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Energy Regulation issues in Thailand

Office of the Energy Regulatory Commission. Energy Regulation issues in Thailand. November 15, 2009 NARUC 121 st Annual Convention. 1. Contents. Energy Regulatory Commission (ERC) Enhanced Single Buyer (ESB) Energy Supply Industry. Energy Regulatory Commission.

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Energy Regulation issues in Thailand

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  1. Office of the Energy Regulatory Commission Energy Regulation issues in Thailand November 15, 2009 NARUC 121st Annual Convention ERC 1

  2. Contents • Energy Regulatory Commission (ERC) • Enhanced Single Buyer (ESB) • Energy Supply Industry ERC

  3. Energy Regulatory Commission Appointed by His Majesty the King (Feb 08) • Regulate energy industry operation • Issue licenses for energy industry operation • Establish measures to ensure security & reliability of power system • Establish criteria for energy tariffs determining • Issue/establish customer service standards & quality • Issue regulations/criteria for the contribution sending to the Fund & Fund utilisation • etc. Energy Industry Act B.E. 2550 (2007) Energy Regulatory Commission (ERC) 7 Commissioners Deputy Secretary General(DSG) Electricity and Natural Gas Industry Regulatory Division Licensing Division Deputy Secretary General (DSG) Internal Audit Division Rights Protection Division Legal Division Regional Office Division Secretary General(SG) Deputy Secretary General (DSG) Power Development Fund Division Corporate Strategy and Plan Division Administrative Division Information Technology Division 3

  4. Energy Regulatory Commission 1. Prof.Emeritus. Direk Lavansiri, Ph.D. 2. Mr. Nopadon Mantajit 3. Mr. Chalit Ruengvisesh Chalit Ruengvisesh 4. Mrs. Pallapa Ruangrong, Ph.D. 5. Mr. Chongchet Boonkerd 6. Mr. Thaksin Limsuvan 7. Mr. Supichai Tangjaitrong, Ph.D. Prof.Emeritus. DirekLavansiri, Ph.D Chairman VISION ERC Commissioners To regulate the energy industry operation so as to ensure its security and reliability, with international standards and acceptance KawinThangsupanish Secretary General ERC

  5. To regulate the energy industry operation so as to ensure its security and reliability, with international standards and acceptance ERC Vision & Values Values T Trust Reliability &Consistency R U Unity S Social Accountability T Transparency & Independence 5

  6. Regulatory Structure Cabinet Policy Frameworks Electricity Natural Gas National Energy Policy Council (NEPC) Ministry of Energy Energy Regulatory Commission (ERC) Committee on Energy Policy Administration (CEPA) The Office of the Energy Regulatory Commission (OERC) Energy Policy and Planning Office (EPPO) 6

  7. Electricity Industry Generation (% market share) IPPs (42%) Imports (3%) VSPPs (<< 1%) EGAT (45%) SPPs (10%) Govt.(policy framework) EGAT (100%) SO Transmission ERC (regulation) Direct Customer (2%) Distribution PEA (66%) MEA (32%) User User Remarks EGAT= Electricity Generating Authority of Thailand MEA= Metropolitan Electricity Authority PEA= Provincial Electricity Authority IPPs= Independent Power Producers (Cap. sold to EGAT  90 MW) SPPs=Small Power Producers (Cap. sold to EGAT < 90 MW) VSPPs=Very Small Power Producers (Cap. sold to MEA/PEA < 10 MW) ERC

  8. Power Development Plan : NEPC Share of Power Generation by Fuel Type 2008 2021 Renewable 1.4 % Imported coal 15 % Imported coal 8.2 % Bunker oil 1.0 % Natural Gas 70 % Imported power 10 % Natural Gas 60 % Natural Gas 60 % Lignite 12.6 % Lignite 6 % Hydro 4.7 % Nuclear 5 % Laos PDR 1.6 % Diesel 0.2 % Renewable 2 % Malaysia 0.3 % Hydro 2 %

  9. Private power producers in Thailand Producers Existing New IPP 12,151.6 MW (10) 4,400 MW (4) Private 6,677 MW (7) EGAT’s 5,474 MW (3) SPP Firm 2,079 MW (41) ~2,000 MW (~ 27) 243 MW (19) (> 10) Non Firm VSPP 238 MW (118) > 2,000 MW (> 300) 14,712 MW (188) > 8,400 MW (> 341) Remark: ( ) = numbers of firms

  10. MEA and PEA Service Areas • 63 Million people • 17 Million energy users • Cover 99% of service area • 76 Provinces of THAILAND : • Metropolitan Area (3 Provinces : Bangkok, Nonthaburi, Samutprakan) served by MEA) • Provincial Area (73 Provinces are served by PEA) MEA’s service area 2.7 Million Customers MEA’s service area PEA’s service area 14.2 Million Customers MEA’s service area Northern area The rest of countryis serviced by PEA North Eastern area Central area Southern area

  11. SPP Power Purchase Regulation 2007 Firm Non Firm Cogeneration Renewable Cogeneration Renewable Firm 4,000 MW Target Purchased Cap. >10 - 90 MW >10 - 90 MW >10 - 90 MW >10 - 90 MW 5 Year(renew contract) Contract Period 20 - 25 Year 20 - 25 Year Fuel gas , coal Renewable any Renewable Condition Steam > = 5 % < = 25 % = 25 % Conventional fuel < SPP Power Purchase Regulation No limit No limit No limit Conventional fuel Source: EGAT

  12. Power Development Fund Source of Fund Fund Electricity Business Licenses (1) Compensation and Subsidization for Licensees who provide universal service G T SO D R From tariffs System Operation License From Fines (2) Compensate through Ft (3) Develop and rehabilitate a community near Power Plant Electricity Generation License (4) Promote Renewable From Levies Gas 0.01 ฿/kWh Fuel Oil Diesel 0.015 ฿/kWh Coal/Lignite 0.015 ฿/kWh Renew 0 – 0.02 ฿/kWh (5) Promote people participation (6) Fund management

  13. Thank you for your kind attention. www.erc.or.th

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