Evolution of Thailand’s Very Small Power Producer (VSPP) regulations

Humboldt State University 11 September 2008Chris Greacen

Palang Thai

Palang Thai พลั�งไท

• Thailand NGO

• Objective:– To ensure that the transformations that occur in the region's

energy sector: augment, rather than undermine, social and environmental justice and sustainability.

• Key approaches:– We teach hands-on energy technology

– We help draft policies

– We critique wasteful & dangerous mega-projects, advocate reform in planning processes, regulatory regime

พลั�ง (palang): n 1. Power. 2. Empowerment. ไท (thai): adj. 1. Independence. 2. Self-reliance

Outline

• What is net metering?

• Thai power sector overview

• Evolution of VSPP– Motivation– Implementation– Results

• Moving forward

“Net metering”

Image source: Real Goods

Source: EPPO 2006

Thai electricity supply industry structure

SPP: early history of private-sector RE in Thailand

• 1992 Small Power Producer (SPP) program– Based on PURPA– Fossil-fuel cogeneration and renewables up to

90 MW– Low tariff offered for “non-firm” generators

made it difficult for most renewables. (In practice >75% SPPs are fossil cogeneration)

Fortuitous circumstances…

• 1999 Chom starts working at EPPO– Pro-competition gov’t agency– Trying to break EGAT/MEA/PEA monopoly and set up

Power Pool (like what led to California crisis)– Sees net metering as pro-market

• Chris hanging out in EPPO office working on Ph.D.

• In early 2002, EPPO asks us, “want to draft net metering regs?”

Small is beautiful pitiful: Community Micro-hydroelectricity and the Politics of Rural Electrification in Thailand

Chris Sangarasri GreacenERG – UC Berkeley

Ph.D. colloquium presentation – 4 Dec, 2002Thanks to…

Ph.D. Dissertation Committee: Dan Kammen, Dick Norgaard, Jeff Romm

Switzer Network Mentors: Jim Williams and Margaret Torn

EPA-STAR Fellowship, Switzer Environmental Fellowship

How well do micro-hydro installations work in the field in Thailand?

Of 59 systems installed, less than half still in operation

PEA arrived, 9

PEA arrived, 31No PEA, 16

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Mae Kam Pong Microhydro Unit #2 Voltage andCurrent (15 minute intervals) 6 Sept to 8 Sept 2001

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Contribution to evening maximum peak demand by appliance, for the years 1985 – 2001.

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Villagers: ‘our power plant’

Developing the VSPP regulations

• Email to Tom Starrs• VSPP = Delaware Net Metering + Thai SPP regs +

changes• 1 MW max export• Power Purchase Agreement (PPA) with MEA or PEA –

not EGAT• Principle of tariff determination:

– VSPP = ‘bulk supply’ (gen + trans) + fuel adjustment– Same amount that MEA and PEA purchase bulk power from

EGAT– About 80% of retail– About $0.10/kWh on-peak, $0.05/kWh off-peak

• Working group – composed of utilities, government, professors – went line-by-line through regulations.

Commercial + Technical regulations

Technical regs:• Allowable voltage,

frequency, THD variations

• Protective relays• 1-line diagrams for all

cases:– Induction– Synchronous– Inverters– Single/multiple– Connecting at different

voltage levels (LV or MV)• Communication channels

Commercial regs:• Definitions of renewable

energy• Who bears what costs for

integrating to the grid• Principle of tariff

determination• Invoicing and payment

arrangements• Arbitration when

generator and utility don’t agree

One-line diagrams

Net metering study tours to USA

• 2002 and 2004.– CA (SMUD, PG&E, CEC, CPUC, Powerlight,

Kenetech Wind– OR (PGE, Ashland Muni, Home Power, Grid-

connected micro-hydro)– WA (Seattle City Light, PSE, OPALCO)

• Peer-to-peer exchange• Target Thai folks in charge

of VSPP implementation• All on the same bus

VSPP examples

• Uses waste water from cassava to make methane

• Produces gas for all factory heat (30 MW thermal) + 3 MW of electricity

• 3 x 1 MW gas generators

Korat Waste to Energy - biogas

Biogas from Pig Farms

Reduces air and water pollution

Produces fertilizer

Produces electricity

8 x 70 kW generator

Ratchaburi

System size: 3 kW About 50 households

Solar PV

Mae Kam Pong, Chiang MaiDEDE + community40 kWAbout $130,000 costSell electricity to PEA – $13,000/year

“VSPP 10MW” in 2006

• 1 MW 10 MW• Allow small, efficient fossil-fuel cogeneration

(CHP)• Technology-specific per-kWh subsidy adder

(on-top of ‘old’ VSPP tariff)

Example: Solar PV

3.6 + 8 = 11.6 baht/kWh = $0.34/kWh

Summary of VSPP applications by fuel type

ap

plie

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biodiesel

hydro

windbiogas

municipal wasteother biomass (saw dust, palm)

rice huskbagasse

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VSPP summary

June 2008

VSPP selling to grid as of June 2008

qty installed sale qty installed sale qty installed sale

(MW) (MW) (MW) (MW) (MW) (MW)

1. Fossil

coal - - - 1 9.50 3.00 1.00 9.50 3.00

natural gas - - - - - - - - -

fossil total 0 0.00 0.00 1 9.50 3.00 1 9.50 3.00

2. Renewable

solar 30 0.134 0.134 6 1.33 1.31 36 1.468 1.448

biogas 1 1.200 0.950 16 16.634 10.519 17 17.834 11.469

rice husk - - - 9 49.325 41.050 9 49.325 41.050

bagasse - - - 24 423.300 135.300 24 423.300 135.300

other biomass (saw dust, palm) - - - 9 36.766 20.695 9 36.766 20.695

biodiesel - - - 0 - - 0 - -

municipal waste - - - 1 1.000 0.600 1 1.000 0.600

hydro - - - 1 0.040 0.030 1 0.040 0.030

wind - - - 0 - - 0 - -

renewable total 31 1.334 1.084 66 528.399 209.508 97 529.733 210.592

total 31 1.334 1.084 67 537.899 212.508 98 539.233 213.592

MEA PEA TOTAL

VSPP applications approved as of June 2008qty installed sale qty installed sale qty installed sale

(MW) (MW) (MW) (MW) (MW) (MW)

1. Fossil

coal 0 - - 4 124.00 21.00 4 124.00 21.00

natural gas 1 9.60 6.40 2 17.09 6.00 3 26.69 12.40

fossil total 1 9.60 6.40 6 141.09 27.00 7 150.69 33.40

2. Renewable

solar 49 0.665 0.663 56 238.511 237.327 105 239.175 237.989

biogas 1 1.200 0.950 43 53.440 43.593 44 54.640 44.543

rice husk - - - 37 314.225 263.550 37 314.225 263.550

bagasse - - - 27 475.300 154.300 27 475.300 154.300

other biomass (saw dust, palm) - - - 53 286.426 230.285 53 286.426 230.285

biodiesel - - - 1 0.025 0.025 1 0.025 0.025

municipal waste - - - 16 96.660 84.760 16 96.660 84.760

hydro - - - 4 5.160 5.130 4 5.160 5.130

wind - - - 2 0.330 0.330 2 0.330 0.330

renewable total 50 1.865 1.613 239 1,470.077 1,019.300 289 1,471.941 1,020.912

total 51 11.465 8.013 245 1,611.167 1,046.300 296 1,622.631 1,054.312

MEA PEA TOTAL

VSPP applications submitted as of June 2008

qty installed sale qty installed sale qty installed sale

(MW) (MW) (MW) (MW) (MW) (MW)

1. Fossil

coal 0 - - 4 124.00 21.00 4 124.00 21.00

natural gas 1 9.60 6.40 2 17.09 6.00 3 26.69 12.40

fossil total 1 9.60 6.40 6 141.09 27.00 7 150.69 33.40

2. Renewable

solar 49 0.665 0.663 170 927.681 892.059 219 928.345 892.721

biogas 1 1.200 0.950 49 61.961 52.033 50 63.161 52.983

rice husk - - - 45 406.525 319.050 45 406.525 319.050

bagasse - - - 31 602.800 175.800 31 602.800 175.800

other biomass (saw dust, palm) - - - 61 325.766 262.535 61 325.766 262.535

biodiesel - - - 1 0.025 0.025 1 0.025 0.025

municipal waste - - - 18 108.660 96.160 18 108.660 96.160

hydro - - - 4 5.160 5.130 4 5.160 5.130

wind - - - 6 20.614 20.630 6 20.614 20.630

renewable total 50 1.865 1.613 385 2,459.192 1,823.422 435 2,461.056 1,825.034

total 51 11.465 8.013 391 2,600.282 1,850.422 442 2,611.746 1,858.434

MEA PEA TOTAL

Bangkok Solar 1 MW PV

Project size: 1 MW Uses self-manufactured a-Si

Rice husk fired power plant

• 9.8 MW• Roi Et province• Average VSPP tariff for biomass:

2.9 baht/kWh (incl. subsidy 0.3 baht/kWh)

BiomassBiogas

Potential: 7000 MWSource: Ministry of Energy 2003

Creative cogeneration - VSPP

• Pipeline compression

• CCGT inlet cooling

Role of renewable energy in Thai electricity (MWh)

Lignite12.7%

Other renewables0.32%

Rubber waste0.03%

Rice husk0.06%

Sugar cane0.59%

Purchase from Malaysia1.9%

Diesel0.1%

Fuel oil6.3%

Hydropower7.4%

imported coal4.5%

RenewableEnergy

1%Natural gas66.1%

Total :141,948 GWhSource: 16 March 2007, Policy to support renew able energy electricity production (in Thai). Presentation by EPPO. Pathumw an Hotel. Bangkok.

Fuel mix in power generation - power development plan 2007

GWh

Import

NukeRE

Gas

Coal

LigniteHydro

Mae Wei:wiring

diagram

power lines: single phase 230 vac to village. 2 @ 25 mm Al

Capacitor box (70 microfarad & 140 microfarad)

Volt-meter (0-500 volt)V

A Ammeter 15 amp

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Knife switch

Volt-meter (0-500 volt)

Ammeter 15 amp

Leonics controller Ballast load

A Ammeter 15 amp

Three phase 230 vac delta

Powerhouse

SchoolTo village loads…

Solar for computer training centers in seven Karen refugee camps

•1 kW PV hybrid with diesel generator•Each powers 12 computers

Thai solar home systems

Thank you

For more information, please contact chris@palangthai.org

This presentation available at:

www.palangthai.org/docs