Renewable Energy Development Strategy (Lao People’s Democratic Republic)

The Renewable Energy Development Strategy aims to develop new renewable energy resources not yet widely explored in Lao People’s Democratic Republic (Lao PDR) to replace non-renewable resources (fossil fuels, coal and natural gas) that will be exhausted in the future. 

Renewable energy resources include:

• Biomass energy (biofuels, biogas)
• Solar energy
• Wind
• Small hydropower

Fuel consumption in Lao PDR however remains very low compared with other developing countries. Energy consumption in the country is mainly in the form of traditional fuels, i.e. the use of biomass such as fuel wood (56%) and charcoal (12%) for cooking and heating in rural areas. This represents around 69% of the total energy consumption. On the other hand, although Lao PDR lacks of conventional energy resources (e.g., Oil or Natural Gas) and has some reserve of coal, there are abundant renewable energy resources, such as biomass, hydropower, solar energy. In some parts of the country, there are potential wind and geothermal energies. 

The Government aims to increase the share of renewable energies to 30% of the total energy consumption in 2025. To reduce the importation of fossil fuels, the Government outlines a tentative vision to reach 10% of the total transport energy consumption from biofuels. This target will be regularly revisited and revised, feeding in results of special studies, lessons learned from on-going implementation, and international technological developments in the field of renewable energy. The government policy is to promote investments in energy production from public and private sectors, and from local and foreign investors. The focus is on the development of the following: biofuels; small power; other renewable energies such as solar, biomass, biogas and wind; and other alternative fuels for transportation.