NAMA: NAMA for Rural Development in Lao PDR

Title: NAMA for Rural Development in Lao PDR
DescriptionOfMitigationAction: Access to modern energy services is a prerequisite for sustainable development. Even though the electrification rate in Lao PDR was 72.5 per cent of households in 2010, one third of the population still remain without proper access to electricity. According to updated the Rural Electrification Master Plan (REMP), 2010 the Government has set the national electrification target at a household level to 94 percent by 2020. The NAMA represents an opportunity for sustainable and low carbon development for Lao PDR. The government can build on the existing policy framework, which targets the implementation of various policies, plans and actions aimed at mitigating GHG emissions while achieving sustainable development, so as to define a comprehensive and coherent NAMA development framework for Lao PDR. The NAMA differs from traditional funding mechanisms which promote rural electrification and renewable energy projects. Interventions under the NAMA framework are prioritized in line with the socio-economic development objectives of the host country. The NAMA is designed with sustainable development benefits in mind and the design includes a focus on interventions which allow for income- generating activities which can create business opportunities for individuals, households and communities. The NAMA will spur the development of an environment which facilitates transformative change in the energy sector through an attractive regulatory and policy environment that incentivizes the private sector. The overall target of the NAMA is to support Lao PDR in achieving the goal defined in the Rural Electrification Master Plan, namely to provide access to electricity to 90 per cent of households in Lao PDR by 2020. The NAMA will reduce GHG emissions through the replacement of fossil fuels with renewable energies. The NAMA will also contribute to Sustainable Development (SD) benefits, such as improvement of the situation of groups with specific vulnerabilities, women and the poor. The NAMA covers one type of technical intervention  the establishment of mini grids. Rural communities/tourism, agricultural facilities/health centers/schools and literacy centers are the focus of these mini grids due to their demand for electricity for lighting, cooling and appliances. The mini grids will predominantly use renewable energy sources (hydro, solar) and will provide electricity for lighting, radio and phone charging for households, and for service and production activities. In this first phase the NAMA aims to establish 8 mini grids. This will provide electricity to around 1,000 households and around 6000 people. Over the 15-year lifetime of the NAMA, emission reductions will reach around 13,000-14,000 tons of CO2. Capacity-building will be a key component in the implementation of the NAMA. Special emphasis will be given to identifying and supporting the development of income-generating activities in the Rural Productivity Zones (RPZs), as this is the key to positive rural development. Another important component will be technical support during the identification and implementation of the different mini grids, as the aim is to implement technically sound projects with low operating costs. The baseline scenario for this NAMA consists of two components, a GHG baseline and a sustainable development (SD) baseline. Setting the baseline scenario in this way allows all effects to be properly assessed and quantified through the monitoring activities described in the Measurement, Reporting and Verification (MRV) system. In the MRV, the UN Framework Convention on Climate Change's (UNFCCC) Small-scale Methodology AMS-III.BL: Integrated methodology for electrification of communities Version 01.0 will be used to monitor GHG emission reductions. The total cost of the NAMA is estimated at around US$3.4 million. This includes support to cover the investment costs of the technical intervention as well as extensive capacity-building efforts. In total, the government of Lao is committed to providing around 14 per cent of the required funding. The remaining 86 per cent is expected to come from NAMA donors. Implementation of the NAMA will be led by the Ministry of Energy and Mines as the NAMA Coordinating Authority (NCA). The Ministry of Natural Resources and Environment will be appointed as NAMA Approver/Focal Point to the UNFCCC. The role of NAMA Implementing Entity (NIE) will be taken by the Rural Electrification Fund. The NAMA will receive capacity development support over a period of three years. Initial efforts will focus on securing national and international funding as well as establishing the institutional structure. The first eight projects will be prepared and implemented in the years 2016 and 2017. Upon availability of additional funding, further mini grids can be implemented. After the implementation of the projects, the NAMA will operate over a period of 15 years.
EntityName: Institute of Renewable Energy Promotion
EntityName1:
EntityName2:
EntityAddress1: Nong Bone Road Ban Fai Saysettha District Vientiane Capital, Lao PDR, P.O.Box 4708, 5th Floor 2nd Energy Building||
EntityAddress2: ||
EntityAddress3: ||
EntityContactPerson1: Mr. Thongkhanh PHIMVILAY|Seumkham THOUMMAVONGSA, Ph.D|
EntityContactPerson2: ||
EntityContactPerson3: ||
EntityContactPerson1Alternate:
EntityContactPerson2Alternate:
EntityContactPerson3Alternate:
EntityPhone1: + (856-21) 413-012 ; + (856-21) 453-182||
EntityPhone2: ||
EntityPhone3: ||
EntityPhone1Alternate:
EntityPhone2Alternate:
EntityPhone3Alternate:
EntityEmail1: pthongk@yahoo.com|seumkham@gmail.com|
EntityEmail2: ||
EntityEmail3: ||
EntityEmail1Alternate:
EntityEmail2Alternate:
EntityEmail3Alternate:
YearsForCompletion: 5
UsedCurrency: USD
AmountOfFinancialSupport: 2495850
CommentsOnFinancialSupport: It is expected that international support will be provided for the implementation of the NAMA. The international contribution is expected to be US$  2,495,850. 
AmountOfTechnicalSupport:
CommentsOnTechnicalSupport:
AmountOfCapacityBuildingSupportText: 1400660
AmountOfCapacityBuildingSupportChoice: selected currency
CommentsOnCapacityBuildingSupport: In order for the NAMA to be successfully implemented and to be extended after the implementation of the first eight mini grids, the capacity development needs must be met through the provision of capacity-building activities and additional personnel must be hired for the management of the NAMA. Most of the capacity-building activities will be provided in the first three years of NAMA set-up, which are seen as the critical phase. The following additional positions will be created for management of the NAMA: • a NAMA team leader to oversee the implementation of the NAMA programme; • a mini grid expert, responsible for the implementation of the intervention; • a technical expert to support the implementation of the intervention in technical matters. All these positions will be assigned to the NIE. To create and increase the capacity of the staff to be hired, international experts will be involved in the first phase of the NAMA. The positions that will need to be filled by international experts are those of NAMA expert and rural electrification expert. Their task will be to increase the capacity of the NAMA implementation team.  
FinancialSupportRequired: Yes
TechnologicalSupportRequired: Yes
CapacityBuildingSupportRequired: Yes
OtherNAMA:
UNParty: Lao People's Democratic Republic
CoveredGreenhouseGases: CO2
AttachmentDescription: NAMA Final Lao PDR2-1.pdf;Fully-fledged NAMA Design Document |ER_tool_LAODR_19112015.xlsx;ER and MRV sheet|NAMA_SD_Tool_Updated_Lao PDR.xlsm;Sustainable development tool
Item Status: Published
NAMADeveloper: ext\sengchandala
NAMAApprover: ext\sengchandala
SecretariatNAMAAssignVerifier: unfccc\nama-av
SecretariatNAMAVerifier: unfccc\joshi
Publishing date: 3/22/2016
NAMAId: NS-237
ConversionRate:
GeneralComments:
StartYearOfImplementation: 2016
EstimatedFullCostOfImplementation: 2922538
EstimatedIncrementalCostOfImplementation:
EmissionReductionsAmount:
EmissionReductionsUnit: MtCO2e
EmissionReductionsComments: The determination of emission reductions is based on the UNFCCC’s “Small-scale Methodology AMS-III.BL: Integrated methodology for electrification of communities “ (UNFCCC, 2015). The AMS-III.BL methodology is simplified for the MRV NAMA mini grid intervention as follows. • Transmission and distribution losses are neglected. The mini grids are characterized by short distances between the source of electricity generation and the consumers of the electricity. Thus the grid losses are minor and will be neglected. • Consumers are classified into two types. There are only consumers who were not connected to the national/regional grid or a mini-grid before the NAMA intervention. Thus only types 1 and 2 consumer exist. • Measuring consumption by Type 2 consumers  The electricity consumption of Type 2 consumers (i.e. 500-1,000 kWh per year) can be measured using electricity meters or can be estimated (e.g. by multiplying installed capacity with average periodic hours of usage). <o:p _rdeditor_exists="1"></o:p>
OtherIndicatorsComments: The coordination and management of the NAMA requires an institutional structure, which shall meet the following requirements. • It must be embedded in national and sectoral policies and strategies. • It must be capable of effective communication and reporting as required by international agencies, such as the UNFCCC. • It must provide an interface to international bilateral and multilateral NAMA funding entities, such as the Green Climate Fund. • It must be able to ensure proper management of financial flows between the NAMA funding entities and the recipients. • It must be able to ensure the achievement of NAMA targets in terms of electrification, GHG mitigation and sustainable co-benefits. • It must be able to allow transparent monitoring of GHG emission reductions and the Sustainable Development indicators. The recommended institutional structure of the NAMA is based on the following principles. • Ensuring the strong involvement of national stakeholders to create country ownership and political commitment. • Using existing and experienced entities organizational systems which are already in place and allow for prompt and smooth implementation of the NAMA. • Ensuring that the institutional structure is appropriate for the receipt of international private and/or public donor funding. • The institutional structure for the NAMA shall include the following institutional bodies at the country level:  (i) NAMA National Focal Point or National NAMA Approver (NA);  (ii) NAMA Coordinating Authority (NCA);  (iii) NAMA Implementing Entity (NIE);  (iv) NAMA Executing Entities (NEEs).
CommentsOnFullCostImplementation: The full cost of implementation include investment in Electricity Systems, in Literacy Centres, in-vestment in the Stablilization Fund and Capacity Development.    
CommentsOnIncrementalCostImplementation:
TechnologyNSSI: Hydropower; Wind energy; Solar energy
TypeOfActionNSSI: National/ Sectoral goal
SectorNSSI: Energy supply
TypeOfRequiredCapacityBuildingSupportNSSI: Individual level; Institutional level
TypeOfRequiredFinancialSupportNSSI: Grant
OtherRelevantInformation: In addition to GHG emissions, the MRV system for this NAMA will monitor the impact of the NAMA interventions on selected Sustainable Development (SD) indicators. The selection of the SD indicators was done using the Sustainable Development Evaluation Tool (SD Tool) developed by UNDP (UNDP, 2014d). The SD Tool divides the SD indicators into five different domains: environment; social; growth and development; economic; and institutional. The tool requires for each of the Interventions to decide whether an indicator (such as access to clean and sustainable energy, empowerment of women or improvement of livelihood of poor, etc.) is selected, identify the impact, add an explanation on the chosen indicator, define the effect (positive, negative, both) and indicate whether monitoring is done.
RelevantNationalPolicies: -Electricity Law (1997 and amended 2013)  -Power Sector Policy Statement (2001) -National Growth and Poverty Eradication Strategy (2004) -The Prime Minister’s Decree of Local and Rural Electrification Development Fund (2005) -Renewable Energy Development Strategy (2011) -Decree of MEM for Establishment of Institute for Renewable Energy Promotion (2012) -National Environmental and Social Sustainability of Hydropower Sector in Lao PDR (2006) 
Approval Status: Approved
Attachments: ER_tool_LAODR_19112015.xlsx; NAMA Final Lao PDR2-1.pdf; NAMA_SD_Tool_Updated_Lao PDR.xlsm

Created at 3/22/2016 5:15 PM by System Account
Last modified at 3/22/2016 5:15 PM by System Account

Go back to list
Home(Public NAMA)