Alternative Energy Development
Plan (2008 – 2022), Medium - and
Long – term Investment Plan and
the Role of the Private Sector
Mr. Rangsan Sarochawikasit
Executive Director, Bureau of Energy
Research
Department of Alternative Energy
Development and Efficiency,
Ministry of Energy
15 July 2009
Presented to
Climate Financing: Clean
Technology Fund (CTF) and the
Role of the Private Sector
Workshop
Alternative Energy Development Plan
(2008-2022)
Objectives
1. To utilize alternative energy as a major energy
supply of the country for replacing oil import,
2. To increase energy security of the country,
3. To promote an integrated green energy utilization
in communities,
4. To enhance the development of alternative energy
technology industry ,
5. To research, develop and encourage high efficiency
alternative energy technologies.
Goal
“To increase a share of alternative energy mixed to be 20%
of the country final energy demand in the year 2022”
Alternative Energy Development Plan;
AEDP (2008 - 2022)
ESCO Fund
CDM
BOI /
Revolving Fund
Target 5,608 MW
Existing 1,750 MW
Adder cost 3,858 MW
2.4%
Adder cost
Biomass / Biogas / MSW
Mini-Hydroo / Wind / Solar
/Hydrogen
R&D
7.6%
6.4%
15.6%
19.1%
20.3%
Target 7,433 ktoe
Existing 3,007 Ktoe
Biodiesel
Target 19,800 ktoe
Currency Saving 461 Billion Baht
GHG reduction 42 Million Tons
2008
2011
2016
6.2%
2022
Process
Heat
Ethanol
Target
9.0 MLPD
Existing 1.0 MLPD
4.1%
Power
Target
Existing
Hydrogen
Target
4.5
1.4
MLPD
MLPD
Bio fuel
0.1 Million ks.
Target 690 mmscfd
(6,090 ktoe)
Existing 108 mmscfd
NGV
As of Jan 2009
Alternative Energy Development Plan;
AEDP (2008 - 2022)
Overview of Alternative Energy Development Plan; AEDP
Short term (2008 – 2011)
Emphasis on promotion of commercial alternative energy technologies
and high potential energy sources such as biofuels, co-generation from
biomass and biogas with fully supports from measures provided.
Mid term (2012 – 2016)
Focus on development of alternative energy technology industry,
encourage new alternative energy R&D to achieve economic viability
including new technologies for biofuels production and introduce a
model development of Green City to communities for sufficient
economy and sustainability development.
Long term (2017 – 2022)
Enhance utilization of new available alternative energy technologies
i.e. hydrogen, bio hydrogenated (BHD), extend green city models
throughout Thai communities and encourage to be hub of biofuel
and alternative energy technology exports in ASEAN regions.
RE Potential and Target
Type of Energy
Electricity
Solar
Wind Energy
Hydro Power
Biomass
Biogas
Municipal Solid Waste
Hydrogen
Total
Thermal
Solar Thermal
Bimass
Biogas
Municipal Solid Waste
Total
Biofuel
Ethanol
Biodiesel
Hydrogen
Total
Potential existing
MW
MW
50,000
32
1,600
1
700
56
4,400
1,610
190
46
400
5
ktoe
154
7,400
600
m lt/d
3.00
4.20
Total Energy Consumption
Total Energy from R E (ktoe)
Renewable Energy Ratio
NGV (mmscfd - ktoe)
Total Energy from RE + NGV (ktoe)
Alternative Energy Ratio
1,750
ktoe
1
2,781
224
1
3,007
m lt/d
1.24
1.56
66,248
4,237
6.4%
108.1
2008 - 2011
MW
ktoe
55
6
115
13
165
43
2,800
1,463
60
27
78
35
0
0
3,273
1,587
ktoe
5
3,660
470
15
4,150
m lt/d
3.00
3.00
0
6.00
ktoe
805
950
0
1,755
70,300
7,492
10.6%
393.0
3,469
10,961
15.6%
2012 - 2016
MW
ktoe
95
11
375
42
281
73
3,220
1,682
90
40
130
58
0
0
4,191
1,907
ktoe
17.5
5,000
540
24
5,582
m lt/d
6.20
3.64
0
9.84
596
ktoe
1,686
1,145
0
2,831
81,500
10,319
12.7%
5,260
15,579
19.1%
2017 - 2022
MW
ktoe
500
56
800
89
324
85
3,700
1,933
120
54
160
72
3.5
1
5,608
2,290
ktoe
38
6,760
600
35
7,433
m lt/d
9.00
4.50
01 mill kg
13.50
690
ktoe
2,447
1,415
124
3,986
97,300
13,709
14.1%
6,090
19,799
20.3%
Alternative Energy Development Plan;
AEDP (2008 - 2022)
Key Success Factors
1. Subject RE as a “National Agenda”.
2. Government continuously and strongly support RE, especially,
Incentive of BOI, ESCO Fund, Revolving Fund and adder cost.
3. Government provides infrastructure for the RE expansion.
4. Revise of the obstructive legislation.
5. Fully allocate the budget for research, development,
demonstration, dissemination and public relation of RE.
6. Accessibility of RE data, e.g. Potential and raw material
management.
7. RE technology standards.
Alternative Energy Development Plan;
AEDP (2008 - 2022)
Output and Outcome
(1) Economics aspect
• Currency saving on energy import 460,000 M฿/year within 2565
• Increase investment of private sector 382,240 M฿
• Creates 40,000 clean and new jobs.
• Opportunity to earn 14,000 M฿/year form Carbon Credit trading.
• Delay the construction of new fossil fuel power plant 3,800 MW
(equivalent to 100,000 M฿)
• Create Country's incomes by exporting biofuels, RE technologies
(Gasification, biogas fermentation system).
(2) Social aspect
• Migration mitigation due to job creation in rural areas.
• Extra income to farmers.
• Improve quality of life for Thai people.
(3) Environmental aspect
• Low Carbon Society to mitigate the global warming.
Measures for RE promotion
1. BOI Privilege: waive import duty on equipment and income corporate taxes;
2. Adder cost of power generation from RE.
VSPP
SPP
(< 10 MW)
(> 10 MW-< 90 MW
1,600 MW
500 MW
Quotation 1,030 MW
Cogeneration
Cogeneration
530 MW
Renewable
Promotion
• Fixed Adder cost
Renewable
• Adder cost for Renewable power producers by term of support 7 years and 10 years for power
generation from wind and solar;
*special cost in 3 provinces in Southern of Thailand
SPP
Type
Adder
(Baht/kWh)
MSW
2.50
Wind
3.50
Solar
8.00
Other Renewable
0.30
Total
Fixed
Bidding
Fuel
Capacity
(MW)
฿ /kWh
Special*
Biomass
0.30 – 0.50
1.00 + 1.00
Biogas
0.30 – 0.50
1.00 + 1.00
100
Mini-Hydro (50-200 kW)
0.80
1.00 + 1.00
115
Micro-Hydro (< 50 kW)
1.50
1.00 + 1.00
15
MSW
2.50 – 3.50
1.00 + 1.00
300
Wind
3.50 - 4.50
1.50 + 1.50
530
Solar
8.0
1.50 + 1.50
Measures for RE promotion
3. Revolving Fund with 4% interest rate & 7 years of payment term;
4. Encourage RE project to be CDM project;
5. ESCO Venture Capital
Project feature: set up fund to joint capital promote investment in
energy conservation and renewable energy development projects
Energy Conservation Promotion Fund
Financial support
Investor
Investor
ESCO Fund
Investment
Committee
Investor
Budget year 2008-09
500 million Baht
Investor
Status: Be in
action
Fund
manager
ESCO Venture Capital
Equity Investment
Equipment Leasing
Carbon Market
Technical Assistance
Credit Guarantee Facility
ECFT
EFE
Results
1. Stimulate investment energy conservation & renewable energy development with
total value > 2,500 million ฿ /year
2. Provide energy conservation & renewable energy development with total value >
500 million ฿ /year
Adder Cost approved by the Cabinet on 24th March, 2009
Fuel Types / Size
Adder
(Baht/kwh)
Extra Adder1
(Baht/kwh)
Extra Adder2
(Baht/kwh)
Period
(Years)
1. Biomass
Capacity ≤ 1 MW
0.50
1.00
1.00
7
Capacity > 1 MW
0.30
1.00
1.00
7
Capacity ≤ 1 MW
0.50
1.00
1.00
7
Capacity > 1 MW
0.30
1.00
1.00
7
AD / Land Fill Gas
2.50
1.00
1.00
7
Thermal Process
3.50
1.00
1.00
7
Capacity ≤ 50 kW
4.50
1.50
1.50
10
Capacity > 50 kW
3.50
1.50
1.50
10
Capacity 50 kW - < 200 kW
0.80
1.00
1.00
7
Capacity < 50 kW
1.50
1.00
1.00
7
8.00
1.50
1.50
10
2. Biogas
3. MSW
4. Wind Energy
5. Mini Hydro
6. Solar PV
Notes 1 = Electricity from Renewable Energy for diesel oil replacing
2 = For 3 Southern Provinces
1 USD = 35 THB
AEDP and Private Investment
Investment
(million THB)
Short - term
2009
2010
2011
Medium term
(12 – 16)
Long –
term
(17 - 22)
Total
Solar
1,045
695
695
4,726
56,159
63,320
Wind
280
2,800
4,900
18,200
29,750
55,930
21,925
20,340
35,050
45,510
30,640
153,465
Biogas
3,600
4,125
4,500
6,750
9,000
27,975
Municipal Solid
Waste
1,350
6,600
4,000
7,800
4,500
24,250
770
3,850
4,620
15,400
13,860
38,500
3,500
3,500
6,020
4,340
1,440
18,800
32,470
41,910
59,785
102,726
145,349
382,240
Biomass
Ethanol
Biodiesel
Total
134,165
www.dede.go.th
Department of Alternative Energy Development and Efficiency
(DEDE) Ministry of Energy
17 Rama 1 Road, Patumwan Bangkok 10330