Best Practices and Experiences on Thailand s Energy Policy for Sustainable Development Dr. Poonpat Leesombatpiboon Chief, Strategic International Energy Cooperation Ministry of Energy, Thailand Policy Dialogue on Energy for Sustainable Development UNESCAP Pullman King Power Hotel Bangkok, Thailand 18 December2013 1
Contents Energy Situation in Thailand Energy Policy in Thailand Renewable Energy Policy and Showcases Energy Efficiency Policy and Showcases
Energy Situation in Thailand
Final Energy Consumption in Thailand thousand barrel oil equivalent/day Domestic 66% Import 34% Hydropower 3% Coal/Lignite 17% Domestic 31% Import 69% Natural Gas 44% Import 19% Domestic 81% Domestic 15% Oil 36% Import 85% 2008 2009 2010 2011 2012p Preliminary Consumption Oil Natural Gas Coal/Lignite Electricity Total Growth (%) 4.7 9.2 5.0 3.4 6.7 Source : Ministry of Energy 2013 4
Thailand s Energy Import Value Million baht Energy Import value NG+LNG 10% Coal 3% Electricity 1% Petroleum product 9% 2012 Crude oil 77% 2008 2009 2010 2011 2012p Elec. Coal Natural gas+lng Petroleum Crude oil P : Preliminary Import value in 2012p 1,441,790 million baht Approx. 48 Bil USD equivalent 13% of GDP 2012 Crude oil Petroleum product NG+LNG Coal Electricity Total Import value(million baht) 1,115,366 122,634 138,952 46,770 18,069 1,441,790 Growth (%) 14.1 30.1 23.8 10.5 30.4 16.5 Source : Ministry of Energy 2013 5
Energy Policy in Thailand
Country Strategy Green Economy Growth & Competitive ness People/Quality of life /Knowledge/Justice Balance & Develop Public management Infrastructure/ Production/R&D Economic Growth Sustainable Development Environmental Friendly Inclusive Growth Green Growth Laws & Regulations Fostering economic growth and development in environmental friendly way 7
Renewable energy Plan & Policy Thailand s Energy Policies Develop Infrastructure to be Regional Energy Center Land Bridge Smart Grid Gas Pipeline Power Grid Secure Thailand Energy supply Power Plant / Oil Storage International Cooperation Participation Fair Energy Pricing Energy Price Restructure Prime Minister Yingluck Shinawatra Up-scaling RE mix to 25% in 10 years CBG Feed in Tariff Distributed Green Generation Research & Development Target Energy Intensity reduction by 25% within 20 years (based on 2010 level) Energy Conservation Law & Regulation CDM
Renewable Energy
Alternative Energy Development Plan (AEDP) Rev 1 Committed to the development of low-carbon society Government Funding On R & D & D Activities Alternative Energy Development Plan (AEDP : 2012-2021) Target 25 % of RE in Total Energy Consumption By 2021 Private-Led Investment Solar Wind 3,000 MW 1,800 MW 100 ktoe 4,800 MW, 100 ktoe Bio-Energy Biomass Biogas MSW 4,800 MW 3,600 MW 400 MW 8,500 ktoe 1,000 ktoe 200 ktoe 8,800 MW, 9,700 ktoe Bio-Fuel Ethanol Biodiessel 2 nd gen 9 ML/Day 7.20 ML/Day 3 ML/Day Mini Hydro Micro Tidal wave New-Energy Geothermal 324 MW 2 MW 1 MW 3 MW
AEDP Status Technology Unit Target in 2021 (MW) Status Q1-Q2 / 2013 Electricity MW 13,927 3,343 Solar MW 3,000 554.45 Wind MW 1,800 215.18 Small Hydro MW 324 101.75 Biomass MW 4,800 2,185.05 Biogas MW 3,600 239.64 MSW MW 400 46.68 New Energy MW 3 - Heat Ktoe 9,800 2,622 Solar Ktoe 100 7 Biomass Ktoe 8,500 2,334 Biogas Ktoe 1,000 241 MSW Ktoe 200 40 Biofuel ML/Day 19.2 5.3 Ethanol ML/Day 9 2.5 Biodiesel ML/Day 7.20 2.8 2 nd Generation (BHD) ML/Day 3 Total RE Ktoe 24,633.97 Final Energy Consumption 99,838.00 RE Consumption : Energy Consumption 25% 10.6 %
Final Energy Consumption Q2/2013 Fossil fuels Alternative Energy & Traditional RE Power Generation 1.64 % (Solar/Wind/Biomass /MSW/Biogas) Small Hydro Power 0.03% Imported Hydro power Large Hydro power Heat 6.9% (Solar/Biomass /MSW/Biogas) Alternative & Renewable Energy 10.6 % Biofuels 2.0%
Best RE community based projects Conserve nature Sustainable Development Natural resources Opportunity & income Economic development with environmental protection
Biofuels
Biofuel : Ethanol AEDP Target 2021 Ethanol uses 9 10 6 L/day Molasses Cassava Current level Ethanol uses 2.83 10 6 L/day Gasoline blended (Gasohol) Interesting facts Plenty of energy plants, cassava and sugarcane : for ethanol production system Promote plan of action to increase the usage of ethanol in transportation sector Amending the laws and regulations to support ethanol free trade in AEC 2015 15
Thailand Ethanol Feedstock
Ethanol Production Capacity
Ethanol Uses
Supporting Policies
Biodiesel Biodiesel AEDP Target Current level 2021 Biodiesel uses 7.2 10 6 L/day Palm Oil Current level Biodiesel uses 2.8 10 6 L/day Development of Oil Conversion Technology New Fuel for Diesel Substitution New Energy Crop Jatropha Micro Algae BTL BHD 20
Biodiesel Feedstock
Thailand B100 Capacity
Biodiesel uses
Supporting Policies
Solar Energy
Solar Energy Targets by 2021 3,000 MW 100 KTOE Power Generation Thermal use Solar Cell (PV) Solar Thermal (CSP) Solar Water Heater (SWH) Solar Dryer
Solar Radiation Map of Thailand Average total solar radiation of 18 MJ/m 2 /d (5.0 kwh/m 2 /day) The solar radiation map from satellite data together with the real ground measurement data The most potential areas (19-20 MJ/m 2 -day) are in the central and north eastern regions with about 11% of total area of Thailand Potential Area 27
Measures to promote solar energy Investment subidy for solar thermal Investment subsidy Solar Water Heater-for large system hotel, hospital, farms, apartment, factory up to 30% of initial investemt and gradually decreased Solar Dryer-for individual and SME up to 60% of initial investment and gradually decreased Promotion results -2008-2012 no. of solar water heater installations of 137 sites with total 36,872 m 2 with 159 million bath subsidy -70% of installation were factories and hotels -2011-2012 total solar dryer installed was 6,000 m2
Measures to promote solar energy Adders and FiT for solar power generation Promote the RE generation under the small power producer (SPP) more than 10 MW but less than 90 MW and very small power producer (VSPP)-less than 10 MW program using price incentives for all RE Generation from solar energy Adder price - 8 baht/kwh or 26 US cent /kwh for 10 years since 2007 -Reduced to 6.5 baht/kwh or 21 US cent/kwh for 10 years in 2010 and stop taking new proposal since then
Solar SPP and VSPP Status Proposed Project Waiting for PPA Signed PPA Already sell to grid Total Technology Project (no.) Selling Capacity (MW) Project (no.) Selling Capacity (MW) Project (no.) Selling Capacity (MW) Project (no.) Selling Capacity (MW) Project (no.) Selling Capacity (MW) Solar Energy 163 909.97 2 4.25 195 1,286.48 202 579.301 562 2,780.01 VSPP 162 868.975 2 4.25 191 976.488 200 494.301 555 2,344.014 PV 162 868.975 2 4.25 85 429.466 199 489.301 448 1,791.992 Thermal 0 0 0 0 106 547.022 1 5 107 552.022 SPP 1 41 0 0 4 310 2 85 7 436 SPP = small power producer >10 MW and <90 MW VSPP = very small power producer < 10 MW **ERC,Oct 2013 30
Solar Farm in Thailand Many solar farms were established due to adder measures 31
Cumulative PV installation[mw] Solar Power Installation up to 2013 Cumulative PV Installation in Thailand since 1983 600 500 off grid grid-connected 400 300 200 100 Solar Home Program Beginning of Adder Policy 0 Year 32 32
Measures to promote solar energy Solar PV Rooftop National Energy Policy committee resolution on July 16 th,2013 => Feed-in Tariff (FIT) for Solar PV Rooftop => Objectives - Encourage private individuals & SME investment in solar power - Minimize Peak Load - Energy security Solar Rooftop Target 200 MWp 100 MWp 100 MWp FIT Price 1. Household (0-10 kwp) = 6.96 baht/kwh 2. Small Enterprise (10-250 kwp) = 6.55 baht/kwh 3. Medium & Large Enterprise /Factory (250 1,000 kwp) = 6.16 baht/kwh Household SME & Factory supported period 25 years and COD in December 2013 33
List of the 13 Consultant Installing Solar Roof System by DEDE Solar Power Roof Company Limited Surehome Co. Ltd SOLARTRON PUBLIC COMPANY LIMITED TSUS EXCELLENT ENGINEERING CO.,LTD. SPCG Public Company Limited Leo Electronics Co., Ltd. LEONICS ESCO Co., Ltd. McTricity Co., Ltd. Annex Power Ltd Process Engineering Services Co., Ltd. B W H (Thailand) Ltd. 34
Measures to promote solar energy Solar Community National Energy Policy committee resolution on July 16th,2013 => Joint project : MOEN + National Village & Urban Community Fund Office => Objectives - Encourage community participation - Job creation & generate incomes for community - Promote distributed RE power or Distributed Green Generation) Target for Community Scale Solar 800 MWp Village/Community Invest 60 Mbaht 1 Government Savings Bank 2 Bank for Agriculture and Agricultural Cooperatives Community Fund 15 Mbaht Loan from GSB 1 /BAAC 2 45 Mbaht 1 MW Supported period 25 yrs COD in December 2014 35
Measures to promote solar energy Solar Community FIT Rate for Community Scale Solar FIT (baht/kwh) 9.75 6.50 4.50 Project IRR : 13.6% Pay back period 6 yrs Year 1-3 => Loan payment ability Year 4-10 => Avg. income 2 MBaht/yr Year 11-25 => Avg. income 4 MBaht/yr Year * Supported period 25 yrs * COD in December 2014 3 10 25 36
Thank you for Your attention