Hybrid village grid for remote areas – an affordable alternative for rural electrification in Laos.
Sunlabob provides energy systems that run on multiple renewable sources: sun, water, wind, diesel generators, and biogasification and biofuel.
In order to be able to provide these various energy sources, we have partnered with various companies. For hydro power, we are the representatives in Laos of Entec AG, an international company specializing in hydro systems. For diesel generators and distribution lines, we are partners with Comin Khmere, a Cambodian company that specializes in this area. For biofuel and biogasification, we are partners with LIRE, a non-profit renewable energy research institute operating in Laos. At the moment, our partnership is research-oriented. The Lao PDR does not have very strong or regular wind-power, but we do work with three companies to help develop this: Bergey Windpower, one of the world’s leading suppliers of small wind turbines; Southwest Windpower, one of the world’s largest producers of small wind generators; and Fortis, a producer of wind turbines.

Within our hybrid system, we combine these resources and feed them into the same village grid. The HVG utilizes solar energy – which is always available during the day time – and generators as back-up systems when water flow levels are low at different points in the year. This combination helps to go beyond improving living conditions and moves toward increasing income.

The electrification with local hybrid grids enables households and local industries to satisfy their daily energy needs. Formerly, the high acquisition and maintenance costs hindered a wide diffusion of these systems. There had to be high subsidies to make the energy affordable to the population of these remote villages with unstable incomes.

Sunlabob works without any subsidies as a private energy and service provider. We are developing special solutions designed to fit the needs of our costumers. Our goal is to not only reach private customers but also enable people to generate income with electricity. To this end, our HVGs are powering such machinery as rice mills, water pumps, woodworking machines and food processing equipment. So the consumers not only earn money to pay for the energy, they also lay the foundations for the economic development of their village. A fitting special customized conception of the HVG structure, which differs in its local composite of diesel generators, batteries, and Photovoltaic equipment, optimizes the energetic outcome.

Sunlabob has provided energy services using the HVG since 2006. To achieve this service, we have developed opportunities for Private Public Partnerships (PPP) that offer the chance to achieve a sustainable operation under optimal conditions. Under the PPP concept, Public Partners fund fixed assets (public infrastructure and village grid). Sunlabob, the local energy provider, pays moveable assets, technical services, and replacement costs. Without this public provision of the grid-needed infrastructure, the cost-covering energy prices are not affordable to the rural population.

Sunlabob set up the first HVG in March 2007, using an existing old, abandoned dam. Here, we have successfully demonstrated the technical viability of the project. However, without the mutual leverage between public and private funding, electrification of off-the grid areas is not financial viable.