The Role of Renewable Energy, Cogeneration and Distributed Generation in Sustainable Energy Development in Thailand Piyasvasti Amranand Chief Advisor to Energy for Environment Foundation World Renewable Energy Congress 2009 - Asia BITEC, Bangkok, Thailand 20 May 2009
CHP/DG has grown significantly in Thailand over the past 17 years G W h 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 Power Purchase from SPP/VSPP GWh % of system generation 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% % SPP/VSPP: regulations issued in 1993 SPP/VSPP: cogeneration or generation of power from RE Most SPP/VSPP are CHP/DG SPP: sale of excess power to grid 10-90 MW VSPP: sale of excess power to grid < 10 MW Direct sale without using utility s wires allowed 10% of national power supply is from SPP. But if direct sale is included, power generation from SPP/VSPP accounts for 16% of total electricity generation
SPP/VSPP in operation SPP/VSPP Projects in Operation Number Gen. Capacity Power Sale as of Dec. 2009 (MW) (MW) Cogeneration/Fossil fuels 28 2,741 1,676 Natural Gas 21 2,319 1,465 Coal 6 411 202 Oil 1 10 9 Non-conventional 145 1,269 621 Biomass 67 1,213 589 Bagasse 33 675 214 Rice Husk 14 107 88 Woodchips, Wood, Saw Dust 3 36 27 Palm Wastes 3 23 18 Black Liquor or mixture 2 108 75 Mixed Biomass and Others 12 265 166 Wastes 4 6.4 3.5 Biogas 24 26.22 19.5 Solar 45 1.8 1.8 Wind 1 0.08 0.08 Hydro 2 0.08 0.06 Others 2 21 8 SPP- Mixed fossil+non-conventional 4 476 233 Total Non-conventional 149 1,745 854 Grand Total 177 4,486 2,530
SPP CHP/DHC 61% of capacity is cogen using fossil fuels One District Cooling project (Suvarnabhumi airport Palm Wastes Glow SPP Industrial Cogen Suvarnabhumi airport
Measures to promote CHP/DG/RE Grants for R&D Grants for pilot projects Grants for feasibility studies Investment subsidy Soft loans ESCO Venture capital fund CDM Purchase of power from CHP/RE facilities (SPP & VSPP)
SPP & VSPP SPP (> 10 MW-< 90 MW) VSPP (< 10 MW) Current sale to grid 2,286 MW Total planned purchase 4,000 MW Current sale to grid 245 MW Fossil Fuel Renewable Renewable Fossil Fuel Cogeneration Cogeneration Competitive bidding for Adder to biomass normal tariff
ESCO Venture Capital Fund Energy Conservation Promotion Fund 500 Million Baht Fund Manager ESCO Fund Investment Committee 1. E for E (250 Million Baht) 2. ECFT (250 Million Baht) ESCO Venture Capital Carbon Credit Market Equity Investment Technical Assistance Equipment Leasing Credit Guarantee Facility
Price response by renewable energy is remarkable Projects Submitted Projects Approved Projects in Operation Gen. Gen. Gen. Number Power Sale Number Power Sale Number Power Sale สถานะ SPP/ VSPP ธ นวาคม 2008 Capacity Capacity Capacity (MW) (MW) (MW) (MW) (MW) (MW) Cogeneration/Fossil fuels 56 5,445 3,416 52 5,401 3,403 28 2,741 1,676 Non-conventional 1,324 10,101101 8,347 580 3,704 2,578 145 1,269 621 Biomass 376 4,335 2,822 181 2,426 1,422 67 1,213 589 Wastes 53 240 212 21 119 101 4 6 3 Biogas 109 222 189 78 121 101 24 26 19 Solar 659 3,030 2,864 279 932 856 45 2 2 Wind 115 2,247 2,239 10 78 78 1 0 0 Hydro 9 7 7 8 6 6 2 0 0 Others 3 21 14 3 21 14 2 21 8 SPP- mixed fossil+non-conventional 4 476 233 4 476 233 4 476 233 Total non-conventional 1,328 10,577 8,580 584 4,180 2,811 149 1,745 854 Grand total 1,384 16,021 11,996 636 9,581 6,214 177 4,486 2,530
Biomass has become a valuable commodity Potential for power generation: 4,400400 MW Target: 3,700 MW in 2022 Fuels: paddy husk, bagasse, woodchips, palm wastes, palm shell, palm branches,corn cob, straw, coconut fibre, black liquor SPP and VSPP projects in operation: 71 projects, generating capacity 1,689 MW, power sale to grid 822 MW. New projects: 309 projects with generating capacity of > 3,000 MW 9 MW rice husk power plant Woodchips becoming popular
Biogas: most popular method of waste water treatment Sources of waste water: farms (pig, chicken), industry (palm oil, sugar, ethanol, tapioca starch, rubber, other food processing) Potential: power 190 MW Target: 120 MW in 2022 VSPP biogas already in operation: 24 projects, generating capacity 26.2 MW, sale to grid 19.5 MW New VSPP projects: 85 projects, generating capacity 196 MW, sale to grid 169 MW Investment subsidy is also granted for non-vspp projects, particularly pig farms Many projects have been approved for CDM
Wastes to energy projects are finally moving Amount of municipal waste in Thailand per day: BMA 9,300 tons, municipal areas 12,500 tons, outside municipal areas 18,100 tons Potential for power generation: 320 MW Target for 2022: 160 MW Technologies: incineration, landfill, anaerobic digestion 1/3 of MSW is plastics which could be used to produce oil SPP and VSPP in operation: 4 projects with generating capacity of 6.4 MW New projects: 49 projects with generating capacity of 234 MW CDM could substantially improve economics Small non-vspp projects; biogas system using wastes form schools, hotels to replace LPG 1 MW landfill VSPP in Nakorn Pathom
Rapid growth in solar VSPPs? Current solar capacity: 32 MW, mainly off-grid Grid connected solar roof top: 32 projects in operation with generating capacity of 0.14 MW Solar farm: 3 projects in operation (EGAT+ 2 private) with total t generating capacity of 2.22 MW Target for 2022: 500 MW New solar VSPP: >600 projects with generating capacity of ~ 3,000 MW (solar cells + Concentrating Thermal Solar Power (CSP)) 1.5 MW solar farm in Bangpakong
Enormous wind potential in Northeast? Potential: 1,600 MW?? Target: 800 MW by 2022 Current generating capacity: 3.5 MW (EGAT, MoE) VSPP in operation: 1 project with generating capacity of 0.08 MW New projects: 114 projects with total generating capacity of 2,246 MW Sites for New Wind Farms Petchabun Nakornratchasima Chaiyaphum h Kalasin/Roi-ET Mukdaharn
Revival of mini and micro hydro projects Mini and micro hydro projects Mini and micro hydro: 72 projects, generating capacity 79 MW Existing irrigation dams: 6 projects, generating capacity 78.7 MW Potential: 700 MW Target: 327 MW in 2022 Large hydro projects outside Thailand Large hydro projects outside Thailand Power purchase from Lao PDR: 5,600 MW by 2017 After 2017: Myanmar 5,000 MW Hydro dams on Mekong: 2 potential projects with generating capacity of 3,530 MW. Likely to face insurmountable opposition
Adder from normal tariff (~ 2.0 2.5 baht/kwh) Unit: baht/kwh Original Adder New Adder (9/3/09) Special Adder for 3 Southern provinces or remote areas Duration (years) Biomass <=1MW 0.30 0.50 1.00 7 Biomass > 1MW 0.30 0.30 1.00 7 Biogas <=1MW 0.30 0.50 1.00 7 Biogas > 1MW 0.30 0.30 1.00 7 Wastes Landfill/anaerobic 2.50 2.50 1.00 7 digestion Wastes - Thermal Process 2.50 3.50 1.00 7 Wind <=50 kw 3.50 4.50 1.50 10 Wind > 50kW 3.50 3.50 1.50 10 Hydro 50-<200 kw 0.40 0.80 1.00 7 Hydro < 50 kw 0.80 1.50 1.00 7 Solar 8.00 8.00 1.50 10
New policy approved on 9 March 2009 will destroy RE initiatives Adder to be provided only to power sale within target. Minimum target automatically becomes ceiling Imposition of performance bond upon submission of projects Confusing definition iti of wastes Small biomass projects to receive higher adder are too large Adder for solar to be calculated on gross generation, but this only applies to roof top solar homes Higher adder for remote areas only given to areas currently using diesel by PEA MW Proposed Target Power Sale 2011 2012-2016 2017-22 Biomass 2,822 2,800 3,220 3,700 Wastes 212 78 130 160 Biogas 189 60 90 120 Solar 2,864 55 95 500 Wind 2,239 115 375 800 Hydro 7 165 281 324 This policy must be reviewed as soon as possible
Community Development Fund - moving too slowly Payment into Fund when in operation Fuel Type Baht/kWh Natural Gas 0.01 Fuel Oil and Diesel 0.015 Coal and Lignite 0.0202 Renewable Energies - Wind and Solar - - Biomass, MSW, Waste 0.01 - Hydro 0.02 Number of funds to be established: 102 Number of funds already established: 71 Number of funds being set up: 4 Money M already transferred: 1,656 million baht Estimate funds revenue in 2009: 1,822 m.baht
Energy Industry Act is powerful tool to promote ote CHP/DG/RE Establishment Energy Regulatory Commission (ERC) as an independent regulator of the electricity and natural gas supply industries Clear separation between authority of ERC and Energy Ministry ERC responsible for economic and technical regulations ERC consists of 7 member board for a term of 6 years Energy Industry Act became law on 11 December 2007 and commissioner appointments endorsed by the King on 1 February 2008 Interim regulation issued on 30 January 2008 for transition period Regulations are gradually being issued but far from complete
Licenses: generation/sale of power< 1,000 kva exempted Types of Licenses from ERC Maximum Duration (Years) Permit Fees (Baht/Facility) Annual Operation Fees Power Generation 25 5,000-50,000 5 Baht/kVA Power Transmission 30 50,000 2,500 Baht/km Power Distribution 30 50,000 1 Baht/kW Power Retail Business 15 50,000000 0.001001 Baht/kWh Power System Operation 30 50,000 20 M.Baht/Year Natural Gas Transmission 50,000 24,500 Baht/km Natural Gas Supply & Wholesale 20 50,000 0.05 Baht/MMBTU Natural Gas Retail/Distribution 50,000 0.05 Baht/MMBTU Natural Gas Storage & Regasification 50,000 5 Baht/Ton
Another 2,000 MW of CHP during 2009-18 is possible GWh 30,000 25,000 20,000 15,000 10,000 5,000 Power Purchase from SPP/VSPP under latest plan GWh % of system generation 14.0% Total sale to grid by CHP: 12.0% 4,000+2,000 = 6,000 MW 16.0% 10.0% 8.0% 6.0% 4.0% 2.0% % Growth in industry Availability y of natural gas supply in new locations Efficiency improvements by existing industry 0 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017 2019 2021 0.0%
RE Target is far too low: 8,000 MW RE capacity is possible 9,000 Proposed Power Purchase from SPP/VSPP RE 8,000 Original target: 5,604 MW in 2021 MW 7,000 6,000 5,000 4,000 3,000 Others Hydro Wind Solar Biogas Wastes Biomass 2,000 1,000 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
EfE s proposed power purchase from SPP/VSPP 70,000 Power Purchase from SPP/VSPP Cogen and RE SPP RE+VSPP (Proposed Addition) 60,000 SPP Cogen (Proposed Addition) SPP RE+VSPP (PDP Mar 2009) 50,000 40,000 SPP Cogen (PDP Mar 2009) SPP+VSPP Proposed addition GWh 30,000 Existing 20,000 10,000 PDP Mar 2009 0 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017 2019 2021
Decline in GHG emission from power sector under EfE s proposalp Carbon Dioxide Emission from Electricity Generation 150 150 Lower CO2 emission is due to 140 PDP 2007 (Mar 2009 adjustment) 140 Much higher RE and CHP Speed up of nuclear program 130 PDP 2007 (proposed adjustment to Higher hydropower 130 Mar. 2009) development in neighbouring countries 120 120 s M. Ton 110 110 M.Tons 100 90 80 100 90 80 Unclear national policy on global warming has caused wavering support for RE and nuclear 70 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 70