Tapping Thailand s Solar Potential
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1 Tapping Thailand s Solar Potential Thomas Chrometzka Director Renewable Energy, GIZ Thailand Berlin, 04/03/2014
2 1. Thailand s Energy Context 2. Solar Policy and Market Development in Thailand 3. Background on the Project Development Programme 4. Conclusion
3 Thailand: map, facts and figures Area: 513,120 km² Population: 66,720,15 (2011) GDP (2013 estimate) Total: US$ billion Per capita US$10,849 Currency Baht ( ) (THB) Government: Unitary parliamentary constitutional monarchy Households: million
4 Final energy consumption by source Not considered renewable by Thai Gvmt ~10% RE Source: DEDE
5 Installed capacity for power generation (2012) Source: DEDE
6 Domestic resources and import share Import Value ( ) Crude oil ~23 bn Petrolium Products 99 1 ~0.25 bn Natural Gas ~3.4 bn Coal ~1.0 bn Electricity 95 5 ~0.25 bn 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Domestic production Import TH imports 81% of oil consumed TH imports 56% of overall energy demand Total app. ~37 bn (18% of GDP) Source: DEDE
7 Recent Black-Outs Source: DEDE
8 1. Thailand s Energy Context 2. Solar Policy and Market Development in Thailand 3. Background on the Project Development Programme 4. Conclusion
9 Thailands Climate Change Policy Framework Source: TGO
10 Mtoe Projected Energy Consumption by Average growth rate (%) TFEC GDP Pop By sector Industry Transport Residential Commercial Others < Historical Projection > 71.2 BAU Industry Transport Residential Commercial Others Source: DEDE, EPPO, JGSEE
11 Mtoe Projected Energy Consumption by Average growth rate (%) TFEC GDP Pop By sector Industry Transport Residential Commercial Others Total final energy demand to grow closely with GDP at 4.2% p.a. < Historical Projection > 71.2 BAU Energy demand in Thailand would more than double in the next 20 years! Industry Transport Residential Commercial Others Source : DEDE, EPPO, JGSEE
12 History of Solar PV Development in Thailand Solar electrification in remote areas existed from Target areas: Schools hospitals, community centres, military bases, national forests, Royal Development, Projects 1,756 systems installed With a total capacity of 3,905 kw peak installed Source: DEDE
13 Solar Booster 2007: The Adder Scheme Introduced in 2007 for solar Adder Scheme = Feed-in Premium SPP/VSPP receives market electricty price + fuel tariff rate + adder tariff Premium (adder) of 8 Baht/kWh was decreased to 6.5 Baht/kWh in 2010 Program was over-subscribed several times, applications for more than 2,000 MW awarded program closed for new applications Triggered solar farm development in Thailand However, only ~800 MW installed to date Images: own sources, HighDesert
14 New Initiatives I: PV Rooftop Program On 16th July 2013, the National Energy Policy Commission (NEPC) approved solar rooftop policy to support this development in Thailand Full Feed-in Tariff (25 yrs) for Solar PV Rooftop to encourage private & community investments minimize peak load contribute to energy security Classification Scale FiT Rate (Baht/kWh) Quota Residential 0-10 kw 6.96 (~0.22 US$) 100 MW Small/Medium Commercial kw 6.55 (~0.21 US$) 100 MW Medium/Large Commercial 250 kw-1 MW 6.16 (~0.20 US$) Images: DEDE
15 New Initiatives II: Community-based Solar special feed-in tariff rates for community ground-mounted solar systems Target 800 MW / 1 Amphoe, 1 Megawatt Aim generating job opportunities income Local value creation Funds will come from Thailand s Village Fund projects are required to be installed and commissioned by December 2014
16 Anticipated process for community-based solar programme. Implementation Guidelines are currently being developed. GIZ / Source: DEDE
17 Community-based solar: next steps NEPC working group is currently establishing the implementation guidelines PEA and Thai Village fund are leading the working group EPC know-how could be needed for communities who will have a great interest in long-lasting high quality installations
18 Conclusion Thailand has made the next step to solar market development in rooftop and community segment, leading the way in SEA COD of rooftop projects pending, practical solution will be followed Factory license is stalling the market currently, all ministries keen to resolve, which will happen as soon as new government is in place Current political situation is an issue, however, support for solar is bipartisan when resolved, expectiations for solar market development positive Current business opportunity for commercial under the feed-in tariff New phase for solar rooftop could be set in place in 2014 Community solar opportunity should come up in 2014 as well
19 Thank you Thomas Chrometzka Director Renewable Energy (GIZ Thailand) Project Development Programme South-East Asia
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