces Oudomxay with 295,000 inhabitants, 45,000 HH and 14% electrification rate; Luang Nahmta with 155,000 inhabitants, 29,000 HH and 20% electrification rate; and Phongsaly with 168,000 inhabitants, 30,000 HH and 12% electrification rate. The Project will benefit at least 10,000 HHs.
The Project, which is included in the Country Operations Business Plan (COBP) for Lao PDR 2012-2014, will address a pro-poor-design targeting indigenous peoples; ethnic minorities and women headed HHs. It is categorized as _Effective Gender Mainstreaming_. The Project will strengthen the criteria for selecting sites and promote project ownership among beneficiaries. To avoid market distortions, it is foreseen that the project beneficiaries will repay part of the equipment costs through cash or in-kind contributions. The Project will promote sustainability models to ensure no equipment failure during expected service life.
|Description of Outcome|
|Progress Toward Outcome|
|Description of Project Outputs|
|Status of Implementation Progress (Outputs, Activities, and Issues)|
|Summary of Environmental and Social Aspects|
|Stakeholder Communication, Participation, and Consultation|
|During Project Design||There will be a consultative and participatory inclusion process for creation of awareness and project ownership.|
|During Project Implementation||Communities will be involved in the operation and maintenance of the off-grid schemes after provision of appropriate capacity development programs.|
|Consulting Services||All contracts closed.|
|Responsible ADB Officer||Kadono, Takafumi|
|Responsible ADB Department||Southeast Asia Department|
|Responsible ADB Division||Energy Division, SERD|
Ministry of Energy and Mines
P.O. Box 4708
Vientiane, Lao PDR
|Approval||09 Sep 2011|
|Last Review Mission||-|
|Last PDS Update||18 Mar 2014|
|Approval||Signing Date||Effectivity Date||Closing|
|09 Sep 2011||11 Nov 2011||11 Nov 2011||31 May 2012||31 May 2014||-|
|Financing Plan/TA Utilization||Cumulative Disbursements|
|0.00||1,000,000.00||0.00||0.00||50,000.00||0.00||1,050,000.00||09 Sep 2011||32,907.51|
Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.
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|Title||Document Type||Document Date|
|Renewable Energy Development in Remote Communities Project: Technical Assistance Completion Report||TA Completion Reports||Mar 2015|
|Renewable Energy Development in Remote Communities Project||Concept Papers||Sep 2011|
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