1. Thailand’s Renewable Energy Policy & Investment Opportunity
Prasert Sinsukprasert
Ministry of Energy
Thailand
19, March 2013

2. Content 1. 2. 3. Thailand’s Energy Situation and Energy policy
Alternative Energy Development Plan (AEDP)
Measure for RE Promotion 1. 2. 3.

3. Power Development Plan
1. Energy policy and
Power Development Plan

4. Thailand’s Energy situation in 2012
Total Energy Consumption in 2012 = 73,316 ktoe
Total Energy Use
2.0 million barrels
(oil equivalent) per day =
2.1 trillion baht
Energy import value in = 1.12 trillion baht

5. Thailand’s Energy Supply by source
Thailand’s Energy Situation in 2012
Thailand’s Energy Supply by source
Total Energy Use 1.98 million barrels (oil equivalent) per day NG
Thailand main energy source are natural gas.
More than 70% of consumption is in transportation and industrial sectors.
Thailand relies heavily on imported energy
Hydro
Coal
Source : Energy Policy and Planning Office

6. Thailand’s Energy Situation in 2012
Proportion of Import and Domestic Production
Import Value
(billion baht)
Total Energy Import Value of 1,125 billion baht
Import 85% of oil consumption
Import 56% of overall energy demand

7. 1. Thailand’s Energy Situation in 2012 Thai Energy Challenges
Increased and fluctuated world oil price
Limited petroleum reserved  needs to import 85 % of supply
70% of electricity supply depends on Natural Gas
Lacking of public agreement on Energy projects
 affects long term energy security
ประเด็นท้าทายด้านพลังงาน นอกจากความมั่นคงเป็นหลักแล้ว ยังคงต้องพิจารณาประเด็นท้าทายด้านอื่นๆที่เกี่ยวเนื่องด้วย
เช่น ราคาน้ำมันที่มีความผันผวนสูง
การมีปริมาณสำรองภายในประเทศที่ต่ำทำให้พึ่งพาการนำเข้าที่สูงมาก
ความเสี่ยงจากการใช้เชื้อเพลิงเช่น ก๊าซธรรมชาติมากเกินไปในการผลิตกระแสไฟฟ้า เนื่องจากก๊าซธรรมชาติต้องการท่อส่ง หากท่อได้รับผลกระทบ
จากเหตุการณ์ใดที่ไม่คาดคิดก็ตามอาจส่งผลให้เกิดการขาดแคลนไฟฟ้าได้
และปัญหาของการไม่ยอมรับของประชาชน

8. Renewable energy Plan & Policy
11th National Economic and Social Development Plan
Balance of Food and
Energy Security
Sustainable Management of Natural Resources & Environment
Develop Natural Resource to Strengthen Agricultural Base
Enhance Agricultural Productivity & Value creation
Enhance Food & Bio-energy security & Biomass -- at Household & community Level
Develop Bio-Energy Security
Improve Agricultural Management to Food & Energy Balance
Shifting Development paradigm towards
Low-Carbon Society

9. Renewable energy Plan & Policy Thailand’s Energy Policies
Enhance Energy-related Industries
& Business to be next generation value creator
Secure Thailand Energy supply
Fair Energy Pricing
Target Energy Intensity reduction by 25% within 20 years (based on 2010 level)
Up-scaling RE mix to 25% in 10 years
Prime Minister
Yingluck Shinawatra

10. 2. Alternative Energy Development Plan (AEDP)

11. Renewable energy potential
RE Potential
wind
Biomass
& biogas
Solar
Ethanol
& biodiesel
Natural
Solar
Hydro
Wind
Crop
Sugar cane (Molasses)
Cassava
Palm
Waste
Agricultural
Industrial
Municipal solid
waste (MSW)
Salween river
= 15,000 MW
Khong river
= 10,000 MW
*Total realisable potentials for RE in ASEAN-6 countries
, by technology to ; IEA 2010

12. Current RE Share of 9.9% (March 2013)
Alternative Energy Development Plan (AEDP)
Committed to the development
of low-carbon society
Government Funding
On R & D & D
Activities
Private-Led
Investment
10 years Alternative Eergy-Development Plan (AEDP-Master Plan )
Target 25 % of RE in Total Energy Consumption
By 2021
New energy
Ocean & Tidal
Geothermal
2 MW
1 MW
3 MW
solar
wind
2,000 MW
1,200 MW
3,200 MW
Hydro power plant
Small
Micro
Pumped-Storage
324 MW
1,284 MW
1,608 MW
Bio-energy
biomass
Bio-gas
MSW
3,630 MW
600 MW
160 MW
4,390 MW
Biofuels
Ethanol
Bio-diesel
2nd –Gen. 9
ML/day
5.97 25
Renewable fuel 44%
Current RE Share of 9.9% (March 2013)

13. Trend and Opportunities
10 yrs AEDP Target
Proposed Capacity
Over-Subscribed
Solar
2,000 MW
3, MW
160%
Potential Area
Approved and Waiting for PPA
Under consideration
Signed PPA
Already sell to the grid MW
4.22 MW
1, MW MW
Within 4 yr.
Solar community
400 MW
In the
Future
Solar Rooftop+
comminity
1,000 MW within10 yr
Promote Small system project at household level ex. solar PV rooftop ,
Feed-in Tariff system (FIT) - is not yet approved by the NEPC.
PV Recycle & Building code
supporting 13

14. Trend and Opportunities
Wind
10 yrs AEDP Target
Present Generating Capacity
1,200 MW MW
Trend & Opportunities
Promoting community collaboration
Database management ex. Micro-scale
wind map
Request on Land Utilization by regulations of Ministry of Natural Resource & Environment
Asking for exempt of 1-B area for Private sector project
SW Wind
4 months/yr
NE Wind
8 months/yr 14

15. Trend and Opportunities
10 yrs AEDP Target
Hydro
Power
Present Generating Capacity
1,608 MW MW
Generate
hydro power
at Village level
Very small power plant 48 projects
1,807 KW
Non-electrified household (Off-Grid)
Solving barriers
in sensitive / conserved area (1-B)
Support
construction at
community level
Small hydro power plant
22 projects MW
Local Admin Organization/people collaboration project owner
DEDE & EGAT develop small hydro power system of downstream irrigation dam

16. Trend and Opportunities
AEDP Target
Current Capacity
Bioenergy
1, MW
3,630 MW
Biomass
Promote “Distributed Green Generation”
Promote Planting Fast Growing Trees
Extending transmission & distribution lines
AEDP Target
Current Capacity MW
600 MW
Biogas
Promote biogas production in household level
Promote “CBG” Compress Bio-Methane Gas
Biogas Safety Campaign
AEDP Target
Current Capacity
42.72 MW
160 MW
Municipal solid waste
Promote MSW in medium/small size Local Admin Organization
Speed up private sector for co-working or implementing government WTE projects
Promote “RDF” Refuse-Derived Fuel 16

17. Trend and Opportunities Gasoline blended (Gasohol)
Biofuel status : Ethanol
Molasses
Cassava
AEDP Target
2021
Ethanol uses
9×106 L/day
2.1 ×106 L/day
Current level
62.8%
Market share ….
And Counting
Gasoline blended (Gasohol)
For the past few years, we have made quite a progress on biofuel in ground transportation front.
We introduced ethanol that made from molasses and cassava to be mixed with fossil gasoline to form gasohol.
Now we use about 1.24 million liter of ethanol or million liter of gasohol per day.
At present, we have 3 grade of gasohol, E10, E20 and E85.
The number behind the E denoted the ratio of ethanol in the fuel.
Collectively, they take about 55% of market share of gasoline based family.
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

18. Trend and Opportunities There are 64 E85 gas stations
Ethanol Demand policies
Phase out ULG 91 (Jan.2013)
Promote E10 uses in Motorcycle
E20 cars since ~1 million cars
Promote E20 awareness
 E20 gas stations coverage
 E20 price competitiveness
E20 gas stations
and counting
1,234
From the pie-chart of fuel consumption share in 2010, it is clear that E10 is already well accepted by car users both at octane 95 and octant 91. By October of this year, once we terminate the sale of gasoline octane 91 or ULG 91, we are certain that large portion of current ULG91 users will turn toward E10 as well as motorcycle users due to price advantages.
To promote E20 usage, first step is to increase E20 awareness among the drivers of approximately 1 million E20 cars. Simultaneously, we will keep E20 price competitiveness while encouraging increase in E20 gas stations coverage, which are now more than 700 stations.
As for E85, apart from the same tactics as E20, E85 needs more supports on the vehicle side. Because of its higher concentration of ethanol, normal cars can not readily use E85.
Currently, there are 4 models of Flex fuel vehicles or FFV in Thailand. We are hoping to get support from the Excise department to give more tax incentives for FFV cars.
To boost E85 consumptions from the existing non-FFV cars, we will work on testing FFV conversion kit, which allows current cars to run on E85, to make sure that it works properly. Additionally, we are also running tests on E85 uses in motorcycles as well.
Promote E85 awareness
Vehicles
Flex fuel vehicles (FFV) incentives
Evaluate FFV conversion kits
Evaluate E85 uses in motorcycles
Fuel access and price
 E85 gas stations coverage
 E85 price competitiveness
There are 64 E85 gas stations
There are 52,113 FFV cars
Source : Department of Energy Business, Ministry of Energy

19. Trend and Opportunities
Biodiesel
Palm Oil
AEDP Target
2021
Current level
Biodiesel uses
5.97×106 L/day
2.7×106 L/day
Current level
Average B100 daily production
To replace diesel, we used biodiesel from our natively grown oil palm. The goal for AEDP plan is that we will use 5.97 million liter of biodiesel daily.
We are now reaching toward 3 Million liter of day as a results of our recent mandate that every liter of diesel sold in gas station contains 5% of biodiesel.
This graph show the average biodiesel B100 used daily in each quarter from
Interesting facts
Thailand is the only country that mandate biodiesel mixed in every liter of diesel sold, normally at 5% since 2012
Registered capacity = 5.21 ML/day

20. 3. Measure for RE Promotion

21. “Adder” : Feed-in Premiums “Feed-in-Tariff system”
Technology based premiums
More incentives for smaller projects
Fuel
Adder
(Baht/kWh)
VSPP SPP
Adder-VSPP
(USD Cents /kWh)**
Special
adder *
Supporting period
(Year)
Biomass
- Installed capacity <= 1 MW
- Installed capacity > 1 MW
0.50
0.30
Bidding
1.54
0.93
1.00 7
Biogas (all categories of production sources)
- Installed capacity <= 1 MW
- Installed capacity > 1 MW
Waste (community waste, not hazardous industrial waste, and inorganic waste)
- AD &b LFG
- Thermal Process
2.50
3.50
7.72
10.81
Wind power
- Installed capacity <= 50 kW
- Installed capacity > 50 kW
4.50
13.89
1.50 10
Mini and micro hydropower
- capacity kW
- capacity < 50 kW
0.80
-No-
2.47
4.63
Solar power
8.00/6.50
24.70
Now EPPO
is studying
to adjust the Adder
to be
“Feed-in-Tariff system”

22. Tax Incentives by Board of Investment : BOI
Import duty exemption
8-year income tax holidays
Another 5 years
(9th-13th yr)
Provide capital cost grants
Adder and soft loans
A provision for a 50% tax reduction
Advantages for investors
Thailand leads strong policy support for RE comparing to other
countries in the region
Successful implementation of VSPP+SPP
Offered the highest financial and non-financial support to RE projects
Economy growth estimated to have grown at 5-6% per year
China has emerged as the fifth largest overseas investor in the ASEAN 22

23. Co-Investing Scheme : ESCO Fund Investment Promotion Scheme
Energy Conservation
Promotion Fund
ESCO Venture Capital
Investors
Equity Investment
Equipment Leasing
Investment Committee
Carbon Market
Technical Assistant
Credit Guarantee Facility
Fund Manager
mil.B allocated from Gov’s ENCON FUND
2 Fund Managers assigned & given 3 years window of investment
Equity Investment 10-50% equity holding, Max. 50 mill. B./project , Investment period 5-7 years
Equipment Leasing 100% of total cost with max. 10 mill. B. Maximum leasing period 5 years
As of now, 54 projects invested with total investment of 6.1 billion Bt.(510 mill. B. from ESCO Fund)
Total Energy saving of 1.06 billion B.

24. Technical Assistances
Maps
Tech. Catalogues
1-Stop Service
Solar Map
Wind Map

25. Thank you for Your attention

26. Back Up Sheets

27. Thailand’s RE Private Power Producers
SPP : Small power producer
VSPP : Very small power producer
≤10 MW sold to MEA or PEA
can be - renewable energy
- Cogeneration
Incentive in the past : Net metering (Fuel saving
, Renewable energy promotion , Adder)
Aims to promote local resource consumption/ waste to
energy
 MW sold to EGAT with any installed
capacity
can be - renewable energy
- Cogeneration
Connection point : any EGAT, MEA or PEA
system.
Needs Environmental Impact Assessment (EIA)
Firm
Non-firm
≥ 5 years contract (20–25 yrs.)
can be - Combustible fuels form
- Residue Energy
Price structure = capacity payment + energy payment
+ fuel saving + renewable promotion
+ Adder
less than 5 years contract
can be - Combustible fuels form
- Residue Energy
- non-conventional energy
ex. Wind turbine , Solar , Mini hydro
Price structure = Wholesale kV
+ Ft + Adder

28. Electricity purchasing process
Step 1
Preparing all documents
and permission before
starting the project
( days)
Feasibility study
Licensing for Juristic person
/ Company limited
Licensing for energy
production and
grid connection
Power plant design
Licensing for
industry operation
Granting of permission
under land use and
building control law
Signing contact with
the authorities
Step 2
Constructing the power plant
(60-90 days)
To construct the power plant
and install equipment
Step 3
Checking the system
(15 days)
Licensing for
regulated energy
production
Licensing for the energy
industry operation
License
submission
Step 4
Guarantee by the authorities
and COD
(60 days)
System checking and
quality control report
by the authorities
Commercial operation date (COD)
Step 5
Starting the system
and
connecting to the grid
(90 days)
Max. total = 435 days
Issuing
receipt
Payment by
the authorities

29. AEDP targets and Current Situations
Types
Units
Goal
2021
Current Capacity
Feb 2013
Electricity MW
ktoe
9,201
2,786
Solar
2,000
376.72
Wind
1,200
111.73
Small Hydro
1,608
101.75
Biomass
3,630
1,959.95
Biogas
600
193.40
MSW
160
42.72
Heating
Ktoe
9,335
4,882
100
4.0
8,200
4,342
1,000
458 35 78
Biofuel
ML/day
39.97
Ethanol 9
1.6
Biodiesel
5.97
2.7
Total RE (ktoe)
7,290.1
Now 9.9% of RE in Total Energy Consumption

30. PDP2010 Rev#3 (2010-2030) PDP2010 Rev3 Renewable energy power plants
- power purchase from domestic (9,481)
- power purchase from neighboring countries (5,099)
Cogeneration
Combined cycle power plants
Thermal power plants
- coal-fired power plant (4,400)
- Nuclear power plant (2,000)
- Gas turbine power plant (750)
- Power purchase from neighboring countries (1,473)
14,580
6,476
25,451
8,623
Unit : MW
PDP2010
Rev3
Comprising total capacity (Dec.2011)
Total added capacity
Deduction of the retired capacity
Grand total capacity
32,395
55,130
16,839
70,686
Classification of added capacity during of 55,130 MW

31. Power Generation by Plant Type
เมกะวัตต์
Thermal
Renewable Energy
Combined cycle
Cogeneration
24%
23%
18%
19%
20%
17%
47%
44%
49%
48%
46%
43%
41%
39%
37%
38%
42% 7%
10%
11%
12%
13%
21%
25%
27%
28%
30%
29%
PDP2010 : Rev#3 ( ) MW

32. Power Generation by Fuel Type
Million Unit
65%
66%
68%
67%
64%
63%
62%
61%
59%
60%
57%
55%
56%
58% 9% 8%
10%
11%
12%
13%
18%
15%
16% 2% 4% 5%
14% 7%
PDP2010 : Rev#3 ( ) RE
Natural
Gas
Imported Coal
Lignite
Nuclear

33. Thailand Power Development Plan
(PDP2010 Rev#3)
Major Assumptions
Load Forecast
- By Thailand Load Forecast formulated by Ministry of Energy
System Security
- Reserve Margin : 20%
Future electricity acquiring
- Fuel diversification to reduce dependence on natural gas
Electricity acquiring from Renewable Energy
- 10-year Alternative Energy Development Plan
Electricity acquiring from nuclear power plant
- SCOD of the first unit project from
Electricity acquiring from coal power plant
- development in appropriate proportion , focus on clean coal technology
Foreign power purchase
- 15% of total generating capacity
Efficient power generation by Cogeneration system
Target of CO2 Emission from power sector

34. Trend and Opportunities
1 MW
AEDP Target
New RE
Geo-Thermal
Geo-thermal in Northern part of Thailand (Chiang Mai)
2 MW
AEDP Target
Tidal
Phuket island
Samui island
Promote Material Research
Researches on Vanadium Redox Flow & Lithium-ion Battery
R & D 34