Upload
whitney-watkins
View
220
Download
2
Embed Size (px)
Citation preview
Chris GreacenChiang Mai, Thailand
24 January 2013
Grid-connected renewable energy in Thailand under the VSPP and SPP programs
MEENet workshop, session 2
Palang Thai
• Access to grid• Feed-in tariffs• Low cost financing• Tax incentives
Thailand’s SPP+VSPP
$
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.
Access to grid
Bangkok Cogen, Rayong, 115 MW
Map Ta Phut Olefins, Rayong, 70 MW Pluak Daeng, Rayong 70 MW
Laem Chabang, Chonburi 100 MW
4494 MW online + 4152 MW with signed PPAs... 75% fossil fuel
Lopburi solar PV – 73 MW (over 1,000 rai = 160 hectares)
•Si
gned
PPA
s fo
r 767
MW
of P
V (S
PP +
VSP
P)
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
Access to grid
Feed-in tariffs
EPPO 12
Feed-in tariffs
Wealthy countries pay Feed-in tariff incremental costs?
• Thai Government loans funds at 0% interest to commercial banks for investment in:
• Energy efficiency improvement projects• Renewable energy development and utilization projects
January 2003 – present
7000 M Baht
11 local financial institutions have participated.
Max loan amount: 50 MBMax. interest rate: 4% Max. loan period: 7 years
Revolving Fund
Low cost financing
15
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.
Investor
Technical Assistance
ESCO Venture Capital Equipment Leasing
Carbon Market
Equity Investment
Credit Guarantee Facility
Fund Manager
Investor
InvestorInvestor
ESCO FundInvestment Committee
Energy Conservation Promotion FundEnergy Conservation Promotion Fund
ESCO FundLow cost financing
16
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
Tax IncentivesTax
incentives
Biogas from Pig Farms
Reduces air and water pollution
Produces fertilizer
Produces electricity
8 x 70 kW generator
Ratchaburi
Biogas from Pig Farms
• 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
Korat Waste to Energy – biogas… an early Thai VSPP project
VSPP project pipeline as recorded in EPPO data
Application under
consideration
Permission received,
awaiting PPAPPA signed
Generating & selling electricity
Leakage (Project abandoned)
Feb 2007
Thailand VSPP Status
Application pendingReceived permission, awaiting PPA
PPA signedGenerating electricity
0
200
400
600
800
1000
1200
1400
1600
1800
2000
Mi-cro-
hydro
Natural gas co-
gen
Coal cogen
Biogas
Garbage
Wind
Solar
Biomass
18 MW online
June 2008
Thailand VSPP Status
Application pendingReceived permission, awaiting PPA
PPA signedGenerating electricity
0
200
400
600
800
1000
1200
1400
1600
1800
2000
Mi-cro-
hydro
Natural gas co-
gen
Coal cogen
Biogas
Garbage
Wind
Solar
Biomass
June 2009
Thailand VSPP Status
Application pendingReceived permission, awaiting PPA
PPA signedGenerating electricity
0
200
400
600
800
1000
1200
1400
1600
1800
2000
Mi-cro-
hydro
Natural gas co-
gen
Coal cogen
Biogas
Garbage
Wind
Solar
Biomass
Application pendingReceived permission, awaiting PPA
PPA signedGenerating electricity
0
200
400
600
800
1000
1200
1400
1600
1800
2000
Mi-cro-
hydro
Natural gas co-
gen
Coal cogen
Biogas
Garbage
Wind
Solar
Biomass
Mar 2010
Thailand VSPP Status
Application pendingReceived permission, awaiting PPA
PPA signedGenerating electricity
0
200
400
600
800
1000
1200
1400
1600
1800
2000
Mi-cro-
hydro
Natural gas co-
gen
Coal cogen
Biogas
Garbage
Wind
Solar
Biomass
Sep 2011
Thailand VSPP Status
Application pendingReceived permission, awaiting PPA
PPA signedGenerating electricity
0
200
400
600
800
1000
1200
1400
1600
1800
2000
Mi-cro-
hydro
Natural gas co-
gen
Coal cogen
Biogas
Garbage
Wind
Solar
Biomass
Mar 2012
Thailand VSPP Status
1222 MW online (68-fold increase since 2007)
PPAs signed for additional 3820 MW
MW Solar in VSPP program installed in Thailand
Feb-07
Apr-07
Jun-07
Aug-07
Oct-07
Dec-07
Feb-08
Apr-08
Jun-08
Aug-08
Oct-08
Dec-08
Feb-09
Apr-09
Jun-09
Aug-09
Oct-09
Dec-09
Feb-10
Apr-10
Jun-10
Aug-10
Oct-10
Dec-10
Feb-11
Apr-11
Jun-11
Aug-11
Oct-11
Dec-11
Feb-12
Apr-12
Jun-12
Aug-12
Oct-12
Dec-12
0
50
100
150
200
250
300
PPAs for PV: 683 MWPPAs for CST: 1129 MW
Import(35%)
EGAT(47%)
IPPs(38%)
Generation(% installed capacity)
Transmission
Distribution
EGAT (100%)
PEA(66%)
MEA(32%)
Direct Customers(2%)
Users Users
VSPPs(3%)
SPPs(7%)
SPPs and VSPPs still a tiny part of Thailand’s electrical energy
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 2012www.ewura.go.tz/sppselectricity.html for English versions of regulations, and model PPAs
TPC, Moshi 17.5 MW – selling 4 MW to main grid
CogenerationSugarcane bagasse
32
Mwenga 4 MW hydroelectricity 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 [email protected]
This presentation available at:www.palangthai.org/docs
COMMON GROUND: “Zero Net Energy”
Community
LOPEZ COMMUNITY LAND TRUSTLopez Island, WA