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