Cogeneration policies in ASEAN

Transcription

1 Cogeneration policies in ASEAN 25 February 2004 Hilton City Hotel Brussels, Belgium Niels Beck-Larsen COGEN 3 1

2 EUROPE (EC) Population: 377 million * Installed Capacity: 541,138 MW ** * html ** lications/factbook/ 2

3 ASEAN Population: 481 million * Installed Capacity: 76,562 MW ** * en.html ** ublications/factbook/ 3

4 Brunei Indonesia Malaysia Myanmar Philippines Singapore Thailand Vietnam 4

5 TPES/ TPES/ Elec. Country Pop GDP (PPP)* Cons./Pop (toe/000 (kwh/ (toe/capita) 95 US$ PPP) capita) Brunei Indonesia Myanmar Malaysia Philippines Singapore Thailand Vietnam World OECD Middle East Former USSR Non-OECD Europe China Asia Latin America Africa

6 Proven, Clean & Efficient Biomass, Coal, Gas Cogeneration ASEAN Electricity Installed (GW) Capacity by Type, January 1, 2001 Region/Country Thermal Hydro Nuclear Nordic countries Geothermal and Other Total Denmark Finland Norway Sweden ASEAN ASEAN countries rely on fossil fuels => Cogeneration potential Burma Indonesia Malaysia Philippines Singapore Thailand Vietnam Source:

7 Cogeneration Applications Industrial sites District Cooling Buildings and commercial 7

8 Proven, Clean & Efficient Biomass, Coal, Gas Cogeneration Industrial Sectors Suitable for Cogeneration (1) Chemical Industry Plastic sheets and products Smoked rubber sheets, blocks, and crape rubber Rubber products Chemicals, medicine and toiletries Food Industry Beverage Animal feeds Vegetable oils, animal oils, fats Tapioca flour and pellets Bread, cookies, noodles Dairy Fruit Frozen food, food canning 8

9 Industrial Sectors Suitable for Cogeneration (2) Agro and Wood Industry Palm oil Pulp and paper Rice mill Wood Sugar Others Petrochemical (lube based oil) Textile, 9

10 Legal and Regulatory Frameworks 10

11 Barriers in Cogeneration (1) Technical Human Information Organisation 11

12 Barriers in Cogeneration (2) Components Barriers Possible solution Technical lack of successful references seen as complicated to operate the quality of biomass as a fuel is not homogeneous Human energy not a core business of potential users risk of being the first to fail implementation of demonstration projects suppliers to simplify operation; training of operators adequate testing of samples create awareness of benefits and opportunities references in similar environment; demonstration projects 12

13 Barriers in Cogeneration (3) Components Barriers Possible solution Information lack of institutions giving information and advice lack of awareness among users on government rules and incentives not enough technical and economic information to make a decision Organisation structure of the industry - size of mills - transportation problems - seasonality uncertainty of biomass fuel supply policy, legal and government issues financial barriers strengthening of relevant networks information drive availability of funds or services to conduct feasibility studies thorough investigation of these aspects in the feasibility of projects initiatives to boost yield and productivity government incentives/ support measures? innovative financial strategies; government incentives? 13

14 Grid regulation Irregular interconnection requirement Who is responsible for the new transmission line Limitations imposed by the utility Capacity of the transmission line 14

15 Power purchase agreement Buy-back rate Non-standard buy-back rate Regulations on purchase of power during off-peak Price escalation Indexation 15

16 Fuel supply security Fuel purchase from external sources Middle men dealing with the fuel supply Short term contracts Dealing with the bank How to estimate uncommitted fuel? 16

17 RE and Cogeneration in Malaysia Fifth Fuel Policy formulated in 2001 to promote use of Renewable Energy (RE) (in 8MP) Since cogeneration promotes energy efficiency, its use is encouraged Cogeneration using RE is especially encouraged Will reduce dependence on fossil fuels Will help dispose agricultural and municipal waste SREP program supports biomass cogeneration no direct policy support for natural gas and coal cogeneration 17

18 RE and Cogeneration in Malaysia Have existed in Malaysia for a long time, but more can be done included in 1990 ties IPP program District cooling is in - due to tropical climate Licensing from Energy Commission - under purview of Ministry of Energy, Communication & Multimedia 36 licenses issued 13 public, 23 private ~350 palm oil mills 18

19 Thailand: 3 major programs 1. Power Purchase Programs from Small Power Producers (SPPs) and Subsidy for Renewable Energy SPPs 3. Very Small Renewable Energy Power Producers (VSREPP) 19 Page 19

20 1. Powers Purchase from SPPs -- The SPP Program Started in st government policy instrument promoting RE and cogeneration use in the power sector. As of July 2002, 107 SPP project proposals have been submitted to EGAT. 64 projects accepted, with a total proposed sale of 2,233 MW. 60 projects signed PPA with EGAT 50 SPPs now in operation, selling a total of 1,970 MW (EGAT). Of the 1,970 MW, 1,353 MW or 68.7%, use natural gas as fuel. Only 178 MW or 9% is generated by RE, wastes or residues. 20 Page 20

21 SPPs by Type of Fuel (as of July 2002) 21 Page 21

22 3. Very Small Renewable Energy Power Producers the VSREPP Program On 14 May 2002 the regulations on power purchase from VSREPP was approved. A VSREPP is defined as a generator with own generating unit; utilizing RE sources, agricultural and industrial wastes and residues, or by-product steam; selling no more than 1 MW of electrical power to a distribution utility. 22 Page 22

23 Cogeneration Policy in ASEAN Country Present Situation Installed Capacity (MW)* Forecasted Annual Growth of Power Demand Policy on Cogeneration Key Off Taker Cambodia No National Grid 160 ~10% Preparing Phase EDC Indonesia Govt.- 56% Captive Power 40% IPP 4% 23,425 IPP, Captive Power, Conservation PLN Malaysia Govt. 85% Private 15% 13, % SREP, Cogeneration TNB Philippines Govt. 55% Private 45% 14,700 ~9% Renewable Energy RECS& NPC Singapore Power Pool 8,140 - EMA Thailand Govt. 60% Private 40% 24,500 ~10% SPP, VSPP, Renewable EGAT Vietnam Govt. 90% Private 10% 3,296 ~13% Preparing Phase EVN 23

24 ASEAN - National Energy Strategy Review Most ASEAN countries have an indirect biomass cogeneration policy through biomass power and energy efficiency policy, legislation and support programmes. Presently, none of the ASEAN countries have any policy, legislation or support programme for coal and natural gas cogeneration. 24

25 Cogeneration Policy in ASEAN Huge difference between development state of the Electricity Supply Industry in ASEAN Countries Cogeneration Policies differ from Country to Country Typically Cogeneration Policy is part of National Energy Policy which is often scattered between different agencies 25

26 Conclusions There is a need for a comprehensive Cogeneration Policy in ASEAN Huge potential for Cogeneration but market conditions differ from one country to another The driving force for industry to invest in Cogeneration is lower energy cost. This force is independent of overcapacity present in some countries Financing largest obstacle for cogeneration investment despite market liquidity 26

27 Contact us COGEN 3 Overall Co-ordination Asian Institute of Technology, 2 nd Floor Energy Bldg., PO Box 4 Klong Luang, Pathumthani Thailand Tel : Fax: COGEN 3 European Focal Point Carl Bro International AB Carl Gustafs väg 4, SE Malmö Tel : Fax: cogen3@cogen3.net Website: 27

28 For more information, please visit COGEN 3 Website at: Thank You! 28