Thailand’s VSPP Program
15 March 2010
Energy Policy and Planning Office
Presented to representatives from Tanzania
Thailand’s
Electricity Industry Structure
EPPO
Thailand’s
Electricity Industry Structure
Generation
(% share)
SPPs
(10%)
(45%)
IPPs
(42%)
Import
(3%)
VSPPs
(<<1%)
Govt.
EGAT (100%)
Transmission
Distribution
EGAT
PEA
(66%)
MEA
(32%)
Users
Users
Direct Customers
(2%)
Remarks: Figure of % Share in Fiscal Year 2007
EPPO
ERC
Thailand’s Fuel Mix for Power
Generation (Jan 2010)
Oil 0.2%
Hydro 5%
Import and
Others 4%
Lignite/Coal 21%
Natural Gas
70%
EPPO
History of Thailand’s
VSPP Program
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)
EPPO
Thailand’s Adder Program
2007-2008
Adder Rate
(Baht/kWh)
2009
Adder Rate
(Baht/kWh)
Special Adder
for Diesel
Replacement
(Baht/kWh)
Special Adder
For Three
Southernmost
Provinces
(Baht/kWh)
Years
Supported
- Installed Capacity ≤ 1 MW
0.30
0.50
1.00
1.00
7
- Installed Capacity > 1 MW
0.30
0.30
1.00
1.00
7
- Installed Capacity ≤ 1 MW
0.30
0.50
1.00
1.00
7
- Installed Capacity >1 MW
0.30
0.30
1.00
1.00
7
Type of Renewable Energy
1. Biomass
2. Biogas
3. Waste (MSW and Industrial Waste, excluding Hazardous Waste and Organic Waste)
- Landfill and Digestor
2.50
2.50
1.00
1.00
7
- Thermal Process
2.50
3.50
1.00
1.00
7
- Installed Capacity ≤ 50 kW
3.50
4.50
1.50
1.50
10
- Installed Capacity > 50 kW
3.50
3.50
1.50
1.50
10
- 50 kW ≤ Installed Capacity < 200 kW
0.40
0.80
1.00
1.00
7
- Installed Capacity < 50 kW
0.80
1.50
1.00
1.00
7
6. Solar
8.00
8.00
1.50
1.50
10
4. Wind
5. Small / Microhydro
EPPO
Thailand’s VSPP Status
3,500
Contracted Capacity (MW)
3,000
2,500
2,000
1,500
Total
solar
1,000
biomass
wind
small hydro
500
MSW
biogas
0
under
accepted
consideratio
PPA signed
(w/out PPA)
n
selling to
the grid
biogas
67.030
42.777
69.321
43.039
MSW
120.550
67.450
96.360
10.820
-
-
6.340
0.540
69.250
33.800
25.040
0.380
biomass EPPO 373.733
606.630
solar
257.100
1,495.890
287.835
204.131
1,587.137
7.674
1,237.19
605.26
3,280.09
350.29
small hydro
wind
Total
VSPP – types of technology & fuels
SOLAR
Biogas
Biomass
•PV
• Animal manure
• Rice husks/rice straw
Thin-Film
• Industrial waste
• Bagasse
Crystalline
• Rice Straw
• Jatropha
MSW
• Palm fiber/Empty palm
bunch
-Solar Thermal
Parabolic Through
Stirling Engine
• Thermal process
• Landfill
• corncobs/corn shells
• woodchips/wood
slaps
Wind
Hydro
• high-speed
• mini, micro, pico
• cassava
rhizhomes/pulps
• low-speed
• (up to 200 kW)
• coconut fiber
• short-rotation plants
EPPO
VSPP Capacity – before and after ADDER
Recent Changes and
Lessons Learned
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
EPPO
1. Simplified rules updated
• VSPP regulation was previously designed to simplify
the application process in order to encourage smallscale 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)
EPPO
Example: 6 Largest Solar Energy Proposals that Have Been Accepted
No.
Company
Technology
No. of facilities
Total
Contracted
Capacity
(MW)
SCOD
1
บจก. ดีแอนด์ เจคลีนเอ็นเนร์ ย่ ีซสิ
เท็ม
Solar Thermal:
Stirling Engine
123
All facilities have PPAs
718.30
Dec 2009Dec 2013
2
บจก. เอ็ม เอ ไอ ดิเวลลอปเม้ นต์
Solar Thermal:
Stirling Engine,
Parabolic trough
41
with PPAs (26)
without PPAs (15)
246
(156)
(90)
Aug 2010Mar 2011
3
บจก. โซล่ าร์ เพาเวอร์
PV (Crystalline)
33
with PPAs (3)
without PPAs (30)
194
(17.64)
(176.4)
Sep 2011
4
บ. ผลิตไฟฟ้าพลังงานทดแทน
(ประเทศไทย)
Solar Thermal:
Parabolic trough
14
All facilities have PPAs
99
Dec 2011
5
บริษัทสุฐิติ
Solar Thermal:
Parabolic trough
8
All facilities have PPAs
64
Dec 2009
6
บริษัทไทย โซลาร์ เอ็นเนอร์ ยี
Solar Thermal:
Parabolic trough
8
with PPAs (5)
without PPAs (3)
64
(40)
(24)
Dec 2009Dec 2011
227
1,385.30
EPPO
80% of solar
projects that have been accepted
or have PPAs
รวม
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?
EPPO
3. ADDER as one of the supporting
measures for RE
• Other financial measures and non-financial measures are needed to
accelerate RE development
3 MW, 6 projects
2 MW, 3 projects
Contracted Capacity (MW)
1600.00
1400.00
1200.00
1000.00
1,585 MW,
332 projects
16 MW, 21 projects
MW 800.00
600.00
4 MW, 13 projects
400.00 587 MW, 110 projects
200.00
200 MW, 49 projects
2 MW, 48 projects
6 MW, 5 projects
0.00
under
consideration
accepted (w/out
PPAs)
with PPAs
Solar Farms (>1MW each)
1,200
1,000
800
600
400
200
0
2 MW, 2 projects
372 MW,
58 projects
under
consideration
selling to the grid
1,494 MW,
198 projects
5 MW, 7 projects
4 MW, 6 projects
284 MW,
47 projects
252 MW,
35 projects
accepted (w/out
PPA)
>1 MW
Rooftop Solar
w/PPA
selling to the grid
≤1 MW
The majority of biomass VSPPs are large-scale
projects.
Solar VSPPs, dominated by solar farms
Contracted
Capacity (MW)
1,600
1,400
1500.00
The majority of biomass VSPPs that have
come online or already have contracts are
owned by rice mills and sugar mills.
1000.00
500.00
0.00
Bagasse
Rice husks
Others
EPPO
under
accepted
considerat (w/out
w/PPA
selling to
the grid
8.00
6.00
92.00
172.30
121.00
101.20
1023.60
81.90
244.73
149.90
380.29
33.64
Rice husks
Bagasse
Others
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
EPPO
Benefits: line loss reduction, voltage regulation, peak
cutting.
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:
BENEFITS
COSTS
-reduction of energy imports
-pass-through to ratepayers
-increase in FDI
-trade deficits
-potential job creation and new
business models
-loss of agricultural land
-potential local innovation
-reduction of GHGs and air
pollution
EPPO
-technical benefits to power
-local air pollution ( systems
<10 MW not subject to EIA)
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
EPPO
Thank you
for your attention!
EPPO
VSPP Status (Jan 2010)
Fuels/Technology
under consideration
Installed Cap
Contracted
Number
(MW)
Cap. (MW)
Commercial Energy
coal
natural gas
Total Commercial Energy
Renewables
1 Solar
PV
Thermal
- Parabolic trough
- Stirling engine
- others (Solar thermal)
- to be specified
2
Biogas
animal manure
industrial waste
Rice Straw
Others (e.g., grass)
3 Biomass
Palm fiber
Jatropha
Bagasse
Bagasse+Rice husks
Rice husks
Rice husks+wood chips
Rice husks+corncobs
saw dust
coconut fiber
corncobs/corn shells
corncobs+Rice husks
Empty palm bunch
wood slabs
Rice Straw
cassava rhizhomes+pulp
short-rotation plants
wood chips
other biomass
4 MSW
Gas Engine
Steam terbine
Gasification
to be specified
5 Hydro
< 50 kW
50 - 200 kW
> 200 kW *
6 Wind
EPPO
7 Used Veg.Oil*
Total Renewables
Grand Total
หมายเหตุ
accepted (w/out PPA)
Installed
Contracted Cap.
Number
Number
Cap. (MW)
(MW)
0
3
3
7.765
7.765
7.450
7.450
0
0
0
126
49
77
6
45
7
19
22
0
21
0
1
60
0
0
2
0
9
7
0
0
2
1
1
2
1
0
0
0
35
0
20
6
3
1
10
0
0
0
0
11
0
239
242
613.930
134.930
479.000
39.000
270.000
56.000
114.000
75.484
73.580
1.904
491.272
38.000
75.600
62.400
2.400
1.800
9.900
17.456
7.500
276.216
140.360
24.180
21.980
6.000
88.200
0.000
77.325
1,398.371
1,406.136
606.630
129.630
477.000
37.000
270.000
56.000
114.000
67.030
66.030
1.000
373.733
8.000
63.500
49.500
2.000
1.800
8.000
12.280
6.750
221.903
120.550
22.800
18.750
6.000
73.000
0.000
69.250
1,237.193
1,244.643
62
41
21
7
4
10
0
30
2
18
4
6
42
2
1
1
0
7
6
0
0
3
0
0
3
0
1
0
1
14
3
14
5
7
1
1
0
0
0
0
9
0
157
157
214.816
111.296
103.520
51.100
24.000
28.420
50.312
0.153
44.169
1.300
4.690
328.050
2.800
9.500
18.000
62.740
59.000
19.460
22.000
0.150
1.400
103.600
29.400
84.580
15.280
58.200
1.200
9.900
0.000
34.900
712.658
712.658
204.131
108.486
95.645
45.000
24.000
26.645
42.777
0.133
37.097
1.290
4.257
257.100
2.000
8.000
6.000
53.200
48.000
16.150
20.000
0.150
1.000
85.600
17.000
67.450
14.950
47.000
1.000
4.500
0.000
33.800
605.258
605.258
PPA signed
Installed
Contracted
Cap. (MW)
Cap. (MW)
connected to the grid
Installed
Contracted
Number
Cap. (MW)
Cap. (MW)
4
8
12
147.870
36.750
184.620
24.000
29.600
53.600
2
0
2
19.000
19.000
6.000
6.000
337
55
282
54
155
71
2
32
4
25
0
3
201
1
1
12
0
35
93
1
0
1
1
1
6
1
0
4
5
38
1
14
5
8
1
0
7
2
2
3
5
1
597
609
1,641.039
226.339
1,414.700
329.900
910.300
162.500
12.000
85.552
1.410
80.942
3.200
1,970.865
9.500
9.500
258.000
314.900
916.800
9.000
6.000
9.900
6.000
48.450
6.000
21.900
24.315
325.500
5.100
108.585
32.925
70.540
5.120
0.000
6.365
0.070
0.185
6.110
26.424
0.025
3,838.855
4,023.475
1,587.137
258.077
1,329.060
314.760
910.300
92.000
12.000
69.321
1.310
64.861
3.150
1,495.890
8.000
8.000
92.000
267.900
742.500
7.800
5.000
8.000
5.400
36.500
5.500
17.600
21.250
265.640
4.800
96.360
31.260
60.100
5.000
0.000
6.340
0.055
0.175
6.110
25.040
0.025
3,280.113
3,333.713
51
51
0
0
0
0
0
41
8
29
4
0
53
1
0
29
1
13
2
0
1
0
1
0
4
0
0
0
0
1
0
8
6
2
0
0
3
2
0
1
3
0
159
161
7.785
7.785
51.012
1.604
47.566
1.842
0.000
720.026
12.000
530.800
39.400
71.450
27.100
0.600
0.160
26.516
12.000
12.540
6.340
6.200
0.560
0.080
0.480
0.380
792.303
811.303
7.674
7.674
43.039
1.325
40.054
1.660
0.000
287.835
8.500
164.300
8.000
67.400
14.500
0.600
0.135
18.200
6.200
10.820
5.820
5.000
0.540
0.060
0.480
0.380
350.288
356.288
Solar VSPP by type of
technology
Contracted Capacity
(MW)
Solar VSPP Status (Jan 2010)
2,000.000
1,500.000
1,000.000
500.000
0.000
EPPO
under
accepted
consideration (w/out PPA)
with PPA
selling to the
grid
Thermal
477.000
95.645
1,329.060
-
PV
129.630
108.486
258.077
7.674