Engineering Institutions, Powering People, Humanizing Machines
An Institution to Tackle Challenges in Electric Planning and Distribution Network for Large Cities in Laos
By
Xaypaseuth Phomsoupha, Ph.D.
A Mini-Research Project
Funded by
Yonsei University, Seoul, Korea Republic
Vientiane, Lao PDR
March 2018
Abstract
Two large cities like Vientiane Capital and Savannakhet Prefecture as selected for this study have encountered instability in the electricity supply over the years. The problems have persisted as the towns have continuously expanded both demographically and electrically. The irregularities including blackouts and power interruption have already adversely affected urbanite’s livelihoods and human activities to a great extent. This mini-research identified causes of the instabilities and thereby explored capacity building for an institution that tackles problems in planning and distribution networks for Vientiane Capital and Savannakhet Prefecture. Using both quantitative and qualitative approaches to analyzing the data, the researcher found that the power supply was sufficient. The instabilities were, however, caused by human actions and the existing inefficient infrastructure. Thus, the researcher would like to advise that the Lao relevant authorities should institutionalize organizations by establishing a clear mandate for each of the EDL Branch Offices and Headquarters. Likewise, the organizations should develop sufficient knowledge of the engineering staff to establish useful demand forecasts. Ultimately, physical infrastructure such as distribution networks should be developed appropriately to respond to the increasing demand.
An Institution to Tackle Challenges in Electric Planning and Distribution Network for Large Cities in Laos
SECTION 1: INTRODUCTION OF THE STUDY
Introduction
Situated in Southeast Asia, Laos shares a border with Vietnam to the East, Cambodia to the South, Thailand to the West, Myanmar to the Northwest, and China to the North. Laos has power deals accorded with its neighbors, most of which have already imported electricity in a large volume from Laos. The country is populated with 6.7 million people, who live unevenly in an area of 236,800 square kilometers. The low and flat area along the Mekong River Bank in the Western part of the country is characterized by dense demography, whereas the mountainous terrains in the East are sparsely populated. While many large townships are developing into busy prefectures mainly on the flat area, the mountainous terrains in the North and the East provide favorable conditions for developing hydropower plants. Given the potential for harnessing its natural resources, Laos currently produces electricity for export to its immediate neighbors in parallel to implementing the country’s electrification program. Ironically, Laos is the net electricity exporter selling a large volume of electricity, while many parts or even large towns in the country are still in short supply. Thus, the utilities are yet to examine the linkage between demand and supply in the power sector. The public utilities also need to investigate the existing distribution networks for taking electricity to the end-consumers without hindrance. Furthermore, demographic concentration coupled with industrial expansion particularly in large prefectures has posed a problem for the public sector in securing basic public services like electricity and water supply. Although Laos is of developing economic status, the country has enjoyed moderate growth recently. Economic growth has usually led to increased electricity consumption.
Currently, the public utilities intensify electricity supply in the large cities in parallel to the expansion of rural electrification that the government of Laos is forging to realize from its relatively spontaneous generation sources. Town governing bodies have carried out urban electrification with the irregular supply of electricity, the generation of which has been undertaken mostly by private-sector-led investment. While privately owned entities manage most of the electricity generation, no state-run entities specialize in planning for the supply to heavy load demand points like densely populated urban areas. Short-run demand has usually dictated the construction of the new transmission lines without assessing their impacts on the supply sources that should have met the demand at all times. Inadequate oversight of a planning body being responsible for dispatching electricity in the provincial headquarters and their immediate surrounding areas persists. Electricité du Laos (EDL) being accountable for electricity distribution in the whole country has failed in its given mandate to do both planning and delivery within a single institution. Lack of oversight management and improper planning capacity coupled with the old infrastructure correlates with the instability of the supply even though the volume of electricity is sufficient. Large demand centers are found in large cities that have encountered instability of electricity supply over the years. The problems may continue persisting as the large cities have continuously expanded both demographically and electrically. Thus, this mini-research will identify the causes of the instabilities and thereby explore the capacity building for an institution that tackles problems in planning and distribution networks for Vientiane Capital and Savannakhet Prefecture.
Section 1 of this mini-research includes the following sections: introduction, a background of the study, problem statement, purpose of the study, research questions, definition of terms, and summary.
Figure 1: Locations of Two Large Cities
Background and Justification
Vientiane Capital
Vientiane Capital is home to more than one million residents, who live in different residential quarters scattering in an area of 200 square kilometers in the middle part of Laos. The old town standing on the left bank of the Mekong River is the salient feature of the densely populated area, which is surrounded by its rapidly growing suburbs in the hinterland. It became the capital of sovereignty over this piece of land in the 16th century. Having been served as the crossing points for trading activities hundred years ago, the capital continued being the center of the Lao government, Vientiane Capital, until today. It is the place where the governmental administration and foreign diplomatic representation are seated. Business centers have attracted people from the outside world to make their way to the city. Despite small in size, Vientiane Capital has welcomed a hundred thousand tourists every year. As such, the hostelry, entertainment, and catering industry have grown tremendously. Wattay International Airport located approximately seven kilometers from the center of the city lights its runways, passenger terminals, and power its navigation system 24 hours a day. Industrial establishments have emerged in the suburban areas, to which electricity is supplied 24 hours a day due to the intensification of the production of goods. Labors have migrated from different directions in the rural areas to the urban area in an increasing trend. The influx of labor forces from diverse directions has made Vientiane Capital expand its demography continuously. The growth of both demography and industrial establishment has increased electricity consumption. Residential quarters scatter the demand for electricity around Vientiane Capital in an uneven pattern that reveals a mix of the population regardless of their wealth. The Capital comprises five district headquarters located in the urban and suburban areas with no areas considered as rural. People have rather lived their lives in the sleepless Capital, where human actions and machines in motion happen around the clock in most parts of the city. Activities of all the foregoing communities and work of people residing in Vientiane Capital consume electricity in an increasing trend in recent years.
Although Vientiane Capital is now fully electrified, electricity demand proliferates as a result of the expansion of residential quarters coupled with the growth of industry and service in the suburban areas. The development of industrial zones and residential areas has increased distribution networks and thereby needs a large volume of electricity. The electricity consumption behavior of the households residing in large cities like Vientiane Capital is also on an increasing trend due to their good wealth. While around 300 megawatts accommodate the need during regular hours, demand during the peak hours in the Capital and its suburban areas is estimated at 400 megawatts. Twelve power plants, which are located within a range of 60 to 700 kilometers, have supplied electricity to Vientiane Capital. Competition for the supply of electricity among private and public-owned power plants is poorly regulated, and under certain circumstances, the race is not regulated at all. Electricity is transmitted on transmission lines at different voltages from its sources of generation to the load demand centers in the Capital. Distribution networks comprise the lines with voltages such as 230kv, 115kv, 22kv, and 0.4kv. Most recently, Vientiane Capital is theoretically oversupplied with electricity, part of which is exported to Thailand all year-round. Electricité du Laos is the only state-owned utilities mandated to buy and sell electricity domestically.
Figure 2: Government Headquarters
Figure 3: Wattay International Airport
Figure 4: Industrial Quarter
Being the second-largest, Savannakhet Prefecture is populated with 0.3 million people in an area of approximately 100 square kilometers. It is the headquarters of the provincial government supported by different provincial sectors making a local government at the provincial level. Business communities in the Province have rapidly expanded in recent years. Industrial facilities in Savan-Seno Special Economic Zone are notably developed continuously to serve as an integral part of the developmental corridor, which connects Laos with Vietnam and Thailand and other parts in the sub-region. Most factories and service lines in Savannakhet Special Economic Zone operate three shifts daily to accommodate orders for goods made by their clients. Unlike Vientiane Capital, Savannakhet Province comprises urban and rural areas, where one million population resides in the whole provincial territory. The provincial headquarters are surrounded by several townships and clusters, most of which are electrically connected from the provincial center. Savannakhet Prefecture has electricity supplied from two directions before being dispatched to other load demand centers in the whole provincial territory. It is estimated that 150 megawatts are needed for the regular hours that increase to 200 megawatts during peak hours. Nam Theun 2 Hydropower Project provides 80 megawatts for the nearby load demand point that supplies up to 20 megawatts onto Savannakhet on a 150-km long 115kv line. There are cluster hydropower projects located about 350 kilometers away from Savannakhet in the deeper south of the country that supplies its surplus to Savannakhet. Surplus electricity depends upon the consumption in the four provinces, where the power plants are located. Distribution networks consist of 115kv, 22kv, and 0.4kv lines and substations at the relevant voltages. There is no surplus happening at the Savannakhet load demand point. Electricité du Laos acts as the sole buyer, which sells electricity to end-consumers.
Figure 5: Provincial Headquarters
Figure 6: Savannakhet-Department of Energy and Mines
Figure 7: EDL Savannakhet Branch
Figure 8: Savan-Seno Special Economic Zone
Since the Lao government undertook a series of public sector reform programs, electricity generation has been privatized over the past decades. The country’s total generation is currently accounted for 7,200 megawatts, of which around 2,000 megawatts are used domestically and 5,200 megawatts are exported to its neighbors. Given the characteristics of electricity generation sources, around 75% of the total country’s generation is from hydropower. Likewise, around 95% of the domestic capacity is provided by hydropower sources and 5% comes from non-hydro sources. Many power plants supplying electricity to the grids in the whole country are owned and operated by private entities; nonetheless, transmission facilities remain in the ownership and operation of a publicly-owned enterprise.
In Vientiane Capital like Savannakhet Prefecture, the supply of electricity as generated by the hydropower sources is seasonal that varies from season to season and even from month to month in the year. Distribution networks at different voltages are found underdeveloped. Double-loop connections are usually absent in many places in both cities. An institution responsible for planning has failed to establish both short-term and long-term planning including a demand forecast. The demand forecast is even not in existence in many circumstances. Electricité du Laos (EDL) currently acts as the sole electricity distributor in the country. EDL also serves as a planner, distributor, and self-regulating body in dealing with the electricity context. No clear mandate has been established for each of the planning, distribution, and quality control units. No intermediate institution regulates the supply of electricity relative to demand in different load centers
Electrification programs started first in the prefectural areas before spreading to the rural areas. Electric distribution focused on the industrial establishment and residential quarters in the large cities. As the electrification program, particularly in the urban areas of the large cities, has intensified to respond to rapid growth in unplanned demand, electricity distribution has faced blackouts, power outages, and swinging. Proper planning and efficient strengthening of the distribution networks may need to be taken into account seriously.
The two large cities are facing common research problems in electricity distribution. Unsteady flow of electricity has happened in many places at the time due to the inefficient and obsolete connection between the sources of supply and points of demand. Frequent blackouts have occurred in urban areas, which are densely populated. The outages frequently take place in suburban areas where an industrial establishment is concentrated. Frequent blackouts are usually coupled with the absence of a double-loop connection. System failure may have been connected with the demand in relevant points not met by the supply. The causes of the incidents were unknown. There are unclear responsibilities of the EDL Branch office as so assigned for each province in the country whether or not it bears the roles in both planning and distribution in its respective territory. EDL Branch office has usually failed to establish an effective demand forecast in relation to the volume of electricity needed for each particular demand point and the supply sources. No existing independent institution has been assigned specific functions to oversee the planning and regulating distribution. The staff of EDL Branch offices responsible for planning and distribution possesses an inappropriate capacity to perform their jobs as so assigned. The impact of management and institutional arrangement on the unstable electricity supply is unknown. There was no formal study on electricity distribution in large cities conducted by any competent institutions. People involved in electricity generation have speculated that unreliable supply has resulted from inefficient planning, whereas those on the demand side have blamed the supply side for not operating the power plants to meet the demand. Some people believe that strengthening institutional settings being responsible for each of the planning and distribution stages separately would mean providing stable and affordable electricity. In addition to the common problems, each of Vientiane Capital and Savannakhet Prefecture has encountered specific difficulties connected with the location and electricity distribution structure.
In Vientiane Capital repetitive system outages have happened very frequently. In some points of the demand points, blackouts occur three times daily. The cause of the unstable supply is yet to be identified. Swinging in electricity flows has made lights flicker everywhere in the residential quarters and industrially concentrated areas. System overload as the lines are congested at some points, and at the same time shortage is also seen in the other locations.
Similar to Vientiane Capital, Savannakhet Prefecture has encountered power outages several times daily. A power shortage prevails during the dry seasons when the flow of electricity is technically prioritized for the vicinity of its generation points in the deeper South. People have usually blamed the incidents on the generators not supplying sufficient volume of electricity to Savannakhet territory. Distant generation sources are the other causes to be blamed for making unstable supply on the long transmission lines. There are, however, several additional hydropower plants located in the South that are approaching commercial operation in early 2019. The new capacity will add up to the total supply to Savannakhet Prefecture. If there is weak communication between generation and distribution persists, an inadvertent shortage and surplus will happen during the same period and in the same place even more frequently.
Interruption, swinging, and blackouts have occurred daily in the two large cities and more frequently during some periods in Savannakhet Prefecture. Oversupply and power shortage have happened concurrently in both Vientiane Capital and Savannakhet Prefecture. Line overload and line congestion have adversely affected the load flow in many places. Knowing that the existing distribution networks are not systematically developed, and many segments of the systems are very obsolete, the institution responsible for the electricity supply in the two cities did not possess information to what extent the existing distribution networks need to be strengthened. Furthermore, the institution did not know how large the electricity capacity will be, and to what extent the distribution networks will be expanded.
The staff of the EDL branch offices of both Vientiane Capital and Savannakhet Prefecture has inadequately the required capacity for planning and distribution. Communications between the dispatching units with EDL branch offices and the power generators are weak. Consequently, a sub-division has poorly managed the distribution networks in relation to commercial off-take from the generation points and efficient dispatching of electricity to end-consumers. The institution did not know the need for building the capability of its personnel to cope with the complexity of the electricity in the two large cities. Likewise, people accountable for the institution did not know how important planning is in relation to the sources of supply.
A degree of autonomy in undertaking managerial and technical works of EDL branch offices needs to be fixed. An institutional autonomy relates to work allocation and will, in turn, dictate institutional performance per se. Responsibilities for planning and dispatching of electricity as allocated between EDL in the center and EDL branch offices remain unclear. There is ambiguous whether or not each of the plan and distribution has been assigned to each specific sub-division within the EDL Branch Office. There is no clear mandate for EDL Headquarters and Branch Offices as assigned to should shoulder responsibilities in each provincial territory and including Vientiane Capital.
In conducting this mini-research program on an institution to tackle challenges in electric planning and distribution network for two large cities like Vientiane Capital and Savannakhet prefecture, the following research questions are established:
The central question: How effectively does the institution deal with challenges in the distribution networks in relation to the planning and distribution of electricity in each of the two large cities?
In addressing the problem statement to examine how electricity distribution is planned and distributed to the end-consumers effectively, I used three sub-questions:
Subquestion 1: What are the causes of the problem and how will the Lao authorities solve such problems in electricity distribution in the large cities in technical, managerial, and institutional aspects?
Subquestion 2: How do electric utilities (current institutions) cope with the linkage between the sources of supply and demand for electricity in each specific demand point like in the large cities?
Subquestion 3: Why do the Lao authorities attach importance to the electricity supply in the growing large cities, these days?
The purpose of this mini-research was to identify challenges faced by EDL branch offices in Vientiane Capital and Savannakhet Prefecture in handling electricity distribution in each area. The study would help EDL, and its branch offices reveal technical, managerial, and institutional problems that have been caused by various factors. In analyzing data, the researcher will provide recommendations for EDL branch offices to solve the problems in securing stable supply and effective distribution in large cities. Ultimately, electricity consumption would be more affordable by reducing loss, eliminating extra investment in standby generation, and utilizing surplus more efficiently.
Research Methodology and Data Collection
For this mini-research, I acted as the researcher in collecting, analyzing, and interpreting data. I employed a qualitative method combined with the descriptive statistics in identifying challenges of EDL branch offices of each of Vientiane Capital and Savannakhet Prefecture in managing electricity supply and distribution. In addressing the research questions, I collected quantitative data from secondary sources such as electricity statistics and interviewed individuals having experience in the field.
Research Plan
This mini-research spanned from January to June 2018. Since the engagement by Yon Sei University the researcher started framing the research by establishing a prospectus. The researcher then collecting data in Vientiane Capital and Savannakhet Prefecture. The researcher made three trips to Savannakhet to gather quantitative and qualitative data. In Vientiane Capital, the researcher also collected the data in situ. I analyzed the data and wrote this research report in May 2018.
The following terms are defined specifically for this mini-research:
“Double-loop” means a more-than-one circuit or multi-route transmission line that carries electricity from the point of generation to the point where the power is used by end-consumers.
“Dry season” means a period from June to October of the year in Laos when it rains a lot
“HPP” means a hydropower plant, which generates electricity for consumption.
“Kv” means kilowatt
“MW” means megawatt
“Rainy season” means a period from November of the preceding year to May of the following year in Laos when it is very dry.
“Single-loop” means a single circuit or single route of the transmission lines that carry electricity from the point of generation to the end where the power is used by end-consumers.
Vientiane Capital and Savannakhet Prefecture as the largest and second-largest cities respectively were selected for this mini-research in studying how an institution tackles problems in a distribution network. There was no research on how to solve the problems as encountered by the utilities assigned for the two large cities. Thus, this mini-research is worth focusing on a problem-solving approach and making recommendations.
SECTION 2: DATA ANALYSIS
Introduction
The purpose of this mini-research was to identify challenges as having been faced by EDL branch offices in Vientiane Capital and Savannakhet Prefecture in handling electricity supply and distribution in each area. Problems have arisen out when people intend to use stable and affordable electricity in the country and the urban regions. The problems persist today. People living in each of Vientiane Capital and Savannakhet Prefecture have suffered from difficulties in using electricity for their personal lives and society. To date, people have believed that Laos has already developed electricity generation sources sufficiently for the supply to households and communities established in the whole country. In addition to the existing installed capacity available to the large cities and the vicinity, several power plants with thousands of megawatts are under construction aimed at providing electricity for the domestic supply by 2020. The new capacity will add to the total capacity that will be divided for domestic consumption and export to the neighboring countries.
Section 2 of this mini-research consists of sources of supply, demand for electricity, transmission facilities, data analysis, electricity flow, data interpretation, and summary.
According to the data gleaned from various government sources, several power plants currently supply electricity to large cities. Many large power plants have exported their generated electricity to Laos’ immediate neighbors while earmarking up to 10% of the total generation for domestic use. The vast majority of the electricity sources in Laos are hydropower, and hence the generation is seasonal. The hydropower plants tend to generate much power during the rainy season and less during the dry season. Table 1 and Table 3 below show a full installed capacity; however, most of the hydropower plants can only produce electricity for a few months in the year. Likewise, most of the existing power plants are concentrated as one group in the North and the other in the South. Large load demand centers grow in the middle part of the country. Transmission facilities linking from the sources of supply to points of demand are not fully developed and thereby do not respond to a flow of the needed electricity volume. One must understand that the demanded capacity as shown in Table 5 is constant for the year-round period. Given the variation of the available capacity due to the seasonality of the hydropower generation, year-round constant sufficiency in the electricity supply need proper management. Also, many power plants have transmitted electricity through the transmission lines longer than they should have been, taking into account their appropriate voltages.
For Vientiane Capital, power plants located in the North and middle parts of the countries have already supplied electricity for the normal and rush hours. The farthest distance is around 700 kilometers, and the nearest range is 40 kilometers to the Capital. Those power plants located far away from Vientiane Capital provide electricity for their most adjacent townships as the priority before transmitting the rest to the Capital. A total estimated 1,624 megawatts are used in the 12 Northern provinces including Vientiane Capital. Of the available capacity, 140 megawatts are supplied to Thailand on a surplus basis and 100 megawatts to Malaysia on a committed basis. Connecting the system with those of Laos’ neighbors, the institution has faced problems in load control unless effective management is put in place.
Vientiane Capital and Savannakhet Prefecture as the largest and second-largest cities respectively were selected for this mini-research in studying how an institution tackles problems in a distribution network. There was no research on how to solve the problems as encountered by the utilities assigned for the two large cities. Thus, this mini-research is worth focusing on a problem-solving approach and making recommendations.
Table 1: Power Plants under Operation for Partial Supply to Vientiane Capital
No | Power Plants | Installed Capacity (Megawatts) | Supply Mode | Distance to Vientiane Capital (kilometers) |
1 | Nam Ngum 1 HPP | 155 | Wholly | 90 |
2 | Nam Mang 3 HPP | 45 | Wholly | 40 |
3 | Nam Mang 1 HPP | 60 | Wholly | 80 |
4 | Nam Ngiep 2 HPP | 180 | Partly | 220 |
5 | Nam San 3A &3B HPP | 114 | Partly | 170 |
6 | Nam Lik 1&2 HPP | 100 | Partly | 190 |
7 | Nam Xong HPP | 6 | Partly | 150 |
8 | Nam Sana HPP | 14 | Partly | 200 |
9 | Nam Ngum 5 HPP | 120 | Partly | 290 |
10 | Nam Khan 2&3 HPP | 190 | Partly | 340 |
11 | Hongsa Thermal Power Plant | 100 | Partly | 390 |
12 | Nam Ou (Phase 1) 2, 5 & 6 HPP | 540 | Partly | 670 |
| Total | 1,624 |
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Several hydropower plants are due to achieve commercial operation by 2020. The hydropower plants as listed in Table 2 will add their generation to the available capacity once they are in operation.
Table 2: Power Plants to Achieve Operation in 2020 for Partial Supply to Vientiane Capital
No | Power Plants | Installed Capacity (Megawatts) | Supply Mode | Distance to Vientiane Capital (kilometers) | Year of Operation |
1 | Nam Chiene HPP | 104 | Partly | 200 | 2019 |
2 | Nam Ngiep 1 (Lower) HPP | 18 | Partly | 130 | 2019 |
3 | Nam Lik 1 | 64 | Wholly | 120 | 2019 |
4 | Nam Mang 1 | 64 | Wholly | 90 | 2019 |
| Total | 250 |
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Similarly for Savannakhet prefecture, power plants located in the South the distance of which is on average of 300 kilometers have made the supply to the city. Several hydropower plants have already supplied part of the generated capacity to Savannakhet Prefecture. Those power plants provide electricity for Savannakhet Prefecture and its rural areas are located in other provinces, where electricity demand is considered high. The supply first meets demand in the regions where the power plants are located before transmitting the surplus to Savannakhet.
Table 3: Power Plants under Operation for Partial Supply to Savannakhet
No | Power Plants | Installed Capacity (Megawatts) | Supply Mode to Savannakhet | Distance to Savannakhet (kilometers) |
1 | Nam Theun 2 HPP (EdL Units) | 80 | Partly | 150 |
2 | Xe Set 1,2&3 HPP | 135 | Partly | 300 |
3 | Houay Lamphan Nhai HPP | 80 | Partly | 350 |
4 | Xe Katam 1 HPP | 21 | Partly | 350 |
4 | Xe Namnoi 6 HPP | 15 | Partly | 320 |
5 | Xe Labam | 5 | Partly | 250 |
6 | Xe Namnoi 1 | 14 | Partly | 320 |
| Total | 350 |
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Table 4: Power Plants to Achieve Operation in 2020 for Partial Supply to Savannakhet
No | Power Plants | Installed Capacity (Megawatts) | Supply Mode | Distance to Savannakhet (kilometers) | Year of Operation |
1 | Don Sahong HPP | 260 | Partly | 400 | 2019 |
2 | Nam Kong 2 HPP | 65 | Partly | 500 | 2019 |
3 | Xepian-Se Namnoi | 40 | Partly | 450 | 2019 |
4 | Total | 365 |
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The researcher did not find available complete statistics containing a plant factor of each of the power plants as listed for the supply to Vientiane Capital and Savannakhet Prefecture respectively. Given the nature of hydropower generation, it is necessary for the planners responsible for dispatching electrical outputs to know the megawatts and kilowatt-hour available daily, weekly, monthly, and yearly.
Many townships in Laos have expanded rapidly. Demographic growth has resulted from industrial expansion. Vientiane Capital and Savannakhet Prefecture, the largest and second-largest cities in Laos, are industrially and demographically growing at a steady pace. Hence, growth in demography and industrial establishment results in an increasing demand for a stable and reliable supply of electricity. Table 5 below provides a profile of the electricity demand as projected from 2016 to 2020.
Table 5: Profile of Demand for Electricity
Load Demand Center/Demand | 2016 (MW) | 2017 (MW) | 2018 (MW) | 2019 (MW) | 2020 (MW) |
Vientiane Capital | 407 | 405 | 450 | 500 | 600 |
Savannakhet Prefecture | 122 | 129 | 160 | 250 | 400 |
Transmission Facilities
As both Vientiane Capital and Savannakhet Prefecture are electrically connected with several power plants, transmission lines at 115kv were sporadically constructed. Transmission lines at115kv, 22kv, and 0,4kv lines have made the distribution networks function in the two large cities. While Vientiane Capital is connected with multi-route transmission lines, Savannakhet Prefecture is supplied electricity through only two 115kv lines. Likewise, transmission lines at lower voltages were constructed in a single-loop connection in many load demand points. Figure 4 below shows single-loop transmission lines in the two large cities:
Figure 9: Single-route Transmission Line on Houay Hong Street, Vientiane Capital
Figure 10: Single-loop transmission line Nakae area in Savannakhet
Although no complete database on the electricity flow in both Vientiane Capital and Savannakhet Prefecture has been established, the researcher gathered relevant information by interviewing people involved in the electricity distribution. In Vientiane Capital, on average incidents in the electricity flow have occurred frequently. Three blackouts happen every two weeks. Swinging is seen almost every day in most sections of the distribution networks during the rainy seasons. In Savannakhet Prefecture, power outages have occurred twice every week. On average, every power outage takes more than one hour. Light flickering has become normal for the residents, who live in Savannakhet Prefecture and its rural areas. Instability in the power supply in both Vientiane and Savannakhet has become relentless in recent years.
Quantitative data revealed that the supply does not match the demand in view of the required capacity and timing of supply. In Vientiane Capital, excess capacity and power shortage were found concurrently in many places. The overall surplus is believed to happen in general; however, sufficiency at all times and all points did not happen. When the surplus capacity is not appropriately controlled, lines are congested. Technically, when line congestion occurs, power outages happen. In contrast, when the capacity is not sufficient to meet the demand in a particular place, the system does not stabilize. The foregoing single or combined incidents have created power outages and system swinging. In Savannakhet Prefecture, power outages and unstable flow of electricity have resulted from ineffective demand forecasting. The inefficient demand forecast and absent supply management combined with the old distribution networks is the critical factor for making instability in the power distribution. Overall, incidents in the electricity distribution that have happened in both Vientiane Capital and Savannakhet Prefecture have stemmed from technical, managerial, and institutional defects in the modus operandi of EDL Branch offices per se. Likewise, the unavailability of the required database on timely demand for electricity has sent a signal of the spontaneous development of the distribution networks. It could be interpreted that no demand forecast for each specific load point available in Vientiane Capital and Savannakhet Prefecture has been put in place. Unavailability of the active demand forecast has resulted from either non-existence of an assigned institution or the malfunctioning of the EDL Branch offices in the two large cities.
The researcher collected qualitative information from observation on official meetings and events happening in the two cities. A series of interviews with people involved in the distribution also took place. The qualitative information was analyzed inductively. The researcher found that EDL Branch Offices hierarchically functioned under EDL Headquarters in Vientiane; however, a mandate concerning the demand and supply of electricity as assigned to each branch office remained obscure. People in the executive positions in Savannakhet Prefecture did not understand clearly the modus operandi of their premises. The person I interviewed did not have a clear idea of what to be done within the organization he worked for. Interviewee 1 complained:
It was not clear to us what responsibilities we were supposed to assume. We knew only when electricity was available to our grid area and delivered such electricity to end-consumers. We admitted that power outages happening here were routine incidents. EDL Headquarters never advised us how to solve the problems.
In Vientiane, power outages have frequently occurred even in the urban area where the researcher’s house is located. Lights flickering in hotel rooms where the researcher slept was normal during his stays in Savannakhet Prefecture. In addition, interviewees acknowledged that problems in electricity distribution as encountered by the two large cities were consistent with the technical defects as found in the previous section of this study. People involved in the electricity operation shared their views that the causes of instability of the electricity flow stemmed from malfunctioning EDL and lack of basic infrastructure like efficient distribution networks. Interviewees did not even realize the necessity of planning the daily delivery of electricity. Interview 2 working at a management level in Vientiane Capital Branch Office noted:
Planning was somewhat as a guiding pamphlet for the top management people only. The jobs of our engineer staff were, however, to sit at a panel in the control room to observe movements of the electronic dots running up and down and right and left on the screens. They did not know much about the volume of electricity needed for the next days. What they did was to guard interruptions that should have signaled on the screens.
Interviewee 3 in Savannakhet with an electrical engineering background acknowledged the usefulness of a work plan; however, the interview reserved that planning for the electric system under his care should have depended upon several necessary factors. Interviewee 3 expressed his view:
It was challenging to forecast our consumption in the future as there was a lack of human resources like people, basic infrastructure like efficient distribution networks, and information on the source of supply under our direct dispatch. As such, a so-called demand forecast was redundant for Savannakhet. We just dispatched electricity which was made available to us.
People I interviewed understood the good magnitude of the impact on socio-economic development in the cities and their surroundings. Interviewee 4 opined “if the status quo of electricity distribution persisted, interruption and instability of electricity distribution to end-consumers would occur even more frequently.” Likewise, large consumers like industries and service lines complained that the cost of electricity they have incurred was so high. Due to unpredictable outages happening frequently, large consumers needed to outsource electricity from elsewhere at their own cost. Interviewee 5 stated:
We had to install a diesel generator on our premises just in case the electricity did not come. The standby generation was very useful, but it added to our operating cost to a great extent.
The Lao government has attached importance to electricity supply in large cities because its implication is multifaceted. The power instability has adversely affected not only people’s lives but also their society as a whole. The power instabilities have already compelled large consumers like hotels and factories to invest in a standby generation like diesel generators and would result in a higher cost for electricity consumption. An unreliable supply of electricity caused high electricity tariffs and in turn, discouraged large consumers from expanding investment. Inadvertent surplus may have forced EDL to breach its commitments to buying electricity in accordance with the power purchase agreements as so signed with different generation sources. When EDL was in breach of its obligations, liquidated damages payable by EDL would create an extra cost. Ultimately, any expenses as shouldered by EDL would, in turn, add to the electricity tariffs.
A distribution network helps transmit electricity from one place to another. Electricity can reach its end-consumers stably when an efficient distribution network is in place. When proper planning is envisaged, the sources supplied are consistently managed. Problems in the electricity distribution in the two large cities are similar, but the causes are slightly different. The utilities as an institution need to tackle the issues holistically in the technical, managerial, and institutional aspects.
SECTION 3: RESEARCH RESULTS
Introduction
To tackle challenges in electric planning and distribution networks in the two selected large cities like Vientiane Capital and Savannakhet Prefecture, the researcher identified problems in technical, managerial, and institutional aspects. Issues in the electricity distribution of both large cities are almost identical. Power outages, swinging, and unsteady flow of electricity within the urban areas and the surrounding. The researcher gathered data from the information-rich research sites and had the data analyzed inductively. Problems of the electricity distribution were caused by both the existing technical setting and human action. The problems can be addressed by building up human capacity, reengineering institutional arrangements, and strengthening distribution networks. According to the data analysis and interpretation, the research came to his research findings and recommendations.
Section 3 introduces recommendations for solving the problems. Despite the fact that the problems were split into the institutional aspects, managerial aspects, and technical aspects, the researcher would like to recommend the Lao authorities to take actions on the software side (social infrastructure―institutional and managerial), hardware side (physical infrastructure―technical), timing and resources, and priority of the action.
Having conducted this mini research on tackling problems in the electric planning and distribution network in the two large cities like Vientiane Capital and Savannakhet during the past six months, I came to my research results as elaborated in this section. Power outages and system swinging had happened frequently in both Vientiane Capital and Savannakhet Prefecture, although the supply was theoretically sufficient. The incidents persisted in the two large cities for a long period of time. The episodes were caused by one of the factors of organizational setting, human actions, and technical arrangement or the combination of some or all the foregoing factors. The power instabilities could aggravate the lives of people and society as in the two cities as a whole.
The problems could be solved by human actions and technical arrangements. Responsible public administrators need to strengthen institutional settings, build the capacity of the technical staff, and improve the basic infrastructure.
Software Side (Social Infrastructure)
- EDL headquarters or provincial branches need to be institutionalized. EDL Branch offices of Vientiane Capital and Savannakhet Prefecture necessitate reorganizing their respective structure to cope with new challenging technology in dealing electricity business. Segregating a planning unit from the distribution division within EDL Branch Offices should mean allocating clear-cut responsibilities among operational units within the premises and hence enhancing performance. A quality control unit undertaking monitoring work should be in place to follow whether or not the plan as so established is workable, or whether or not the distribution complies with the plan.
- EDL headquarters should establish a clear mandate to be assigned to each Branch Office so that it would dispatch electricity specifically to its respective demand area. In addition, each Branch Office would coordinate with the central dispatching center more effectively.
- Once each EDL has restructured its Branch Offices in Vientiane Capital, and Savannakhet Prefecture, each of the Branch Offices should establish a database on demand and supply and have the database updated from time to time. With the database as so determined, planning is the first and foremost work to be expedited by the assigned unit.
- Plans must include demand for electricity for each city as may be forecasted for both short term and long term taking into account the sources of supply. EDL Branch Offices should make the demand forecast on a daily, weekly, monthly, seasonally, and yearly basis as hydrological conditions permit the institution to do so. Given the electricity generation, some partially and others wholly, supplied to each of Vientiane Capital and Savannakhet, the demand forecast for each city should combine both partial and whole supply in a balancing way. For instance, there are some hydro power plants around Vientiane Capital including Nam Ngum 1 (155 MW), Nam Mang 3 (45 MW), Nam Lik 1&2 (100 MW) that can be wholly reserved by the dispatching center in Vientiane Capital. A plan for the electricity distribution should include primarily electricity taken from non-reserved power projects in the North, then makes the reserved power plants in the vicinity either to make up the shortfall or regulate the surplus at a particular point at Vientiane Capital. Effective network management in relation to dispatching patterns for each generation source should be in place.
- EDL Branch Office should have their staff trained while they are in their jobs while recruit new qualified technical staff regularly.
Savannakhet Prefecture should make use of the approach as recommended for Vientiane Capital for solving problems taking into account its specific conditions. Capacity building for the operational teams and administrative staff should be a continuous process to cope with new technological complexity.
Hardware Side (Physical Infrastructure)
- The planning unit of each of Vientiane Capital and Savannakhet should survey line bottlenecks and single-loop connections where a flow of electricity has been blocked or hindered. The survey should prioritize points of an immediate breakthrough in distributing power to reach the end-users without hindrance. Once the investigation has been completed, EDL Branch Offices establish a plan to strengthen the existing distribution network for each city
- EDL Branch Offices should source a fund to strengthen the distribution networks segment by segment.
- Both EDL Branch Offices in Vientiane Capital and Savannakhet Prefecture should redesign their respective distribution networks where such physical infrastructure is deemed to be newly constructed according to the long-term plans as so established by its relevant unit to cope with the flow of electricity in the future
Each of the EDL Headquarters should seek approval from the Lao competent authorities to reform its branch offices as soon as possible. Only if a reform takes place first EDL Branch Offices can improve their performance by establishing effective plans and distribution. As such, the recommended reform should have been completed by the end of 2018 at the latest.
Each of EDL Branch Offices should undertake on-the-job training on various areas such as demand forecast, dispatch, load flow control, for their engineer staff, while they establish demand forecasts and distribution plans by the first half of 2019.
Each of the EDL Branch Offices should inventory existing lines (single loop) and substations that need strengthening by the first half of 2019. Strengthening work should start in the second half of 2019.
Each of EDL Branch Offices should complete plans for expanding its respective new distribution networks by the end of 2019 and first construction in early 2020.
The Lao authorities institutionalize EDL headquarters and branch offices by their resources. Developing effective mandates for each of the planning, distribution, and quality control may be learned from the utilities that have a large capacity.
Admitting that EDL lacks technical, managerial, and financial capacity, EDL may source assistance may from elsewhere. EDL should approach the Korean Electric Power Company (KEPCO), which has vast experience in tackling problems of the electric power distribution in South Korea and elsewhere in the world. To the researcher’s knowledge, KEPCO possesses expertise in operating electricity from various sources such as nuclear, coal-fired, thermal, and hydro. Financing may come together with the technical assistance KEPCO may help EDL outsource to escape from its present plights. KEPCO may provide in situ training courses that cover the topics on planning and demand forecast, designing of networks, operation of distribution networks for EDL engineers. To this end, EDL and KEPCO should have initiated cooperation very soon.
SECTION 4: CONCLUSION
Section 4 closes out the research. Vientiane Capital and Savannakhet Prefecture are the largest and second-largest cities respectively that have encountered electric power instabilities chronically. Blackouts and system swinging have become normal for the residents living in the cities. The incidents of unstable supply of electricity have frequently happened even several times in the day. The events will persist if the problems are not addressed in a timely fashion. There are a number of causes that create blackouts and an unstable supply of electricity. Either the surplus or shortage or the combination of both are the main factors shaping the instabilities of electricity flow in two large cities. Ineffective physical infrastructure, incapability of the personnel, and ill-functioning of the management of responsible organizations like EDL Branch Offices are all the factors creating the incidents. The physical solution combined with human action can address the problems adequately.
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