Energy Policy and Planning Office The Energy Conservation Promotion Fund for Developing RE Projects in Thailand Pinnara Premcharoen Policy and Plan Analyst Energy Policy and Planning Office (EPPO) Ministry of Energy, Thailand The Expert Group in New & Renewable Energy Technology Meeting on May 12-13, 2004 at the Hyatt Resort & Spa in Hawaii, USA

Energy Policy and Planning Office 2 Contents The Energy Conservation Promotion Fund (ENCON Fund) Samples of successful cases of RE projects funded by the ENCON Fund as follows: - Project on Promotion of Small Power Producers Using Renewable Energy - Project on Promotion of Biogas Production in Livestock Farms-Part I: Medium and Large-Scale Farms, Phase 1-3

Energy Policy and Planning Office 3 The ENCON Fund Established in 1995 Revenues derived from the premium rate of 0.04 Baht/litre imposed on gasoline, diesel, kerosene and fuel oil domestically sold channeled to support a wide range of projects on RE and EE Support can be in the form of financial assistance or subsidy for the project expenditure, divided into two parts: project management and funding for project participants Request for financial assistance can be made by government agencies, state enterprises, educational institutions and non-profit organizations. But private institutions can receive financial support as project participants

Energy Policy and Planning Office 4 Promotion of SPPs Using Renewable Energy Original SPPs Program introduced in 1992 Objectives: – To promote greater private sector participation in power generation – To promote use of indigenous and renewable energy resources – To promote more efficient use of energy – To reduce government ’ s investment burden SPPs = Cogeneration & Renewable – Cogen: Efficiency >45% and steam >10% – Renewable: May use up to 25% commercial energy Sale into EGAT ’ s transmission system not greater than 90 MW

Energy Policy and Planning Office 5 Promotion of SPPs Using Renewable Energy To enhance the “Regulation for the Purchase of Power from Small Power Producers: SPPs” so as to invite energy developers to invest in SPPs using non- conventional energy, this project was introduced in 2001 A budget of 3,060 million baht allocated from the ENCON Fund, Target: 300 MW capacity To subsidize on energy payment provided on top of the power purchasing rate stipulated by EGAT, 0.36 Baht per kWh for a period of up to 5 years Selection process: Tender compliance verification, Technical and Commercial assessment, Competitive bidding

Energy Policy and Planning Office 6 Promotion of SPPs Using Renewable Energy Implementation: – As of December 2003, 37 out of 43 proposals of RE power generation had been provisionally approved, pending compliance with other requirement, e.g. hearing process – 20 proposals was finally approved by the EPPO, with a total proposed sale capacity of 242.3MW Expected Benefits: - The local communities realize the importance of RE use in the power generation and have positive attitude towards RE SPPs. Hence, they develop their agricultural land to be vital renewable energy resources. - CO 2 emission will be reduced approximately 1,290,000 tons/yr

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8 Project on Promotion of Biogas Production in Livestock Farms- Part 1: Medium and Large- Scale Farms, Phase 1-3 An extension of the Thai-German Biogas Project that Chiangmai Univesity collaborated with the Department of Agricultural Extension, Ministry of Agriculture and Cooperatives of Thailandt and GTZ (German Agency for Technology Cooperation)during Objectives: – To promote the construction and installation of biogas system in livestock farms – To control pollution caused by wastewater disposed from livestock farms – To accelerate conversion of manure into organic fertilizer – To reduce discharge of methane gas which causes the greenhouse effect – To boost the national potential in developing and transferring renewable energy technology – To increase employment opportunities triggered by biogas production (e.g.construction work, material & equipment manufacturing, production system control)

Energy Policy and Planning Office 9 Project on Promotion of Biogas Production in Livestock Farms- Part 1: Medium and Large- Scale Farms, Phase 1-3 Implementation: - The project has been divided into 3 phases covering 12 yrs (Oct 1995-Sep 2007) - Phase 1-2: installing of a total 56,000-cubic-meter- biogas system, with a potential to accommodate wastewater and manure from pig farms, equivalent to 336,000 fattening pigs - Phase 3: installing of an additional capacity of 280,000-cubic-meter-biogas system to treat wastewater and manure from pig farms, equivalent to 1,680,000 fattening pigs

Energy Policy and Planning Office 10 Project on Promotion of Biogas Production in Livestock Farms- Part 1: Medium and Large- Scale Farms, Phase 1-3 Expected Benefits from Phase1-3:

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