Wind energy and development and its environmental impact: A review

(Summary)

Professor: Dr Jeong soo Oh

Written by: Noyladda

The purpose of this decree is to outreach the Renewable Energy Development Strategy of the
Lao PDR, section 2.6.1 on the bio-fuel Promotion and Development and to determine
principles, rule, and measures relating to bio-fuel operation. This decree is applied to any
individuals who want to operate the bio-fuel business.

The decree stated as following:

International cooperation must be taken in order to receive and transfer the advance
technology for ensuring fast, strong and sustainable bio-fuel sector development. Business
scales in here are classified in to three scale namely large and small business scales which
have to obtain approval from Ministry of Planning and Investment and provincial authority
respectively, and family scale which does not have to obtain any admission, but report to
village authority so that they inform District Energy and Mine office.

On bio-fuel production, it clearly stated about the crops considered and the places to grow
different plants, jatropa plantation, for instance, for bio-diesel feedstock is encouraged to be
plant in unstock forest, marginal land and the provinces with less crop competition. Sugar
cane, cassava and corn plantations are for bio-ethanol feedstock. Other feedstock which will
be considered in later stage once technical, economic, environmental and social feasibilities
are proven internationally and demonstrated locally are other bio-fuel crops, second and third
generation bio-fuel feedstock.

Regarding to price determination, it must be reasonable and fair price to both consumer and
producer so as to respond the social policy on promoting the use of clean energy and to attract
the entrepreneurs and/or business runners. Bio-fuel price may be different depending on the
locations, applied technology, and reasonable financial returns, investment benefits. Besides,
fuel consumers have to pay for their air pollution producing in the amount of 100 kip per liter
to add more funds on renewable energy development.

On bio-fuel supply and distribution, suppliers and distributors have to ensure appropriate
technology, safety according to Ministry of Energy and Mines technical standard and the
importance is suppliers and distributors have to receive quality certification and posses
trademark from the National science and Technology authority, respectively.

Incentive for business runners, for small and family business scales will be exempted from
import taxes on necessary machine and chemicals for bio-fuel processing and exempted from
income taxes from business operation.

Grant and low interest loans, governments financial institutes and private bank have to
provide financial services to the bio-fuel entrepreneurs; particularly at least 30 % of total
capitals for domestic entrepreneurs.
Ministry of Energy and Mine is assigned to be core coordinator in coordination with the
relevant sectors namely, Ministry of Agriculture and Forestry, National Science and
Technology Authority, Ministry of Industry and Commerce, Ministry of Public Works and
transports, Ministry of Finance, Bank of Lao PDR, Ministry of Planning and Investment,
National Land Management Authority, Ministry of Information and Culture, Water Resources
and Environmental Authority and local authorizes in effective outreaching, disseminating,
and implementing this Decree.