Energy Policy Research at TDRI

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1 Thailand Development Research Institute Energy Policy Research at TDRI Wichsinee Wibulpolprasert Nipon Poapongsakorn TTIX, Bangkok, 13 November

2 Access rate (% of population) Thailand achieved near universal access to electricity since 2012 Thailand's Electricity Access Rate (% of population) Source: The World Bank 2

3 Current and Upcoming Research Topics The policy questions have been shifted from basic energy access towards to following topics Access to affordable electricity 1. Evaluation of Thailand s Free Basic Electricity Program 2. Evaluation of Thailand s Solar Rooftop Pilot Program Sustainable production and consumption of electricity 3. Promoting energy conservation behaviors through behavioral economic 4. Evaluating the Benefits of Grid Energy Storage and Policies to Promote the Grid Energy Storage Industry in Thailand 3

4 1. Rural Electrification Project in mid 1990s The policy: in 1990, 7% of rural villages had no electricity. Thai government wanted to borrow from ADB which required the government to do an economic feasibility study Research Findings: o Villages with no electricity used battery to power their appliances. o Rural electrification led to higher farm and non-agricultural productivity, and better quality of life in the rural areas, including longer hours of doing homework and entertainment from TV o Social rate of return is higher than 14% Policy outcome: ADB accepted TDRI findings and granted loan to the Thai government. Since then, access to electrification is almost universal. Photo credit: 4

5 2. Evaluation of Thailand s Free Basic Electricity Program The policy: bill exemption (i.e. subsidy) for households with small meters that use under 50 units of electricity per month Findings on the policy performance: o High access rate to the benefit - due to almost universal access to electricity o Large potential benefit leakage of the benefit (error of inclusion) especially from the higher income with second homes Policy recommendation: Using big data to screen households for the subsidy can lead to a much more effective targeting of the benefit Photo credit: 5

6 3. Evaluation of Thailand s Solar Rooftop Pilot Program o Rooftop PV for self-consumption is becoming economical in Thailand Payback Period (years) Residential (No day load) Small Building (With day load) Medium General Service (Building) Tesco Lotus, Central Group Large General Service (Factory) Source: Tongsopit et al. 2017, Report on Rooftop PV Pilot Project Evaluation. Report to Department of Alternative Energy Development and Efficiency. Yet, current energy policy and regulations prevent a widespread adoption: o No remuneration for excess electricity fed back to the electricity grid o Multiple permits from multiple agencies are required to legally install rooftop PV Policy recommendations: o Remunerate excess electricity that is fed back to the electricity grid at a fair rate o Reduce administrative costs for installing rooftop PV 6

7 4. Promoting energy conservation through behavioral economic A small-scale pilot experiment (200 homes) in Bangkok that provides energy consumption feedback letter to treatment households Source: Thampanishvong (2015). Changing electricity consumption behavior: Is electricity conservation nudge enough? o Findings: Households treated with consumption feedback letter reduced electricity consumption by 5% on average o Recommendation: Expanding the treatment scale to a larger set of households and constantly evaluating the performance o Current status: TDRI is undergoing a collaboration project with the Provincial Electricity Authority (PEA) to conduct a larger scale randomized experiment in the PEA service territory 7

8 5. Evaluating the Benefits of Grid Energy Storage Grid Energy Storage System (ESS) = ability to transfer electricity across time o ESS: the key to transitioning toward a green and modernized electricity grid o Increase the efficiency of the electric grid o Improve economic value of renewable energy o The ESS industry in Thailand is at a very early stage o Low demand for ESS due to high technology cost, distorted electricity tariff and limited business opportunities o Few ESS Production activities (announced), but no actual production o Recommendations: Demand-side o An electricity tariff reform; o A temporary subsidies for ESS investment; o A fair competition for ESS and renewable to provide services into the power grid o Supply-side A clear and stable policy supports for ESS manufacturing 8

9 Thank you 9