7/5/2010

Contents

Solar Energy Development : Thailand Case

1

Thailand Energy situation in 2009

2

Renewable Energy Policies

Dr.Twarath Sutabutr
Deputy Director-General DirectorDepartment of Alternative Energy Development and Efficiency (DEDE) Thailand’s Ministry of Energy
1st Asian Solar Energy Forum
5-6 July 2010, Manila, PHILIPPINES

3

Potential of Solar Power development in Thailand

4

Summary and Key Take-Aways

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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 and Renew 8% Coal 11%
Traditional RE 6%

Oil 35%

THAILAND ENERGY SITUATION IN 2009

Natural Gas 40%

Primary Energy
*NRE includes Large Hydro

Agriculture 5% Transportation 35%

Industry 38%

Residential and Commercial 22%

Energy Use by sector
5 July 2010 1st ASIA SOLAR ENERGY FORUM, Manila, Philippines 5 July 2010 1st ASIA SOLAR ENERGY FORUM, Manila, Philippines
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Renewable Policies
Critical Driving Forces 1. Energy Security • Proactive RE Targets
National RE Development Plan (2008-2022)

Reduce Oil Import Bills Mitigate Risk of Over-reliance on Natural Gas-Dependent Gas Dependent Power Generation

Renewable Energy Policies gy

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 country-wide + national level
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Thailand Renewable Energy Development
Committed to the development of low-carbon society
Government Funding On R & D & D Activities Encouraging Private-Led Investment

15 years RE-Development Plan

Target 20.3 % of RE in Total Energy Consumption By 2022 y

Potential for Solar Energy in Thailand gy
Biofuels

Solar + Wind 1,300 MW

Small + Mini Hydro 320 MW

Bio Energy Biomass 4,000 MW Biogas 160 MW MSW 120 MW

• Ethanol • Biodiesel 20% Oil substitution • Abundant Supply • Market driven • Pricing Strategy to promote high-RE-Fuels (E10,E20,E85 and B5)

Supporting Schemes

• Feed-in Premium (“Adder”) on top of regular tariff • BOI Tax incentives scheme (8 yr. Tax holiday) • Some direct subsidy (10-30%) on Biogas,MSW,Solar-hotwater projects • Soft Loans for RE+EE investments • Government Co-investing scheme (“ESCO Fund”)
1st ASIA SOLAR ENERGY FORUM, Manila, Philippines

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Solar Radiation in Thailand
Solar map
Average solar irradiance 18.2 MJ/m2-d (5.05 kWh/m2day) Maximum solar irradiance 20-24 MJ/m2-d Solar map developed by DEDE using satellite images and ground station measurement ( 37 Stations)
Total Solar Irradia ation (MJ/m2-yr)

Worldwide Solar Radiation & Thailand

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
6 Supporting Mechanisms: RE-Electricity Generating (5 from MoEN : 1 from Board of Investment)
Support from the Ministry of Energy
DEDE
1

“Adder” : Feed-in Premiums
Local Admin

Offices giving licenses
6

BOIInvestment Incentives
Technical support

ONEP EIA

ERC

Fuel Biomass

Adder (B/kWh) VSPP SPP 0.50 0.30 Bidding

Adder-VSPP
(USD Cents /kWh)**

Special adder * (B/kWh) 1.00 1.00

Supporting period (Year)

Licenses

- Installed capacity <= 1 MW - Installed capacity > 1 MW

1.54 0.93

7 7

• Renewable energy maps • Info from demonstration site • One-Stop Service Renewable energy potential info

- Installed capacity <= 1 MW - Installed capacity > 1 MW Promotion requesting

Biogas (all categories of production sources)

0.50 0.30

Bidding

1.54 0.93

1.00 1.00

7 7

2

DEDE & EPPO
3

• Investment Grant, i.e. biogas, solar hot water and MSW water, (i.e.100% 2009, 50% 2010 , 25% 2011 for MSW )
Banks

To raise a loan

Private Pi t Investor
Carbon credit sale

DEDE

DEDE EPPO

• “Energy Soft Loan” Revolving funds for Renewable energy and energy conservation, Energy credit 4 • ESCO Venture Capital Fund
5

- AD &b LFG - Thermal Process

Waste (community waste, not hazardous industrial waste, and inorganic waste)

2.50 3.50 4.50 3.50 0.80 1.50

2.50 3.50

7.72 10.81 13.89 10.81 2.47 4.63

1.00 1.00 1.50 1.50 1.00 1.00

7 7 10 10 7 7

Capital requesting
Registration for intent expression as per the time specified

CDM

- Installed capacity <= 50 kW - Installed capacity > 50 kW - capacity 50-200 kW - capacity < 50 kW

Wind power

3.50 -No-

• “Adder” : Feed-in Premiums Policy

Negotiation for electricity selling & buying

- Firm - Non Firm

Mini and micro hydropower

Solar power Consumers

8.00

8.00

24.70

1.50

10

Adder

Electricity authorities

Revised by National Energy Policy Council   on 29th June 2010
5 July 2010

* Note : Special Adders for - Facilities in 3 Southern Provinces - Diesel-Gen. replacement on PEA system
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** 1 USD=32.375 Baht 1st ASIA SOLAR ENERGY FORUM, Manila, Philippines

Status of Solar Power Purchase
(June 2010)
Project Under Screening Process Project Approved and Waited  for PPA Signing Project Signed PPA and  Waited for COD Projects Sold to Grid

Solar Farm: Over-subscribed
Situation on May 2010

15 years RE target 500 MW
+2,470.02 MW
Over-subscribed

Committed
Contracted Accepted

Proposed 1,066.61 MW

Project (No.)

Installed  cap. (MW)

Cap. Proposed  for Selling (MW)

Project (No.)

Installed  cap. (MW)

Cap. Proposed  for Selling (MW)

Project (No.)

Installed  cap. (MW)

Cap. Proposed   for Selling (MW)

Project (No.)

Installed  cap. (MW)

Cap. Proposed  for Selling (MW)

1,674.55 MW
PPA

216.80 MW
Awaiting for PPA

• Entitled to 8 Baht/kWh

VSPP project
PV  PV
‐ Parabolic trough ‐ Stirling engine ‐ others  (Solar thermal) - Non‐identified

108
42
3 45 0 18

553.245 540.574
161.745  149.574  161.745 149.574
13.500  270.000  ‐ 108.000  13.000  270.000  ‐ 108.000 

59
38
7 4 10 0

198.232 187.678
94.712  94.712
51.100  24.000  28.420  ‐

339 1,698.845 1,604.770
57
54 155 71 2

22
22
0 0 0 0

15.132
15.132
‐ ‐ ‐ ‐



‐ ‐ ‐ ‐

($0.20/kWh) for 10 yrs • Contract Sanctify

Total: 2,970.02 MW

92.033  92.033
45.000  24.000  26.645  ‐

284.145  275.710  284.145 275.710
329.900  910.300  162.500  12.000  314.760  910.300  92.000  12.000 

Impact to electricity price at proposed solar power ผลกระทบจากอัตราสวนเพิ่มราคาตอคา Ft ในอนาคต installation
บาทตอหนวย Baht/kWh 0.25 0.25 แสงอาทิตย Solar

Wind ลม

พลังงานหมุนเวี Other RE ยนอื่น

MkWh generated Other RE Solar Wind

Mbaht Of adder

0.20 0.20

229,952 48,411 24,205

72,311 400,604 83,459

Thermal

66

391.5

391

21

103.52

95.645

282

1,414.700  1,329.060 

0

0.15 0.15

SPP project 

7

457.160  451.000 

1

30.410  30.000 

1

73.000  55.000 

0

0.10 0.10

60 projects  accepted  – 216.80 MW
Source: www.solarpower.co.th

340 projects  with PPA – 1,674.55 MW
15

0.05 0.05

Source: EPPO
0 2553 2554 2555 2556 2557 2558 2559 2560 2561 2562 2563 2564 2565 2566 2567 2568 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Year

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Impact of “Adder” policy
• Current Adder Better IRR for Solar Farm projects comparing to Wind
Electricity tariff  (B/kWh) Adder rate  (B/kWh) Buying price  (B/kWh) IRR all project  lifetime IRR with consideration  Carbon credit

Future of Solar Energy in Thailand
Temporary Suspend new proposal for Solar and Wind projects
• Project accepted and contracted (having PPA) are eligible for original adder rate of 8 Baht/kWh ($0.20/kWh) • New Adder: 6.50 Baht/kWh ($0.16/kWh) for 10 yrs will be applied for projects already submitted but underscreening process • Shift to Feed in Tariff (FIT) European style (reduce windfall profit and Feed-in (FIT)-European limit passing through mechanism to the end-consumers) • Set-up new committee for • Formulating the FIT rates for all RE categories • Becoming a single window of new proposals screening and taking into consideration of the grid-connection and price impact • Solar-Rooftop will be more focus and become its own category

1.

Solar Energy Thermal PV

2.05‐3.88 2.05‐3.88 2.05‐3.88

8.0 8.0 3.5

10.05‐11.88 10.05‐11.88 5.55‐7.38

16.8% 13.9% 9.5%

17.8% 15.1% 10.9%

2.      Wind Energy 

• Over-subscription to build solar capacity Increasing consumers’ charge
Impact to electricity price at 500 MW target in the 15 years RE-development pl an
Solar Energy Wind Energy Other RE

Increasing electricity price

0.25 0.20
Baht/kWh

Baht/kWh บาทตอหนวย
0.250.25

Impact to electricity price atวproposed solar power ผลกระทบจากอัตราส นเพิ่มราคาตอคา Ft ในอนาคต installation
Solar แสงอาทิตย Wind
ลม พลัง RE Otherงานหมุนเวียนอื่น

0.200.20 0.150.15 0.100.10

0.15 0.10 0.05

0.050.05

0.00

0-

Year

2553 2554 2555 2556 2557 2558 2559 2560 2561 2562 2563 2564 2565 2566 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Year

Planned
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Proposed
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The other RE-technology still open for submission until the new FIT • scheme come into force
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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

Summary and Key Take Aways Take-Aways

-

Pass-through mechanism has to be predictable and 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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