1. Alternative Energy Development Plan (2008 – 2022), Medium - and Long – term Investment Plan and the Role of the Private Sector Mr. Rangsan Sarochawikasit Executive Director, Bureau of Energy Research Department of Alternative Energy Development and Efficiency, Ministry of Energy 15 July 2009
Presented to
Climate Financing: Clean Technology Fund (CTF) and the Role of the Private Sector Workshop

2. Alternative Energy Development Plan
( )
Objectives
To utilize alternative energy as a major energy supply of the country for replacing oil import,
To increase energy security of the country,
To promote an integrated green energy utilization in communities,
To enhance the development of alternative energy technology industry ,
To research, develop and encourage high efficiency alternative energy technologies.
Goal “To increase a share of alternative energy mixed to be 20% of the country final energy demand in the year 2022”

3. Measures Alternative Energy Development Plan; AEDP (2008 - 2022)
ESCO Fund
CDM
Target 5,608 MW
Existing 1,750 MW
Measures
BOI /
Revolving Fund
Adder cost 3,858 MW Biomass / Biogas / MSW Mini-Hydroo / Wind / Solar /Hydrogen
Power
2.4%
Adder cost
R&D
Target 7,433 ktoe
Existing 3,007 Ktoe
Process Heat
7.6%
6.4%
15.6%
19.1%
20.3%
Ethanol
Target MLPD
Existing MLPD
Biodiesel
Target MLPD
Existing MLPD
Hydrogen
Target Million ks.
Bio fuel
4.1%
Target 19,800 ktoe
Currency Saving 461 Billion Baht
GHG reduction 42 Million Tons
6.2%
Target mmscfd
(6,090 ktoe)
Existing 108 mmscfd
NGV
2008
2011
2016
2022
As of Jan 2009

4. Overview of Alternative Energy Development Plan; AEDP
Short term (2008 – 2011)
Emphasis on promotion of commercial alternative energy technologies and high potential energy sources such as biofuels, co-generation from biomass and biogas with fully supports from measures provided.
Mid term (2012 – 2016)
Focus on development of alternative energy technology industry, encourage new alternative energy R&D to achieve economic viability including new technologies for biofuels production and introduce a model development of Green City to communities for sufficient economy and sustainability development.
Long term (2017 – 2022)
Enhance utilization of new available alternative energy technologies i.e. hydrogen, bio hydrogenated (BHD), extend green city models throughout Thai communities and encourage to be hub of biofuel and alternative energy technology exports in ASEAN regions.

5. RE Potential and Target5 5 5

6. Alternative Energy Development Plan; AEDP (2008 - 2022)
Key Success Factors
Subject RE as a “National Agenda”.
Government continuously and strongly support RE, especially, Incentive of BOI, ESCO Fund, Revolving Fund and adder cost.
Government provides infrastructure for the RE expansion.
Revise of the obstructive legislation.
Fully allocate the budget for research, development, demonstration, dissemination and public relation of RE.
Accessibility of RE data, e.g. Potential and raw material management.
RE technology standards. 6 6

7. Alternative Energy Development Plan; AEDP (2008 - 2022)
Output and Outcome
(1) Economics aspect
Currency saving on energy import 460,000 M฿/year within 2565
Increase investment of private sector 382,240 M฿
Creates 40,000 clean and new jobs.
Opportunity to earn 14,000 M฿/year form Carbon Credit trading.
Delay the construction of new fossil fuel power plant 3,800 MW (equivalent to 100,000 M฿)
Create Country's incomes by exporting biofuels, RE technologies (Gasification, biogas fermentation system).
(2) Social aspect
Migration mitigation due to job creation in rural areas.
Extra income to farmers.
Improve quality of life for Thai people.
(3) Environmental aspect
Low Carbon Society to mitigate the global warming. 7 7

8. Measures for RE promotion
1. BOI Privilege: waive import duty on equipment and income corporate taxes; 2. Adder cost of power generation from RE.
SPP
(> 10 MW-< 90 MW
VSPP
(< 10 MW)
1,600 MW
Cogeneration
Renewable
Quotation 1,030 MW
500 MW
530 MW
Promotion
Fixed Adder cost
Cogeneration
Renewable
Adder cost for Renewable power producers by term of support 7 years and 10 years for power generation from wind and solar;
*special cost in 3 provinces in Southern of Thailand
SPP
115
3.50
Wind 15
8.00
Solar
0.30
2.50
Adder (Baht/kWh)
300
Other Renewable
100
MSW
530
Total
Capacity
(MW)
Type
Fixed
Bidding
Fuel
฿ /kWh
Special*
Biomass
0.30 – 0.50
Biogas
Mini-Hydro ( kW)
0.80
Micro-Hydro (< 50 kW)
1.50
MSW
2.50 – 3.50
Wind
Solar
8.0

9. Measures for RE promotion
Project feature: set up fund to joint capital promote investment in energy conservation and renewable energy development projects
3. Revolving Fund with 4% interest rate & 7 years of payment term;
4. Encourage RE project to be CDM project;
5. ESCO Venture Capital
Investor
Technical Assistance
ESCO Venture Capital
Equipment Leasing
Carbon Market
Equity Investment
Credit Guarantee Facility
Energy Conservation Promotion Fund
ESCO Fund
Investment
Committee
Results
1. Stimulate investment energy conservation & renewable energy development with total value > 2,500 million ฿ /year
2. Provide energy conservation & renewable energy development with total value > 500 million ฿ /year
Budget year
500 million Baht
Financial support
Status: Be in action
Fund manager
EFE
ECFT

10. Adder Cost approved by the Cabinet on 24th March, 2009
Fuel Types / Size
Adder
(Baht/kwh)
Extra Adder1
Extra Adder2
Period
(Years)
1. Biomass
Capacity ≤ 1 MW
0.50
1.00 7
Capacity > 1 MW
0.30
2. Biogas
3. MSW
AD / Land Fill Gas
2.50
Thermal Process
3.50
4. Wind Energy
Capacity ≤ 50 kW
4.50
1.50 10
Capacity > 50 kW
5. Mini Hydro
Capacity 50 kW - < 200 kW
0.80
Capacity < 50 kW
6. Solar PV
8.00
1 USD = 35 THB
2 = For 3 Southern Provinces
Notes 1 = Electricity from Renewable Energy for diesel oil replacing

11. AEDP and Private Investment
(million THB)
Short - term
Medium - term
(12 – 16)
Long – term
( )
Total
2009
2010
2011
Solar
1,045
695
4,726
56,159
63,320
Wind
280
2,800
4,900
18,200
29,750
55,930
Biomass
21,925
20,340
35,050
45,510
30,640
153,465
Biogas
3,600
4,125
4,500
6,750
9,000
27,975
Municipal Solid Waste
1,350
6,600
4,000
7,800
24,250
Ethanol
770
3,850
4,620
15,400
13,860
38,500
Biodiesel
3,500
6,020
4,340
1,440
18,800
32,470
41,910
59,785
134,165
102,726
145,349
382,240 11 11

12. 17 Rama 1 Road, Patumwan Bangkok 10330
Department of Alternative Energy Development and Efficiency (DEDE) Ministry of Energy
17 Rama 1 Road, Patumwan Bangkok 10330