Business Opportunities in Thailands Renewable Energy

Dr.Twarath Sutabutr
Deputy Director-General DirectorDepartment of Alternative Energy Development and Efficiency (DEDE) Thailands Ministry of Energy

ASEAN Clean Energy Trade, Technology and Investment Forum USTDA-ASEAN-BCIU

19-21 April 2010, Manila, The Phillipines
1

Contents
Thailand Energy situation in 2009 gy

Investment and Renewable Energy Policies

Businesses Opportunities

Summary and Conclusion

THAILAND ENERGY SITUATION IN 2009

Thailand Energy Situation in 2009 ..Thailand is NET Energy Importer.. Th il d i E I t

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%

Natural Gas 40%

*NRE includes Large Hydro

Primary Energy

Agriculture 5% Transportation 35%

Industry 38%

Residential and Commercial 22%

Energy Use by sector

4

Fuel Mix For Electricity Generation

Diversification Challeneges g Over-reliance on Natural Gas Supply : Key Risk Area
100% 80% 60% 40% 20% 0%

Natural GAS 70% Fuel Oil Coal

Residential 27%
Agri & Other Sectors 3.0%

Hydro
1969 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007*

Industry 52% Business 18%

2009 Electricity Demand b S t D d by Sector 52%

5

CO2 Emission in Energy Sector

2.58 2.27 2.05

2.35

Sources : 1. - 12. The Energy Data and Modeling Center (EDMC), Japan

13. EPPO-EMS 6

Investment and Renewable Energy Policies gy

Investment and RE Policy

2 Critical Driving Forces 1. 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

2. Reduce GHG Emission RE is becoming new national S i I d t i b i ti l Sunrise Industry Job creation

Help stabilizing major farm crop, such as Cassava, Sugar-cane farm-crop, Sugar cane Elevate innovation platform country-wide + national level
8

Thailand Renewable Energy Development

Committed to the development of low-carbon society
Government Funding On R & D & D Activities A ti iti Encouraging Private-Led Investment

15 years RE-Development Plan

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

Solar Wind S l + Wi d 1,300 MW

Small + Mini Hydro 320 MW

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

Biofuels 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)

Measures for RE Promotion

6 Supporting Mechanisms: RE-Electricity Generating (5 from MoEN : o oa d of est e t) 1 from Board o Investment)
Support from the Ministry of Energy
DEDE
2

Offices giving li Offi i i licenses

1

BOIInvestment Incentives
Technical support

ONEP EIA

ERC

Local Admin

Licenses

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

Promotion requesting

DEDE & EPPO

4

Investment Grant, i.e. biogas, solar hot water and MSW water, (i.e.100% 2009, 50% 2010 , 25% 2011 for MSW ) Energy Soft Loan Revolving funds for Renewable energy and energy conservation, Energy credit ESCO Venture Capital Fund Adder : Feed-in Premiums Policy
Banks

To raise a loan

Private P i t Investor
Carbon credit sale

DEDE

Capital requesting
Registration for intent expression as p per the time specified

CDM

DEDE EPPO

Negotiation for electricity selling & buying

- Firm - Non Firm

Adder

Electricity authorities h i i

Consumers

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Supporting Schemes & Incentives 1.

Tax Incentives (Board of Investment-BoI)

RE & EE top priority list Max. Privileges 8yr Income Tax Holiday plus extra 5 y. (9th-13th yr) 50% tax reduction

2.
Funded by ENCO Fund d ON

Technical Assistances Investment Grants

Maps, Tech Catalog, 1-Stop Service Biogas, MSW, Biogas MSW Solar Hotwater

3. 3

10-30 % grants for Design, Consultant & Partial Investment 50 mil.B Max Focus on Small Projects

4. 4 5. 6.

Gov Soft Loans (7,000 mil B & 90% subscribed) (7 000 mil.B Co-Investing Scheme ESCO Fund
2 Fund Managers

Adder : Feed-in Premiums

11

Supporting Schemes & Incentives 4. Soft Loans 4 S ft L Revolving Fund R l i F d

7,000 mil.B allocated from Govs ENCON FUND & 90% subscribed 2-Stepped Loan mix w/ Banks Money (approx. 1:1)
Funded by ENC d CON Fund d

Max Fix 4% Max. 7 yr. loan period Draw a creation of larger lending program by Banks (negotiable rate)
Bank s Banks Own Lending 70,000 MB Mix by Bank 7,000 MB
Revolving Fund 7,000 MB 0.5%

Nego.

Private Pi t Investors
<4.0% <4 0%

Com. Banks 7,000 MB

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Supporting Schemes & Incentives 5. Gov Co-Investing S h 5 G C I ti Scheme

ESCO F d Fund

Funded by ENC d CON Fund d

500 +500 mil.B allocated from Govs ENCON FUND 2F dM Fund Managers assigned & given 3 years window of investment i d i i d fi t t 7-10 years of investment with mutual agreed exit clause Max 20% equity holding As of 2009, 29 projects invested (400 mil.B)

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Supporting Schemes & Incentives 6. Adder 6 Add Feed-in P F d i Premiums i

Ad dder
Ft Ft Base Base

Technology based premiums M More incentives for smaller projects i ti f ll j t

AD DDER is paid by all-consum p a mers

Development of ADDER Policy

Intro VSPP <1MW Increase VSPP S To <10MW Tendering for Biomass-SPP (10 90)MW (10-90)MW w. Bidding For Adder

Solicit Biomass SPP Biomass-SPP w. Bidding For Subsidy

(ave. 0.18 B/kwh)

(ceiling 0.30 B/kwh) 1st

RPS ForEGAT
trial RPS and later terminated

(wind,solar,hydro,MSW, Bio)

rd. Fix ADDER for RE-VSPP RE-SPP

2nd rd

2000

2004

2007

1999

2006-7

2009

Peak Off-peak
8am-8pm 8pm-8am

VSPP/SPP +Adder Scheme

14

Adder r

Adder : Feed-in Premiums

Fuel Biomass - Installed capacity <= 1 MW - Installed capacity > 1 MW Biogas (all categories of production sources) - Installed capacity <= 1 MW - Installed capacity > 1 MW Waste (community waste, not waste hazardous industrial waste, and inorganic waste) - AD &b LFG - Thermal Process Wind power - Installed capacity <= 50 kw - Installed capacity > 50 kw Mini and micro hydropower - capacity 50-200 kw - capacity < 50 kw Solar S l power
Adder (B/kwh) VSPP SPP
(Euro Cents/kwh)

AdderVSPP

Special adder * (B/kwh)

Supporting period (Year)

0.50 0.30

Bidding

0.94 0.57

1.00 1.00

7 7

0.50 0.30

Bidding

0.94 0.57

1.00 1.00

7 7

2.50 3.50 4.50 3.50 0.80 1.50 8.00 8 00

2.50 3.50

4.72 6.60 8.49 6.60 1.51 2.83 15.10 15 10

1.00 1.00 1.50 1.50 1.00 1.00 1.50 1 50

7 7 10 10 7 7 10

3.50 -No8.00 8 00

* Note : Special Adders for - Facilities in 3 Southern Provinces - Diesel-Gen. replacement on PEA system

15

Business Opportunities

Business Opportunities

Thailand RE Investment
Growing Power Demand and Demand Gap Established Contractual Structure (SPP/VSPP) Readiness in Financial Sector
Commercial Banks Capital Market Private-Equities Enabling Project-Finance Deal

Thailand RE Businesses
Merger and Acquisition Opportunities CSR activities Duty-Free Import of Main Machinery Balance of Plants from Variety of Local Players
Civil Works Operation and Maintenance
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Investment Opportunity
Boom-Time for RE Investment in Thailand

Projected Trend in 2010

2009*
- 52 projects of renewable
energy were approved with 19,438.5 19 438 5 MB total projected investment 2008* - 50 projects more are still - 37 projects of renewable energy under consideration. were approved with 9 569 4 MB 9,569.4 Expectation is that not less investment than 100 projects will be approved for the investment season of 2009.

- Strategic Renewable Energy g gy industry includes - Electricity generating from biomass,biogas,MSW - Solar and Wind technologies - Plastic waste to oil technology waste-to-oil - Energy crop / Palm oil - Waste Heat and Biomass CoGen
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Summary and Conclusions

Summary and Conclusions

8 Reasons

to Invest and Do Business in Thailands Renewable Energy Sector

1. Consistent Energy Policies 2. RE Conceptual Framework based on Sufficiency Economy p y y Principals Moderation 3. Haboring Private Investments
Government commitment Firm Targets Financial and non-financial supports BoI-MoEN Promotional packages B I M EN P ti l k

4. 5. 5 6. 7. 7 8.

Growing Power Demand with dedicated GAP for RE Low-Risk & Trustworthy PPA schemes L Ri k T t th h Abundant Supply of Resources (solar & bio-energy) Bundling ith B dli with CDM Opportunity O t it Friendly Investment Environment

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twarath@dede.go.th www.energy.go.th www energy go th www.dede.go.th

THANK YOU THANK YOU

From Beautiful Thailand

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Back-Up

Bio-Fuels
Growing Demand
Ethanol: From 0.934 m.ltr/D 1.2 m.ltr/D = +29%

Ethanol E h l

Bio-Diesel: From 1.1 m.ltr./D

1.8 m.ltr./D = +55%

Bio-Diesel Bi Di l

R & D & D on N Non-Food Bi f l F d Biofuels

1. 2.

Bio-Deisel : Jatropha, Algae Ethanol : Hybrid Casava+Molases, Sweet Sorghum

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Wind Energy
2009 Installed Wind Power = 5.13 MW

Targeted i 2022 T d in

800 MW

Requested for Investment (as of March 2010) -SPP (10-90 MW) = 1,220 MW (COD 2010-15) - VSPP (<10 MW) = 128 MW (COD 2010-14)

Tropical Wind

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Solar Energy
Electricity

2009 Installed Solar Power Capacity = 38.6 MW Targeted in Year 2022 = 500 MW g Requested for Investment (as of March 2010) -SPP (10 90 MW) = 536 MW (COD 2010 13) SPP (10-90 2010-13) - VSPP (<10 MW) = 2,373 MW (COD 2009-15)

High Potential Areas Thailands Solar Radiation Map

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Biomass Potential in Thailand

()

Cassava Rhizome Electricity Thermal 156 MW

222 ktoe

Sugar cane Trash Electricity Thermal

1,931 MW 2,743ktoe

Oil Palm Empty Bunch

Corn Cob Electricity Thermal

92 MW

Electricity Thermal

365 MW 518ktoe

131ktoe

Agriculture Residue and Fast Growing Crop

Biomass Promotion in Year 2010

1. Promote and support an investment to private sector 2. Promote CDM project 2 P t j t

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Bio-Gas Energy
2009 Installed Biogas Power Capacity = 37.5 MW
Targeted in Year 2022 = 120 MW
Requested for Investment (as of March 2010) VSPP (<10 MW) = 180 MW (COD 2010-16)

Bio-Gas Energy Generation: 2-Strategic Targets 1. Farms & Livestock Industries - Pig Farms 2. Food-Related Industries
- Tapioca Starch - Palm Oil -Sugar Cane and Ethanol
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- Chicken Farms

Waste-to-Energy
Power Generation from MSW = 5.6 MW Targeted in Year 2022 Total Electricity Generation from MSW = 120 MW

RequestedforInvestment(asofMarch2010)
SPP(1090MW)5proj=285MW(COD201218) VSPP(<10MW)30proj=269MW(COD201120)

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RE Next Steps : Moving into Actions

Integration of REDP (indicative targets) to the Power Development Plan : PDP 2010 (Power Gen.-Tran. investment plan) De-bottle-necking the transmission grid for RE generated power De bottle necking RE-generated Co-promotion with CDM promotion activities Establish network of RE-champions RE champions
Utilities, Regulators, etc.) (Technology Providers, Commercial Banks, Consultants, Power

Next Steps Re-access REDP

Expand to 2030 window Seriously looking into :
Bio-Methane (Compressed Biogas) Geo-thermal Non-food and 2nd-gen biofuels Energy Storage

Biomass-MSW Pallet Market More Gov. Dedicated Budget for R&D Activities Review for appropriate incentives - Adder, Tax incentives Scale-up Soft Loan and ESCO Fund programs
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Successful case of RE in Thailand

RE Promotion: Solar hot water hybrid system promotion project

p j RE research and demonstration project: The development of biogas system from municipal solid waste project The demonstration of wind power generation project The development and demonstration of biomass gasification system for small industries project
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Solar hot water hybrid system promotion project

Objective To use solar energy to produce hot water for commercial and other sectors To stimulate an investment Description To support the feasibility study To and preliminary design for enterprises, e.g. hotels and industries To give about 30% financial support to entrepreneurs (project start 2008)

Result
Target/year To support the feasibility study & preliminary design (enterprises) Total PV installation area (m2/year) Total Investment (million baht) Total subsidized investment (million baht) Saving current (million baht/year) CO2 emission reduction (tCO2e/year) 2007 51 2008 117 2009 -

3,972.52 , 75,500 17,800

3,000 , 51,300 13,500

21.6

14.1

1,265

950

The development of biogas system from municipal solid waste project

Objective To demonstrate pilot plants of waste d po a disposal To produced biogas as substituted fuel in households /in electricity generation To create involvement of communities in i managing waste disposal issues i t di li Tech. Description Capacity 15 ton organic waste/day 2 stage biogas digester (acid tank and Anaerobic Baffled reactor, ABR) maximum biogas production 480 m3/day Demonstration area: 5 municipalities Samchuk, Kamphaeng Phet, Thungsong, Hua Hin, Sakon Nakhon Result Total biogas production(m3/year) Total heat production(GJ/year) Crude oil equivalent (ktoe) Substitute LPG (kg/year) 876,000 17,520 0.414 402,960

The demonstration of biomass gasification system for small industries

Objective To design and demonstrate the pilot biomass gasification system for thermal energy to replace the fuel oil in the steam boiler b il Tech. Description 320 kWth biomass gasifier Double Throat Downdraft Gasifier The biomass consumption: 28.75 kg/h for dried wood chip 100 kg/h for corn cob Result Substitute fuel oil (litre/year) Crude il C d oil equivalent (ktoe) i l t (kt ) IRR* Pay-back period

39,000 0.04 0 04 67.91% 1.47

*compared to the production using the conventional steam boiler

Demonstration area: Khoa Kor Agro Industry in Phetchabun Province

Office of Dr.Twarath Sutabutr: DDG-Dept. of Alternative Energy Development and Efficiency, Thailands Ministry of Energy

2010

THAILAND RENEWABLE ENERGY

Business Opportunities and Challenge April 2010 The Royal Thai Government (RTG), through the Ministry of Energy (MoEN), has recently announced its vision and plans to kick-off the pathway of becoming a Low Carbon Society. Under this vision, Renewable Energy is a main pillar to achieve the target of reducing the Kingdoms GHG emission by at least 77 million ton (CO2 equivalent) by 2020. The use of Renewable Energy within Thailands energy mix will also add benefits of replacing Thailands need to spend foreign exchange on the import of fossil fuels as well as strengthening the Kingdoms energy supply security. This first ever long-term (15-Year) Renewable Development Plan (REDP) 2008-2022 call for an increasing in a share of renewable energy mixed to be at least 20.3% of the final energy consumption by the year 2022. In terms of statistics, in 2009 renewable energy capacity for electricity production was 1,816 MW; of which approximately 965 MW was delivered to the Thai national grid. The capacity of thermal/heat production represented 3,630 ktoe. Furthermore, the production capacity of ethanol and biodiesel were 1.25 and 1.67 million liter/day, respectively. Therefore, a percentage share of renewable energy mixed was 7.7%. It increased modestly by 1.3% from previous year. It is also noted that the share of renewable energy is continuously increased because there are strong supporting policies to encourage the production and use of renewable energy in the country. Furthermore, the appropriate measures have been launched to stimulate the renewable energy investment. In this paper, supporting schemes and incentives are summarized into The 8 reason to Invest and Do Business in Thailands Renewable Energy Sector as following;
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Office of Dr.Twarath Sutabutr: DDG-Dept. of Alternative Energy Development and Efficiency, Thailands Ministry of Energy

2010

8 Reasons to invest and do businesses in Thailands Renewable Energy Sector 1) Consistent energy policy 2) Policy formulation based on Sufficient Economy philosophy 3) Harboring private investment a. Firm governmental targets b. Generous financial and non-financial supports c. Promotional packages 4) Continuous growing demand for RE 5) Low-risk PPA and trustworthy contracting partners (EGAT, PEA) 6) Abundant RE resources, especially solar and bio-energy 7) CDM opportunities 8) Friendly investment environment 1. Consistent Energy Policy: Over the years, Thailand as shown consistency in energy policy with focuses on promotion of a role from private sector in both investments in Oil & Gas and Power Generation businesses. Rule-based regulations, sanctity of contracts and firm approval procedures are well established. The creation of Energy Regulatory Commission (ERC) in 2008 also emphasized the governments commitment of transparency and independent in regulating the Kingdoms energy businesses. 2. Renewable Energy policy was conceptualized based on Sufficiency Economy framework. Thailands Sufficiency Economy Philosophy stems from remarks made by His Majesty King Bhumibol Adulyadej throughout his 62 years of the throne. It stresses the middle path as the overriding principle for Thai peoples conduct and way of life at the individual, and community levels. During the development of Renewable Energy policy, the Sufficiency Economy Philosophy framework has been applied as a back-bone for systematic policy formulation, i.e. the RE policy is to promote on dual-

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Office of Dr.Twarath Sutabutr: DDG-Dept. of Alternative Energy Development and Efficiency, Thailands Ministry of Energy

2010

track levels, one for national/international level and another at a local level. The policy at a local level will focus on a self-sufficient system, where local communities will be equipped with the ability to cope with shocks from internal and external changes. The framework on Moderation also emphasizes the management of energy consumption to be efficient, sufficient, and suitable with local resources in the community. 3.Harboring Private Investments A) Government Commitment: the RTG has shown commitments through the promulgation of the Renewable Energy Development Plan (REDP), where REDP aims to utilize renewable energy as a main-stream energy supply of the country for replacing oil import, to enhance energy security, to promote an integrated green energy utilization in communities, to develop alternative energy technology industry, and to accelerate R&D renewable energy technologies as well as to encourage Thailand pursuing low carbon economy vision and mitigating greenhouse gases.
Table 1: 15-Years REDP Goals
Type of Energy Electricity Solar Wind Energy Hydro Power Biomass Biogas Municipal Solid Waste Hydrogen Total Thermal Solar Thermal Biomass Biogas Municipal Solid Waste Total Biofuel Ethanol Biodiesel Potential MW 50,000 1,600 700 4,400 190 400 existing MW 32 1 56 1,610 46 5 1,750 ktoe 1 2,781 224 1 3,007 m lt/d 1.24 1.56 2008 - 2011 MW ktoe 6 55 13 115 43 165 1,463 2,800 27 60 35 78 0 0 1,587 3,273 ktoe 5 3,660 470 15 4,150 m lt/d ktoe 805 3.00 950 3.00 0 6.00 66,248 4,237 6.4% 108.1 0 1,755 70,300 7,492 10.6% 3,469 10,961 15.6% 2012 - 2016 MW ktoe 11 95 42 375 73 281 1,682 3,220 40 90 58 130 0 0 1,907 4,191 ktoe 18 5,000 540 24 5,582 m lt/d ktoe 1,686 6.20 1,145 3.64 0 9.84 0 2,831 81,500 10,319 12.7% 5,260 15,579 19.1% 2017 - 2022 MW ktoe 56 500 89 800 85 324 1,933 3,700 54 120 96 160 1 4 2,313 5,608 ktoe 38 6,760 600 35 7,433 m lt/d ktoe 2,447 9.00 1,415 4.50 0.1 mill kg 124 3,986 13.50 97,300 13,709 14.1% 690 6,090 19,799 20.3%

ktoe 154 7,400 600

m lt/d 3.00 4.20

Hydrogen Total Total Energy Consumption Total Energy from R E (ktoe) Renewable Energy Ratio NGV (mmscfd - ktoe) Total Energy from RE + NGV (ktoe) Alternative Energy Raio

393.0

596

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Office of Dr.Twarath Sutabutr: DDG-Dept. of Alternative Energy Development and Efficiency, Thailands Ministry of Energy

2010

B) Generous financial and non-financial supports: The REDP is accompanied by six supporting measures for promotion of all kinds of renewable energy technologies both financial and non-financial supports as follow; 1) Tax Incentives through the Board of Investment (BoI) Duty free for imported machinery 8-year corporate income tax holiday Additional privileges
50% reduction of corporate income tax on net profit for five years after expiry of tax holiday (9th-13th yr) Deduction from net profit for facility installation and construction costs but not exceed 25% of investment capital in addition to depreciation deduction

2) Technical Assistances: MoEN has many studies and researches on renewable energy potentials available for public use such as Biomass energy potentials database, Wind energy potentials database and Micro-sitting information, Solar energy potentials database, and equipment and machine suppliers database. 3) Investment Grants: MoEN has chosen 3 types of renewable energy which are biogas, municipal waste (MSW), and solar hot water that investors can apply to get investment grant for Design, Consultant and Partial Investment. The maximum investment grants is about 1030% for biogas, 25-100% for MSW and 30% for solar hot, with max cap at 50 million baht per project. 4) Energy Soft Loan: MoEN has established Revolving Fund to assist the investors in RE and EE projects by allocated budget from Energy Conservation Fund (ENCON Fund) for 2-stepped loans via commercial banks. This scheme is currently in the forth period (20092010) that has loan ceiling of 400 million baht. The interest rate has been set at maximum 4% and 7 years loan period. The past 3 periods of the project has already fully subscribed and initiated the total

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Office of Dr.Twarath Sutabutr: DDG-Dept. of Alternative Energy Development and Efficiency, Thailands Ministry of Energy

2010

investment by 4,124 million baht, which is expected to reduce energy consumption by 1,260 million baht annually. 5) ESCO Fund: ENCON Fund has launched a co-investment scheme to encourage RE projects by utilizing several facets of project-financing scheme to share risk with private developer such as equity investment, venture capital, equipment leasing, creation of carbon credit market, and credit guarantee facility. The result of this mechanism, so far (by 31 Mar 2010) has stimulated several investment in RE and EE projects with total value is over 2,500 million baht/year. 6) Adder Feed-in Premiums: Adder is, thus far, the most effective financial support for RE development by supplementing adder tariff to the normal purchasing tariff. The amount of adder depends on the type of RE technology, and size of production capacity. Table 2 shows the rate of adder or feed-in premium in different type of RE technologies and different conditions.
Table 2 : Adder for RE power production sorted by type and capacity

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Office of Dr.Twarath Sutabutr: DDG-Dept. of Alternative Energy Development and Efficiency, Thailands Ministry of Energy

2010

4. Growing Power Demand with dedicated GAP for RE According to power demand statistic and forecast by Electricity Generating Authority of Thailand (EGAT) and due to the fact that Thailand is a developing country with continuous economic expansion, power demand of the country has increased every year. As predicted within 2008-2022 period, power demand will increase approximately 4-6% per year. By 2022, power demand is expected to be doubled from 2008. Hence, power procurement for private producers (IPP/SPP/VSPP) will become essential to fill-up the demand growth. And the need for electricity generation from RE (SPP or VSPP) as is considered as part of PDP in 2008-2022 will be increased to help generate adequate electricity that meets the increasing power demand.
Table 3: Expected generating power capacity of VSPP in PDP 2008-2021 year Solar&Wind Generating Capacity Proposed 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 136 135 148 173 174 174 26 73 72 74 76 79 82 PDP Co-Gen,biogas,MSW,biomass Generating Capacity proposed 40 68 321 334 PDP 6 10 48 50 50 50 50 50 50 50 50 50 50 50 forecast Generating Capacity (VSPP in PDP) 6 10 48 50 50 50 50 50 50 50 50 50 50

Source: PDP 2008-2021 (PDP 2007: 2nd revised edition) Note: The new PDP (PDP-2010) is still under formalization process and the plan will be officially released later this year.

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Office of Dr.Twarath Sutabutr: DDG-Dept. of Alternative Energy Development and Efficiency, Thailands Ministry of Energy

2010

5. Low-Risk PPA & Trustworthy Contracting Patners The Ministry of Energy has divided power production promotion from RE into 2 levels as follows; 1. Small Power Producer or SPP is private power producer that has installed capacity from 10-90 MW with EGAT as a contracting partner. Untill 2009, there were 30 SPPs from renewable energy facilities and Cofiring plants with total installed capacity of 1,100 MW and selling to the grid for 615 MW. 2. Very Small Power Producer or VSPP is private power producer that has installed capacity less than 10 MW with PEA/MEA as a contracting partner. Up until 2009, there were 159 VSPPs from renewable with total installed capacity of 792 MW (most of which are Biomass plants) and selling to the grid for 350 MW. 6. Abundant Supply of Resources (solar & bio-energy) Since Thailand is an agricultural-based economy, there are various resources of agricultural wastes and by-products that can recycle into energy. Moreover, Thailand is considered to be within a zone with abundant solar potentials with average intensity of 18.2 MJ/m2/day or 5.05 kWh/m2/day. Some of Thailands RE potential can be summarized as follows;
Table 4: Renewable Energy Potentials in Thailand
Type
Power

Potential MW >5,000 1,600 700 4,400 190 400 >12,210

Mil.litre/day

Solar Wind Hydro Power Biomass Biogas Municipal waste Total Liquid biofuel Ethanol Biodiesel Total

6.0-10.0 4.0-5.0 10-15.0

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Office of Dr.Twarath Sutabutr: DDG-Dept. of Alternative Energy Development and Efficiency, Thailands Ministry of Energy

2010

7. Bundling with CDM Opportunity At present, Thailand Greenhouse Gas Management Organization (Public Organization) or TGO, under Ministry of Natural Resources and Environment (MONRE), has been appointed as Thailands Designated National Authority (DNA) in charge of issuing Letter of Approval (LoA). So far, LoAs has been issued for 107 projects with expected CERs 6.59 MtCO2e/yr and more projects are under approval process, 34 projects have been registered as CDM projects and 2 projects have been certified with CERs of 815,224 MtCO2e/yr. 8. Friendly Investment Environment Thailand is always maintaining open and transparent business climate with investment-friendly environment. The recent political uncertainties are hopefully short-lived and the country could be back to normal soon.

Contact : Websites : Facebook :

twarath@dede.go.th Peeraya_s@dede.go.th www.dede.go.th www.energy.go.th search for REDP or DEDE

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