Bundit Fungtammasan - Thailand's Experience
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Transcript of Bundit Fungtammasan - Thailand's Experience
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Taking Stock: Thailand's Experience
in Scaling up the Implementation ofRenewable Energy
6th Asia Clean Energy Forum
Session 15 Renewable Energy: Policy,Regulation and Institutional IssuesADB, Manila, 23 June 2011
Bundit FungtammasanThe Joint Graduate School of Energy and Environment(JGSEE) andCenter for Energy Technology and Environment (CEE)King Mongkuts University of Technology Thonburi, Thailand
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Thailand is at the forefrontof RE deployment in the
region.
IEA Report: Deploying RE in SEA,
2010
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Indonesia Malaysia Philippines Singapore Thailand Vietnam
RE targets
(quantitative
objectives)
Not
applicable
Financial incentives
Non-financial
incentivesHigh
Medium
Low
Source: Samantha Olz and Milou Beerepoot, IEA, 2010
Leading in RE targets and policy
support
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Source: Samantha Olz and Milou Beerepoot, IEA, 2010
Indonesia Malaysia Philippines Singapore Thailand Vietnam
Administrative &
regulatoryMarket-related
Technical &
infrastructure
Financial
Socio-cultural
Low importanceMedium importance
High importance
Less significant deploymentchallenges
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Source: DEDE
Tangible results in new REdeployment
7% of total PES (11%
traditional biomass)
1,850 MW installed
capacity (1.5% of
total generation)
Biofuels accounts for
2.5% of transport fuel
- 1.37 Ml/d ethanol
- 1.7 Ml/d biodiesel
Naturalgas
31%
Oil37%
Coal13%
RE &biofuels
18%
Hydro1%
Total PES: 114 Mtoe (2009)
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Scope of this talk
Driving forces for RE deployment
Support policies
Results on RE deployment
Barriers and challenges
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Driving forces for REdeployment
Import dependence: half of its energy needs
Transport sector consumes 37% of finalenergy
Vulnerable to oil price volatility
Abundant RE resources, biomass in particular
Need for balancing agricultural commodityprices and prospects for sustainable ruraldevelopment
Need for clean cities and GHG mitigation
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Support policies in place
Regulatory framework
Policy targets
Financial incentives
Non-financial incentives
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Regulatory framework since 1992for renewable heat and power
Energy Conservation and PromotionAct (1992), amended 2007 Basis for ENCON programs and ENCON Fund
(1995) Power Purchase Regulation for SPPs (1992,
< 60MW, later 90 MW) obligating grid operatorsto accept SPPs to the grid
Power Purchase Regulation for VSPPs (2002,initially < 1 MW, later 10 MW)
Energy Business Act (2007) (oil & gas) Energy Regulatory Commission (ERC)
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Regulatory framework forbiofuels
National Ethanol Committee (2002)
Grant licenses for the construction ofethanol production plants and the
distribution of fuel ethanol
Biofuel mandates:
B3 for biodiesel
E10 initially proposed, later backtrackedBiofuel standards
Biofuel pricing structure
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Setting policy targets toaccelerate RE deployment
First significant RE targets under the EnergyStrategy for Competitiveness (2003)
8% RE share of final energy consumption by
2011 (from < 1%), with specific targets forelectricity, heating and biofuels
RE Development Plan (2008 2022) targets
14% RE by 2022
- Renewable electricity; 6,000 MW (3Xpresent)
- Renewable heat: 7,400 ktoe (3X present)
- Biofuels: 13.5 Ml/d (4.5 present)
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Financial Incentives
Tariff subsidies forfirm and non-firmSPPs, pricing based on bids and other criteria
Feed-in premiums (adder) (2007) forVSPPs and SPPs
additional purchasing price guaranteed ontop of normal tariff for 7 10 years
technology and capacity differentiated(price fixed for VSPPs; for SPPs, fixed forsome fuels, otherwise bidding required)
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Adder for renewable electricity (on top ofnormal tariff of ~ 10 US Cents/kWh)
Technology Us Cents/kWh Duration (y)Biomass 1MW 1.0 7
Biogas 1MW 1.0 7Wastes Landfill/anaerobicdigestion
8.3 7
Wastes - Thermal Process 11.6 7
Wind 50kW 11.6 10
Hydro 50-
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Other financial incentives
Tax exemptions
Import duty exemptions and 8-year taxholidays on RE equipment
Reduction of excise tax and Oil Fundcontribution for biofuels, excise tax reductionfor E20 and E85 vehicles
Capital grants
Projects related to RE, R&D, public awareness
and and training
30% investment grants for commercial solarthermal systems, biogas installations, and10% for MSW
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Other incentives
CDM
Thailand Greenhouse Gas ManagementOffice (TGO) set up as part of national
strategy on climate change in 2009
Information provision
One-stop clearing house e.g. Energy forEnvironment Foundation set up with GEFsupport to provide technical and financialinformation on RE
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Results on RE deployment
Early SPP and VSPP schemes (until mid-2008)promoted on-grid generation
Since redefining capacity range and introducing addersin 2007 (as od March 2011)
No.Generators
InstalledCapacity (MW)
Fuel
SPP 35 615 Biomass
VSPP 100 215 Biomass, biogas
No.Generators
InstalledCapacity (MW)
Fuel
SPP 26 637 Biomass
VSPP 221 954 Biomass, biogas,
solar, MSW
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Huge interest in wind farmapplications for SPPs (up to 90MW)
Source: EPPO 2011
As of March 2011
0
200
400
600
8001000
1200
1400
1600
Operating: 637 MW
Accepted: 427 MW
Pending: 2,394 MW
MW
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VSPPs (
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CDM projects on the rise but yetto see real dollars (as of 7 June 2011)
No. ofProjects
CERs(MtCO2eq/y)
LoI 261 N.A.
LoA 138 8.5
Registered 51 3.1
CERs issued 5 0.85
Type of project dominated by biogas and biomass
Source: TGO, June 2011
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Rapid rise in ethanol productionwith surplus
0
0.2
0.4
0.6
0.8
1
1.2
1.4
2006 2007 2008 2009 2010
ml/d (average)
Source: DEDE
17 plants:100,000 200,000 l/d
Total capacity:2.8 ml/d
11 molasses
1 sugar5 cassava (2 inoperation)
Mainly from molasses, somefrom cassava
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Biodiesel production constrainedby domestic palm oil supply
0
0.20.4
0.6
0.8
1
1.2
1.4
1.6
1.8
2007 2008 2009 2010
Ml/d (average)
Source: DEDE
13 plants:100,000 300,000 l/d
range, also600,000 &1,200,000 l/d
Total capacity:4.5 ml/d
Mostly palmstearine, CPO,some used VO
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Major concerns and possiblesolutions renewable electricity
Technical and infrastructural, economics
grid-code puts too much cost burden on
Concerns Possible solutions
Grid stability: current grid
code burdensome forconnectors
Grid access
Adder too high for someRETs, too low for others
Land use (wind)
Role of regulators;
infrastructure upgrade;capacity building
Micro-grid; smart grid
Review adder (regression,differentiate type ofbiomass resource);Review land use policy
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Major concerns and possiblesolutions biofuels
grid-code puts too much cost burden on
Concerns Possible solutions
Low demand
High feedstock
cost
Food security vsfuel
Get rid of subsidies for petroleumproducts with special measures to
address the disadvantaged sector;introduce fuel mandates and subsidizeconversion kits
Energy crop production yield
improvement,
Crop yield improvement, ecological-economic zoning, 2nd generationbiofuels
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Thank [email protected]