1. Thailand’s VSPP Program 15 March 2010 Energy Policy and Planning Office Presented to representatives from Tanzania

2. EPPO Thailand’s Electricity Industry Structure

3. EPPO Import (3%)‏ EGAT (45%)‏ IPPs (42%)‏ Generation (% share)‏ Transmission Distribution EGAT (100%) PEA (66%)‏ MEA (32%)‏ Direct Customers (2%)‏ Users Remarks: Figure of % Share in Fiscal Year 2007 VSPPs (<<1%)‏ SPPs (10%)‏ Govt. ERC Thailand’s Electricity Industry Structure

4. EPPO Thailand’s Fuel Mix for Power Generation (Jan 2010)

5. EPPO History of Thailand’s VSPP Program

6. EPPO 2002 »VSPP Regulation introduced »Applicable to renewable and co-generation facilities »up to 1MW contracted capacity 2006 »contracted capacity extended from 1 MW to 10 MW »Feed-in Tariffs (“ADDER”) introduced 2009 »Adder rates adjusted »Some rules and regulations adjusted (bid bond,, dispatch, and rooftop solar)

7. EPPO Thailand’s Adder Program

8. EPPO Thailand’s VSPP Status

9. EPPO VSPP – types of technology & fuels PV Thin-Film Crystalline -Solar Thermal Parabolic Through Stirling Engine SOLAR Animal manure Industrial waste Rice Straw Biogas Rice husks/rice straw Bagasse Jatropha Palm fiber/Empty palm bunch corncobs/corn shells woodchips/wood slaps cassava rhizhomes/pulps coconut fiber short-rotation plants Biomass Thermal process Landfill MSW mini, micro, pico (up to 200 kW) Hydro high-speed low-speed Wind

10. VSPP Capacity – before and after ADDER

11. EPPO Recent Changes and Lessons Learned

12. EPPO Some Recent Changes, Lessons Learned, and the Way Forward 1.VSPP’s simplified application process has been updated to discourage speculators 2.Rooftop solar systems now receive adder based on total kWh generated, not on net-metered kWh 3.Financial measures not enough 4.Technical regulations subject to revision 5.“ADDER” rates set to balance investment against other public policy objectives 6.Certain benefits of RE have yet to be quantified and integrated into long-term power supply adequacy plan

13. EPPO 1. Simplified rules updated VSPP regulation was previously designed to simplify the application process in order to encourage small- scale RE systems to develop –Previously designed for up to 1 MW contracted capacity –Previously designed before ADDER was introduced In 2009, some modifications to the rules have been made to discourage speculators:  Bid bond 200 Baht/kW sale except system sized <100 kW  No adder will be given if the project cannot start selling power within 1 year after the SCOD (applicable to proposals without PPAs after Aug 2009)

14. EPPO Example: 6 Largest Solar Energy Proposals that Have Been Accepted No.CompanyTechnology No. of facilities Total Contrac ted Capacit y (MW) SCOD 1 บจก. ดีแอนด์เจคลีนเอ็น เนร์ยี่ซิสเท็ม Solar Thermal: Stirling Engine 123 All facilities have PPAs 718.30Dec 2009- Dec 2013 2 บจก. เอ็ม เอ ไอ ดิเวลล อปเม้นต์ Solar Thermal: Stirling Engine, Parabolic trough 41 with PPAs (26) without PPAs (15) 246 (156) (90) Aug 2010- Mar 2011 3 บจก. โซล่าร์ เพาเวอร์ PV (Crystalline)33 with PPAs (3) without PPAs (30) 194 (17.64) (176.4) Sep 2011 4 บ. ผลิตไฟฟ้าพลังงาน ทดแทน ( ประเทศไทย ) Solar Thermal: Parabolic trough 14 All facilities have PPAs 99Dec 2011 5 บริษัทสุฐิติ Solar Thermal: Parabolic trough 8 All facilities have PPAs 64Dec 2009 6 บริษัทไทย โซลาร์เอ็น เนอร์ยี Solar Thermal: Parabolic trough 8 with PPAs (5) without PPAs (3) 64 (40) (24) Dec 2009- Dec 2011 รวม 2271,385.30 80% of solar projects that have been accepted or have PPAs

15. EPPO 2. Rooftop Solar Systems Residential rooftop solar systems previously received adder based on the net-metered kWh As of Aug 2009, rooftop solar energy systems can receive adder based on total kWh generated  some controversies regarding “residential rooftop” definition  Official definition: residential rooftop systems belong to those systems that subscribe to residential meters  Implementation? Abuse?

16. EPPO 3. ADDER as one of the supporting measures for RE Other financial measures and non-financial measures are needed to accelerate RE development Solar VSPPs, dominated by solar farms The majority of biomass VSPPs are large-scale projects. The majority of biomass VSPPs that have come online or already have contracts are owned by rice mills and sugar mills.

17. EPPO 4. Technical Regulations Subject to Revision Interconnection limits: –8 MW ceiling for 22 kV feeder –10 MW ceiling for 33 kV feeder -Technically acceptable level of RE may vary from feeder to feeder - Technical regulation based on “passive integration” rather than “active integration”  Benefits of RE for each feeder not taken into account  Benefits: line loss reduction, voltage regulation, peak cutting.

18. EPPO 5. ADDER Rates Subject to Revision In response to changing market conditions, technological change, and remaining RE potential Benefits of increased in RE investment are balanced against: BENEFITSCOSTS -reduction of energy imports -increase in FDI -potential job creation and new business models -potential local innovation -reduction of GHGs and air pollution -technical benefits to power systems -pass-through to ratepayers -trade deficits -loss of agricultural land -local air pollution ( systems <10 MW not subject to EIA)

19. EPPO 6. Certain benefits of VSPPs still yet to be quantified and integrated into long-term power supply adequacy plan Peak Load Reduction Line Loss Reduction GHG emissions Reduction Power plants deferral T&D deferral

20. EPPO Thank you for your attention!

21. EPPO VSPP Status (Jan 2010)

22. EPPO Solar VSPP by type of technology