Development. PANUPONG SATHORN: Policy and Plan Analyst: Energy Policy and Planning Office
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1 Thailand Smart Grid Development PANUPONG SATHORN: Policy and Plan Analyst: Energy Policy and Planning Office 14 February 2013 Electricity Generating Authority of Thailand, Thailand
2 Content 1 Policy Formulation and Regulation 2 Government Energy Policy 3 Thailand Smart Grid 2
3 POLICY FORMULATION AND REGULATION 3
4 Policy Formulation and Regulation The Cabinet National Energy Policy Council (NEPC) Policy Framework Ministry of Energy Determination of Policy by Minister of Energy Committee of fenergy E R l t Comment Policy Administration from ERC for (CEPA) consideration Energy Licensing process of Minister of Energy and NEPC Energy Regulatory Commission (ERC) Regulation of Power Industry Customer and Consumer Protection Use of Assets Consideration of Dispute and Appeal Energy Policy and Planning Office (EPPO) Office of Energy Regulatory Commission 4
5 National Energy Policy Council (NEPC) The National Energy Policy Council shall have the following powers and duties 1. To submit the National Energy Policy and the National Management and Development Plan to the Council of Ministers 2. To lay down rules and conditions for prescribing the price of energy in accordance with the National Energy Policy and the National Energy Management and Development Plan 3. To monitor, supervise, coordinate, support and expedite the operations of all committees with the powers and duties related to energy, Government agencies, State enterprises and the private sector related to energy in order that their operations shall be in accordance with the National Energy Policy and the National Management and Development Plan 4. To evaluate the results of the implementation of the National Energy Policy and the National Management and Development Plan 5. To perform other functions as entrusted by the Prime Minister or the Council of Ministers 5
6 GOVERNMENT ENERGY POLICY 6
7 Government Energy Policy The current government energy policy was delivered by Prime Minister i Yingluck Sinnawatra to the National Assembly on Tuesday 23 August 2011 Energy Policy 1. Promote and drive the energy sector to generate income for the country. As a strategic industry, investment in energy infrastructure will be increased to make Thailand a regional center for the energy business, building upon the competitiveness i of its strategic location. 2. Reinforce energy security through development of the electrical power grid and exploration of new and existing energy sources, both in Thailand and abroad. Energy sources and types will also be diversified so that Thailand will be able to meet its energy needs from a variety of sustainable energy sources. 7
8 Government Energy Policy Energy Policy 3. Regulate energy prices to ensure fairness as well as reflect the production costs by adjusting the role of the Oil Fund into a fund which ensures price stability. Subsidies will be available for vulnerable groups. The use of natural gas in the transport sector will also be promoted, while the use of gasohol and biodiesel will be promoted for use in the household sector. 4. Support the production, use, research and development of renewable and alternative energy sources, with the objective of replacing 25% of the energy generated by fossil fuels within the next decade. Comprehensive development of the energy industry will also be promoted. 8
9 Government Energy Policy Energy Policy 5. Promote and drive energy conservation through the reduction of power usage in the production process by 25% within the next two decades. The use of energy efficient equipment and buildings will be promoted, while Clean Development Mechanisms (CDM) will be used to reduce emission of Green House Gases and tackle global climate change. Systematically raise consumer awareness to use energy efficient in order to conserve power in the production and transport sectors, as well as in the household. 9
10 Thailand Smart Grid 10
11 Global Smart Grid Development Core Development Strategy Source : World Economic Forum 11
12 Thailand Smart Grid Development Key Drivers to Smart Grid Development Transition to Low Carbon Economy Promotion of Renewable Energy and Energy Conservation Need of Energy Efficiency development to reduce operating cost in manufacturing sector Development of power system and Power Trade in ASEAN Power Grid for power system security and increasing electricity demand Transition to Electric Vehicles Potential ti on Smart Grid Technology Development for Economic Value Added 12
13 Benefits to Power System Benefits of Smart Grid Development Power Supply Security Control of power generation to reduce reserve margin (1% reserve margin = 560 MW = 350 Million USD) Reliability and Quality of Power System Reduce possibility and potential of power drop (10% damage of power drop = 26 Million USD Loss per year) Energy Efficiency Reduce amount of power loss in generation, transmission and distribution processes which have direct impact to energy pricing (10% power loss = 25 Million USD) Energy Information and Data Management Service for Demand Response and Demand Side management Promotion of Renewable Energy Improve overall power system stability with the integration of renewable energy technology Reduce investment cost for transmission network construction 13
14 Benefits to each Stake Holder Benefits of Smart Grid Development Source : World Economic Forum 14
15 Role of key players on Smart Grid Development National Policy Maker Formulation of Master Plan (Policy Plan) Launching supporting policy on Smart Grid Development Regulator Develop Action Plan based on the Policy Plan to determine the structural development plan for Smart Grid Utility Develop Smart Grid to Maximize efficiency and function of the power system based on the national Action Plan Vendor Develop Smart Grid Technology for market competition NGO/Academics Knowledge Sharing between each Stake holder Support any research activity it on Smart Grid Technology Consumer Behavioral adaption to the development of Smart Grid Technology Source : World Economic Forum 15
16 Policy Plan for Smart Grid Development Policy Plan for Smart Grid Development Fuel Shortage Power System Reliability and Quality Increasing Electricity Demand Public Acceptance Climate Change Transition to Low Carbon Economy ASEAN Power Grid / GMS Power Trade Development of Electric Vehicles Competition in Energy Market Economic Growth Decentralized Power Generation / Distributed Generation Energy Security and Sustainability Energy Development with Environmental Conservation Energy Pricing Regulation Promotion of Renewable Energy Development Promotion of Energy Efficiency 16
17 Policy Plan For Smart Grid Development Short Term Medium Term Long Term Strategy & Road map Action Plan R&D Pilot Fully Formulation of national Smart Grid Development Strategy & Road Map Government Research on Smart Grid Development Smart Grid Incentive Program Public Participation and Understanding Enhance Smart Grid Deployment for the whole country Pilot research and demonstration project on Smart Grid Enhance Smart Grid deployment in test bed areas Sub-committee on the study of National Smart Grid Development Master Plan Utility Vender Pilot investment on Smart Grid Deployment Pilot investment project on Smart Grid Technology NGO/Academic 17
18 Policy and Action Plan for Thailand Smart Grid Development Determine Key Achievement Index Regulator (Jan 12 Dec 12) Determine the functions/characteristics of Smart Grid to power systems for development Determine Key Achievement Indicators Study on determining Smart Grid Development Activities for each function/characteristic Policy & Gov. Utility Formulation of Policy Plan Consumer Smart Grid Development Strategy NGO& Academics Vendor (June 12 May 13) Collect Smart Grid Development Information and Data for each dimension Open Seminar to all Stake Holders Formulate Policy Plan and Target for Smart Grid Development 18
19 Current Progress on Smart Grid Development of Ministry of Energy National Energy Policy Council (NEPC) Sub-committee on the study of National Smart Grid Development Master Plan Energy Policy and Planning Office (EPPO) Working Group on National Smart Grid Implementation Working Group on the Formulation of National Smart Grid Policy and Master Plan 19
20 Pilot Project on Smart Grid 20
21 Pilot Project on Smart Micro Grid Centralized Power Grid Smart micro grid Improving power transmission and distribution Constraint Enhance the efficiency of Distributed Generation Control of power flow from Distributed Generation to the nearest load Stabilize the operation of power system while connecting with Distributed Generation 21
22 Research on DSM for Smart Grid Smart Metering Maximize the benefits of energy information and data service Adjust energy consumption behavior Experience Real-time Demand Side Management Accessibilitytoenergypolicyespecially to energy especially on energy pricing 22
23 Aim at sustainable energy management for sufficient energy for the nation and citizen of Thailand 23
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