Grid-connected renewable energy in Thailand
under the VSPP and SPP programs
MEENet workshop, session 2
Palang Thai
Chris Greacen
Chiang Mai, Thailand
24 January 2013
•
•
•
•
Access to grid
Feed-in tariffs
Low cost financing
Tax incentives
Thailand’s SPP+VSPP
Access to
grid
$
Access to
grid
$
Technical regulations:
• Allowable voltage,
frequency, THD
variations
• Protective relays
• Communication
channels
Commercial regulations:
• Definitions of
renewable energy, and
efficient cogeneration
• Cost allocation
• Standardized tariff
determination
• Invoicing and payment
arrangements
• Arbitration
+ Standardized Power Purchase Agreement (PPA)
Access to
grid
Small Power Producer (SPP) regulations:
• Started 1992
• Fossil-fuel cogeneration and renewable energy
up to 90 MW (export to grid)
• Low tariff offered for “non-firm” generators
made it difficult for most renewables.
Bangkok Cogen, Rayong, 115 MW
Laem Chabang, Chonburi 100 MW
4494 MW online + 4152 MW with signed PPAs... 75% fossil fuel
Map Ta Phut Olefins, Rayong, 70 MW
Pluak Daeng, Rayong 70 MW
(over 1,000 rai = 160 hectares)
• Signed PPAs for 767 MW of PV (SPP + VSPP)
Lopburi solar PV – 73 MW
Access to
grid
Feed-in
tariffs
Evolution of Thai VSPP regulations
• 2002
– VSPP regulations drafted, approved by Cabinet
– Up to 1 MW export, renewables only
– Tariffs set at utility’s avoided cost
• 2006
– Up to 10 MW export, renewables + cogeneration
– Feed-in tariff “adder”
• 2009
– Tariff adder increase, more for projects that offset diesel
http://www.eppo.go.th/power/vspp-eng/ for English version of regulations, and model PPA
Feed-in
tariffs
EPPO
12
Wealthy countries pay Feed-in
tariff incremental costs?
Low cost
financing
Revolving Fund
• Thai Government loans funds at 0% interest to commercial banks for
investment in:
• Energy efficiency improvement projects
• Renewable energy development and utilization projects
11 local financial institutions have participated.
Max loan amount: 50 MB
Max. interest rate: 4%
Max. loan period: 7 years
January 2003 – present
7000 M Baht
Low cost
financing
ESCO Fund
A source of venture capital for ESCOs to jointly invest with private operators in energy
efficiency & renewable energy projects. The program targets SMEs & small projects.
Energy Conservation Promotion Fund
Investor
ESCO Fund
Investment Committee
Investor
Investor
Investor
Fund Manager
ESCO Venture Capital
Equity Investment
Equipment Leasing
Carbon Market
Technical Assistance
Credit Guarantee Facility
15
Tax
incentives
Tax Incentives
Thailand’s Board of Investment (BOI)’s tax incentives for
renewable energy projects:
• Corporate income tax holidays up to 8 yrs. Additional 50%
reductions of corporate income tax for 5 yrs
• Import duty reductions or exemptions on equipment and raw
materials
16
Reduces air and water pollution
Biogas from
Pig Farms
Produces fertilizer
Produces electricity
8 x 70 kW generator
Ratchaburi
Biogas from Pig
Farms
Korat Waste to Energy – biogas
… an early Thai VSPP project
• 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
VSPP project pipeline as recorded in
EPPO data
Application
under
consideration
Permission
received,
awaiting PPA
PPA signed
Leakage (Project abandoned)
Generating &
selling electricity
Feb 2007
2000
1800
1600
1400
1200
1000
Biomass
Solar
Wind
800
600
Garbage
400
Biogas
200
Coal cogen
Natural gas cogen
0
Application
pending
Received
permission, PPA signed
awaiting PPA
Microhydro
Generating
electricity
Thailand VSPP Status
18 MW online
June 2008
2000
1800
1600
1400
1200
1000
Biomass
Solar
Wind
800
600
Garbage
400
Biogas
200
Coal cogen
Natural gas cogen
0
Application
pending
Received
permission, PPA signed
awaiting PPA
Microhydro
Generating
electricity
Thailand VSPP Status
June 2009
2000
1800
1600
1400
1200
1000
Biomass
Solar
Wind
800
600
Garbage
400
Biogas
200
Coal cogen
Natural gas cogen
0
Application
pending
Received
permission, PPA signed
awaiting PPA
Microhydro
Generating
electricity
Thailand VSPP Status
Mar 2010
2000
1800
1600
1400
1200
1000
Biomass
Solar
Wind
800
600
Garbage
400
Biogas
200
Coal cogen
Natural gas cogen
0
Application
pending
Received
permission, PPA signed
awaiting PPA
Microhydro
Generating
electricity
Thailand VSPP Status
Sep 2011
2000
1800
1600
1400
1200
1000
Biomass
Solar
Wind
800
600
Garbage
400
Biogas
200
Coal cogen
Natural gas cogen
0
Application
pending
Received
permission, PPA signed
awaiting PPA
Microhydro
Generating
electricity
Thailand VSPP Status
Mar 2012
2000
1800
1600
1400
1200
1000
Biomass
Solar
Wind
800
600
Garbage
400
Biogas
200
Coal cogen
Natural gas cogen
0
Application
pending
Received
permission, PPA signed
awaiting PPA
Microhydro
Generating
electricity
Thailand VSPP Status
1222 MW online
(68-fold increase since 2007)
PPAs signed for
additional 3820 MW
Dec-12
Oct-12
Aug-12
Jun-12
Apr-12
Feb-12
Dec-11
Oct-11
Aug-11
Jun-11
Apr-11
Feb-11
Dec-10
Oct-10
Aug-10
Jun-10
Apr-10
Feb-10
Dec-09
Oct-09
Aug-09
Jun-09
Apr-09
Feb-09
Dec-08
Oct-08
Aug-08
Jun-08
Apr-08
Feb-08
Dec-07
Oct-07
Aug-07
Jun-07
Apr-07
Feb-07
300
MW Solar in VSPP program
installed in Thailand
250
PPAs for PV: 683 MW
PPAs for CST: 1129 MW
200
150
100
50
0
SPPs and VSPPs still a tiny part of Thailand’s electrical energy
Generation
(% installed capacity)
SPPs
(7%)
(47%)
IPPs
(38%)
Import
(35%)
EGAT (100%)
Transmission
Distribution
EGAT
PEA
(66%)
MEA
(32%)
Users
Users
Direct Customers
(2%)
VSPPs
(3%)
Problems
• “Managing committee” set up after solar “gold rush” to be
additional gate keeper. Non-transparent, not clear why some
projects proceed and others are denied.
• Biomass: many projects unprofitable because high cost of
biomass.
• Communities protesting some biomass power plants.
– Now no EIS required if <10 MW  Many 9.9 MW plants.
– EIS should be required for smaller plants too if pollution is a concern.
• Mainly huge projects (e.g. solar farms, not rooftop PV), which
may have more concentrated impacts. Redesign feed-in tariff
to incentivize small projects.
Evolution of Tanzania SPP regulations
• Approved by regulator August 2009
• Up to 10 MW export, renewables &
cogeneration
• SPP Tariffs at average of LRMC and SRMC
– Grid-connected SPP tariff (2012): $0.096/kWh
– In rural mini-grid areas offsetting diesel (2012):
$0.243/kWh
• 4 SPPs in operation, 12+ in pipeline by
December 2012
www.ewura.go.tz/sppselectricity.html for English versions of regulations, and model PPAs
TPC, Moshi
17.5 MW – selling 4 MW to main grid
Cogeneration
Sugarcane bagasse
32
Mwenga 4 MW hydro
electricity to 1000 households in 15 villages & sells to the grid
Summary
•
•
•
•
Access to grid
Feed-in tariffs
Low cost financing
Tax incentives
Thank you
For more information, please contact
chris@palangthai.org
This presentation available at:
www.palangthai.org/docs
COMMON GROUND:
“Zero Net Energy” Community
LOPEZ COMMUNITY LAND TRUST
Lopez Island, WA