Thai Experiences : Renewable Energy and Energy

Efficiency

Amnuay Thongsathitya

Department of Alternative Energy Development and EfficiencyMinistry of Energy, Thailand

28 August 2006

Thailand Energy Strategies for Economic Development

Strategy for Efficient Use of Energy Reduce Energy Elasticity from 1.4:1 to 1:1 by

2007

Strategy for Renewable Energy Development

Increase share of RE from 0.5% to 8% of total final energy by 2011

Strategy for Energy Security Ensure sufficient and reliable energy supply for

at least 30 yrs

Energy Situation in Energy Situation in ThailandThailand

Energy Situation in Energy Situation in ThailandThailand

Oil 49%

Natural gas 3 5 %

Coal 1 3 % Hydro 3%

Primary energy consumption

Energy consumption : 51% Electricity, 4 9 % Oil2005 Thailand’s energy cost 1,150 billionBTH, 157. % of GDP

Logistic/transportation37%

Agriculture 6 %Industrial36%

Resident & Commercial 2 1 %

Consumption Consumption by Sectorby Sector

Power generation 90% import

Renewable Energy

4% Target 3,910 ktoeExisting 1,440 Ktoe

Ethanol Target 3.0 ML/day Existing 0.4 ML/day

Bi o di esel Target 4.6 ML/day Existing 0.3 ML/day

Target 3,238 MW

Existing 1,841 MW 5% RPS 140

MWFeed-In Law 1,257 MW- Biomass/Mini Hydro- MSW/Wind/PV

2005

RE3%

1%

3%

R&D

RPS/Feed In

Facilitator

Power

Generation

Process

Heat

Bio-Fuel

2011

RE 8%

RE Development Target by 2011

Incentive

Remark : Existing as June 2006

Renewable Energy Renewable Energy DevelopmentDevelopment

1. 1. ResearchResearch and and DemonstrationDemonstration

Future technology

Innovation

Increase eff.Decrease cost

Demonstration

Prototype

Present Technology

2 . 2 . Promote Promote Community Energy Community Energy

developmentdevelopment

Knowledge Base Center

government /Private

Sector

Community Sector

Government

AcademicInstitute

Private Sector

Government

AcademicInstitute

Private Sector

•Increase Efficient•Increase local content•Reduce investment cost

Renewable Energy Renewable Energy DevelopmentDevelopment

3. Market StimulationIPPs

Private Sector

EGAT

SPP, VSPP, RPS

Invest

Invest

Incentive/Policy support

Private Sector

Community Sector

Government

Develop Initiate market

Power Producer Feed-In Law

Incentive

4. Establishment on on National Committee RE

4.2 National Bio-Fuel Development and Promotion Committee

4.1 National RE Development and Promotion Committee

Current RE Power Generation Current RE Power Generation SituationSituation

100 MW(4.25 MW)

4343 MW(0.55 MW)

10 MW(4.60 MW)

85 MW(25.48

MW)

2,8002,800 MW(1,761.29 MW)

200200 MW(44.33 MW)

Biogas in livestock farm and Agro-industry

- Bangkok - Municipality- Industry estate

- Remote area- Roof top- Industry

- Wind farm in south area of Thailand- Hybrid with diesel

-Sugarcane Industry-Biomass power plant-Community power plant

- mini/micro hydro plant

BiomassBiomass WindWind

Biogas BiogasHydroHydro

PhotovoltaicPhotovoltaicMSWMSW

Thailand RE Incentive Measure RPS (Renewable Portfolio Standard)RPS (Renewable Portfolio Standard)

Feed-in Tariff Feed-in Tariff

• Tax incentive - Excise tax exemption - Oil fund• Soft loan (2+12 Billion

Baht)

• New conventional power plant form fossil fuel must provide electricity form REat least 5% of the new installed capacity.

• By year 2011, RE power plant 140 MW from EGAT

• Set the premium selling price regulation for each renewable energy resources

Other Incentive MeasureOther Incentive Measure

Biomass SPP Biomass SPP • Bidding top up tariff• Avg. 0.17 Baht/kWh• 38 Projects, 915 MW

RE VSPP RE VSPP • Net Metering, > 1MW• MEA, PEA, Expand to 6

MW• 17 sites, 7.13 MW• 1.17 Baht/kWh (off

peak)• 2.99 Baht/kWh (on

peak)

Biomass Type No. of

projectsInstalled Capacity

Grid

Connected     (MW) (MW)

Bagasse 22 536.20 169.30

Rice Husk 6 85.90 54.00

Rice Husk & Waste wood 3 60.80 35.20

Rice Husk, Bagasse & Waste wood 4 108.80 62.20

Bark , Waste wood & Black Liquored 1 87.20 50.00

Black Liquored 1 32.90 25.00

MSW 1 2.50 1.00

Total 38 914.30 396.70

Biomass SPP

Project

15 VSPP Projects has been applied including– PV 3 projects 7.3 KW– MSW 1 project 1,000.0 KW– Biomass/Biogas 1 project 7,015.5

KWTotal 7,122.8 KW

VSPP Project

Current RE Process Heat Current RE Process Heat Situation Situation

3,660 ktoe(1,400 ktoe)

- Sugarcane Industry- Palm oil industry - High efficiency stove - Gasification

245 ktoe(40 ktoe)

Waste water from- Starch, Food, Palm Industry- Palm, Rubber, Paper Industry - Ethanol, Bio-diesel Industry BiomassBiomass

Biogas Biogas

5 ktoe(> 0.1 ktoe)

-Solar hot water-Solar Dryer-Solar Absorption cooling

Solar Solar

10

1520

25

3035

40

48 49 50 51 52 53 54 55

Gasoline

Ethanol

05 06 07 08 09 10

11 12

40

50

60

70

80

90

100

48 49 50 51 52 53 54 55 05 06 07 08 09 10

11 12

Current Bio-fuel Current Bio-fuel SituationSituation

GasoholGasohol

Bio-dieselBio-diesel

Expand plantation area of Oil Palmand Jatropha, totaling > 6 MRai

Expand plantation area of Oil Palmand Jatropha, totaling > 6 MRai

Target: Bio-diesel 8.5 ML/day

in 2012 (B10)

Target: Bio-diesel 8.5 ML/day

in 2012 (B10)

Funding by government’s SPVFunding by government’s SPV

Target: Ethanol 3 ML/day in 2011 (E10)

Target: Ethanol 3 ML/day in 2011 (E10)

Domestic and imported feedstock; Molasses, cassava, sugar cane

Domestic and imported feedstock; Molasses, cassava, sugar cane

Regulated by National Biofuel Committee

Regulated by National Biofuel Committee

Diesel

Bio-diesel

ML/d

8.5 ML/dSaving 27,000 M

Baht/yr

3.0 ML/dSaving 13,000 M

Baht/yr

Governmental Organizations obligated to use Gasohol

Governmental Organizations obligated to use Gasohol

ML/d

Existing 0.3 ML/d

Existing 0.4 ML/d

Formulate policy on utilizing High Performance Vehicles for E10 and FFV

- Spec. of Gasohol 95 & 91- Emission test on using Gasohol 95-Defined gasohol use in Spec. of new vehicle procurement- Requested governments’ vehicles to refill gasohol

Formulated policy on fade out MTBE in ULG 95 and promote Gasohol 91 in some areas

Gasohol Strategic Plan

Phase IMTBE

replacement

Ethanol 1.0 M L/d

Ethanol3.0 ML/d

Cabinet Resolution9 Dec. 2003

Cab. Res. 18 May 04

Phase IIGasohol Mandate

2004 2005 2006 2007

2008 20112009 2010

PAST: National Ethanol Committee (NEC)

1. Proposing the policies and plans for the management and development of Ethanol in Thailand to the Cabinet.

2. Establishing criteria, measures, and conditions for the production, procurement, import, export, pricing, sale, distribution, storage, development, and promotion of ethanol to ensure consistency with national ethanol policies and plans

3. Ensuring that work plan on ethanol conform to national ethanol policies and plans, and the changing environment, and etc.

PRESENT: National Bio-fuel Development and Promotion Committee

(NBDPC)

1. Responsible for policy direction, regulation and implementation of bio-fuels in Thailand.

2. NEC conveyed all of its missions and authorization to NBDPC.

Governmental Organization to Promote Ethanol UtilizationGovernmental Organization to Promote Ethanol Utilization

Ethanol Production Plant

Producers Capacity(L/Day)

Actual production(L/Day)

1. Thai Alcohol 100,000 90,000

2. Thai Agro Energy 150,000 130,000

3. Thai Nguan Ethanol 130,000 100,000

4. Khon-Kaen Alcohol 100,000 80,000

Total 480,000 400,000

•24 ethanol plant concessions have been approved of total 4.87 ML/d

•4 existing ethanol plants of total 0.48 ML/d

•Another 4 ethanol plants of total 0.61 ML/d will be ready by the end of 2006

•9 oil companies distributing Gasohol Octane 95 via 3,157 gas service stations;

•Bangchak is the pioneer on distributing Gasohol Octane 91 through about 180 stations only in Bangkok areas

• As of June 2006 , total gasohol volume sale was about 3.5 million litres per day

Gasohol Demand

0

0.5

1

1.5

2

2.5

3

3.5

4

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Am

on

ut

(Mill

ion

lite

rs /

day

)

2004 2005 2006Ref: www.doeb.go.th

Current Status of Ethanol Production and Utilization

Current Fuel Stations Current Fuel Stations (Gasohol )(Gasohol )

Oil Companies

DEC’2005

JAN’2006

FEB’2006

MAR’2006

APR’2006

MAY2006

JUNE2006

PTT 1,204 1 2,09

1 2,07

1 2,05

1 2,04

1 2,02

1 2,00

Bangchak 65

9

66

4

677 681 69

1

696 69

3

SHELL 53

6

54

5

545 546 552 552 552

TPI 39 39 39 38 38 38 38

CALTEX 13

0

170 179 20

4

212 22

9

239

JET 63 77 77 77 77 77 77

ESSO 200 20

3

23

0

249 270 273 312

PETRONAS 15 17 17 19 24 27 37

Susco 11 11 11 11 9 9 9

TOTAL 2,857 2,935 2,982

3,030 3,077 3,030 3,157

Action Plan on Bio-diesel Utilization Promotion and Development

Raw Material

0 26 0.6 0.67 1.07 1.40

Bio-diesel Production

(ML/d)00. 3 006. 036. 046 076. 176. 396 850.

Utilization(ML/d)

06. 12 7 9 15 35 79 85

R&D

Expanding palm oil cultivation areas: 4 million Rai in Thailand and 1 million Rai in neighbouring countries

R&D on yield of palm oil (2.7 to 3.3 ton/Rai/year)

R&D on yield of Jatropha (0.4 to 1.2 ton/Rai/year)

Expanding Jatropha Cultivation Areas

Community-based Commercial-based

20122011201020092008200720062005

Commercial Scale of B100 Production and Utilization of B5

in the South and the Central Part of Thailand

Community Scale development and B100

Specification Establishment

Substitute B100 to

10% Diesel

Intensive R&D on enhancing values of by-products from bio-diesel production

1 Hectare= 6.25 Rai

Raw Material Provision

Raw Material

B100 4.8 ML/dfrom domestic oil palm cultivation

B100 1.2 ML/dfrom oil palm in

neighboring countries

3 measures to boost upraw materials for bio-diesel

•Promoting 4 million Rai cultivation areas of oil palm,particularly in the South and the East.

•Promoting 1 million Rai cultivation areas of oil palmin neighboring countries or importing CPO

•Promoting R&D on Jatropha Curcas and other oil crops

Initiatives on B5 in the South and the

Central

B5 utilization throughout Thailand

B100 substitutionto 10% diesel in 2012

B100 2.5 ML/d from

Jatropha and others

Bio-diesel (ML/d)

2005 2006 2007 2008 2009 2010 2011 2012

! ! Hectare = 6.25 Rai

Bio-diesel (B100) Production Plant

Producers Capacity(L/Day)

Actual production(L/Day)

1. Thai Bio-diesel Oil 200,000 100,000

2. Vegetable Oil Siam 100,000 30,000

3. Golden Bio-diesel 200,000 100,000

4. Racha Bio-diesel 100,000 50,000

5. Suk somboon Oil 48,000 20,000

6. Energy Plus 4,000 3,000

7. Prasan Kung Thong 6,000 5,000

Total 658,000 308,000

0

500

1000

1500

2000

2500

3000

3500

4000

2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020

Unit : KBD Crude Oil Equivalent

CAGR 4.3%

’05-’20

0.88 GDP

Oil

Natural Gas

Coal/Lignite

Hydro

Traditional Renewable

14%

4%

10%

Import

Import

Imp.

Domestic

Domestic

12%

3%15%

CAGR 6%

’00-’05

1.2 GDP

1,965

3,650

DomesticImp.

Domestic

41%32%

38%

29%

Energy Consumption Outlook Energy Consumption Outlook 20202020

2%

Renewable

4% Target 3,910 ktoeExisting 1,400 Ktoe

Ethanol Target 3.0 ML/day Existing 0.4 ML/day

Bi o di esel Target l 4.6 ML/day Existing 0.3 ML/day

Target 3,238 MW

Existing 1,841 MW 5% RPS 140

MWFeed-In Law 1,257 MW- Biomass/Mini Hydro- MSW/Wind/PV

2005

RE3%

1%

3%

R&D

RPS/Feed In

Facilitator

RE 10%

4% Target 4,900 ktoe

Target4,580 MW

Power Generation

Process Heat

Bio-Fuel

Power Generation

Process Heat

Ethanol Target 12.0 ML/day Bio diesel Target 12.0 ML/day

Bio-Fuel

2011 2020

5%

1%

RE 8%

RE Development Outlook by 2011 and 2020

Incentive

RE Power Generation Outlook

Renewable Energy

Resources

Existing As

June2006(MW)

Target in 2011 (MW)

Target in 2020 (MW)

1) Biomass 1,761.29* 2,800 3,6202) MSW 4.25

100 130

3) Waste water/Manure

4.60 10 30

4) Photovoltaics 25.48 85 2505) Wind 0.55 43 1006) Mini/Micro Hydro 44.33 200 450

Total 1,840.50

3,238 4,580

* Bagasse 1,220 MW, Wood, Bark 385 MW, Rice husk 58 MW,

Other Agriculture waste 98 MW,

RE Process Heat Utilization Outlook

Renewable Energy

Resources

ExistingAs May 2006(ktoe)

Target in 2011

(ktoe)

Target in 2020

(ktoe)

1) Biomass 1,400 3,660 4,6452) Biogas 40 200 2453)Solar Thermal >1 5 10

Total 1,440 3,910 4,900Bio-Fuel Utilization Outlook

Renewable Energy

Resources

ExistingAs May 2006

(ML/day)

Target in 2011

(ML/day)

Target in 2020

(ML/day)

1) Ethanol 0.4 3.0 12.02) Bio-Diesel 0.3 4.6 12.0

Total 0.7 7.6 24.0

2005

Conventional

Energy Technology

Nuclear

MSW/Wind /PV/ Energy Storage

Biomass /Biogas /Mini & micro hydro / Bio-Fuel

Synthetic gas/Bio-fuel,Low cost PV

Fuel Cell / Hydrogen

2 020

R&D for Future RE ..Road Map

2011

New Energy Technology

2030

AEBF 2006AEBF 2006Asean Energy Business ForumAsean Energy Business Forum

Meetings – Conference - ExhibitionMeetings – Conference - Exhibition

Energy Efficiency

NEW CHALLENGE :NEW CHALLENGE : Energy Elasticity

1 :1 0.85 : 1 in 2011

’2004 saving 6 350, MBTH/year

’2008 saving 30,000 MBTH/year

’2011 saving 75 000, MBTH/year

Acc. saving Acc. saving ‘2008–‘2011‘2008–‘2011

243,000243,000 MBTH

Acc. saving Acc. saving ‘2005–‘2008‘2005–‘200866,00066,000 MBTH

Energy Efficiency Target in 2005-2011

0.00

0.20

0.40

0.60

0.80

1.00

1.20

1.40

1.60

2548

2549

2550

2551

2552

2553

2554

2555

2556

2557

2558

2559

2560

2561

2562

2563

Normal case1 :1 1 : 1

Challenge Case 0.6 :

1

0.85 :1

Short term แผนระยะยาว

GDP Growth 5.7%

Long term

2011

2020

Energy Elasticity = Growth (Energy) Growth

(GDP)

Efficiency Improvement in Industrial SectorEfficiency Improvement in Industrial Sector

100

150

200

250

300

350

2548 2549 2550 2551 2552 2553 2554

EE 0.9 :

1

EE0.85 :

1

1. Tax incentive 1. Tax incentive

2. Investment support (BOI) 2. Investment support (BOI)

3. Soft loan 3. Soft loan

4. Cooperative effort for energy conservation 4. Cooperative effort for energy conservation

5. Standard, criteria for energy use 5. Standard, criteria for energy use

Cooperate with private sector and integrate with other

organizations

Cooperate with private sector and integrate with other

organizations

1. Direct stimulation toBiz/Industrial sector on Energy Eff. management

1. Direct stimulation toBiz/Industrial sector on Energy Eff. management

2. Adaptation to appropriate Technologies

2. Adaptation to appropriate Technologies

StrategiesTools

Previous target (set in ’03) EE from 12 : 1 1 : 1

New Challenge 0.85 : 1

30000,MTHB

75000,MTHB

Mil. Barrel

2,000

1,550

2,000

11,600 > 15,000

phase 1

‘03 – ‘05

phase 2

’06 – ‘07

phase 3

’08 – ‘11

Fund (MBTH) financial institutefinancial institute

2. 2. การขยายผลโดยภาคเอกชนการขยายผลโดยภาคเอกชนSuccess of C.P. Group

DEDE : knowledge & consult team

saving 1,0 00MBTH

550

employee in organize

7700 sub-company

Oth

er

Pri

vate

secto

r

3 . 3 . Information& KnowledgeInformation& Knowledge

( ( Energy Efficiency and Renewable Energy Efficiency and Renewable EnergyEnergy ) )

Saving -1530%

Knowledge Center

direct

20%Incentive by public

indirect 80%Operate by private

Incentive strategy to industrial/commercial

2. 2. Expanding by Expanding by private sectorprivate sector

1.1. Promote of financial Promote of financial institute schemeinstitute scheme

Metal

Non-Metal

Chemical

Textile

food

Building

Technology PromotionSave Cost (MBTH)

2551 2554

Well known confidence 3,200 4,500

Proved Tax Incentive 8,300 11,700

High risk(investment,Technology )

- subsidy -1020

%- Tax Incentive

3,200 4,600

Total 14,700 20,800

Process Process Improvement Improvement

and Equipment and Equipment ChangeChange

• Motor/Compressor

• Boiler/Burner/ Furnace

• Chiller/Thermal Storage

• Fuel Switching/CHP

• Industrial Specific Process

Past operatingPast operating

IndustrialIndustrial&Building&Building

(( NumberNumber))> >

9,0009,000

SavingSaving

(( MBahtMBaht))13,00013,000

Technology transferTechnology transferTechnology transferTechnology transfer

Revolving FundRevolving Fund

Soft LoanSoft LoanSoft LoanSoft Loan

Financial institutesFinancial institutes supportsupport

• To promote and push investment in EE projects to increase the confidence of financial institutes in lending for EE projects• MLR ≤ 4 % per year

Tax IncentiveTax IncentiveTax IncentiveTax Incentive

Concept• Provide special tax from treatment of purchase

of EE equipment to industry (Performance base) Criteria & condition

• Pilot tax incentive (saving base) 100%• Incentive supporting industry with proven

energy reduction to claim the cost up to 2 MBTH Eligibility

• industry/building must be energy conservation

Tax IncentiveTax Incentive for energy conversation (pilot)for energy conversation (pilot)

20

40

60

80

2548 2549 2550 2551 2552 2553 2554

MBarrel

year

14000, MBTH

185,00 MBTH

Renewable EnergyRenewable Energy

1 Incentive market 1 Incentive market

2. Incentive produced 2. Incentive produced

Save energy houseSave energy house

energy labelenergy label

High efficiency instrument : Refri./glass/wall

High efficiency instrument : Refri./glass/wall

1.Standard : equipment/house

• appliance• Material • Building code

3. Soft loan• Save energy

house

2. Tax incentive• producer• consumer

Residential SectorResidential Sectorresident : Target saved

10

1Awareness

• Reduced transport• Reduced transport

• Keep behavior - Home : account - work - expanding to resident

• Keep behavior - Home : account - work - expanding to resident

2.Household

Awareness energy conservationAwareness energy conservationAwareness energy conservationAwareness energy conservation

Reconstructed & Improved technique in RE

Saved cost > 15% (750, 000 Baht/year/residence)

876 Energy resident (6 60MBTH/year) 200

300376

050

100150200250300350400

2549 2550 2551

ชุ�มชุน(แห่�ง)

development and management energy in resident

process

expanding

Technical training

Analysisproblem/potential

Strategy/policy

Survey

Other resident

Monitoring/Assessment

Concept•Awareness & Study•participle•experience•technology•knowledge

Result•Save cost of energy•Technology training•Confidence of energy in resident

resident

Energy saving inEnergy saving in 2 2003003--20052005Energy saving inEnergy saving in 2 2003003--20052005

public/resident : saving (35

23MBarrel ) , 4 600, MBTH• awareness to energy conservation (continuous)

- energy conservation in household and

office

- energy management in resident

transportation : saving 6% or

85. MBarrel or 17000, MBTH

• awareness to energy conservation

(save 6M.liters/day)

• Mass transportation 2 ways (600,000 persons/day)

Industry : saving 4 5% (MBarrel ) , 13000, MBTH

• Cooperation with private sector • Revolving fund, low MRR

2000MTH

• Tax incentive

RE : 3 % biomass sustains heavy

fuel oil and electricity , 07. % NGV

and Gasohol sustains oil = 141.

MBarrel , 28, 200 MBTH

Thank you

for your attention