1. 1 The Renewable Energy Development and Related Promotion and Pricing Mechanism in Thailand Peeraya Siriput and Patthamaporn Poonkasem APEC Workshop on Renewable Energy Promotion and Pricing Mechanism 26-27 September 2013 San Want Hotel Taipei, Taipei, Chinese Taipei Department of Alternative Energy Development and Efficiency (DEDE) Ministry of Energy,Thailand

2. 2 Outline Thailand Energy situation 1 Alternative Energy Development Plan 2012-2021 2 Supporting Mechanism for RE promotion 3 Conclusions 4

3. Import 34% Import 69% Import 19% Import 85% Domestic 66% Domestic 31% Domestic 81% Domestic 15% ConsumptionOilNatural GasCoal/LigniteElectricityTotal Growth (%)4.79.25.03.46.7 Final Energy Consumption in Thailand 2012 3 Source : Ministry of Energy 2013 thousand barrel oil equivalent/day Oil Natural Gas Coal/Lignite Hydropower 3% 17% 44% 36% Preliminary 2008 2009 2010 2011 2012p 2 million BOE/day

4. Import value in 2012p 1.44 billion baht (18%of GDP) 2012 Crude oil 77% Petroleum product 9% NG+LNG 10% Coal 3% Electricity 1% Thailand’s Energy Import Value 4 Source : Ministry of Energy 2013/ Exchange rate 32 THB/USD P : Preliminary Value of Energy Imported Million baht 2008 2009 2010 2011 2012p Elec. Coal Natural gas+LNG Petroleum Crude oil Growth rate of energy import 16.5%

5. Thailand’s Renewable Energy Development To substitute energy imported, increase energy security, commit low carbon society Government Funding On R & D Activities EncouragingPrivate-LedInvestment Alternative Energy Development Plan (AEDP : 2012-2021) Solar 3,000 MW* 100 ktoe (Heat) Small + Mini Hydro 324 MW* Bio Energy BiomassBiogasMSW 4,800 MW600 MW400 MW 3,000 MW* (Napier grass) 8,500 ktoe (Heat) 1,000 ktoe (Heat) 200 ktoe (Heat) Target 25 % of RE in Total Energy Consumption By 2021 Biofuels&CBG Ethanol 9 Million l/d Biodiesel 7.2 Million l/d* Advance biofuel replace diesel 3 Million l/d* Compress biogas replace NGV 1,200 ton/d* Wind 1,800 MW* Others Tidal wave 2 MW Geothermal 1 MW *Last revised July 2013

6. 2.Heating Process : Total Existing 3,986 ktoe 3.Biofuel: 4.83 ML/day(1,067 ktoe) Existing 46.6 MW Existing 214.3 MW Existing 239.6 MW Existing 554.4 MW Existing 2,185 MW Existing 98.5 MW Biomass Wind Biogas Hydro Solar MSW 1.Electricity Generation :Total existing 3,338 MW (928 ktoe) Existing 3,572 ktoe Biomass Existing 6.8 ktoe Solar Existing 2.2 MLPD Ethanol Biodiesel Existing 2.6 MLPD Existing 349.0 ktoe Biogas MSW Existing 58.0 ktoe Updated by DEDE @ June 2013 - Solar farm power plant in Northeastern part of Thailand - - Rural area - - Mini Hydro & Micro Hydro in rural area - - Wind farm in Southern &Northeastern part of Thailand -livestock farm -Industrial waste water - Sugarcane Industry, palm,etc. - Biomass Power plant - Community power plant - Municipal waste - -Hot water (hospital,hotel) - -Drying - -Industrial Waste water (starch, food, beverage, palm, rubber, paper, Bio- fuel) - -Industrial: sugarcane, palm, paper) - - community (high-eff. stove) - Molasses, Cassava - - Palm oil, Jatropha, used cooking oil - - Municipal waste Current status of RE Development in Thailand 6

7. 7 Final Renewable Energy Consumption Updated by DEDE @ June 2013 Power =1.67% Heat =6.9% Biofuel =2.0% Alternative& Renewable Energy 10.6% Of final energy consumption

8. 8 5 Actual mechanism : Electricity Generating Private Investor CDM Electricity authorities Consumers Promotion requesting Renewable energy maps Data from demonstration site One-Stop Service Renewable energy potential info Investment Grant, i.e. biogas, solar hot water, Solar dryer (i.e. 2012 25% for SHW, 55% for Solar dryer) “ Energy Soft Loan ” Revolving funds for Renewable energy and energy conservation, Energy credit ESCO Venture Capital Fund : “ Adder ” : Feed-in Premiums Policy, Feed-in Tariff DEDE DEDE & EPPO DEDE EPPO DEDE 1 2 3 4 5 Promotion requesting Banks To raise a loan Capital requesting Registration for intent expression as per the time specified Adder/ FIT (pending) Carbon credit sale ONEP EIA ERC Local Admin Offices giving licenses Negotiation for electricity selling & buying - - Firm - - Non Firm Licenses Technical support Support from the Ministry of Energy BOI- Investment Incentives Supporting Measure for RE Promotion

9. Thailand’s solar Map   Average solar irradiance 18 MJ/m 2 -d (5 kWh/m 2 -day)   Maximum : 20-24 MJ/m 2 -d   Solar map developed by DEDE using satellite images and ground station measurement ( 38 Stations) Solar map 9 Potential Area Updated September 2010

10. Wind resource map of Thailand at 40 and 90 meters above the ground 23/03/56 www.Directionplan.org Thailand’s wind Map Wind is not strong and not continuous A particular area of ​​ the windy + continuous

11. The Project Promotion for Solar Hot Water & Solar Drying The Project Promotion for Solar Hot Water & Solar Drying

12. Long term Ten years RE Energy Development Plan(AEDP) short term Target / (Year) 20082009201020112012 total 08-12 2013- 2022 total 12-22 Target (solar collector area (sq.m/Year) Plan5,0003,00010,000 12,00040,00025,000300,000 Result 3,9732,91110,0009,87911,15536,806N/A Target for solar hot water promotion Giving a financial support to entrepreneurs interested in investment on installation of the integrated solar hot water system Subsidy 30% (2008-2012) Subsidy 25%,22.5%,20 %,18.5% (2013 - 2016) Subsidy 15% (2017-2022)

13. small medium Large (with Backup Power ) Size of Greenhouse Solar Dryer

14. Dried Banana Dried Herbs Subsidy Investment Amount Areas (m 2 ) 201 1 201 2 201 3 2014201 5 201 6 201 7 201 8 201 9 202 0 202 1 Total 60% 20004000 (55%) -------- 10,000 50%---5000 40,0 00 Total50,000

15. - CDM projects enables private sectors to gain financial benefit from carbon credit Measures for RE promotion - The investors will receive the exemption of imported duty of equipment or machines - Any income-corporate taxes resulting form selling RE or saving energy will be exempted for a certain periods to maximum 8 years 15 - MOEN enhances private entrepreneurs to develop alternative energy or energy saving projects to be CDM projects

16. Project feature: set up to joint capital promote investment in energy conservation and renewable energy development projects Technical Assistance Credit Guarantee Facility Carbon Credit (CDM)ESCO Venture CapitalEquipment LeasingEquity Investment Investor Investment Committee ESCO Fund Consider and approve control Fund Manager return Financial support return Result 1. Stimulate investment energy conservation & renewable energy development with total value > 2,500 million baht / year 2. Provide energy conservation renewable energy development with total value > 500 million baht / year Measures for RE promotion Mechanism : ESCO Venture Capital Fund 16

17. 17 Measures for RE promotion “Adder” : Feed-in Premiums Measures for RE promotion “Adder” : Feed-in Premiums Fuel Adder (Baht/kWh) VSPP SPP Adder-VSPP (USD Cents /kWh)** Special adder * (Baht/kWh) Supporting period (Year)  Biomass - Installed capacity <= 1 MW - Installed capacity > 1 MW 0.50 0.30 Bidding1.54 0.93 1.00 7777  Biogas (all categories of production sources) - Installed capacity <= 1 MW - Installed capacity > 1 MW 0.50 0.30 Bidding1.54 0.93 1.00 7777  Waste (community waste, not hazardous industrial waste, and inorganic waste) - AD &b LFG - Thermal Process 2.50 3.50 2.50 3.50 7.72 10.81 1.00 7777  Wind power - Installed capacity <= 50 kW - Installed capacity > 50 kW 4.50 3.50 13.89 10.81 1.50 10  Mini and micro hydropower - capacity 50-200 kW - capacity < 50 kW 0.80 1.50 -No-2.47 4.63 1.00 7777  Solar power8.00/ 6.50 24.70/ 19.5 1.5010 * Note : Special Adders for - Facilities in 3 Southern Provinces - Diesel-Gen. replacement on PEA system ** 1 USD=32.375 Baht Government halted applications for solar energy since June 2010

18. New measures to support solar energy Solar PV Rooftop 200 MW Solar PV Rooftop 200 MW Solar PV Community 800 MW Solar PV Community 800 MW Solar PV Rooftop 200 MW Solar PV Rooftop 200 MW Solar PV Community 800 MW Solar PV Community 800 MW Target 1000 MW 16th Jul 2013, Thailand 's National Energy Policy Commission (NEPC) promote the installation of Solar PV Rooftop and “Solar PV community projects The Purposes - Reduce public Investment - Reduce Peak Load - Stabilize the energy

19. Solar PV Rooftop projects are divided into three groups Promotion of Solar PV Rooftop

20. Feed in Tariff (FiT) for Solar PV Rooftop * 1 USD=32.00 Baht [*21.75 cent/unit][*20.47 cent/unit][*19.25 cent/unit]

21. Solar PV Rooftop Implementation Energy Regulatory Commission (ERC) announces Regulation to purchase of power from Solar PV Rooftop in September 3rd, 2013 Submit the application through to the Metropolitan Electricity Authority (MEA), and the Provincial Electricity Authority (PEA). From September 23 to October 11, 2013. For more information, please contact ERC. (www.erc.or.th/www.mea.or.th/www.pea.co.th)

22. 22 Feed in Tariff (FiT) for Solar PV Communities NEPC (16 July 2013) approved for Solar Communities with total installed capacity 800 MWp - owned ground mounts. NEPC (16 July 2013) approved for Solar Communities with total installed capacity 800 MWp - owned ground mounts. Feed in Tariff (FiT) 25 years Special Scheme with Feed in Tariff (FiT) 25 years COD within Year 2014 COD within Year 2014 NEPC (16 July 2013) approved for Solar Communities with total installed capacity 800 MWp - owned ground mounts. NEPC (16 July 2013) approved for Solar Communities with total installed capacity 800 MWp - owned ground mounts. Feed in Tariff (FiT) 25 years Special Scheme with Feed in Tariff (FiT) 25 years COD within Year 2014 COD within Year 2014 FIT Rates for Solar PV Communities [* 30.47 cent/unit] [* 20.31 cent/unit] [*14.06 cent/unit] * 1 USD=32.00 Baht Project IRR= 13.6% Payback period 6 years

23. Communities Solar PV Implementation Energy Policy and Planning Office (EPPO) corporate National Village and Urban Community Fund Office be responsible about Regulations for the purchase of power from Communities Solar PV.

24.  Encourage community enterprise for energy crop production  Contract between community enterprise & Biogas plants  Biogas utilization in 3 categories : - Electricity generation - Electricity generation - Compress Bio Gas (CBG) production for Transport - Compress Bio Gas (CBG) production for Transport - Replace LPG - Replace LPG  Secure income for farmers  All stakeholders generate income from biogas utilization  Energy security in Thailand  Encourage community enterprise for energy crop production  Contract between community enterprise & Biogas plants  Biogas utilization in 3 categories : - Electricity generation - Electricity generation - Compress Bio Gas (CBG) production for Transport - Compress Bio Gas (CBG) production for Transport - Replace LPG - Replace LPG  Secure income for farmers  All stakeholders generate income from biogas utilization  Energy security in Thailand  Subsidy investment cost 20 %  Budget 300 million baht  Feed-in –Tariff 14 cent/kwh (for power production) in 20 years  Subsidy investment cost 20 %  Budget 300 million baht  Feed-in –Tariff 14 cent/kwh (for power production) in 20 years Principles Targeted area - Drought area - Irrigated area - Low rice production area 1. Agricultural sector - Encourage energy crop growing in appropriate areas - Generate income for farmers - Generate income for farmers 2. Industrial sector - Promote investment in energy industry - Biogas to support power generation stability - Organic Fertilizer after biogas production process 1. Agricultural sector - Encourage energy crop growing in appropriate areas - Generate income for farmers - Generate income for farmers 2. Industrial sector - Promote investment in energy industry - Biogas to support power generation stability - Organic Fertilizer after biogas production process Outcome Outcome “Pilot project on green energy for community enterprise (biogas production from Napier grass) ” 24 Promotion of Biogas from Napier grass

25. ConclusionsConclusions Renewable energy will not solve all…   But Renewable energy can reduce dependence on natural gas and other fossil fuels.   Help strengthen the energy.   Help increase energy security of the country.   Scattered areas throughout the country (Distributed Generation) by reducing transmission congestion.   Fund available from Ministry of Energy   Launch 10 years master Plan for Alternative Energy “AEDP 2012-2021”   Launch mechanism support for promoting renewable energy both information & Financial

26. Thank you for your kind attention www.dede.go.th Department of Alternative Energy Development and Efficiency (DEDE) Ministry of Energy 17 Rama 1 Road, Patumwan Bangkok Thailand 10330 谢谢。