manure and organic wastes from the farms and factories can generate biogas which can then be usedas fuel for power generation.Later, on 4 September 2006, the government, via the National Energy Policy Council (NEPC),approved
increase of capacity purchase from VSPPs from
1 MW to
10 MW each
. Also, the technicalinterconnection restrictions and requirements were revised to facilitate power purchase from VSPPs.
On 26 December 2006, the NEPC approved the increase of power purchase from SPPs (as a whole) from 3,200 MW to 4,000 MW.In order to induce more investors to produce electricity from renewable energy,
in 2007 theMinistry of Energy set a target to purchase power from SPPs using renewable energy,totaling 530 MW
. Also initiated was another supportive scheme, “Adder Provision”
-- an additional energy purchasing price on top of the normal prices that power producers will receive when selling electricity to the Power Utilities
. The amounts of adders vary, depending on the technology used. The provision of adders will be for a period of 7 years as from the Commercial Operation Date (COD).
for SPPs Using Renewable Energy
For the required 530 MW from SPPs using renewable energy, the provision of Adder is dividedinto:
- “Fixed Adder” (230 MW) --
the adder rate for SPPs using
municipal solid waste
is2.50 Baht/kWh (about US¢ 7.35), and for SPPs using
is 8.00 Baht/kWh (about US¢23.53).
- “Adder Bidding” (300 MW) --
for SPPs using
other types of renewable energy
, such as ricehusks or wood chips, the adder is provided via a competitive bid. However, the maximum adderrate is set at 0.30 Baht/kWh (about US¢ 0.88).
Fuel Adder(Baht/kWh)Purchase Capacity(MW)
15Other RE Types 0.30 } Bidding 300
To implement the Adder Bidding for purchase of 300 MW, a Request for Proposals (RFP) fromSPPs using renewable energy (other than MSW, wind and solar energy) to bid for the Adder wasissued on 1 May 2007. The Adder Bidding has been finalized since 12 October 2007, with 7 SPPproposals approved, accounting for a total proposed sale of 335 MW (average price = 0.297 Baht/kWh). The selected SPPs are obliged to sell electricity to the grid by 2012.
Forum on Clean Energy, Good Governance and Regulation16 – 18 March 2008 Singapore2