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The Study on Power Network System Plan in Lao People's Democratic

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The Study on Power Network System Plan in Lao People's Democratic Department of Electricity, Ministry of Energy and Mines Electricité du Laos Lao People’s Democratic Republic The Study on Power Network System Plan in Lao People’s Democratic Republic Final Report January 2010 JAPAN INTERNATIONAL COOPERATION AGENCY Tokyo Electric Power Company, Inc. Nippon Koei Co., Ltd. IDD JR 09-090 PREFACE In response to a request from the Government of Lao People’s Democratic Republic, the Government of Japan decided to conduct “The Study on Power Network System Plan in Lao People’s Democratic Republic” which was entrusted to the Japan International Cooperation Agency (JICA). JICA selected and dispatched between October 2008 and January 2010 a study team headed by Mr. Masaharu YOGO of Tokyo Electric Power Company, Inc. (TEPCO) comprised of TEPCO and Nippon Koei Co., Ltd.. The team held discussions with concerned officials from the Government of Lao People’s Democratic Republic and conducted field surveys. Upon returning to Japan, further studies were conducted and a final report was prepared. The power network system plan up to 2030 has been formulated taking into consideration the situations of both the power sector and LAO PDR’s existing power facilities in this study. An evaluation of the prioritization of the projects for power network development has been conducted. The highest prioritized project’s, facility design and validity was confirmed and a cost estimation was conducted. I hope that this report will contribute to power network system planning in the Lao People’s Democratic Republic as well as enhancing the friendly relationship between our two countries. Finally, I wish to express my sincere appreciation to the officials representing the Government of Lao People’s Democratic Republic for their unwavering cooperation in support of this study. January 2010 Atsuo KURODA Vice President Japan International Cooperation Agency January 2010 Mr. Atsuo KURODA Vice President Japan International Cooperation Agency Tokyo, Japan Letter of Transmittal We are pleased to submit to you the report of the Study on the Power Network System Plan in the Lao People’s Democratic Republic (Lao PDR). The contents reflect the comments received from not only the Department of Electricity, Ministry of Energy and Mines (DOE), Electricité du Laos (EdL) but also from other related organizations and institutions in Lao PDR, as well as the advice of related institutions associated with the Government of Japan. This report puts forth its proposal for the highest prioritized project and provides recommendations regarding a power network system plan for Lao PDR up to 2030. I am convinced that the implementation of this project will be able to realize stable, efficient and far reaching power supply encompassing even those regions where at present there are no sufficient power sources available to compete with high priced imported power. Hence, via astute utilization of the abundant hydropower resources in Lao PDR, the nation can make significant economic progress while promoting rural electrification and that all of this can be achieved minus any consequential strain on the environment. Further, in addition to the implementation of the highest prioritized project, the outcomes of the long term power network planning and the establishment of the power system operating rules should also be taken into consideration when formulating future power sector policy and the power development program in Lao PDR. This will contribute greatly to Lao’s public welfare and industry growth. In closing, I would like to express our sincere appreciation to the officials of JICA, the Ministry of Foreign Affairs and the Ministry of Economy, Trade and Industry. We would also like to express our gratitude to the officials representing the Government of Laos, the Department of Electricity of Ministry of Energy and Mines, Electricité du Laos and other related organizations, notably the JICA Laos Office and Embassy of Japan in Lao PDR for their unwavering cooperation and assistance throughout the field survey. Very truly yours, Masaharu YOGO Team Leader The Study on Power Network System Plan in Lao People’s Democratic Republic Contents Contents Contents.............................................................................................................................i Tables and Figures ..........................................................................................................xi Appendices .................................................................................................................. xxvi Abbreviations .............................................................................................................. xxvii Existing Laos Transmission System in 2009............................................................... xxxii Chapter 1. Introduction ..................................................................................................... 1-1 1.1 Background and Objective of the Study.................................................................. 1-1 1.1.1 Background of the Study .................................................................................. 1-1 1.1.2 Objective of the Study ...................................................................................... 1-1 1.1.3 Study Area........................................................................................................ 1-1 1.2 Methodology of the Works ...................................................................................... 1-1 1.3 Implementing Agencies of Lao PDR ....................................................................... 1-2 1.4 Technology Transfer ............................................................................................... 1-3 Chapter 2. Lao People’s Democratic Republic................................................................. 2-1 2.1 Country Overview.................................................................................................... 2-1 2.1.1 Geography and Population............................................................................... 2-2 2.1.2 Climate ............................................................................................................. 2-3 2.1.3 Administrative Structure ................................................................................... 2-4 2.2 Social and Economic Conditions............................................................................. 2-4 2.2.1 Overview of Social Aspects.............................................................................. 2-4 2.2.2 Overview of Economic Conditions.................................................................... 2-6 2.2.3 National Development Plan.............................................................................. 2-8 2.2.4 Government Finance........................................................................................ 2-9 2.3 Energy Sector Outlook.......................................................................................... 2-10 2.3.1 Energy Resource............................................................................................ 2-10 2.3.2 Demand and Supply....................................................................................... 2-14 Chapter 3. Outline of Power Sector.................................................................................. 3-1 3.1 General Information ................................................................................................ 3-1 i Contents 3.2 Outline of Power Sector .......................................................................................... 3-1 3.3 Record of Power Demand and Supply.................................................................... 3-4 3.3.1 Electricity Consumption Record ....................................................................... 3-4 3.3.2 Peak Power Demand Record........................................................................... 3-4 3.3.3 Electricity Consumption by Sector.................................................................... 3-5 3.3.4 Electric Power Generation for Domestic Use in Lao PDR................................ 3-5 3.4 Situation on System Interconnection....................................................................... 3-7 3.4.1 Interconnection with Thailand........................................................................... 3-7 3.4.2 Interconnections to Vietnam............................................................................. 3-9 3.4.3 Plan of Interconnection to China ...................................................................... 3-9 3.5 Law on Electricity .................................................................................................... 3-9 3.5.1 Overview of Law and Regulation on Electricity in Lao PDR ............................. 3-9 3.5.2 Amendment of Low on Electricity ................................................................... 3-10 3.5.3 The Articles Relevant to this Study................................................................. 3-11 3.6 Electric System Standards.................................................................................... 3-12 3.6.1 System Reliability Criterion............................................................................. 3-12 3.6.2 Technical Standards for Transmission and Substation Facilities ................... 3-13 3.7 Electricity Tariff System......................................................................................... 3-14 3.7.1
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