trends and future of sustainable development - TransEco

covered by the users. A new battery costs approximately 700 000 kip (70 USD) which makes it anexpensive investment for the poorest solar households.With 30.000 kip monthly fee the user would get a 50 W panel which gives electricity for 2-3 hoursper day. The most common uses of electricity are lighting, TV and stereos. Water can be pumped byusing solar PV pumping. Applications for using direct solar radiation include solar cookers, solar waterheaters and solar dryers.4.1. Why Solar Home Systems?Originally the World Bank’s off-grid program in Laos was planned to include both solar home systemsand village scale micro hydropower. Laos has significant potential for hydropower, and if planned andimplemented properly, micro hydro could offer a good alternative for sustainable small scale electricityproduction in Laos. In the off-grid program many feasibility studies were made to examine the bestlocations for micro hydropower that would produce electricity for a village or a group of villages. Theoverall goal was to achieve 10 000 electricity connections – 9000 with solar energy and 1000 with microhydro. Despite of 15 feasibility studies no micro hydropower plant was implemented in the World Bank’sprogram. Instead, solar home systems were used in the program. There were many reasons for this. Oneof it was financial; the price of solar home systems went up and there was no longer money for microhydro in the off-grid program. Also it was calculated that the solar energy would be cheaper for the enduserthan the micro hydro. According to the World Bank official, the total cost for the solar panel (for theend-user) is around 300-500 USD depending on the size of the panel. The cost of the micro hydro for theend-user ranges from 1000 USD to 1500 USD per household. (World Bank official, interview on 15January 2010)Even it [micro hydro] is more expensive, the Lao government is trying to subsidize the privatesector participation. But the private sector is so weak in this country. There is a lack oftechnical capacity and for that we have [had] several hundred workshops. Many private sectorcompanies express interest, but they cannot invest. (Interviewed World Bank official)In short, private sector involvement is required in micro hydro development, but not in solar energywhich is subsidized by the World Bank program. Large hydro is lucrative business but micro hydrohardly draws investors. Furthermore, due to the weak banking system, even though there would beinterested local private organizations, it is very difficult for them to find funding for micro hydrodevelopment. Compared to micro hydropower, solar home systems are easy to install, they don’t requirefeasibility studies or establishment of partnership with private power producers as is the case in muchmore complex micro hydro. (Interview, VOPS officials 14 th January 2010) Also the lack of informationand sometimes sporadic planning in the electricity grid extension has hindered the installation of microhydro plants.The easiness of solar home systems is probably one of the key reasons why they are so popularamong international development banks and other donors. The prices of solar home system componentshave reduced in the past 15 years, which has increased their attractiveness. Solar energy is considered tobe extremely promising, especially in countries with optimal access to the sun’s rays and very little otherresources. There has also been a certain hype relating to solar energy. According to the InternationalEnergy Agency, solar power could produce nearly 25 % of global electricity by 2050. (IEA 2010) The117