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Successful Development of Renewable Energy in Thailand 3 rd EEP Mekong Regional Forum

Successful Development of Renewable Energy in Thailand 3 rd EEP Mekong Regional Forum 20 Nov. 2012. 1. Contents. 1. Promoting the just society. 2. Developing human resources to promote lifelong learning society. 3. Balance of food and energy security. 4.

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Successful Development of Renewable Energy in Thailand 3 rd EEP Mekong Regional Forum

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  1. Successful Development of Renewable Energy in Thailand 3rd EEP Mekong Regional Forum 20 Nov. 2012 1

  2. Contents

  3. 1 Promoting the just society 2 Developing human resources to promote lifelong learning society 3 Balance of food and energy security 4 Stable economy based on knowledge and enabling factors 5 Linkages of economic and security in the regions 6 Sustainable management of natural resources and environment The 11th NESD Plan (2012-2016)

  4. u Developing bio-energy security to support the national development and agricultural sector u Improve the agricultural management to ensure the balance of food and energy u Developing natural resources to strengthen the agricultural base u Enhancing the agricultural productivity and value creation u Promoting job and income security for farmers u Enhancing food and bio-energy security and biomass at household and community level Balancing food and energy security

  5. u Conserving and restoring the natural resource base and the environment u Shifting development Paradigm towards the Low Carbon Society u Enhancing adaptive capacity to achieve climate-resilient society u Building immunity from the use of trade measures to protect the environment uEnhancing Thailand’s role in the global environmental forum and international cooperation u Preventing and reducing pollution u Improving the efficiency, transparency and equity of the natural resource and environment management system Managing natural resources and environment towards sustainability

  6. Shifting development paradigm and driving Thailand towards Low Carbon Society (1) Restructure production sectors towards low carbon economy (2) Increase energy efficiency in transportation and logistics (3) Develop environmental friendly cities by integrating the culture, society and ecology aspects (4) Change consumption behavior to achieve low carbon society (5) Utilize the measures of generating income from natural resource and biodiversity conservation. Development Guidelines

  7. Alternative Energy Development Plan Committed to the Development of Low-Carbon Society Encouraging Private-Led Investment Government Funding on R&D Activities Alternative Energy Development Plan (AEDP: 2012-2021) Target 25% of RE in Total Energy Consumption by 2021

  8. DEDE’s Functions 1 Renewable Energy Development Target 10Year Alternative Energy and Development Plan (AEDP): An increase of 25%energy consumption in 2021 Natural Energy Wind Energy 1,200MW 134 ktoe Solar Energy 2,000MW 324 ktoe Hydropower 1,608MW 756 ktoe • Bio Energy •  Biomass 3,630 MW 1,270 ktoe •  Biogas 600 MW 10,096 ktoe •  MSW 160 MW 107 ktoe • Biofuel •  Ethanol 9 million liters/day • Biodiesel 5.97million liters/day • New fuel for diesel substitution 25 million liters/day • (oil substitution 44%) • New Energy • Ocean & Tidal 2 MW • Geothermal 1 MW

  9. Renewable Energy Development Technical Function Information on Energy Potential - Wind Map with Electronic Database - Solar Map - Biomass Database Research and Support - Biomass Gasification Technology to produce heat, electricity and mixed energy - Low speed wind turbine (1 kW) - Compressed Biogasat UbonRachathani and Chiangmai - Research on the use of E85 in Motorcycles Prototype Demonstration - Large Wind Turbine at Hua-Sai District, Nakhon Si thammarat and Muang District, Pattani Province (under construction) - Small Wind Turbine at the Seashores and Mountain Pass - Standard Pattern of Biogas System – DEDE 1, DEDE 2 - Standard Pattern of Solar Dryer System

  10. Renewable Energy Development Promotional and Supporting Measures Financial Measures - Adder (Feed in Tariff) - Investment Capital Support for 20-30% (Biogas, Solar Heat, Solar Dryer, MSW) - Low Interest Loan/ Joint-investment (Revolving Fund,ESCO Fund) - Tax Incentives (throughBOI) - Promoting CDM Projects

  11. Revolving Fund • Provided via financial institutions for investment in: • Energy efficiency improvement projects • Renewable energy development and utilization projects • Max. interest rate: 4% • Max. loan period: 7 years 11 local financial institutions have participated. January 2003 – present 7000M Baht • The ENCON Fund imposes 0.5% interest rate on financial institutions, starting from Phase 2 onwards. • Results • Reduce oil imports of over 400 million litre/yr. • Reduce power demand over 200 MW

  12. ESCO Fund Investor Investor Investor Investor A source of venture capital for ESCOs to jointly invest with private operators in energy efficiency and renewable energy projects. The program targets SMEs and smaller projects. Energy Conservation Promotion Fund ESCO Fund Investment Committee Fund Manager ESCO Venture Capital Equity Investment Equipment Leasing Carbon Market Technical Assistance Credit Guarantee Facility Expected saving 300 ktoe

  13. Tax Incentives Thailand’s Board of Investment (BOI)’s tax incentives for renewable energy • Tax holidays up to 8 years • Exemption or reduction of import duties on solar equipment • Corporate income tax reduction

  14. Renewable Energy Development Driven Measures and Assistance Hydro -Develop Hydro Power Project at Irrigation Dam with EGAT - Develop Mini Hydro Power/Village through trilateral cooperation MSW/Biogas - Cooperate with BMA, Fresh Markets, Schools, Municipality - Biogas System in Demonstration Farm Site Biofuels -Pricing Measure (Tax/Oil Fund) -PromotingFFV (E85) - Vehicles Tax Policy Improvement - Increase service stations Mitsubishi Lancer Chevrolet 6 Service Stations of E85 21 Service Stations of E85 50 Service Stations of E85 VOLVO S80 2.5

  15. Renewable Energy Development as of June 2012 The percentage of Renewable Energy Consumption = 9.45 (exclude NGV)

  16. RE Problems / Steps to be pursued Community resistance in the area, particularly on Biomass plants (Biomass,Wind,Waste) Create public awareness and understanding to be most accessible to people The bottleneck of electricity transmission system(Wind, Solar)  EGAT, PEA to speed up their production system planning to meet with more RE The permission of land use to implement the project, focusing in wind energy(wind, hydro) Relieving/modifying/amending regulations on land area permission by related government agencies Delay in permission process of RE electricity production (All technologies) Improving permission process to be more easy and quick Private Participation in State Undertaking (issue on Waste-to-energy) and the Liquor ActB.E. 2549 (2006) with regard to the definition of liquor  An effort to make the Acts amended by the Ministry of Finance(Waste, Ethanol) • Biomass Management (Biomass) • Supporting/promoting biomass production and consumption for community levels, and SMEs • Green energy community (DGG) Financial support (All technologies) Budgets allocated for research and study focusing on increasing ratio of biodiesel consumption Adder allowance (FIT), ESCO Fund, Revolving fund, Subsidy,  Use of E20/E85 (Ethanol) Continuing to disseminate knowledge and create better understanding 19

  17. Thank you 20

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