Lao PDR: How to Attract More Investment in Small-Scale Renewable Energy?

Abstract

Lao PDR adopted the Renewable Energy Development Strategy in 2011 and set a target of 30% small-scale renewables in the energy mix by 2025. The country relies heavily on large hydropower in electricity production and is an attractive investment destination for hydropower. At the same time, Lao PDR has also significant small-scale hydro and solar power potential. We propose five actions that can improve the investment climate in Lao PDR for small-scale hydropower, solar and wind energy: establish an autonomous government agency for renewables; join IRENA and build capacity for renewable energy governance; adopt a feed-in tariff and build a robust regulatory framework; develop a roadmap for small-scale renewable energy; facilitate market entry for investors.