Thai Experiences Renewable Energy and Energy Efficiency

Thai Experiences : Renewable Energy and Energy Efficiency Amnuay Thongsathitya Department of Alternative Energy Development and Efficiency Ministry of Energy, Thailand 28 August 2006

Thailand Energy Strategies for Economic Development l Strategy for Efficient Use of Energy Reduce Energy Elasticity from 1. 4: 1 to 1: 1 by 2007 l Strategy for Renewable Energy Development Increase share of RE from 0. 5% to 8% of total final energy by 2011 l Strategy for Energy Security Ensure sufficient and reliable energy supply for at least 30 yrs

Energy Situation in Thailand Energy consumption 51% : Electricity, 49% Oil 2005 Thailand’s energy cost 1, 150 billion. BTH, 15. 7% of GDP Coal 13% Hydro 3% Oil 49% Primary energy consumption Natural gas 35% 90% import Power generation Industrial 36% Agriculture 6% Logistic/transportation 37% Consumption by Sector Resident & Commercial 21%

Renewable Energy

RE Development Target by 2011 Facilitator Incentive 1% 5% RPS 140 MW Feed-In Law 1, 257 MW - Biomass/Mini Hydro - MSW/Wind/PV RPS/Feed In R&D RE 3% RE 8% 3% Remark : Existing as June 2006 2005 Target 3, 238 MW Existing 1, 841 MW 2011 4% Target 3, 910 ktoe Existing 1, 440 Ktoe Ethanol Target 3. 0 ML/day Existing 0. 4 ML/day Bio diesel Target 4 6. ML/day Existing 0. 3 ML/day Power Generation Process Heat Bio-Fuel

Renewable Energy Development . 1 Research and Demonstration Prototype Innovation Future technology Increase eff. Decrease cost • Increase Efficient • Increase local content • Reduce investment cost Demonstration Present Technology . 2 Promote Community Energy development government /Private Sector Knowledge Base Center Community Sector

Renewable Energy Development . 3 Market Stimulation SPP, VSPP, RPS IPPs Invest Private Sector Feed-In Law Private Sector Power Producer Develop Initiate Community Sector market Invest EGAT Incentive/Policy support Incentive Government 4. Establishment on National Committee RE on 4. 1 National RE Development and Promotion Committee 4. 2 National Bio-Fuel Development and Promotion Committee

Current RE Power Generation Situation Biomass 2, 800 MW (1, 761. 29 MW) -Sugarcane Industry -Biomass power plant -Community power plant Hydro - 200 MW (44. 33 MW) mini/micro hydro plant MSW 100 MW (4. 25 MW) -Bangkok -Municipality -Industry estate Wind 43 MW (0. 55 MW) Wind farm in south area of Thailand - Hybrid with diesel - Biogas 10 MW (4. 60 MW) Biogas in livestock farm and Agro-industry 85 MW Photovoltaic (25. 48 MW( -Remote area - Roof top - Industry

Thailand RE Incentive Measure Biomass SPP • Bidding top up tariff • Avg. 0. 17 Baht/k. Wh • 38 Projects, 915 MW RE VSPP • Net Metering, > 1 MW • MEA, PEA, Expand to 6 MW • 17 sites, 7. 13 MW • 1. 17 Baht/k. Wh (off peak) • 2. 99 Baht/k. Wh (on peak) Other Incentive Measure • Tax incentive - Excise tax exemption - Oil fund • Soft loan (2+12 Billion Baht( RPS (Renewable Portfolio Standard) • New conventional power plant form fossil fuel must provide electricity form REat least 5% of the new installed capacity. • By year 2011, RE power plant 140 MW from EGAT Feed-in Tariff • Set the premium selling price regulation for each renewable energy resources

Biomass SPP Project Grid Biomass Type No. of projects Installed Capacity Connected (MW) Bagasse 22 536. 20 169. 30 Rice Husk 6 85. 90 54. 00 Rice Husk & Waste wood 3 60. 80 35. 20 Rice Husk, Bagasse & Waste wood 4 108. 80 62. 20 Bark , Waste wood & Black Liquored 1 87. 20 50. 00 Black Liquored 1 32. 90 25. 00 MSW 1 2. 50 1. 00 Total 38 914. 30 396. 70

VSPP Project l 15 VSPP Projects has been applied including – PV – MSW – Biomass/Biogas 3 projects 7. 3 KW 1 project 1, 000. 0 KW 1 project 7, 015. 5 KW Total 7, 122. 8 KW

Current RE Process Heat Situation 245 ktoe (40 ktoe) Biogas Waste water from -Starch, Food, Palm Industry -Palm, Rubber, Paper Industry -Ethanol, Bio-diesel Industry 3, 660 ktoe (1, 400 ktoe) Biomass -Sugarcane Industry - Palm oil industry - High efficiency stove - Gasification Solar 5 ktoe (> 0. 1 ktoe) -Solar hot water -Solar Dryer -Solar Absorption cooling

Current Bio-fuel Situation Gasohol ML/d Target: Ethanol 3 ML/day in 2011 (E 10) 3. 0 ML/d Existing 0. 4 ML/d Saving 13, 000 M Baht/yr Domestic and imported feedstock; Molasses, cassava, sugar cane Governmental Organizations obligated to use Gasohol 0512 11 10 09 08 07 06 Regulated by National Biofuel Committee Bio-diesel ML/d Target: Bio-diesel 8. 5 ML/day 8. 5 ML/d Saving 27, 000 M Baht/yr Existing 0. 3 ML/d Bio-diesel in 2012 (B 10) Expand plantation area of Oil Palm and Jatropha, totaling > 6 MRai Diesel Funding by government’s SPV 0512 11 10 09 08 07 06

Gasohol Strategic Plan Ethanol 1. 0 M L/d 2004 2005 2006 2007 2008 Phase I MTBE replacement Formulated policy on fade out MTBE in ULG 95 and promote Gasohol 91 in some areas Cab. Res. 18 May 04 Ethanol 3. 0 ML/d Cabinet Resolution 9 Dec. 2003 - Spec. of Gasohol 95 & 91 - Emission test on using Gasohol 95 -Defined gasohol use in Spec. of new vehicle procurement - Requested governments’ vehicles to refill gasohol 2009 2010 2011 Phase II Gasohol Mandate Formulate policy on utilizing High Performance Vehicles for E 10 and FFV

Governmental Organization to Promote Ethanol Utilization PAST: National Ethanol Committee (NEC) 1. Proposing the policies and plans for the management and development of Ethanol in Thailand to the Cabinet. 2. Establishing criteria, measures, and conditions for the production, procurement, import, export, pricing, sale, distribution, storage, development, and promotion of ethanol to ensure consistency with national ethanol policies and plans 3. Ensuring that work plan on ethanol conform to national ethanol policies and plans, and the changing environment, and etc. PRESENT: National Bio-fuel Development and Promotion Committee (NBDPC) 1. Responsible for policy direction, regulation and implementation of bio-fuels in Thailand. 2. NEC conveyed all of its missions and authorization to NBDPC.

Ethanol Production Plant Producers Capacity (L/Day) Actual production (L/Day) 1. Thai Alcohol 100, 000 90, 000 2. Thai Agro Energy 150, 000 130, 000 3. Thai Nguan Ethanol 130, 000 100, 000 4. Khon-Kaen Alcohol 100, 000 80, 000 400, 000 Total

Current Status of Ethanol Production and Utilization • 24 ethanol plant concessions have been approved of total 4. 87 ML/d • 4 existing ethanol plants of total 0. 48 ML/d • Another 4 ethanol plants of total 0. 61 ML/d will be ready by the end of 2006 Gasohol Demand Amonut (Million liters / day( 4 3. 5 3 2. 5 2 1. 5 1 0. 5 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Ref: www. doeb. go. th 2004 2005 2006 • 9 oil companies distributing Gasohol Octane 95 via 3, 157 gas service stations; • Bangchak is the pioneer on distributing Gasohol Octane 91 through about 180 stations only in Bangkok areas • As of June 2006 , total gasohol volume sale was about 3. 5 million litres per day

Current Fuel Stations (Gasohol ) Oil Companies DEC’ 2005 JAN’ 2006 FEB’ 2006 MAR’ 2006 APR’ 2006 MAY 2006 JUNE 2006 1, 204 1, 209 1, 207 1, 205 1, 204 1, 202 1, 200 Bangchak 659 664 677 681 696 693 SHELL 536 545 546 552 552 39 39 39 38 38 130 179 204 212 229 239 63 77 77 77 200 203 230 249 270 273 312 PETRONAS 15 17 17 19 24 27 37 Susco 11 11 9 9 9 2, 857 2, 935 2, 982 3, 030 3, 077 3, 030 3, 157 PTT TPI CALTEX JET ESSO TOTAL

Action Plan on Bio-diesel Utilization Promotion and Development Community Scale development and B 100 Specification Establishment Commercial Scale of B 100 Production and Utilization of B 5 in the South and the Central Part of Thailand 2005 2007 2008 2009 260. Raw Material 2006 60. 670. 1. 07 2010 Substitute B 100 to 10% Diesel 2011 2012 1. 40 Expanding palm oil cultivation areas: 4 million Rai in Thailand 1 million Rai in neighbouring countries R&D on yield of palm oil (2. 7 to 3. 3 ton/Rai/year) 1 Hectare= 6. 25 Rai R&D on yield of Jatropha (0. 4 to 1. 2 ton/Rai/year) Expanding Jatropha Cultivation Areas Bio-diesel Production (ML/d) Utilization (ML/d) R&D 30. 06 0. 36 0. 46 0. 76 1. 76 3. 96 8. 50 0. 6 1. 2 7 9 15 35 79 85 Community-based Commercial-based Intensive R&D on enhancing values of by-products from bio-diesel production

Raw Material Provision 3 measures to boost up raw materials for bio-diesel ! Hectare = 6. 25 Rai Raw Material • Promoting 4 million Rai cultivation areas of oil palm, particularly in the South and the East. • Promoting 1 million Rai cultivation areas of oil palm in neighboring countries or importing CPO • Promoting R&D on Jatropha Curcas and other oil crops Bio-diesel (ML/d( B 100 2. 5 ML/d from Jatropha and others B 100 substitution to 10% diesel in 2012 B 100 1. 2 ML/d from oil palm in neighboring countries B 5 utilization throughout Thailand Initiatives on B 5 in the South and the Central 2005 2006 2007 2008 2009 B 100 4. 8 ML/d from domestic oil palm cultivation 2010 2011 2012

Bio-diesel (B 100) Production Plant Producers Capacity (L/Day) Actual production (L/Day) 1. Thai Bio-diesel Oil 200, 000 100, 000 2. Vegetable Oil Siam 100, 000 3. Golden Bio-diesel 200, 000 100, 000 4. Racha Bio-diesel 100, 000 5. Suk somboon Oil 48, 000 20, 000 6. Energy Plus 4, 000 3, 000 7. Prasan Kung Thong 6, 000 5, 000 658, 000 308, 000 Total

Energy Consumption Outlook 2020 Unit : KBD Crude Oil Equivalent 3, 650 R 6% CAG 0 -’ 05 ’ 0 GDP 1. 2 Import Domestic Import 10% e abl 1, 965 15% 2% 4. 3% GR -’ 20 CA 05 ’ GDP. 88 0 3% 12% w ene R nal tio te adi Ligni Tr Coal/ Natural Gas Ren e e abl Hydro w 4% 14% 38% Domestic Imp. 29% Domestic 41% Oil Imp. 32%

RE Development Outlook by 2011 and 2020 Power Generation Facilitator Incentive Target 3, 238 MW Existing 1, 841 MW 1% RPS/Feed In R&D 5% RPS 140 MW Feed-In Law 1, 257 MW - Biomass/Mini Hydro - MSW/Wind/PV Power Generation 1% Process Heat RE 3% RE 8% 4% Target 3, 910 ktoe Existing 1, 400 Ktoe RE 10% Bio-Fuel 3% 2005 2011 Ethanol Target 3. 0 ML/day Existing 0. 4 ML/day Bio diesel Targetl 4 6. ML/day Existing 0. 3 ML/day Target 4, 580 MW 4% Target 4, 900 ktoe Bio-Fuel Ethanol 5% Target 12. 0 ML/day Bio diesel Target 12 0. ML/day 2020

RE Power Generation Outlook Renewable Energy Resources 1) Biomass 2) MSW 3) Waste water/Manure 4) Photovoltaics 5) Wind 6) Mini/Micro Hydro Total Existing As June 2006 )MW( Target in 2011 )MW( Target in 2020 )MW( 1, 761. 29* 4. 25 4. 60 25. 48 0. 55 2, 800 10 85 43 3, 620 130 30 250 100 44. 33 1, 840. 50 200 3, 238 450 4, 580 * Bagasse 1, 220 MW, Wood, Bark 385 MW, Rice husk 58 MW, Other Agriculture waste 98 MW,

RE Process Heat Utilization Outlook Renewable Energy Resources Existing As May 2006 (ktoe) Target in 2011 ) ktoe( Target in 2020 ) ktoe( 1) Biomass 1, 400 3, 660 4, 645 2) Biogas 40 >1 1, 440 200 5 3, 910 245 10 4, 900 3)Solar Thermal Total Bio-Fuel Utilization Outlook Renewable Energy Resources 1) Ethanol 2) Bio-Diesel Total Existing As May 2006 (ML/day) 0. 4 0. 3 0. 7 Target in 2011 ) ML/day( 3. 0 4. 6 7. 6 Target in 2020 ) ML/day( 12. 0 24. 0

AEBF 2006 Asean Energy Business Forum Meetings – Conference - Exhibition R&D for Future RE. . Road Map Nuclear New Energy Technology Fuel Cell / Hydrogen Synthetic gas/Bio-fuel, Low cost PV MSW/Wind/ PV/ Energy Storage Conventional Energy Technology Biomass/ Biogas /Mini & micro hydro/ Bio-Fuel 2005 2011 0202 2030

Energy Efficiency

Energy Efficiency Target in 2005 -2011 NEW CHALLENGE : Energy Elasticity 1 : 1 0. 81 : 5 in 2011 Short term ’ 2004 saving 6, 350 MBTH/year 2008’saving 30 000, MBTH/year 2011’saving 75, 000 MBTH/year Long term แผนระยะยาว Normal case 1 : 1 1: 1 0. 85 : 1 Challenge Case 2011 GDP Growth 5. 7% 0. 6 : 1 2020 Acc. saving ‘ 2005–‘ 2008 66, 000 MBTH Acc. saving ‘ 2008–‘ 2011 243, 000 MBTH

Efficiency Improvement in Industrial Sector 75, 000 MTHB Mil. Barrel Energy Elasticity = Growth (Energy) 30, 000 MTHB Growth (GDP) EE EE 0. 9 : 1 0. 85 : 1 Previous target (set in ’ 03) EE from 1. 2 : 1 1 : 1 New Challenge 1 0. 85 : Tools Strategies . 1 Tax incentive 1. Direct stimulation to Biz/Industrial sector on Energy Eff. management . 2 Adaptation to appropriate Technologies . 2 Investment support (BOI( . 3 Soft loan . 4 Cooperative effort for energy conservation . 5 Standard, criteria for energy use Cooperate with private sector and integrate with other organizations

Incentive strategy to industrial/commercial 1. Promote of financial institute scheme . 2 Expanding by private sector. 2การขยายผลโดยภาคเอกชน phase 2 05‘ – 03‘ 07‘ – 06’ Success of C. P. Group phase 3 11‘ – 08’ 1, 550 2, 000 saving 001, 0 MBTH 11, 600 > 15, 000 2, 000 Fund )MBTH( Other Private sector phase 1 DEDE : knowledge &consult team 550 employee in organize financial institute . 3 Information& Knowledge )Energy Efficiency and Renewable Energy( indirect Knowledge Center 80% Operate by private direct 20% Incentive by public Saving 15 -30% 7, 700 subcompany

Technology transfer Process Improvement and Equipment Change Non-Metal • Fuel Switching/CHP • Metal Chiller/Thermal Storage • Textile Boiler/Burner/ Furnace • Chemical Motor/Compressor • food Industrial Specific Process Building Save Cost) MBTH( Technology Promotion 2551 Past operating 2554 Well known confidence 3, 200 4, 500 Proved Tax Incentive 8, 300 11, 700 High risk )investment, Techno logy( -subsidy 10 -20% -Tax Incentive 3, 200 4, 600 Total 20, 800 > 9, 000 Saving )MBaht( 14, 700 Industrial& Building )Number( 13, 000

Soft Loan Revolving Fund • To promote and push investment in EE projects to increase the confidence of financial institutes in lending for EE projects • MLR ≤ 4 % per year Financial institutes support

Tax Incentive for energy conversation (pilot( Ø Concept • Provide special tax from treatment of purchase of EE equipment to industry (Performance base) Ø Criteria & condition • Pilot tax incentive (saving base) 100% • Incentive supporting industry with proven energy reduction to claim the cost up to 2 MBTH Ø Eligibility • industry/building must be energy conservation

Residential Sector resident : Target MBarrel 14, 000 MBTH 18, 500 MBTH saved 10% • Keep behavior . 1 Awareness - Home : account - work - expanding to resident • Reduced transport year . 2 Household . 1 Standard: equipment/house • appliance • Material • Building code . 1 Incentive market . 2 Incentive produced . 2 Tax incentive • producer • consumer . 3 Soft loan • Save energy house energy label Renewable Energy High efficiency instrument : Refri. /glass/wall Save energy house

Awareness energy conservation development and management energy in resident ชมชน (แหง ( resident Reconstructed & Improved technique in RE l Saved cost > 15 % (750, 000 Baht/year/residence( l 876 Energy resident (660 MBTH/year( l Concept • Awareness & Study • participle • experience • technology • knowledge Other resident Result • Save cost of energy • Technology training • Confidence of energy expanding in resident Technical training Monitoring /Assessment process Strategy/policy Survey Analysis problem/potential

Energy saving in 0032 -2005 transportation : saving 6% or Industry : saving 4% (5 MBarrel) 8. 5 MBarrel or 17, 000 MBTH , 13, 000 MBTH • awareness to energy conservation • Cooperation with private sector ) save 6 M. liters/day( • Revolving fund, low MRR 2, 000 MTH • Mass transportation 2 ways (600, 000 persons/day( public/resident : saving 3. 5% (2. 3 MBarrel) , 4, 600 MBTH • awareness to energy conservation (continuous( - energy conservation in household and office - energy management in resident • Tax incentive RE : 3% biomass sustains heavy fuel oil and electricity , 0. 7% NGV and Gasohol sustains oil = 14. 1 MBarrel , 28, 200 MBTH

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