Thailand s Energy Policy

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1 Thailand s Energy Policy Dr.Twarath Sutabutr Deputy Permanent Secretary 26 November

2 Contents 1. Thailand s energy situation 2. Thailand s energy policy 3. Renewable Energy Development 2

3 1. Thailand s Energy Situation 3

4 Thailand s Energy situation Thailand s Energy consumption has grown rapidly. Thousand tons of oil equivalent Million units Billion baht (GDP) Energy consumption has grown 4% per annum in the past 10 years. The highest growth was 10%. GDP at constant price (billion baht) Electricity consumption (million units) Final Energy Consumption (thousand tons of oil equivalent) Source : EPPO 4

5 Primary Energy Consumption, Production and Import Unit: thousand barrels of oil equivalent per day p Consumption 1,663 1,783 1,855 1,981 2,005 Production ,018 1,082 1,083 Net Import 922 1,001 1,018 1,079 1,127 Import / Consumption (%) Growth rate (%) Consumption Production Net Import GDP (%) Final energy consumption of 2013p = 2.13 trillion baht (growth rate 1.4% per annum) P : preliminary data Final energy consumption oil electricity Natural gas coal/lignite Renewable value (million baht) 1,323, , ,093 25, ,529 Growth rate (%)

6 Primary Energy Consumption Thousand barrels of oil equivalent per day Hydro/Import Coal/Lignite Share percentage 2% 16% Domestic 53% Domestic 30% Import 47% Import70% Natural Gas 46% Domestic 80% Import 20% Domestic 19% Oil 36% Import 81% P : preliminary data Consumption oil Natural gas coal/lignite electricity total Volume (Thousand barrels of oil equivalent per day) , Growth rate (%)

7 Final energy consumption Final Energy consumption 2013p 2.13 trillion baht P : preliminary data 2013 oil electricity Natural gas coal/ lignite renewable total Growth rate (%) source: EPPO 7

8 Crude Import Crude Import p volume (thousand barrels/day) Average price ($ US/barrel) Growth rate (%) p value (billion baht) ,119 1, Oil consumption Type p * not include LPG used as Feed stocks in petrochemical industry. unit: million litres per day Growth rate (%) p Gasoline Diesel Jet Fuel oil LPG* รวม P : preliminary data

9 Power Generation Year Gwh Growth rate Gwh Percentage (%) , Oil Fuel mix for power generation Import and others Hydro ,668 15, ,343-1, ,973 14, ,201 2, Coal/Lignite Natural gas Source : EPPO 9

10 Thailand s Energy situation: overall Thailand depends on energy import More than half of Primary Energy Consumption comes from import. Crude supply from import accounts for 85% of total supply. รวมในประเทศ Domestic น าเข า Import barrel/day Domestic 43% Import 57% 803, , , , , , , , , ,403 Myanmar 16% LNG 4% Domestic 80% Import (thousand tons) * LPG import had increased continuously. other 25% 75 % of crude oil import comes from middle east. Middle east 75% Natural gas supply from import accounts for 20% of the total natural gas supply Source : EPPO Value of energy import 13% ของ GDP Import coal 70% 30% Export 70% (thousand tons) 10

11 As current proven reserve (P1) and production rate, if there is no new investment and exploration in domestic natural gas, it will last 7 years. Thailand s Energy situation : Natural Gas ณ ส นป 2555 Natural gas supply from import accounts for 20% of the total natural gas supply. years Myanmar 16% LNG 4% TCF Domestic 80% Natural gas consumption is mostly from power generation which accounts for 59% Industry 13% NGV 7% Gas separation 21% Power generation 59% 11

12 เกษตรกรรม Thailand Energy s sitution: Oil Domestic production accounts for 15% of total demand. Therefore, we need to import 85%. Oil supply ณ ส นป 2555 รวมในประเทศ Domestic น าเข า Import 803, , , , , , , , , , * Oil mostly uses in transport sector which accounts for 66%. Diesel accounts for 46% of the total consumption which is the largest share. transportation 66% agriculture10% manufacture 11% Household + business 12% DIESEL 46% J.P. 12% FUEL OIL 5% LPG 19% GASOLINE 18% Source : DEDE KEROSENE 0.02% 12

13 Thailand s Energy Situation: Power sector Power generation highly depends on natural gas.การผล ต 20% lignite/coal import 3% hydro ไ ฟ ฟ า น าเข า 7% 67% Natural gas Diesel/fuel น าม น oil ไฟฟ าพ งพาก รรมชานส ดส วนส ง 1% 2% renewable There are many players in the generation system EGAT 45.0% IPP 38.2% SPP 9.5% TNB 0.9% LAOS 6.3% Industry is the largest sector of the total power consumption Business 19% Industry 44% SME 11% Household 23% Others 3% 13

14 Trends show sharply increasing fossil fuel import dependency for many Southeast Asia countries Source: Southeast Asian Energy Outlook 2013, International Energy Agency (IEA) 14

15 2. Thailand s Energy Policy 15

16 Ministry of Energy s Strategic Plan 1. Provide an adequate supply of energy 3. Regulate energy business and prices 2. Reinforce energy security and generate value added from energy sector 4. Sustainable Energy Development and being environmental friendly 16

17 Ministry of Energy: Strategies 1. Provide an adequate supply of energy Thailand has sufficient supply of energy to economic growth, better quality of life of people. Expedite supply of petroleum resource such as the opening round of new petroleum concession. Acquisition and development of energy resources and cooperation with neighbouring countries Promote energy project to be in line with Thailand s Energy Development Plan which consists of Power Development Plan, Alternative Energy Development Plan and Energy Efficiency Plan. Development of process to public participation for sustainable energy. 17

18 Ministry of Energy: Strategies 2. Reinforce energy security and generate value added from energy sector Thailand has infrastructure and management system which enhance energy security Thailand has Energy New Growth Industry Promote investment in energy infrastructure and energy development potential in all areas of the country such as LNG Receiving Terminal, oil and gas pipeline, electric transmission lines and smart grid Diversify of fuels and energy sources Development of emergency preparedness systems for energy crisis Promote New Growth Industry in order to be Bio-energy Hub such 18

19 Ministry of Energy: Strategies 3. Regulate energy business and prices Production, transmission and transportation of energy are safe and environmentally-friendly People can access energy with fair price which reflect actual cost Set measures to regulate and monitor the quality and safety level of energy industry Adjust the role of the Oil Fund Revise the energy price structure 19

20 Ministry of Energy: Strategies 4. Sustainable Energy Development and being environmental friendly The usage of energy efficient in the country The replacement of the fossil fuel by renewable energy is increased Push on the development of mechanisms, regulatory, standards Campaign to create a culture of energy conservation and educate people at all levels through a participation network Promote and support research, development and demonstration of new types of clean and renewable energy technologies Campaign and set up a network to realize the awareness of both the production and use of renewable energy from the community level 20

21 3. Renewable Energy Development 21

22 In Q1 2014, renewables accounted for 11.3% of energy consumption, mostly in the form of heat Thailand final energy consumption, Q Ktoe Fossil fuels Alternative & renewable Traditional renewables Imported hydropower Large hydropower (domestic) Renewable % of total energy consumption: 11.3% Small hydro: 0.03% Renewable power (Solar, Wind, Biomass, MSW, Biogas): 1.90% Biofuels: 2.30% Heat (Solar, Biomass, Biogas, MSW): 7.10% In the first quarter of 2014, renewable consumption increased slightly to 11.3% of overall consumption Majority of renewables consumption is in the form of heat, but power and biofuels are contributing a growing share of renewable energy SOURCE: Energy in Thailand Facts and Figures 22

23 The Alternative Energy Development Plan is the current roadmap for renewable energy development targets Goal: Target 25% Renewables in Total Energy Consumption by 2021 %RE of total energy consumption: 11.3% Electricity : 13,927 MW (4,416 MW) 5% 1.75% Heat : 9,800 ktoe (3,365 ktoe) 10% 7.53% Biiofuel : 19.2 ml/d (5.8 ml./d) 10% 2.24% RE type Plan (MW) Now (MW) Solar 3,000 1,270 Wind 1, Hydro Biogas Energy Plant 600 3, Biomass 4,800 2,418 MSW RE type Plan (MW) Now (MW) Solar Biogas 1, Biomass 8,500 3,022 MSW RE type Plan (ml/day) Now (ml/day) Ethanol 9 3 Biodiesel BHD 3 - CBG 1,200 n/d - New Energy 3 - Reference : DEDE, 15 Sep

24 Ideas of Revising Alternative Energy Development Plan ( ) Potential analysis of RE resources in Thailand And estimating potential in the future Analyze and Specify ratio of resource usage Forecasting data of total energy consumption from EPPO opportunity of RE to substitute fossil fuel Electricity Manage a distribution system of RE by considering area based factors such as; -Distribution system potential - transmission line - RE potential in the area - Priority of RE types (Merit order system) using Levelized Cost of Electricity Model (LCOE) Heat Manage RE heat production - Using potential of fossil fuel substitution in each area Bioenergy Increase bioenergy production in transportation sector (keep balance between energy production and consumption) 24

25 Renewable energy class detail: Wind Current development progress Development initiatives Power generation development MW installed capacity 6.2 % 12.4% 12.4% Promote community scale usage Promote R&D on wind turbine design Sample Sites : 5 kw Low-speed wind turbine technology, Pathumthani : Wind turbine for electricity generator size 2 and 5 kw., Huasai, Nakornsrithummarat : Small grid-connected electric generator control system Study and Testing efficiency of wind turbine in producing 100% domestic electricity SOURCE: Energy in Thailand Facts and Figures 25

26 Renewable energy class detail: Solar Current development progress Power generation development MW installed capacity 12.6% 27.4% 32.0% Development initiatives Promote implementation of community/ residential scale solar system projects Supplant ADDER incentive system with revised feed-in tariff (FiT) system Solar Farm 2,000 MW Heat development ktoe Target 3,000 MW Solar PV for Gov. buildings and Agri cultural Cooperatives 800 MW PV rooftop 200 MW 3.5% 4.5% 6.8% SOURCE: Energy in Thailand Facts and Figures FIT Price for PV rooftop 1. Household (0-10 kwp) = 23.2 USCent/kWh 2. Small Enterprise ( kwp) = 21.8 USCent/kWh 3. Medium & Large Enterprise/Factory (250 1,000 kwp) = 20.5 US cent/kwh 26

27 Renewable energy class detail: Small Hydro Current development progress Development initiatives Power generation development MW installed capacity Support construction of hydropower at a community level 31.4% 33.6% 34.6% Generate hydro power at Village level Very small power plant Non-electrified household (Off-Grid) DEDE & EGAT develop small hydro power system of downstream irrigation dam Small hydro power plant Local Admin Organization/people collaboration project owner SOURCE: Energy in Thailand Facts and Figures; Images: palangthai.org 27

28 Renewable energy class detail: Biomass Current development progress Development initiatives Power generation development MW installed capacity 40.8% Heat development ktoe 51.1% 48.4% 49.0% 55.2% 59.5% Promote plantation of fast growing trees that can be used as feedstock for power/heat generation Develop production and standard of biomass pellets for future biomass fuel Develop advanced gasifier and gas engine technology as well as biomass-to-liquid (BTL) technology Promote use of high pressure boilers to improve efficiency of power generation from biomass Promote Distributed Green Generation (DSG) community level biomass energy Coordinate with EGAT to develop necessary transmission and distribution infrastructure SOURCE: Energy in Thailand Facts and Figures 28

29 Renewable energy class detail: Biogas Current development progress Development initiatives Power generation development MW installed capacity 5.4% Heat development ktoe 45.8% 7.4% 7.6% 49.5% 52.8% Promote and support biogas production at a household level Support community self-management of biogas assets Study biogas production from alternative feedstock sources Promote production and utilization of compressed bio-methane gas (CBG) from biomass and energy crops for transportation and power generation Study and develop regulations for biogas safety standards Conduct public relations to disseminate knowledge and news to help build public image of safe biogas usage SOURCE: Energy in Thailand Facts and Figures 29

30 Renewable energy class detail: New Energy Geothermal Energy 2021 Target: 2 MW Develop potential map for geothermal sources & tech Assess feasibility in development of geothermal sources by appropriate technologies Evaluate cost effectiveness, environmental impact, and social impact Develop and adopt moderate temperature technologies Tidal/Current Energy 2021 Target: 1 MW Accelerate study on sources and technology types which may be appropriate for Thailand: expected potential areas are located around Phuket, Koh Sa Mui, and Koh Tan Assess development potential and readiness to develop pilot project Utilize pilot project data to assess further development 30

31 Renewable energy class detail: Bioethanol Current development progress Development initiatives Fuel usage development ML/day Continue to increase the share of Gasohol on the market (current share, including E10, E20, and E84 is 92%) 28.9% 32.2% 15.6% SOURCE: Energy in Thailand Facts and Figures; Images: eandt.theiet.org, 31

32 Renewable energy class detail: Biodiesel Current development progress Fuel usage development ML/day 37.5% 40.3% 41.7% Development initiatives Promote growing palm trees in sustainable areas not competing with food crops Develop alternative energy crops for the production of biodiesel equivalents (details on next page) Increase production capacity of crude palm oil SOURCE: Energy in Thailand Facts and Figures; Images: Shutterstock, NYTimes, Biodiesel Magazine 32

33 Renewable energy class detail: Second generation biofuels SOURCE: Energy in Thailand Facts and Figures; Images: railnews.co.in 33

34 The Ministry of Energy employs several tools to incentivize renewable energy development Exemption of imported duty of equipment or machines Exemption of incomecorporate taxes resulting from Selling RE or saving energy for periods up to 8 years BOI Investment grants (DEDE/EPPO) Data Support (DEDE) One stop service center Data on renewable development progress Resource data maps, such as solar and wind Provides lower risk capital to renewable focused businesses Equity investment (ESCO venture capital) Equipment leasing Credit guarantee facility ESCO fund (DEDE) Premiums paid for renewable power generation Biomass & biogas: THB MSW: THB Wind: THB Feed-in Tariff (EPPO) Hydro: THB Solar: 6.5 THB 34

35 Thank you for your attention 35