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

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Presentation on theme: "1 19, March 2013 Prasert Sinsukprasert Ministry of Energy Thailand Thailand’s Renewable Energy Policy & Investment Opportunity."— Presentation transcript:

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

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

3 1. Energy policy and Power Development Plan

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

5 Thailand’s Energy Supply by source Source : Energy Policy and Planning Office 5 Total Energy Use 1.98 million barrels (oil equivalent) per day Thailand’s Energy Situation in 2012 NG Hydro Coal

6 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 7  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 Thai Energy Challenges 1. Thailand’s Energy Situation in 2012

8 Renewable energy Plan & Policy 11 th National Economic and Social Development Plan Sustainable Management of Natural Resources & Environment Balance of Food and Energy Security  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 Prime Minister Yingluck Shinawatra  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

10 2. Alternative Energy Development Plan (AEDP)

11 11 Renewable energy potential *Total realisable potentials for RE in ASEAN-6 countries, by technology to 2030 ; IEA 2010, by technology to 2030 ; IEA 2010 wind Biomass & biogas Solar Ethanol & biodiesel Salween river = 15,000 MW Khong river = 10,000 MW Natural Solar Hydro Wind Crop Sugar cane (Molasses) Cassava Palm Waste Agricultural Industrial Municipal solid waste (MSW) RE Potential

12 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 solarwind 2,000 MW 1,200 MW 3,200 MW Bio-energy biomass Bio-gas MSW 3,630 MW 600 MW160 MW 4,390 MW Hydro power plant Sm all Mi cro Pumped- Storage 324 MW 1,284 MW 1,608 MW New energy Ocean & Tidal Geothermal 2 MW1 MW 3 MW Biofuels Ethanol Bio- diesel 2 nd –Gen. Biofuels 9 ML/day 5.97 ML/day 25 ML/day Renewable fuel 44% Current RE Share of 9.9% (March 2013) Alternative Energy Development Plan (AEDP)

13 13 Trend and Opportunities Solar 2,000 MW 10 yrs AEDP Target 3, MW Proposed Capacity 160% Over-Subscribed 1, MW MW Already sell to the grid Signed PPA Approved and Waiting for PPA 4.22 MW MW Under consideration 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 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 Potential Area In the Future Solar community 400 MW Within 4 yr. 1,000 MW within10 yr Solar Rooftop+ comminity

14 14 Trend and Opportunities Wind 14 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 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 mont hs/yr NE Wind 8 month s/yr 1,200 MW 10 yrs AEDP Target MW Present Generating Capacity

15 15 Trend and Opportunities Hydro Power Hydro Power 1,608 MW 10 yrs AEDP Target MW Present Generating Capacity Generate hydro power at Village level Very small power plant 48 projects 1,807 KW Non-electrified household (Off-Grid) Support construction at community level Small hydro power plant 22 projects 43.3 MW Local Admin Organization/people collaboration project owner DEDE & EGAT develop small hydro power system of downstream irrigation dam Solving barriers in sensitive / conserved area (1-B)

16 Trend and Opportunities 1, MW 3,630 MW 16 Bioenergy AEDP TargetCurrent Capacity Biomass Promote “Distributed Green Generation” Promote Planting Fast Growing Trees Extending transmission & distribution lines MW 600 MW AEDP TargetCurrent Capacity Promote biogas production in household level Promote “CBG” Compress Bio-Methane Gas Biogas Safety Campaign Biogas MW 160 MW AEDP TargetCurrent Capacity 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 Municipal solid waste

17 17 Ethanol uses 9×10 6 L/day Ethanol uses 2.1 ×10 6 L/day AEDP Target 2021 Current level Molasses Cassava 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 Biofuel status : Ethanol Trend and Opportunities

18 18 Source : Department of Energy Business, Ministry of Energy Phase out ULG 91 (Jan.2013) Promote E10 uses in Motorcycle Promote E20 awareness  E20 gas stations coverage  E20 price competitiveness E20 gas stations and counting E20 cars since 2008 ~1 million cars Promote E85 awareness There are 64 E85 gas stations Fuel access and price  E85 gas stations coverage  E85 price competitiveness Vehicles Flex fuel vehicles (FFV) incentives Evaluate FFV conversion kits Evaluate E85 uses in motorcycles There are 52,113 FFV cars Ethanol Demand policies Trend and Opportunities

19 19 Current level Biodiesel uses 5.97×10 6 L/day Biodiesel uses 2.7×10 6 L/day AEDP Target 2021 Current level Palm Oil 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 Average B100 daily production Biodiesel Trend and Opportunities

20 3. Measure for RE Promotion

21 21 “Adder” : Feed-in Premiums – Technology based premiums – More incentives for smaller projects Fuel Adder (Baht/kWh) VSPP SPP Adder-VSPP (USD Cents /kWh)** Special adder * (Baht/kWh) Supporting period (Year)  Biomass - Installed capacity <= 1 MW - Installed capacity > 1 MW Bidding  Biogas (all categories of production sources) - Installed capacity <= 1 MW - Installed capacity > 1 MW Bidding  Waste (community waste, not hazardous industrial waste, and inorganic waste) - AD &b LFG - Thermal Process  Wind power - Installed capacity <= 50 kW - Installed capacity > 50 kW  Mini and micro hydropower - capacity kW - capacity < 50 kW No  Solar power8.00/ Now EPPO is studying to adjust the Adder to be “Feed-in- Tariff system”

22 Import duty exemption8-year income tax holidays A provision for a 50% tax reduction Another 5 years (9 th -13 th yr) Provide capital cost grants Adder and soft loans 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 Tax Incentives by Board of Investment : BOI

23 23 Co-Investing Scheme : ESCO Fund Investment Committee ESCO FUND Co-Investing & Investment Promotion Scheme Co-Investing & Investment Promotion Scheme Fund Manager Investors ESCO Venture Capital Equity Investment Equipment Leasing Carbon Market Technical Assistant Credit Guarantee Facility – 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. Energy Conservation Promotion Fund

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

25 Thank you for Your attention

26 Back Up Sheets

27 27 Thailand’s RE Private Power Producers SPP : Small power producer VSPP : Very small power producer   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)  ≤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 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 28 Electricity purchasing process Power plant design Licensing for Juristic person / Company limited Licensing for Juristic person / Company limited Licensing for industry operation Licensing for industry operation Granting of permission under land use and building control law Granting of permission under land use and building control law Licensing for energy production and grid connection Licensing for energy production and grid connection Signing contact with the authorities Signing contact with the authorities To construct the power plant and install equipment To construct the power plant and install equipment Licensing for regulated energy production Licensing for regulated energy production Licensing for the energy industry operation Licensing for the energy industry operation Commercial operation date (COD) Issuing receipt Issuing receipt Payment by the authorities Payment by the authorities Step 1 Preparing all documents and permission before starting the project ( days) Step 1 Preparing all documents and permission before starting the project ( days) Step 2 Constructing the power plant (60-90 days) Step 2 Constructing the power plant (60-90 days) Step 3 Checking the system (15 days) Step 3 Checking the system (15 days) Step 4 Guarantee by the authorities and COD (60 days) Step 4 Guarantee by the authorities and COD (60 days) Step 5 Starting the system and connecting to the grid (90 days) Step 5 Starting the system and connecting to the grid (90 days) Max. total = 435 days Feasibility study License submission License submission System checking and quality control report by the authorities System checking and quality control report by the authorities

29 TypesUnitsGoal 2021 Current Capacity Feb 2013 ElectricityMW ktoe 9,2012,786 SolarMW2, WindMW1, Small HydroMW1, BiomassMW3,6301, BiogasMW MSWMW HeatingKtoe9,3354,882 SolarKtoe BiomassKtoe8,2004,342 BiogasKtoe1, MSWKtoe3578 BiofuelML/day Ktoe EthanolML/day91.6 BiodieselML/day Total RE (ktoe)7,290.1 AEDP targets and Current Situations Now 9.9% of RE in Total Energy Consumption 3

30 PDP2010 Rev#3 ( ) 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 PDP2010Rev3 Comprising total capacity (Dec.2011) Total added capacity Deduction of the retired capacity Grand total capacity 32,395 55, ,839 70,686 Classification of added capacity during of 55,130 MW

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

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

33 Thailand Power Development Plan (PDP2010 Rev#3) Major Assumptions 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 34 New RE AEDP Target Geo- Thermal Geo-thermal in Northern part of Thailand (Chiang Mai) 2 MW AEDP Target Phuket island Samui island Tidal Promote Material Research Researches on Vanadium Redox Flow & Lithium-ion Battery R & D


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