Competitive Biddings Renewable Energy Projects in Thailand. SPP Hybrid-Firm. Asian Clean Energy Forum 2018

Transcription

1 Competitive Biddings Renewable Energy Projects in Thailand SPP Hybrid-Firm Asian Clean Energy Forum 2018 Manila, Philippines June 8 th, 2018 Khomgrich Tantravanich Deputy Secretary General The Office of the Energy Regulatory Commission, Thailand 1

2 Topics Backgrounds - Electricity Supply Industry Structure - RE Road Map (AEDP) RE Supports - Supportive Measure to RE Project - First-come, first-served to Competitive Bidding VSPP Bidding (Biogas, Biomass) Non firm SPP Bidding Hybrid - Firm - Preparation for SPP Hybrid Firm - Bidding Results - Lesson Learn

3 Topics Backgrounds - Electricity Supply Industry Structure - RE Road Map (AEDP) RE Supports - Supportive Measure to RE Project - First-come, first-served to Competitive Bidding VSPP Bidding (Biogas, Biomass) Non firm SPP Bidding Hybrid - Firm - Preparation for SPP Hybrid Firm - Bidding Results - Lesson Learn

4 Thailand s Electricity Supply Industry Structure Industrial User in the Industrial Area SPP RE VSPP RE 4

5 RE Target under AEDP 2015 and Current Status Type Waste-to- Energy - MSW - Industrial Existing (to Grid) Target (MW)* IPS Remaining (MW) Biomass 4,045 5, Biogas - Waste - Energy Crop Status as of February , Mini Hydro Wind 1,522 3,002-1,480 Solar 3,245 6, ,715 Total 9,757 16, ,351 Accum. MW 9,000 8,000 7,000 0 Remaining Ins. Cap. 6,351 MW 38% RE Target 16,778 MW** Till % Install Cap. (existing) 10,426 MW Grid connected RE under support program (Adder and FIT) 6,000 5,052 5,000 4,000 3,480 4,080 3,668 3,000 2,511 1,434 1,630 1,901 2,367 2,853 2, ,077 1,584 1,000 6,438 6,930 กราฟ RE (MW vs. ป ) ต งแต ป 2,000 7,841 4,959 5,331 6, Installed cap. Year Contracted Cap.

6 Topics Backgrounds - Electricity Supply Industry Structure - RE Road Map (AEDP) RE Supports - Supportive Measure to RE Project - First-come, first-served to Competitive Bidding VSPP Bidding (Biogas, Biomass) Non firm SPP Bidding Hybrid - Firm - Preparation for SPP Hybrid Firm - Bidding Results - Lesson Learn

7 Supportive measure to RE projects From Adder to Fit THB/kWhr Adder 7 or 10 years Base Tariff (Peak and Off Peak) 10 or 20 Year THB/kWhr FiT (Variable) FiT (Fixed) 10 or 20 Year 7

8 1.Biomass Supportive measure to RE projects From Adder to FiT Adder Adder Adder Additional for Additional for RE Period ( ) ( ) Diesel Substitution generators in the most (Years) (US Cents/kWh) (US Cents/kWh) (US Cents/kWh) 3 southern provinces (US Cents/kWh) Installed Cap. <= 1 MW Installed Cap. >1 MW Installed Cap. <= 1 MW Installed Cap. >1 MW Fertilizer/Landfill Thermal Process Wind Type/ Installed cap. 2.Biogas (all sources) 3. Waste (MSW and non-toxic industrial waste) Installed Cap. <= 50 kw Installed Cap. > 50 kw Hydro (Mini/Micro Hydro) Installed Cap. 50 kw - <200 kw Installed Cap. <50 kw Solar ) Integrated Solid Waste Management FiT Period FX: 33 THB/USD Located in the (Years) Bio Project FiT F FiT V, FiT (1 ) (for the 1 s t 8 years) most 3 southern provinces Installed cap. 1 MW Installed cap. > 1-3 MW Installed cap. > 3 MW ) Landfill Waste ) Biomass Installed cap. 1 MW Installed cap. > 1-3 MW Installed cap. > 3 MW ) Biogas (Liquid/Solid waste) ) Biogas (Energy crop) ) Hydro Type/ Installed cap. FiT (US Cents/kWh) FiT P re mi um (US Cents/kWh) Installed cap. 200 kw ) Wind Remarks: (1) FiT V will be annually adjusted by core inflation after ) Solar 8.1) Solar Roof (2013) Install Cap. FIT (US C/Kwhr) (1) Residence <10 kw p 21.6 (2) Small Commercial Bldg. >10 < 250 kw p (3) Large Commercial Bldg. > 250-1,000 kw p ) Solar farm FIT (US C/Kwhr) (1) (2)

9 Supportive measure to RE projects 2006 Adder Solar Wind Biomass Biogas Hydro 2013 FiT (Solar PV Rooftop) 2014 Household 10 kw 10 Kw<Business Building<250 kw 250 Kw <Factory < 1,000 Kw FiT Ground-mount Solar Solar PV Rooftop Waste Biomass Biogas Wind Hydro 2017 FiT 1 st Competitive Bidding in 3 southern border provinces area <10 MW project size (VSPP) SPP Hybrid Firm 3.66 THB/kWh (11.09 US C/Kwhr) 2 nd Competitive Bidding <50 MW project size (SPP) Target 300 MW Target Biomass 36 MW and Biogas 10 MW 9

10 Topics Backgrounds - Electricity Supply Industry Structure - RE Road Map (AEDP) RE Supports - Supportive Measure to RE Project - First-come, first-served to Competitive Bidding VSPP Bidding (Biogas, Biomass) Non firm SPP Bidding Hybrid - Firm - Preparation for SPP Hybrid Firm - Bidding Results - Lesson Learn

11 1 st FiT Bidding in 3 southern border provinces area Target FiT (Ceiling price) Year 1-8 Year 9-20 Biogas (liquid/solid waste) Rank MW % discount Year 1 8 Year Rank MW % discount Year 1 8 Year Avg. bid price 5.95 MW awarded Biogas (liquid/solid waste) Biomass 10 MW 36 MW Avg. bid price US cents/kwh lower than US cents /kwh ceiling price Biomass 36 MW awarded US cents /kwh Remarks: Biomass FiTv will be annually adjusted by core inflation 5.57 US Cents/kWh lower than ceiling price US cents /kwh FX: 33 THB/USD 11

12 Topics Backgrounds - Electricity Supply Industry Structure - RE Road Map (AEDP) RE Supports - Supportive Measure to RE Project - First-come, first-served to Competitive Bidding VSPP Bidding (Biogas, Biomass) Non firm SPP Bidding Hybrid - Firm - Preparation for SPP Hybrid Firm - Bidding Results - Lesson Learn

13 SPP Hybrid Firm 2017 Policy Conditions 1 Tariff Ceiling: FX: 33 THB/USD FiT (US Cents /kwh) Installed capacity (MW) Period FiT F FiT V,2017 Total FiT >10 MW up to 50 MW years Remark: FiT v,2017 will be annually adjusted by core inflation after 2017 Networks congestion: SPP to follow Grid Code and Network availability Target 300 MW in total: Regional quotas Selection: Price competitive (Bidding) Specific Conditions for SPP Hybrid Firm 2017 Firm Operation with penalty Hybrid for any type of RE with UMM ESS can be installed to support Firm New generation Fossil fuel allowed only for starting up 20% of Biomass supply required for energy crop plantation SCOD : upon TL Plan 13

14 1 Determine Networks Availability N1 North Area (Example) N2 N4 N3 N6 N5 14

15 2 Determine Regional Quotas Western 20 MW Northern 65 MW Central 20 MW Southern 65 MW Eastern 20 MW Bangkok-metro. 15 MW Samui Island 15 MW North Eastern 65 MW Policy : Quantity by 9 regions Firstly if the capacity in Phuket and Samui (2 provinces in South) not meet their target, the remaining will be given to South Secondly if the capacity in any regions not meet their target, the remaining will be accumulated and given to any regions under conditions lower bidding price & Grid capacity This won t be greater than 300 MW Phuket 20 MW Its s kind of complicated!! BUT to meet the 300 MW target 15

16 3 Determine Selection Process ERC Procurement Process Drafting Request for Proposal Public hearing More flexible June 2017 Enforcement 4 th Aug 2017 Solicitation Announcement RfP package Network Availability info Aug 10 Sep Oct 24 Nov 8 Dec 16 Dec within 13 Dec 19 COD Checking the connecting point Pre-bid meeting Proposals submission Technical evaluation announcem ent Opening the Price proposal Announcement of Awarded project 2 years PPA signed 1 Jan Dec years 16

17 3 Determine Selection Process Submission General Conditions Evaluation Process Sealed Technical Proposal pass Sealed Bid Price Proposal (% Discount from FiT F ) not-pass Basic Conditions Land right Technology Fuel supply agreement Financial Ability Connection Assessment Specific Conditions granted Not qualified Appeal Filed not granted Ranking by % discount of FIT F (high to low) Not selected (Bid security returned) Grid capacity and quantity by region are necessary concerned Awarded In case of the same % discount proposed, then ranking by the time of proposal received 17

18 4 Determine Specific Conditions Specific Conditions Firm Operation with penalty Hybrid for any type of RE with UMM Peak 100%±2 and Off-peak 65%±2 Penalty 20% of 5.48 US Cents/kWhr (approx. 1.1 US Cents/kWhr) ESS can be installed to support Firm New generation Never sell electricity to the Grid Fossil fuel allowed only for starting up 20% of Biomass supply required for energy crop plantation Submit plantation plan (For biomass) SCOD : upon TL Plan Conditions in PPA 18

19 Awarded SPP Hybrid-Firm Projects FX: 33 THB/USD Rank % Ceiling price UD Cents /kwh RE type MW Bidding Price (US Cents/kWh) Biomass & Solar Proposals received 85 1, MW Technical qualified MW 8.58 US Cents/kWh Awarded MW 7.39 US Cents/kWh Avg. bid price Biomass Biomass Biomass Rank % RE type MW Price (US Cents/kWh) Rank % RE type Total MW Price (US Cents/kWh) 1 62 Solar Western 20 MW Northern 65 MW Central 20 MW Eastern 20 MW North Eastern 65 MW Biomass Biomass Biomass Biomass Biomass Total Rank % RE type MW Price (US Cents/kWh) Biogas & Solar Rank % RE type Rank % MW RE type Price (US Cents/kWh) Biomass MW Southern 100 MW Price (US Cents/kWh) Biomass Biomass Biomass Biomass Biomass Total Remark: 14 projects : Biomass MW 1 project : Biogas + Solar 16 MW 1 projects : Biomass + Solar MW 1 project : Solar + ESS 12 MW No awarded project in Bangkok-metro., Samui and Phuket Price : FiT F + FiT v FiTv will be annually adjusted by core inflation 17

20 Experience from SPP Hybrid Firm Bidding Hybrid is more flexible and more attractive then the average selected bid price is 1.22 THB/kWh (-33%) lower than ceiling price. Quota or Zoning is a barrier to achieve lower price then more competitive in some areas (ex: South, Northeastern) and less competitive in some areas. Most of rewarded projects are Biomass, bagasse & woodchip which means they can guarantee Firm operation and still abundant in Thailand The lowest-price bidders (99.99% Discount) are sugarcane producers that have their own fuel supply threated as by-product for power generation Firm contract reduces the variation in intermittent energy sources. 20

21 21 THANK YOU