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Thailand’s Wind Energy

Development and Policy


Dr.Twarath Sutabutr
Deputy Director-General
Department of Alternative Energy Development and Efficiency (DEDE)
Thailand’s Ministry of Energy

Asia-Pacific Clean Energy Governance and Regulatory Dialogue


By ADB and USAID
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June 21-22, 2010, ADB Headquarters, Manila
The views expressed in this presentation are those of the presenter and do not necessarily represent those of the Asian Development Bank.
Power Sector Overview
1. Population 66.9 million.
2. Peak Demand 24,495 MW, Annual Energy Consumption 13,907 GWh.
3. Power Generation Source: Total 30,160 MW from EGAT 14,328 MW (48%), IPP 12,151
MW (40%), SPP 2,092 MW (7%), Import & Exchange 640 MW (5%)
4. Power Generation Mix: Natural Gas 71%, Lignite 11%, Coal 8%, Fuel oil 0.3%, Hydro 5%,
Import 3% and others 2%
5. Wind Power Generation 5.2 MW (April 2010)

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Map of Wind Masts
Thailand Wind
Mast

Wind station at 40 m height

Wind station at 90 m height

Totally
- 45 wind stations at 40 m height
- 23 wind stations at 90 m height
Thailand’s Wind Map
Draft final wind map 2010 Wind Energy Project

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Wind Energy Demonstration Project

Made in Thailand 5 kW HAWT Made in Thailand 5 kW VAWT

Import from foreign 5 kW HAWT


Wind Energy Demonstration Project

250 kW WTG from India 1,500 kW WTG from China


Wind Energy Demonstration Project

Wind farm 5 kW X 5 sets (5 size of blade and 5 type of tower) Made in Thailand
Wind turbine for fill Oxygen

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Thailand Renewable Energy Development

Committed to the development


of low-carbon society

Government Encouraging
Funding Private-Led
15 years RE-Development Plan
On R & D & D Investment
Activities

Target 20.3 % of RE in Total Energy Consumption


By 2022

Small + Mini Bio Energy Biofuels


Solar + Wind
Hydro • Ethanol
Biomass Biogas MSW
• Biodiesel
1,300 MW 320 MW 4,000 MW 160 MW 120 MW
20% Oil substitution

• Feed-in Premium (“Adder”) on top of regular tariff • Abundant Supply


Supporting • BOI Tax incentives scheme (8 yr. Tax holiday) • Market driven
Schemes • Some direct subsidy (10-30%) on Biogas,MSW,Solar-hotwater projects • Pricing Strategy to
• Soft Loans for RE+EE investments promote high-RE-Fuels
• Government Co-investing scheme (“ESCO Fund”) (E10,E20,E85 and B5)
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Measures for RE Promotion
6 Supporting Mechanisms: Offices giving licenses
RE-Electricity Generating ONEP ERC Local
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(5 from MoEN : BOI- EIA Admin
1 from Board of Investment) Investment
Incentives
Licenses
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Support DEDE • Renewable energy maps
from the • Info from demonstration site Technical support
Ministry of • One-Stop Service Renewable
Energy energy potential info
Promotion requesting
3
• Investment Grant, i.e. biogas,
DEDE & solar hot water, and MSW Private
EPPO (i.e.100% 2009, 50% 2010 ,
25% 2011 for MSW ) To raise Investor
a loan Carbon
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• “Energy Soft Loan” credit
DEDE Banks
Revolving funds for Renewable sale
energy and energy Capital requesting
conservation, Energy credit Registration for
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DEDE • ESCO Venture Capital Fund intent
expression as Negotiation for - Firm
per the time electricity selling - Non Firm
6 specified & buying
EPPO • “Adder” : Feed-in Premiums
Policy
Adder Electricity
Consumers
authorities

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Supporting Schemes & Incentives

1. Tax Incentives (Board of Investment-BoI)


— RE & EE top priority list 4 Max. Privileges
— 8yr Income Tax Holiday
— plus extra 5 y. (9th-13th yr) 50% tax reduction

2. Technical Assistances 4 Maps, Tech Catalog, 1-Stop Service

3. Investment Grants 4 Biogas, MSW, Solar Hotwater


Funded by ENCON Fund

— 10-30 % grants for Design, Consultant & Partial Investment


— 50 mil.B Max
— Focus on Small Projects

4. Gov Soft Loans (7,000 mil.B & 90% subscribed)

5. Co-Investing Scheme 4 ESCO Fund 4 2 Fund Managers

6. “Adder” : Feed-in Premiums


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Supporting Schemes & Incentives

4. Soft Loans 4 Revolving Fund


— 7,000 mil.B allocated from Gov’s ENCON FUND & 90% subscribed

— 2-Stepped Loan mix w/ Bank’s Money (approx. 1:1)

— Max. Fix 4%
Funded by ENCON Fund

— 7 yr. loan period

— Draw a creation of larger lending program by Banks (negotiable rate)

Bank’s Own
Lending Nego.
70,000 MB

Mix by Bank Private


7,000 MB Investors
Revolving Com. <4 .0%
Fund 0.5% Banks
7,000 MB 7,000 MB
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Supporting Schemes & Incentives

5. Gov Co-Investing Scheme 4 ESCO Fund


— 500 +500 mil.B allocated from Gov’s ENCON FUND
— 2 Fund Managers assigned & given 3 years window of investment
— 7-10 years of investment with mutual agreed exit clause
— Max 20% equity holding
Funded by ENCON Fund

— As of 2009, 29 projects invested (400 mil.B)

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Supporting Schemes & Incentives

6. Adder 4 “Feed-in Premiums”

Adder
— Technology based premiums
— More incentives for smaller projects
ADDER is paid by all-consumers

Adder
Development of ADDER Policy
Tendering for
Increase Biomass-SPP Ft
Intro
(10-90)MW
VSPP VSPP
w. Bidding
<1MW To <10MW Ft
For Adder
(ceiling 0.30 B/kwh)
Solicit
Biomass-SPP 1st
rd.
w. Bidding Fix ADDER for
For Subsidy RE-VSPP
(ave. 0.18 B/kwh) RPS RE-SPP
For EGAT (wind,solar,hydro,MSW, Bio)
2nd rd Base Base
terminated
trial RPS
and later
2000

2004

2007

2009
1999

2006-7

Peak Off-peak
8am-8pm 8pm-8am
VSPP/SPP +Adder Scheme
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“Adder” : Feed-in Premiums
Adder Adder- Special Supporting
VSPP
Fuel (B/kwh) VSPP (Euro
adder * period
SPP Cents/kwh) (B/kwh) (Year)

I Biomass
- Installed capacity <= 1 MW 0.50 Bidding 0.94 1.00 7
- Installed capacity > 1 MW 0.30 0.57 1.00 7
I Biogas (all categories of
production sources)
- Installed capacity <= 1 MW 0.50 Bidding 0.94 1.00 7
- Installed capacity > 1 MW 0.30 0.57 1.00 7
I Waste (community waste, not
hazardous industrial waste,
and inorganic waste)
- AD &b LFG 2.50 2.50 4.72 1.00 7
- Thermal Process 3.50 3.50 6.60 1.00 7
I Wind power
- Installed capacity <= 50 kw 4.50 8.49 1.50 10
- Installed capacity > 50 kw 3.50 3.50 6.60 1.50 10
I Mini and micro hydropower
- capacity 50-200 kw 0.80 -No- 1.51 1.00 7
- capacity < 50 kw 1.50 2.83 1.00 7
I Solar power 8.00 8.00 15.10 1.50 10
* Note : Special Adders for
- Facilities in 3 Southern Provinces
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- Diesel-Gen. replacement on PEA system
Twarath Sutabutr, Sc.D
Current Position : Deputy Director-General
Department of Alternative Energy Development and Efficiency (DEDE), Ministry of Energy
twarath@dede.go.th & FB : serching for “DEDE” or “Twarath”
Education :
- Doctor of Science (Sc.D.) in Civil and Environmental Engineering ,
Massachusetts Institute of Technology (MIT), Cambridge, MA, USA.
- Master of Geotechnical Engineering,
Asian Institute of Technology (AIT), Bangkok, Thailand
- Bachelor of Engineering (Civil)
Chulalongkorn University, Bangkok, Thailand

Work Experiences :
- Director of Policy & Strategy Coordination Office, Ministry of Energy
- Director of Public Communication Division, Nuclear Power Program Development Office (NPPDO)
- Ministry of Energy Spokesperson
- Board of Directors, Bangchak Petroleum Public Company Limited
- Board of Executive Committee, Energy Committee, Engineering Institute of Thailand

Awards and Special Appointments


- Awarded an Outstanding Civil Service Award, the 1st officer to receive such an honor from the Ministry of Energy
- Appointed as “Mentor” for HIPPS, a HR development program for fast-trackers within Thai civil service system arranged by
Office of the Civil Service Commission (OCSC)
- Selected as Board of Directors, Energy Research Institute, Chulalongkorn University
- Elected as Board of Directors, Innovation Promotion Foundation, Faculty of Engineering, Chulalongkorn University

Certificates
- Certificate for Senior Executive Program, arranged by Office of The Civil Service Commission (OCSC), Bangkok Thailand
- Infrastructure in a Market Economy, arranged by JFK School of Government, Harvard University, Cambridge, MA
- Intl. Program on Utility Regulation and Strategy, arranged by the World Bank and University of Florida, Gainesville, FL
- New Wave Leader in Thai Governmental Sector, arranged by OCSC, Bangkok, Thailand 16