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Laos Targets 1 Percent Electric Vehicle Use By 2025

Source: Vientiane Times

The government is aiming to increase the number of electric vehicles on the country’s streets to 1 percent by 2025 and over 30 percent in 2030.

Prime Minister Phankham Viphavanh recently approved a new policy on the use of electric vehicles to minimise fuel imports and reduce harmful gas emissions.

Laos is promoting the use of clean energy in the transport sector as part of measures to translate the government’s policy into an action plan until 2025, a strategy for 2030, and a vision for 2050.

The policy is part of efforts to fulfil the national agenda on addressing the country’s economic and financial difficulties, mainly through austerity measures aimed at reducing the import of fuel-inefficient cars and promoting the use of electricity.

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Laos has abundant potential to produce electricity from water, solar power and wind, and waste. These resources could be used to generate 26,000MW. So far, about 20 percent of this potential has been developed.

In order to increase the number of electric vehicle dealers, the government will not set restrictions on the import of electric vehicles, but vehicles imported and sold in Laos must meet international standards for quality, safety, after-sales service, and maintenance.

This must include a system for the management of waste resulting from the operation of electric vehicle businesses.

The government will encourage businesses to set up factories for the production of electric vehicle parts and other components, as well as invest in the development of charging stations throughout the country.

There will also be tax exemptions or reductions on the equipment imported for electric vehicle production and charging stations.

The government has appointed Electricite du Laos (EDL) as the service provider for the installation of charging stations, with the state-owned power company being instructed not to charge meter fees to residences or businesses that make use of these facilities.

EDL will provide priority electric vehicle parking spots as well as charging stations in public areas.

The testing of charging systems for electric vehicles is a vital part of long-term preparations for switching to the use of clean energy.

Under the policy, the annual road tax for electric vehicles will be 30 percent less than for petrol vehicles of equal engine power.

The government aims to be a leader and model in the use of electric vehicles in state administration, then encouraging state enterprises and public transport operators to use electric vehicles.

Laos imports a large quantity of fuel annually, which has contributed to a huge trade deficit in recent years, according to EDL.

In 2016, Laos imported almost 2,000 million litres of fuel, worth more than US$1 billion, with the cost shooting up to nearly US$2 billion last year.