7/5/2010

Contents

Solar Energy Development

1 Thailand Energy situation in 2009
: Thailand Case
2 Renewable Energy Policies

Potential of Solar Power

Dr.Twarath Sutabutr 3
development in Thailand
Deputy Director-
Director-General
Department of Alternative Energy Development and Efficiency (DEDE)
Thailand’s Ministry of Energy

1st Asian Solar Energy Forum

4 Summary and Key Take-Aways
5-6 July 2010, Manila, PHILIPPINES

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Thailand Energy Situation in 2009

…..Thailand is NET Energy Importer…..
In 2009, Energy Expenses 47 billion USD (import 58%)
Total Commercial Energy Use 1.656 million barrels (oil equivalent) of per day
New Traditional
and RE
Oil
6%
Renew 35%
8%
THAILAND ENERGY SITUATION IN 2009
Coal
11% Natural
Gas
Primary Energy
*NRE includes Large Hydro
40%
Agriculture 5%
Transportation Industry 38%
35%

Residential and Commercial 22%

Energy Use by sector
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Renewable Policies
Critical Driving Forces Î Proactive RE Targets
National RE Development Plan
1. Energy Security (2008-2022)

• Reduce Oil Import Bills

• Mitigate Risk of Over-reliance on Natural
Renewable Energy
gy Policies Gas Dependent Power Generation
Gas-Dependent

2. Reduce GHG Emission

RE is becoming new national “Sunrise Industry”

• Job creation
• Help stabilizing major farm-crop, such as Cassava, Sugar-cane
• Elevate innovation platform Î country-wide + national level
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Thailand Renewable Energy Development

Committed to the development

of low-carbon society

Government Encouraging
Funding Private-Led
15 years RE-Development Plan
On R & D & D Investment
Activities

Target 20.3 % of RE in Total Energy Consumption

By
y 2022 Potential for Solar Energy in Thailand
gy
Small + Mini Bio Energy Biofuels
Solar + Wind
Hydro • Ethanol
Biomass Biogas MSW
• Biodiesel
1,300 MW 320 MW 4,000 MW 160 MW 120 MW
20% Oil substitution

• Feed-in Premium (“Adder”) on top of regular tariff • Abundant Supply

Supporting
Schemes • BOI Tax incentives scheme (8 yr. Tax holiday) • Market driven
• Some direct subsidy (10-30%) on Biogas,MSW,Solar-hotwater projects • Pricing Strategy to
• Soft Loans for RE+EE investments promote high-RE-Fuels
• Government Co-investing scheme (“ESCO Fund”) (E10,E20,E85 and B5)
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Solar Radiation in Thailand Worldwide Solar Radiation & Thailand

Solar map
ation (MJ/m2-yr)

¾Average solar irradiance

18.2 MJ/m2-d (5.05 kWh/m2-
day)
¾Maximum solar irradiance
20-24 MJ/m2-d
¾Solar map developed by DEDE
Total Solar Irradia

using satellite images and

ground station measurement
( 37 Stations)

UK Ireland Japan USA AUS India Thailand

Country
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Solar Energy Installation up to 2010

Current Status of Solar Energy
Electricity
2009 Installed Solar Power Capacity = 40 MW
Targeted in Year 2022 = 500 MW

Requested for Investment (as of June 2010)

-SPP (10-90 MW) = 547 MW (COD 2010-13)
- VSPP (<10 MW) = 2,423 MW (COD 2009-15)

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Measures for RE Promotion “Adder” : Feed-in Premiums

6 Supporting Mechanisms: Offices giving licenses Adder Adder-VSPP Special Supporting
RE-Electricity Generating ONEP ERC Local
Fuel (B/kWh) (USD Cents
/kWh)**
adder * period
(Year)
6 VSPP SPP (B/kWh)
(5 from MoEN : BOI- EIA Admin
Investment ‰ Biomass
1 from Board of Investment) Incentives - Installed capacity <= 1 MW 0.50 Bidding 1.54 1.00 7
Licenses - Installed capacity > 1 MW 0.30 0.93 1.00 7
1
Support DEDE • Renewable energy maps
‰ Biogas (all categories of
from the • Info from demonstration site Technical support production sources)
Ministry of • One-Stop Service Renewable - Installed capacity <= 1 MW 0.50 Bidding 1.54 1.00 7
0.30 0.93 1.00 7
Energy energy potential info - Installed capacity > 1 MW
Promotion requesting
2 ‰ Waste (community waste, not
• Investment Grant, i.e. biogas,
hazardous industrial waste, and
DEDE & solar hot water
water, and MSW Pi t
Private
(i.e.100% 2009, 50% 2010 , inorganic waste)
EPPO 2.50 2.50 7.72 1.00 7
To raise Investor - AD &b LFG
25% 2011 for MSW ) 3.50 3.50 10.81 1.00 7
a loan Carbon - Thermal Process
3
• “Energy Soft Loan” Banks credit
DEDE Revolving funds for Renewable sale
‰ Wind power
CDM - Installed capacity <= 50 kW 4.50 13.89 1.50 10
energy and energy Capital requesting
- Installed capacity > 50 kW 3.50 3.50 10.81 1.50 10
conservation, Energy credit Registration for
DEDE 4
• ESCO Venture Capital Fund intent ‰ Mini and micro hydropower
expression as - Firm - capacity 50-200 kW 0.80 -No- 2.47 1.00 7
Negotiation for
per the time
electricity selling
- Non Firm - capacity < 50 kW 1.50 4.63 1.00 7
5 specified
EPPO • “Adder” : Feed-in Premiums & buying
Policy ‰ Solar power 8.00 8.00 24.70 1.50 10
Adder Electricity
Consumers * Note : Special Adders for
authorities Revised by National Energy Policy Council   - Facilities in 3 Southern Provinces
- Diesel-Gen. replacement on PEA system
on 29th June 2010
** 1 USD=32.375 Baht
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Status of Solar Power Purchase Solar Farm: Over-subscribed

(June 2010)
Situation on May 2010
Project Under Screening Project Approved and Waited  Project Signed PPA and 
Projects Sold to Grid Proposed
Process for PPA Signing Waited for COD
15 years RE target Committed
Contracted Accepted
1,674.55 216.80 1,066.61
Installed 
Cap.
Installed 
Cap.
Installed 
Cap.
Proposed   Installed 
Cap.
Proposed 
500 MW MW MW MW
Project Proposed  Project Proposed  Project Project PPA Awaiting for PPA
cap. cap. cap. for Selling cap. for Selling
(No.) for Selling (No.) for Selling (No.) (No.)
(MW) (MW) (MW) (MW) (MW) (MW)
(MW) (MW)
• Entitled to 8 Baht/kWh
($0.20/kWh) for 10 yrs
+2,470.02 • Contract Sanctify
VSPP project 108 553.245 540.574 59 198.232 187.678 339 1,698.845 1,604.770 22 15.132 ‐
MW Total: 2,970.02 MW
PV
PV  42 161.745 149.574 
161.745  149.574 38 94.712
94.712  92.033
92.033  57 284.145 275.710 
284.145  275.710 22 15.132 ‐
Over-subscribed
‐ Parabolic trough 3 13.500  13.000  7 51.100  45.000  54 329.900  314.760  0 ‐ ‐
Impact to electricity price at proposed solar power
‐ Stirling engine 45 270.000  270.000  4 24.000  24.000  155 910.300  910.300  0 ‐ ‐ ผลกระทบจากอัตราสวนเพิ่มราคาตอคา Ft ในอนาคต
installation
Solarแสงอาทิตย Wind ลม พลังงานหมุ
Other RE นเวีย นอื่น
MkWh Mbaht
‐ others  บาทตอหนวย
Baht/kWh
0 ‐ ‐ 10 28.420  26.645  71 162.500  92.000  0 ‐ ‐ generated Of adder
(Solar thermal) 0.25
0.25

- Non‐identified 18 108.000  108.000  0 ‐ ‐ 2 12.000  12.000  0 ‐ ‐ 0.20

0.20
Other 229,952 72,311
RE
Thermal 66 391.5 391 21 103.52 95.645 282 1,414.700  1,329.060  0 ‐ ‐ 0.15
0.15
Solar 48,411 400,604
SPP project  7 457.160  451.000  1 30.410  30.000  1 73.000  55.000  0 ‐ ‐ 0.10
0.10
Wind 24,205 83,459
60 projects  340 projects  0.05
0.05

Source: EPPO
accepted  – with PPA – 0-
2553 2011
2010 2554 2012
2555 2013
2556 2014
2557 2015
2558 2016
2559 2017
2560 2018
2561 2019
2562 2020
2563 2021
2564 2022
2565 2023
2566 2024
2567 2025
2568
216.80 MW 1,674.55 MW Year

Source: www.solarpower.co.th
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Impact of “Adder” policy Future of Solar Energy in Thailand

• Current Adder Î Better IRR for Solar Farm projects comparing to Wind Temporary Suspend new proposal for
Solar and Wind projects
Electricity tariff  Adder rate  Buying price  IRR all project  IRR with
(B/kWh) (B/kWh) (B/kWh) lifetime consideration 
Carbon credit
1. Solar Energy
• Project accepted and contracted (having PPA) are eligible for original
Thermal 2.05‐3.88 8.0 10.05‐11.88 16.8% 17.8% adder rate of 8 Baht/kWh ($0.20/kWh)
PV 2.05‐3.88 8.0 10.05‐11.88 13.9% 15.1%
2.      Wind Energy  2.05‐3.88 3.5 5.55‐7.38 9.5% 10.9%
• New Adder: 6.50 Baht/kWh ($0.16/kWh) for 10 yrs will be applied for
• Over-subscription to build solar capacityH Increasing electricity price projects already submitted but underscreening process
HIncreasing consumers’ charge
• Shift to Feed
Feed-in
in Tariff (FIT)
(FIT)-European
European style (reduce windfall profit and
Impact to electricity price at 500 MW target in
Impact to electricity price
ผลกระทบจากอั atวproposed
ตราส นเพิ่มราคาตsolar
installation
อคา Ftpower
ในอนาคต limit passing through mechanism to the end-consumers)
the 15 years RE-development pl an Baht/kWh
บาทตอหนวย Solar แสงอาทิตย Wind ลม พลังงานหมุ
Other RE นเวียนอื่น
0.25 0.250.25
Solar Energy Wind Energy Other RE

0.20
• Set-up new committee for
0.200.20
• Formulating the FIT rates for all RE categories
Baht/kWh

0.15
0.150.15
• Becoming a single window of new proposals screening and taking
0.10
0.100.10 into consideration of the grid-connection and price impact
0.05
0.050.05
• Solar-Rooftop will be more focus and become its own category
0.00
0-

Year
2553 2011
2010 2554 2012
2555 2013
2556 2014
2557 2015
2558 2016
2559 2017

Year
2560 2018
2561 2019
2562 2020
2563 2021
2564 2022
2565 2023
2566
The
• other RE-technology still open for submission until the new FIT
scheme come into force
Planned Proposed
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Key concerns for Public Policy

1. Optimum balance between investment

promotion vs. consumer protection

2. Impact to end-consumers must be calculated

- Pass-through mechanism has to be predictable and
Summary and Key Take
Take-Aways
Aways manageable
- Quantifiable perceived cost-reduction based on
advanced technology and efficiency

3. Be aware of “Too generous” support for RE

promotion

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twarath@dede.go.th
www.dede.go.th
Facebook : search for “DEDE”

…THANK YOU…
From Beautiful Thailand

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