The energy sector is considered as an essential part of development in developing countries, although it has not been fully covered by the Millennium Development Goals (MDGs). Recently, the proposal for the Sustainable Development Goals (SDGs), drawn from the MDGs, includes the energy issue as a separated target to achieve. Under the Goal 7, “Ensure access to affordable, reliable, sustainable and modern energy for all”, energy related specific targets are the followings : (i) ensure universal access to affordable, reliable, and modern energy services by 2030, (ii) increase substantially the share of renewable energy in the global energy mix by 2030, (iii) double the global rate of improvement in energy efficiency by 2030.

The fundamental purpose of this research is to carry out specific development cooperation programs in both the defined region and the sector, in consideration of the regional significance of CLMV countries and the high demands for energy access in the Mekong subregion. We look for ways to conceptualize and implement the Korean government’s development cooperation programs that reflect our comparative advantages in partnership with developing countries
based on Korea’s country partnership strategies.

For the above reasons, we study the conditions of energy supply and demand, and the institutional status regarding the energy sector such as policy, system and organizations in the CLMV countries in more detail. This study will provide an insight into the energy sector for development cooperation policy makers and implementers and also guidance from a business side regarding the regional and proper programs in order to help extend its investment in the targeted region.

The CLMV countries generally have underdeveloped physical infrastructure. Vietnam retains better conditions than the other three countries that are included in the UN list of the least developed countries in 2014. As for the primary energy supply, over 70% comes from biomass
in Cambodia, Laos, and Myanmar, while 70% is from fossil fuel such as oil, coal and natural gas in Vietnam. Vietnam’s electrification rate is up to 98%, while that of the other three countries(Cambodia(31%), Laos(63%), Myanmar(49%)) stays at low levels.

Cambodia has good solar radiation levels in many locations, especially in the southwest region. According to the master plan on rural electrification in Cambodia, by 2020, all villages will have access to electricity of different forms; and by 2030, 70% of all rural house holds will have access to grid based electricity. The energy policy in Cambodia needs to be updated and subsidy programs for promoting renewable energy should be introduced urgently.

Hydropower accounts for 100% of the electricity generation in Laos with high potential for further development. The electricity generated by hydropower is the second largest export item in Laos, although the electricity market is still inconsistent. Energy loss during electricity
transmission and distribution causes electricity shortage problems for the domestic people and thus the higher demand for imported electricity from other countries.

More than 90% of the primary energy sources in Myanmar are biomass and natural gas. The government of Myanmar has planned an increase in the share of renewables in power generating capacity to 15~18% by 2020. The electricity law in Myanmar was established in
1983, which is under the process of revision as of now. The weak energy policy, system and institutions in Myanmar should be taken into consideration in an energy support program for Myanmar.

The consumption for fossil fuel in Vietnam took a sharp increase in the 2000s. Vietnam is expected to achieve the target of 6% of power generation from renewable resources by 2030. Vietnam has significant potential for wind power in the southern coastal area and the islands, which is differentiated from the other countries in the region. In addition, in the central and southern areas, the solar power is expected to be developed. On the other hand, it is estimated that the energy demand will exceed the energy supply from 2015, thus the Vietnamese government is requested to increase energy efficiency to sustain its energy supply.

The research provides a methodological model to design a development cooperation program in the energy sector, enabling systemic support on the basis of closer cooperation with a partner country from the initial stage of the intervention as well as demand-oriented program establishment. Therefore, methodology is developed for selecting and planning an energy program from the initial stage along the project cycle. According to the developed methodology, information regarding the energy sector in a partner country is first gathered
to assess its energy situation. Based on the energy condition in a partner country, a logic model of the program is set up. Consequently, considering both the logic model and our capability, the proper program to support is determined, but still the type of support - software
or hardware support - should be decided depending on the situation. If the program concerns infrastructure support, the target of energy - households or production/community -, the type of electricity provision - on-grid or off-grid - should be further defined.

We provide a checklist in order to help survey each country’s energy situation exhaustively and efficiently. The checklist covers general energy situation, a national policy and system, institutions and organizations, technology and assets, a private sector and specific finances. Any urgent energy issues gathered through the survey are reflected in the logic model and further steps for designing a program are taken. Expected results from the whole process (input - activity -output - outcome - impact) of an energy access program for developing
countries should be described.

As the result of the research on CLMV countries about their energy situation and the methodology for the energy access cooperation program, we suggest a potential program for each country.

The ‘Distributed solar power program for remote areas’ is proposed for Cambodia, which indicates a significantly low level of electrification rate but large potential for solar energy on an annual basis. It is consistent with the core program from the Country Partnership Strategy(CPS) of the Korean government.

We propose the ‘Hydropower efficiency improvement program by enhancing electricity transmission and distribution system’ for Laos, which has great potential for hydropower. It is relevant to the 7th National Socio-Economic Development Plan of Laos and the major sectors in the CPS of the Korean government as well.

In Myanmar, foreign investment and support has been expanding in the energy sector, increasing the establishment of fossil fuel power plants since efficiency of power generation with fossil fuel is comparatively high. To avoid any irreversibly harmful energy development
and pursue sustainable use of energy in Myanmar, we suggest both the ‘Distributed solar power program for remote areas’ and ‘Strengthening the enabling environment for the smart grid development program’.

In Vietnam, energy demand and intensity have been sharply increased due to progression of rapid industrialization. For Vietnam, hence, we propose for the ‘Design and implementation of demandside energy saving system program’. This program will assist implemention of the energy efficiency program as well as the energy saving and efficiency law, which have been introduced by the Vietnamese government in urgent need of energy efficiency improvement.

Lastly, to realize energy development in developing countries effectively, we conclude with the following as essentials for successful interventions : (i) Strong leadership and active involvement of the developing countries’ governments, (ii) consistency with other development
goals and policies, (iii) participation of the local people and organizations, (iv) institutional support and capacity.