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Clean Energy Advisor IEA Workshop on ‘Mobilizing sustainable
bioenergy supply chains: opportunities for agriculture’ May 17, 2016
} Nearly 200 industrial biogas plants built in Thailand since early 2000s
} Significant savings in energy expenses and reductions in environmental impacts
} Biogas development in nearby countries lagging
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3
-140.0%
-120.0%
-100.0%
-80.0%
-60.0%
-40.0%
-20.0%
0.0%
20.0%
40.0%
60.0%
1988 1993 1998 2003 2008 2013
Net energy imports as share of total energy use
Philippines
Thailand
Vietnam
Malaysia
Indonesia
} Targets: RE contributing 25% of total energy consumption by 2021
} Finance: subsidies, tax incentives, soft loans and equity capital
} Electricity: Ability for RE to sell to the grid
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-
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
2008 2011 2013 2015
Targets for Biogas (MW)
Biogas Energy crops
2022*
2021
2021
2036
* Target year
• Distribution utilities obliged to purchase electricity generated from RE up to 10 MW
• Retail tariff + ‘Adder’ for first 7 years (US$ 0.9-1.4 cents / kWh for biogas)
• By May 2016, 3,530 MW installed, 927 MW under development
• Regulations revised in 2014, adder replaced by Feed-in Tariff (FIT)
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} HH biogas programs since 1950s } Medium and large pig farms in 1990s } Early 2000s government supported projects
at starch mills (30% subsidy) } Commercial development from 2003 onwards
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} Waste water typically treated in open lagoons } High organic content suitable for biogas } Large industrial sector } Industry relies on Heavy Fuel Oil and grid
electricity
Biogas can significantly reduce energy costs and environmental impacts
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} 10 year BOOT (Build-own-operate-transfer) } Covered lagoon digester (100,000 m3) } CAPEX US$ 4.5 million (all equity) } Fixed savings of 20% } 3 MW, displaces 7.5 m. liter HFO, 35 GWh/yr } Projected 250,000 CERs/yr
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10
Wastewater
Electricity
Biogas
StarchMillSpecialPurposeVehicle
$
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} High expectations from CDM } Initially BOOT, later mostly self-built or turn-
key } Starch mills followed by palm oil mills } Sharp increase in biogas power sales
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-
50
100
150
200
250
300
350
-
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Capa
city
(MW
)
Elec
tric
ity (G
Wh)
Capacity (MW) Electricity (GWh)
} 140 projects, total 302 MW, 127 MW under development
} Biogas 9% of VSPP capacity } Revenue since 2005 > US$ 500 million } Palm oil mills energy self-sufficient, so VSPP
important factor
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} Grant funding for early projects } Large interest from carbon finance after initial
BOOT projects } Most later projects financed by local banks, a
government-initiated soft-loan program co-financed 30-40 projects
} Local banks willing to finance once familiar, but largely as asset-based corporate finance
} Total investment >US$ 800 million
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} Favorable regulations & incentives: • RE development plans & targets
• Subsidies, tax exemptions, financing
• VSPP
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} Carbon finance: • High expectations, low deliverance
} Well-established industrial sector: • Replicability, access to financing
} Favorable investment climate: • Infrastructure, stability, etc.
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} Most major facilities have biogas system } Opportunities at smaller facilities, but not
always economically feasible } Large scope for performance improvements at
existing plants } Opportunities for biogas from energy crops,
compressed biogas (CBG)
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} Industrial biogas has become a mature and bankable technology in Thailand
} Rapid uptake of technology but limited focus on performance
} Favorable regulations and access to finance key to uptake
} Government support instrumental, but not necessarily sufficient
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