Renewable Energy Policy in Thailand Mr.Rangsan Sarochawikasit

Report
The Renewable Energy Development
and Related Promotion and Pricing
Mechanism in Thailand
Peeraya Siriput and Patthamaporn Poonkasem
Department of Alternative Energy Development
and Efficiency (DEDE)
Ministry of Energy ,Thailand
APEC Workshop on Renewable Energy Promotion and Pricing Mechanism
26-27 September 2013
San Want Hotel Taipei, Taipei, Chinese Taipei
1
Outline
1
Thailand Energy situation
2
Alternative Energy Development Plan
2012-2021
3
Supporting Mechanism for RE promotion
4
Conclusions
2
Final Energy Consumption in Thailand
2012
2 million
BOE/day
thousand barrel oil
equivalent/day
Domestic 66%
Import 34%
3%
Hydropower
17%
Coal/Lignite
Natural Gas
Domestic 31%
Import 69%
Import 19%
44%
Domestic 81%
Domestic 15%
Oil
2008
2009
2010
36%
2011
Import 85%
2012p
Preliminary
Consumption
Oil
Natural Gas
Coal/Lignite
Electricity
Total
Growth (%)
4.7
9.2
5.0
3.4
6.7
Source : Ministry of Energy 2013
3
Thailand’s Energy Import Value
Coal
3%
NG+LNG
10%
Electricity
1%
Value of Energy Imported
Million baht
Petroleum
product
9%
2012
Crude oil
77%
Import value in 2012p
1.44 billion baht (18%of GDP)
2008
Elec.
Coal
2009
2010
Natural gas+LNG
2011
2012p
Petroleum
Crude oil
P : Preliminary
Growth rate of
energy import
16.5%
Source : Ministry of Energy 2013/
Exchange rate 32 THB/USD
4
Thailand’s Renewable Energy Development
To substitute energy imported,
increase energy security, commit low carbon society
Government
Funding
On R & D
Activities
Alternative Energy Development Plan
(AEDP : 2012-2021)
Encouraging
Private-Led
Investment
Target 25 % of RE in Total Energy Consumption By 2021
Solar
3,000 MW*
100 ktoe
(Heat)
Wind
1,800 MW*
Small +
Mini
Hydro
Biomass
Biogas
MSW
324 MW*
4,800 MW
600 MW
400 MW
Biofuels&CBG
Bio Energy
3,000 MW*
(Napier grass)
8,500
ktoe
(Heat)
1,000 ktoe
(Heat)
200 ktoe
(Heat)
• Ethanol
9 Million l/d
• Biodiesel
7.2 Million l/d*
• Advance biofuel
replace diesel
3 Million l/d*
•Compress biogas
replace NGV
1,200 ton/d*
Others
• Tidal wave
2 MW
• Geothermal
1 MW
*Last revised July 2013
Current status of RE Development in Thailand
1.Electricity Generation :Total existing 3,338 MW (928 ktoe)
Solar
Existing
Existing
Hydro
554.4 MW
Existing 2,185
Biogas
MW
- Sugarcane Industry, palm ,etc.
- Biomass Power plant
- Community power plant
Existing 6.8 ktoe
Existing
349.0 ktoe
-Industrial Waste water
(starch, food, beverage,
palm, rubber, paper, Biofuel)
Existing 3,572 ktoe
MSW
Existing
58.0 ktoe
- Municipal waste
Existing 46.6 MW
- Municipal waste
3.Biofuel: 4.83 ML/day(1,067 ktoe)
Ethanol
-Industrial: sugarcane,
palm, paper)
- community (high-eff.
stove)
-Hot water
(hospital,hotel)
-Drying
Biogas
MSW
-livestock farm
-Industrial waste water
Biomass
214.3 MW
- Wind farm in Southern
&Northeastern part of
Thailand
Existing 239.6 MW
2.Heating Process : Total Existing 3,986 ktoe
Solar
Existing
Wind
- Mini Hydro & Micro
Hydro in rural area
- Solar farm power plant
in Northeastern part of
Thailand
- Rural area
Biomass
98.5 MW
Existing
2.2 MLPD
- Molasses, Cassava
Biodiesel
Existing
2.6 MLPD
- Palm oil, Jatropha,
used cooking oil
6
Updated by DEDE @ June 2013
Final Renewable Energy Consumption
Power =1.67%
Heat =6.9%
Alternative&
Renewable Energy
10.6%
Of final energy
consumption
Biofuel =2.0%
7
Updated by DEDE @ June 2013
Supporting Measure for RE Promotion
Offices giving licenses
5 Actual mechanism :
Electricity Generating
DEDE
Support
from the
Ministry
of Energy
1
2
DEDE &
EPPO
3
DEDE
DEDE
4
EPPO
5
BOIInvestment Incentives
ONEP
EIA
Promotion requesting
ERC
Local
Admin
Licenses
• Renewable energy maps
• Data from demonstration site
• One-Stop Service
Renewable energy potential
info
Technical support
Promotion requesting
• Investment Grant, i.e.
biogas, solar hot water, Solar
dryer (i.e. 2012 25% for SHW,
55% for Solar dryer)
• “Energy Soft Loan”
Revolving funds for Renewable
energy and energy
conservation, Energy credit
• ESCO Venture Capital Fund
• “Adder” : Feed-in
Premiums Policy , Feed-in
Tariff
To raise
a loan
Private
Investor
Carbon
credit
sale
Banks
Capital requesting
Registration for
intent
expression as
per the time
specified
Adder/ FIT
(pending)
Negotiation for
electricity selling
& buying
CDM
- Firm
- Non Firm
Electricity
authorities
Consumers
8
Thailand’s solar Map
Updated September 2010
Solar map
Average solar irradiance 18 MJ/m2-d
(5 kWh/m2-day)
Maximum : 20-24 MJ/m2-d
Solar map developed by DEDE using
satellite images and ground station
measurement ( 38 Stations)
Potential Area
9
Thailand’s wind Map
Wind resource map of Thailand
at 40 and 90 meters above the
ground
Wind is not strong and not continuous
A particular area of ​the windy +
continuous
23/03/56
www.Directionplan.org
The Project Promotion for
Solar Hot Water & Solar Drying
Solar Hot Water subsidy Program
Target for solar hot water promotion
Long term
Ten years RE Energy Development Plan(AEDP)
short term
Target / (Year)
Target
(solar collector area
(sq.m/Year)
Plan
Result
Giving a financial support to
entrepreneurs interested in
investment on installation of the
integrated solar hot water system
2008
2009
2010
2012
total
08-12
5,000
3,000
10,000 10,000 12,000
40,000
2011
3,973 2,911 10,000 9,879 11,155 36,806
20132022
total
12-22
25,000 300,000
N/A
N/A
Subsidy 30% (2008-2012)
Subsidy 25% ,22.5% ,20 %,18.5% (2013 - 2016)
Subsidy 15% (2017-2022)
Solar Drying Subsidy Program
Size of Greenhouse Solar Dryer
small
medium
Large (with Backup Power )
Greenhouse Solar Dryer in
Subsidy Program
Dried Banana
Subsidy
Investment
Dried Herbs
Amount Areas (m2)
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
Total
60%
2000
4000
4000
(55%)
-
-
-
-
-
-
-
-
10,000
50%
-
-
-
5000
5000
5000
5000
5000
5000
5000
5000
40,000
Total
50,000
Measures for RE promotion
- The investors will receive the exemption of
imported duty of equipment or machines
- Any income-corporate taxes resulting form
selling RE or saving energy will be
exempted for a certain periods to maximum
8 years
- MOEN enhances private entrepreneurs to
develop alternative energy or
energy saving projects to be CDM projects
- CDM projects enables private sectors
to gain financial benefit from carbon
credit
15
Measures for RE promotion
Mechanism : ESCO Venture Capital Fund
Project feature: set up to joint capital promote investment in
energy conservation and renewable energy
development projects
ESCO Fund
Investor
Investor
Equity Investment
Investor
Investment
Committee
Consider and
approve
return
ESCO Venture Capital
Equipment Leasing
Investor
Investor
Carbon Credit (CDM)
Result
1. Stimulate investment energy conservation &
renewable energy development with total
value > 2,500 million baht / year
2. Provide energy conservation renewable
energy development with total value > 500
million baht / year
Financial support
Credit Guarantee Facility
control
Technical Assistance
Fund Manager
return
16
Measures for RE promotion
“Adder” : Feed-in Premiums
Fuel


Biomass
- Installed capacity <= 1 MW
- Installed capacity > 1 MW
Biogas (all categories of
production sources)
- Installed capacity <= 1 MW
- Installed capacity > 1 MW

Waste (community waste, not
hazardous industrial waste, and
inorganic waste)
- AD &b LFG
- Thermal Process



Wind power
- Installed capacity <= 50 kW
- Installed capacity > 50 kW
Mini and micro hydropower
- capacity 50-200 kW
- capacity < 50 kW
Solar power
Government halted applications for
solar energy since June 2010
Adder
(Baht/kWh)
VSPP
SPP
(USD Cents
/kWh)**
Special
adder *
(Baht/kWh)
Supporting
period
(Year)
Adder-VSPP
0.50
0.30
Bidding
1.54
0.93
1.00
1.00
7
7
0.50
0.30
Bidding
1.54
0.93
1.00
1.00
7
7
2.50
3.50
2.50
3.50
7.72
10.81
1.00
1.00
7
7
4.50
3.50
3.50
13.89
10.81
1.50
1.50
10
10
0.80
1.50
-No-
2.47
4.63
1.00
1.00
7
7
8.00/
6.50
8.00/
6.50
24.70/
19.5
1.50
10
* Note : Special Adders for
- Facilities in 3 Southern Provinces
- Diesel-Gen. replacement on PEA system
** 1 USD=32.375 Baht
17
New measures to support solar energy
16th Jul 2013, Thailand 's National Energy Policy Commission (NEPC)
promote the installation of Solar PV Rooftop and
“Solar PV community projects
The Purposes
- Reduce public Investment
- Reduce Peak Load
- Stabilize the energy
Target 1000
• Solar PVMW
Rooftop
200
• Solar PV Community 800
Promotion of Solar PV Rooftop
Solar PV Rooftop projects are divided into three groups
Feed in Tariff (FiT) for Solar PV Rooftop
[*21.75 cent/unit]
[*20.47 cent/unit]
[*19.25 cent/unit]
* 1 USD=32.00 Baht
Solar PV Rooftop Implementation
Energy Regulatory Commission (ERC)
announces Regulation to purchase of
power from Solar PV Rooftop in
September 3rd, 2013
Submit the application through to
the Metropolitan Electricity Authority
(MEA), and the Provincial Electricity
Authority (PEA).
From September 23 to October 11,
2013.
For more information, please contact ERC.
Feed in Tariff (FiT) for Solar PV Communities
• NEPC (16 July 2013) approved for Solar Communities with total
installed capacity 800 MWp - owned ground mounts.
• Special Scheme with Feed in Tariff (FiT) 25 years
• COD within Year 2014
FIT Rates for Solar PV Communities
[* 30.47 cent/unit]
[* 20.31 cent/unit]
[*14.06 cent/unit]
Project IRR= 13.6%
Payback period 6 years
* 1 USD=32.00 Baht
22
Communities Solar PV Implementation
Energy Policy and Planning Office (EPPO) corporate
National Village and Urban Community Fund Office be
responsible about Regulations for the purchase of
power from Communities Solar PV.
Promotion of Biogas from Napier grass
“Pilot project on green energy for community enterprise (biogas production from Napier grass) ”
 Subsidy investment cost 20 %
 Budget 300 million baht
Feed-in –Tariff 14 cent/kwh (for power
production) in 20 years
Principles
 Encourage community enterprise for energy crop production
 Contract between community enterprise & Biogas plants
 Biogas utilization in 3 categories :
- Electricity generation
- Compress Bio Gas (CBG) production for Transport
- Replace LPG
 Secure income for farmers
 All stakeholders generate income from biogas utilization
 Energy security in Thailand
Targeted area
- Drought area
- Irrigated area
- Low rice production
area
Outcome
1. Agricultural sector - Encourage energy crop growing in appropriate areas
- Generate income for farmers
2. Industrial sector
- Promote investment in energy industry
- Biogas to support power generation stability
- Organic Fertilizer after biogas production process
24
Conclusions
Renewable energy will not solve all…
 But Renewable energy can reduce dependence on natural gas and other
fossil fuels.
 Help strengthen the energy.
 Help increase energy security of the country.
 Scattered areas throughout the country (Distributed Generation) by
reducing transmission congestion.
 Fund available from Ministry of Energy
Launch 10 years master Plan for Alternative Energy
“AEDP 2012-2021”
Launch mechanism support for promoting renewable energy both
information & Financial
Thank you
for your kind attention
谢谢。
www.dede.go.th
Department of Alternative Energy Development and
Efficiency (DEDE) Ministry of Energy
17 Rama 1 Road, Patumwan Bangkok Thailand 10330

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