Evolution of Thailand’s Very Small Power Producer (VSPP) regulations Humboldt State University 11 September 2008 Chris Greacen Palang Thai

Palang Thai พลังไท Thailand NGO Objective: –To ensure that the transformations that occur in the region's energy sector: augment, rather than undermine, social and environmental justice and sustainability. Key approaches: –We teach hands-on energy technology –We help draft policies –We critique wasteful & dangerous mega-projects, advocate reform in planning processes, regulatory regime พลัง (palang): n 1. Power. 2. Empowerment. ไท (thai): adj. 1. Independence. 2. Self-reliance

Outline What is net metering? Thai power sector overview Evolution of VSPP –Motivation –Implementation –Results Moving forward

“Net metering” Image source: Real Goods

Source: EPPO 2006 Thai electricity supply industry structure

SPP: early history of private-sector RE in Thailand 1992 Small Power Producer (SPP) program –Based on PURPA –Fossil-fuel cogeneration and renewables up to 90 MW –Low tariff offered for “non-firm” generators made it difficult for most renewables. (In practice >75% SPPs are fossil cogeneration)

Fortuitous circumstances… 1999 Chom starts working at EPPO –Pro-competition gov’t agency –Trying to break EGAT/MEA/PEA monopoly and set up Power Pool (like what led to California crisis) –Sees net metering as pro-market Chris hanging out in EPPO office working on Ph.D. In early 2002, EPPO asks us, “want to draft net metering regs?”

Small is beautiful pitiful: Community Micro-hydroelectricity and the Politics of Rural Electrification in Thailand Chris Sangarasri Greacen ERG – UC Berkeley Ph.D. colloquium presentation – 4 Dec, 2002 Thanks to… Ph.D. Dissertation Committee: Dan Kammen, Dick Norgaard, Jeff Romm Switzer Network Mentors: Jim Williams and Margaret Torn EPA-STAR Fellowship, Switzer Environmental Fellowship

How well do micro-hydro installations work in the field in Thailand? Of 59 systems installed, less than half still in operation

Mae Kam Pong Microhydro Unit #2 Voltage and Current (15 minute intervals) 6 Sept to 8 Sept 2001

Hourly load curve, by year from 1985 to Graph based on an appliance usage survey of 35 families in Mae Kam Pong village, April and June 2001.

Contribution to evening maximum peak demand by appliance, for the years 1985 – 2001.

Villagers: ‘our power plant’

Developing the VSPP regulations to Tom Starrs VSPP = Delaware Net Metering + Thai SPP regs + changes 1 MW max export Power Purchase Agreement (PPA) with MEA or PEA – not EGAT Principle of tariff determination: –VSPP = ‘bulk supply’ (gen + trans) + fuel adjustment –Same amount that MEA and PEA purchase bulk power from EGAT –About 80% of retail –About $0.10/kWh on-peak, $0.05/kWh off-peak Working group – composed of utilities, government, professors – went line-by-line through regulations.

Commercial + Technical regulations Technical regs: Allowable voltage, frequency, THD variations Protective relays 1-line diagrams for all cases: –Induction –Synchronous –Inverters –Single/multiple –Connecting at different voltage levels (LV or MV) Communication channels Commercial regs: Definitions of renewable energy Who bears what costs for integrating to the grid Principle of tariff determination Invoicing and payment arrangements Arbitration when generator and utility don’t agree

One-line diagrams

Net metering study tours to USA 2002 and –CA (SMUD, PG&E, CEC, CPUC, Powerlight, Kenetech Wind –OR (PGE, Ashland Muni, Home Power, Grid- connected micro-hydro) –WA (Seattle City Light, PSE, OPALCO) Peer-to-peer exchange Target Thai folks in charge of VSPP implementation All on the same bus

VSPP examples

Uses waste water from cassava to make methane Produces gas for all factory heat (30 MW thermal) + 3 MW of electricity 3 x 1 MW gas generators Korat Waste to Energy - biogas

Biogas from Pig Farms Reduces air and water pollution Produces fertilizer Produces electricity 8 x 70 kW generator Ratchaburi

 System size: 3 kW  About 50 households Solar PV

Mae Kam Pong, Chiang Mai DEDE + community 40 kW About $130,000 cost Sell electricity to PEA – $13,000/year

“VSPP 10MW” in MW  10 MW Allow small, efficient fossil-fuel cogeneration (CHP) Technology-specific per-kWh subsidy adder (on-top of ‘old’ VSPP tariff) Example: Solar PV = 11.6 baht/kWh = $0.34/kWh

Summary of VSPP applications by fuel type

VSPP summary June 2008

VSPP selling to grid as of June 2008

VSPP applications approved as of June 2008

VSPP applications submitted as of June 2008

Bangkok Solar 1 MW PV  Project size: 1 MW  Uses self-manufactured a-Si

Rice husk fired power plant 9.8 MW Roi Et province Average VSPP tariff for biomass: 2.9 baht/kWh (incl. subsidy 0.3 baht/kWh) Biomass Biogas Potential: 7000 MW Source: Ministry of Energy 2003

Creative cogeneration - VSPP Pipeline compression CCGT inlet cooling

Fuel mix in power generation - power development plan 2007 GWh Import Nuke RE Gas Coal Lignite Hydro

Mae Wei: wiring diagram power lines: single phase 230 vac to village. 25 mm Al Capacitor box (70 microfarad & 140 microfarad) Volt-meter (0-500 volt) V A Ammeter 15 amp A V Knife switch Volt-meter (0-500 volt) Ammeter 15 amp Leonics controllerBallast load A Ammeter 15 amp Three phase 230 vac delta Powerhouse SchoolTo village loads…

Solar for computer training centers in seven Karen refugee camps 1 kW PV hybrid with diesel generator Each powers 12 computers

Thai solar home systems

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