alternative energy development plan (2008 – 2022), medium - and long – term investment plan and...

Alternative Energy Alternative Energy Development Plan (2008 – Development Plan (2008 –

2022), Medium - and Long – 2022), Medium - and Long – term Investment Plan and the term Investment Plan and the

Role of the Private SectorRole of the Private Sector

Mr. Rangsan Sarochawikasit Executive Director, Bureau of Energy

Research Department of Alternative Energy

Development and Efficiency,Ministry of Energy

15 July 2009

Presented to

Climate Financing: Clean Technology Fund (CTF) and

the Role of the Private Sector Workshop

Goal“To increase a share of alternative energy mixed to be 20% of the country final energy demand in the

year 2022”

Objectives

1. To utilize alternative energy as a major energy supply of the country for replacing oil import,

2. To increase energy security of the country,3. To promote an integrated green energy

utilization in communities,4. To enhance the development of alternative

energy technology industry ,5. To research, develop and encourage high

efficiency alternative energy technologies.

Alternative Energy Development Plan

(2008-2022)

7.6%

Target 5,608 MW

Existing 1,750 MW Adder cost 3,858 MW

Biomass / Biogas / MSW Mini-Hydroo / Wind / Solar /Hydrogen

Target 7,433 ktoeExisting 3,007 Ktoe

2011

15.6%

2.4%

Ethanol Target 9.0 MLPD Existing 1.0 MLPDBiodiesel Target 4.5 MLPD Existing 1.4 MLPDHydrogen Target 0.1 Million ks.

4.1%

Power

Process Heat

Bio fuel

2022

20.3%

As of Jan 2009

2008

6.4%

R&D

Adder cost

ESCO Fund

BOI /Revolving Fund

Mea

sure

sCDM

NGVTarget 690 mmscfd

(6,090 ktoe)Existing 108 mmscfd

6.2%

19.1%

2016

Target 19,8 00 ktoe Currency Saving 461 Billion

Baht GHG reduction 42 Million

Tons

Alternative Energy Development Plan; AEDP (2008 - 2022)

Overview of Alternative Energy Development Plan; AEDP

Short term Short term ((2008 – 2011)2008 – 2011) Emphasis on promotion of commercial alternative energy technologies and high potential energy sources such as biofuels, co-generation from biomass and biogas with fully supports from measures provided.

Mid termMid term ( (2012 – 2016)2012 – 2016) Focus on development of alternative energy technology industry, encourage new alternative energy R&D to achieve economic viability including new technologies for biofuels production and introduce a model development of Green City to communities for sufficient economy and sustainability development.

Long termLong term ( (2017 – 2022)2017 – 2022) Enhance utilization of new available alternative energy technologies i.e. hydrogen, bio hydrogenated (BHD), extend green city models throughout Thai communities and encourage to be hub of biofuel and alternative energy technology exports in ASEAN regions.


RE Potential and Target Type of Energy Potential existing

Electricity MW MW MW ktoe MW ktoe MW ktoeSolar 50,000 32 55 6 95 11 500 56Wind Energy 1,600 1 115 13 375 42 800 89Hydro Power 700 56 165 43 281 73 324 85Biomass 4,400 1,610 2,800 1,463 3,220 1,682 3,700 1,933Biogas 190 46 60 27 90 40 120 54Municipal Solid Waste 400 5 78 35 130 58 160 72Hydrogen 0 0 0 0 3.5 1Total 1,750 3,273 1,587 4,191 1,907 5,608 2,290Thermal ktoe ktoe ktoe ktoe ktoeSolar Thermal 154 1 5 17.5 38Bimass 7,400 2,781 3,660 5,000 6,760Biogas 600 224 470 540 600Municipal Solid Waste 1 15 24 35Total 3,007 4,150 5,582 7,433Biofuel m lt/ d m lt/ d m lt/ d ktoe m lt/ d ktoe m lt/ d ktoeEthanol 3.00 1.24 3.00 805 6.20 1,686 9.00 2,447Biodiesel 4.20 1.56 3.00 950 3.64 1,145 4.50 1,415Hydrogen 0 0 0 0 01 mill kg 124

6.00 1,755 9.84 2,831 13.50 3,98666,248 70,300 81,500 97,3004,237 7,492 10,319 13,709

6.4% 10.6% 12.7% 14.1%NGV (mmscfd - ktoe) 108.1 393.0 3,469 596 5,260 690 6,090

10,961 15,579 19,79915.6% 19.1% 20.3%

2008 - 2011 2012 - 2016 2017 - 2022

Total

Alternative Energy Ratio

Total Energy Consumption Total Energy from R E (ktoe)Renewable Energy Ratio

Total Energy from RE + NGV (ktoe)

1. Subject RE as a “National Agenda”.

2. Government continuously and strongly support RE, especially, Incentive of BOI, ESCO Fund, Revolving Fund and adder cost.

3. Government provides infrastructure for the RE expansion.

4. Revise of the obstructive legislation.

5. Fully allocate the budget for research, development, demonstration, dissemination and public relation of RE.

6. Accessibility of RE data, e.g. Potential and raw material management.

7. RE technology standards.


Key Success FactorsKey Success Factors

(1) Economics aspect• Currency saving on energy import 460,000 M฿/year within

2565• Increase investment of private sector 382,240 M฿ • Creates 40000, clean and new jobs.• Opportunity to earn 14,000 M฿/year form Carbon Credit

trading.• Delay the construction of new fossil fuel power plant 3,800

MW (equivalent to 100,000 M฿)• Create Country's incomes by exporting biofuels, RE

technologies (Gasification, biogas fermentation system).

(2) Social aspect • Migration mitigation due to job creation in rural areas.• Extra income to farmers.• Improve quality of life for Thai people.

(3) Environmental aspect• Low Carbon Society to mitigate the global warming.


Output and OutcomeOutput and Outcome

RenewableCogeneration

Cogeneration

Promotion• Fixed Adder cost

160, 0MW

Quotation 1,030 MW 500MW 5 30MW

SPP(> 10 MW-< 90 MW

Fuel ฿ /kWh Special*Biomass 0.30 – 0.50 1.00 + 1.00

Biogas 0.30 – 0.50 1.00 + 1.00

Mini-Hydro - 50200(kW)

0.80 1.00 + 1.00

Micro-Hydro (< 50 kW) 1.50 1.00 + 1.00

MSW 2.50 – 3.50 1.00 + 1.00

Wind 3.50 - 4.50 1.50 + 1.50

Solar 8.0 1.50 + 1.50

VSPP(< 10 MW)

• Adder cost for Renewable power producers by term of support 7 years and 10 years for power generation from wind and solar;

SPP

115350.Wind

15800.Solar

030.

250.

Adder (Baht/kWh)

300Other Renewable

100MSW

530Total

Capacity (MW)

Type

Fixed

Bidding

*special cost in 3 provinces in Southern of Thailand

1. BOI Privilege: waive import duty on equipment and income corporate taxes;2. Adder cost of power generation from RE.

Renewable

Measures for RE promotion

Project feature: set up fund to joint capital promote investment in energy conservation and renewable energy development projects

Project feature: set up fund to joint capital promote investment in energy conservation and renewable energy development projects

3. Revolving Fund with 4% interest rate & 7 years of payment term;

4. Encourage RE project to be CDM project; 5. ESCO Venture Capital

Investor

Technical Assistance

ESCO Venture Capital Equipment Leasing

Carbon Market

Equity Investment

Credit Guarantee Facility

Energy Conservation Promotion Fund

Investor

InvestorInvestor

ESCO FundInvestmentCommittee

ResultsResults1. Stimulate investment energy conservation & renewable energy 1. Stimulate investment energy conservation & renewable energy

development with total value > development with total value > 2,500 million 2,500 million ฿฿ /year /year 2. Provide energy conservation & renewable energy development with total 2. Provide energy conservation & renewable energy development with total

value > 500 million value > 500 million ฿฿ /year/year

ResultsResults1. Stimulate investment energy conservation & renewable energy 1. Stimulate investment energy conservation & renewable energy

development with total value > development with total value > 2,500 million 2,500 million ฿฿ /year /year 2. Provide energy conservation & renewable energy development with total 2. Provide energy conservation & renewable energy development with total

value > 500 million value > 500 million ฿฿ /year/year

Budget year 2008-09

500 million 500 million

BahtBaht

Financial support

Status: Be in actionFund manager

EFEECFT

Measures for RE promotion

Fuel Types / Size Adder(Baht/kwh)

Extra Adder1

(Baht/kwh)Extra Adder2

(Baht/kwh)Period(Years)

1. Biomass

Capacity ≤ 1 MW 0.50 1.00 1.00 7

Capacity > 1 MW 0.30 1.00 1.00 7

2. Biogas

Capacity ≤ 1 MW 0.50 1.00 1.00 7

Capacity > 1 MW 0.30 1.00 1.00 7

3. MSW

AD / Land Fill Gas 2.50 1.00 1.00 7

Thermal Process 3.50 1.00 1.00 7

4. Wind Energy

Capacity ≤ 50 kW 4.50 1.50 1.50 10

Capacity > 50 kW 3.50 1.50 1.50 10

5. Mini Hydro

Capacity 50 kW - < 200 kW

0.80 1.00 1.00 7

Capacity < 50 kW 1.50 1.00 1.00 7

6. Solar PV 8.00 1.50 1.50 10Notes 1 = Electricity from Renewable Energy for diesel oil replacing 2 = For 3 Southern Provinces

1 USD = 35 THB1 USD = 35 THB

Adder Cost approved by the Cabinet on 24Adder Cost approved by the Cabinet on 24thth March, 2009 March, 2009

AEDP and Private Investment

Investment (million THB)

Short - termMedium - term

12( – 16)

Long – term

- 1722( )

Total 2009 2010 2011

Solar 1,045 695 695 4,726 56,159 63,320

Wind 280 2,800 4,900 18,200 29,750 55,930

Biomass 21,925 20,340 35,050 45,510 30,640 153,465

Biogas 3,600 4,125 4,500 6,750 9,000 27,975

Municipal Solid Waste

1,350 6,600 4,000 7,800 4,500 24,250

Ethanol 770 3,850 4,620 15,400 13,860 38,500

Biodiesel 3,500 3,500 6,020 4,340 1,440 18,800

32,470 41,910 59,785

Total134,165 102,726 145,349 382,240

www.dede.go.th

Department of Alternative Energy Development and Efficiency (DEDE) Ministry of Energy

17 Rama 1 Road, Patumwan Bangkok 10330

alternative energy development plan (2008 – 2022), medium - and long – term investment plan and...

Documents