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1
Potential of Distributed Generation (DG) in
Thailand and a Case Study of Very Small
Power Producer (VSPP) Cogeneration
POWERGEN ASIA 2015
Nicolas Leong, Business Development Manager, South East Asia,Power Plants, Wärtsilä Singapore Pte Ltd
Saara Kujala, Manager, Development & Financial Services, Asia & Australia, Power Plants, Wärtsilä Finland Oy
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TableofContents1. Abstract................................................................................................................................................. 4
2. Introduction .......................................................................................................................................... 5
3. General Market Overview..................................................................................................................... 6
3.1 EGAT........................................................................................................................................................ 8
3.2 PEA and MEA........................................................................................................................................... 9
3.3 Power Development Plan (PDP) 2010 Rev 3........................................................................................... 9
3.4 VSPP Program .......................................................................................................................................10
4. Feasibility Study: Internal combustion engine (ICE) ...........................................................................11
4.1 Internal Combustion Engine (ICE) .........................................................................................................11
4.2 Wärtsilä 34SG Engine Technology ........................................................................................................13
4.3 Wärtsilä GasCube..................................................................................................................................15
4.4 Wärtsilä EPC capabilities....................................................................................................................... 17
4.5 Wärtsilä O&M capabilities .................................................................................................................... 17
4.6 Case Study – Wärtsilä GasCube (1 x 20V34SG)..................................................................................... 17
5. Conclusion...........................................................................................................................................21
3
Legal disclaimer
This document is provided for informational purposes only and may not be incorporated into any agreement. The
information and conclusions in this document are based upon calculations (including software built-in assumptions),
observations, assumptions, publicly available competitor information, and other information obtained by Wärtsilä or
provided to Wärtsilä by its customers, prospective customers or other third parties (the ”information”) and is not
intended to substitute independent evaluation. No representation or warranty of any kind is made in respect of any
such information. Wärtsilä expressly disclaims any responsibility for, and does not guarantee, the correctness or the
completeness of the information. The calculations and assumptions included in the information do not necessarily
take into account all the factors that could be relevant. Nothing in this document shall be construed as a guarantee or
warranty of the performance of any Wärtsilä equipment or installation or the savings or other benefits that could be
achieved by using Wärtsilä technology, equipment or installations instead of any or other technology.
4
1. Abstract
Distributed Generation in Thailand has been seriously developed through national energy polices
and government supporting schemes over the past decade and has good prospects also going forward.
Various measures have been initiated and applied to encourage the investors, such as “adder” or feed-in
tariff program, government funding program and energy efficiency funding. Distributed generation in
Thailand will continue to grow in line with the country power development plan and national
policy on increasing renewable energy target to reach 25% generation share in year 2021. The current
power development plan PDP Rev.3 (2013-2030) targets a further increase in distributed generation
(DG) through new SPP cogeneration (6,347 MW) and renewable energy (13,937 MW) that are planned
to be added in the system by year 2030. Small Power Producer (SPP) and Very Small Power
Producer (VSPP) programs are good examples of success stories under the distributed generation
schemes. Both SPP and VSPP programs are implemented for promoting of primary energy saving
and for encouraging the use of alternative energy in power generation sector. As of December 2013,
the government has released SPP licenses for 11,988 MW (129 projects) and VSPP licenses for 3,727
MW (888 projects). In addition, more than 3,250 MW are currently in the licensing process.
To focus on onsite generation, where the generation is next door to the electricity user, this paper will
study in detail the VSPP cogeneration scheme which is for power plant sizes <10MW that supply
electricity and heating or cooling directly to consumers. This paper contains a case of natural gas based
VSPP cogeneration plant with efficient internal combustion engine as prime movers. The study will
present a technology overview, and a feasibility study in order to guide investors on the best solution for
investment.
5
2. Introduction
Distributed generation is an approach where electricity is produced near to the end-users of power. In
other words, the generation source is as near as possible to the consumption point. Historically,
electricity generation and distribution model was dominated by centralized power generation. In that
model, power plants are located far away from the consumers and extensive transmission lines are
required for distribution. Such system has its drawbacks such as expensive transmission lines and power
and transmission losses over lengthy distance.
Nowadays, there is a trend for more and more countries to move towards decentralized power
generation and the benefits are reduced transmission and distribution losses, improved energy
efficiency, better reliability in terms of electricity supply and possibility of cogeneration (heat recovery).
Figure 1: Central Generation
6
Figure 2 Distributed Generation
Thailand is one of the countries that have adopted such distributed generation schemes. The Small
Power Producers (SPP) and Very Small Power Producers (SPP) programs implemented by the Thai
government have been success stories and such achievement can be measured by the number of SPP
and VSPP licenses issued in Thailand. The future of distributed generation in Thailand looks promising
and both schemes are expected to further grow with the upcoming release of the next Power
Development Plan.
3. GeneralMarket Overview
Thai electricity market operates under a single-buyer system and consists of three main state-owned
players, as illustrated in Figure 3 below. Electricity Generating Authority of Thailand (EGAT) acts as the
single buyer and controls a sizeable part of generation capacity and the transmission system. Two
utilities the Provincial Electricity Authority (PEA) and the Metropolitan Electricity Authority of Thailand
(MEA) are responsible for electricity distribution to end-users. As of April 2015, Thailand’s Power System
has total generation capacity of 34.87GW as shown in Table 1.
7
Figure 3 Thailand Electricity Market (Source: www.pugnatorius.com)
Type of Power Plant Apr-15
MW %
EGAT’s Power Plants
- Thermal 3,647.00 10.46
- Combined cycle 8,382.00 24.04
- Hydropower 3,444.18 9.88
- Diesel 4.4 0.01
- Renewable energy 4.55 0.01
Total 15,482.13 44.4
Purchase from
Domestic Private Power Plants
Independent Power Producers
- Electricity Generating Public Co.,Ltd 748.2 2.15
- Ratchaburi Electricity Generating Co.,Ltd. 3,481.00 9.98
- Global Power Synergy Co.,Ltd. 700 2.01
- Tri Energy Co.,Ltd. 700 2.01
- Glow IPP Co.,Ltd. 713 2.04
- Eastern Power & Electric Co.,Ltd. 350 1
- BLCP Power Limited 1,346.50 3.86
- Gulf Power Generation Co.,Ltd. 1,468.00 4.21
8
- Ratchaburi Power Co.Ltd. 1,400.00 4.01
- GHECO-One Co.,Ltd. 660 1.89
Gulf JP Nongsang 1,600.00 4.59
Small Power Producers 3,816.60 10.95
Neighboring Countries
- Theun Hinboun Expansion (Laos) 434 1.25
- Houay Ho(Laos) 126 0.36
- Nam Theun 2(Laos) 948 2.72
- Nam Ngum 2(Laos) 596.6 1.71
EGAT-TNB Interconnection System 300 0.86
Total Purchase 19,387.90 55.6
Grand Total 34,870.03 100
Table 1 Thailand Power Generation Mix (Source: EGAT)
3.1EGAT
EGAT, as the state-owned single-buyer utility, has the sole rights to supply electricity directly to
customers and also, to the other 2 distributors - PEA and MEA. As of April 1, 2015, EGAT generates
15,482MW from its own power plants. The breakdown in terms of type of power plants is as follows:
- Coal 3,647MW
- CCGT 8,382MW
- Hydro 3,444MW
- Diesel 4.40MW
- Renewable energy 4.55MW
EGAT also purchases power from domestic private power plants under the Independent Power Producer
(IPP) and Small Power Producer (SPP) programs. The IPP programs contributes to 13,166MW and the
SPP program to 3,816.60MW of power capacity. In addition to domestic supply, EGAT purchases a total
of 2404MW of power from neighbouring countries (Laos and Malaysia).
Moreover, EGAT is one of the shareholders in large IPPs such as:
- Ratchaburi Electricity Generating Holding Public Company Limited (RATCH) at 45.01%,
- Electricity Generating Public Company Limited (EGCO) at 25.41%
From the above, it is obvious that EGAT plays a dominant role in the whole Thai electricity generation
market due to:
1. Ownership of power plant assets and their operation.
2. Entitlement of being the single purchaser of electricity generated from IPP and SPP.
3. Majority shareholders in major IPP players.
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3.2PEA andMEA
The distribution market is controlled and geographically separated by the PEA and MEA.
PEA is a stated-owned enterprise in the utility sector attached to the Interior Ministry. Its primary
responsibilities include procurement, distribution and sale of electricity to the public, business and
industrial sectors in 74 provinces, over a nationwide area of 510,000 square kilometers or 99.4% of
Thailand, with the exception of Bangkok, Nonthaburi and Samut Prakarn provinces.
MEA is a stated-owned enterprise and is responsible on supplying electric power to distribution areas
for three provinces: Bangkok Metropolis, Samut Prakan and Nonthaburi with a coverage service area of
3,192 square kilometres. As per its Annual Report 2013, MEA energy sales was 47,617 GWh and MEA
had 3,281,574 customers.
3.3PowerDevelopmentPlan(PDP) 2010 Rev3
Power Development Plan (“PDP”) is an official study and projection of the electricity supply and demand
in Thailand over 20 year period, endorsed by the National Energy Policy Council and the Cabinet. PDP
2010 Revision 3, of which a summary was published in June 2012, indicates that the total added capacity
during the period of 2012 – 2030 would be 55,130 MW according to the following power plant types:
1. Renewable energy power plants 14,580 MW
a. Power purchase from domestic 9,481 MW
b. Power purchase from neighboring countries 5,099 MW
2. Cogeneration 6,476 MW
3. Combined cycle power plants 25,451 MW
4. Thermal power plants 8,623 MW
a. Coal-fired power plants 4,400 MW
b. Nuclear power plants 2,000 MW
c. Gas turbine power plants 750 MW
d. Power purchase from neighboring countries 1,473 MW
Total 55,130 MW
From the above, 6,476MW is expected to come from Cogeneration plants under SPP and VSPP schemes.
All information related to VSPP Cogeneration have been extracted from Appendix 4 of PDP 2010
Revision 3, and the results are compiled below in Table 2.
Year Projected VSPP Projects (MW)
2012 27
2013 43
2014 59
2015 76
2016 96
2017 96
2018 97
10
2019 102
2020 102
2021 103
2022 108
2023 108
2024 109
2025 113
2026 113
2027 114
2028 119
2029 119
2030 12
Total 1,716Table 2 Projected VSPP Project from 2012 to 2030 (Source - PDP 2010 Rev3)
We can see that a total of 1,716 MW of VSPP Cogen are being planned over the period of 2012-2030.
3.4 VSPPProgram
The Very Small Power Producer (VSPP) schemes can be divided into 2 main schemes: renewable (biogas,
municipal waste, biomass, hydro, wind, solar) and non-renewable co-generation (natural gas). As per
Energy Policy and Planning Office (EPPO), the definition of “VSPP cogeneration system means a
generator of a private entity, state agency, state-owned enterprise or an individual with his own
generating unit, whose power generating process is Cogeneration or Combined Heat and Power (CHP)
system fueled by non-renewable energy and who sells no more than 10 MW of electrical power to the
Distribution Utilities.
The objectives of power purchase from Very Small Power Producers are:
1. To promote the participation of VSPPs in electricity generation
2. To promote efficient use of domestic natural resources and reduce dependency on electricity
generation using commercial fuels, which will help decrease expenditure on fuel import from
foreign countries and lessen the environmental impact;
3. To promote efficient electricity generation, making optimum use of energy via Combined Heat
Power (CHP) application;
4. To open up an opportunity for people in remote areas to participate in electricity generation;
5. To alleviate the government’s investment burden in electricity generation and distribution
systems.
The majority of VSPP in operation are small renewable energy plants (1,471MW). There are also about
113 MW of natural gas based cogeneration VSPP plants in operation in Thailand. However, their
popularity is lower than that of renewable VSPP systems. While reasons for this are not fully known, one
of the reasons could be challenges in reaching competitive generation cost in small power plants in
comparison to grid electricity. Therefore, the overall efficiency is extremely important for VSPP co-gen
systems.
11
The total amount of VSPP in operation is now 1,585 MW (476 projects). In addition, 412 projects (2,142
MW) are under implementation and construction. In total, 888 VSPP licenses for 3,727 MWs have been
released. In addition, around 1,244 MW of capacity (313 projects) currently under PPA signing process
will also be added to the system. Therefore, the total amount of VSPPs in operation, construction, and
PPA process is 4,971 MW (1,201 projects). The majority of these are solar power plants with a total
capacity of 2,465MW (572 projects). A complete list of VSPP projects is listed below in Table 3.
Status In Operation Under Implementation / Construction
Under Process of Power Purchasing
Agreement
VSPP Number of Projects
Generating Capacity (MW)
Number of Projects
Generating Capacity (MW)
Number of Projects
Generating Capacity (MW)
Biogas 95 158 60 107 36 54
Municipal Waste 18 43 16 111 4 20
Biomass 104 642 141 990 83 160
Hydro 2 1 11 14 3 0
Wind 8 9 22 69 3 16
Solar 226 619 162 850 184 996
Natural Gas 23 113 0 0 0 0
Total Renewable (1) 453 1471 412 2142 313 1244
Non-Renewable (2) 23 113 0 0 0 0
Total (1) + (2) 476 1585 412 2142 313 1244
Table 3 VSPP Status (February 2014 (Source: http://www.erc.or.th/ERCSPP/MainPage.aspx)
4. FeasibilityStudy:Internalcombustionengine(ICE)
In this section, we evaluate the feasibility of internal combustion engine technology for the Thailand
VSPP market. From this study, we would know whether it makes sense both technically and
economically to have a VSPP cogeneration using Internal Combustion Engine (ICE) with natural gas as
fuel.
4.1 InternalCombustionEngine(ICE)Today’s modern internal combustion engines are excellently suited for various stationary power
generation applications. They cover a wide capacity range, and have the highest simple cycle efficiency
in the industry. At the lower end of the range, the power plant can consist of only one generating set,
while larger plants can consist of tens of units and have a total output of several hundred MW.
12
On 29 April 2015, the inauguration of IPP3, the world’s largest internal combustion engine (ICE) power
plant, took place at the plant site near Amman, Jordan. The plant is powered by 38 Wärtsilä 50DF multi-
fuel engines with a combined capacity of 573 MW. In recognition of its world record size, the plant has
been accepted into the Guinness book of records.
Figure 4 The tri-fuel power plant IPP3 is the world’s largest internal combustion engine power plant. It comprises 38 Wärtsilä 50DF engines with a combined capacity of 573 MW.
Combustion engine power plant solutions have many unique features compared to power plants based
on other technologies.
Below are the key features of internal combustion engines:
a) Flexible plant sizes
Investments in combustion engine power plants can easily be made in several steps. Due to
several sizes of engine generating sets, the right number of units can be chosen to match the
required power demand. This breaks the concept of “one size fits all” for power plants. For
example, a power plant can initial operate on open cycle application. Later, due to increased
power demand or funds availability, additional units can be added or Heat Recovery Steam
Generators (HRSG) and a steam turbine can be installed to close the cycle for combined cycle
operation. This modular concept also enables easy and repeatable installation work.
b) Multiple independent units
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Since power plants typically consist of several generating sets, the excellent fuel efficiency can
be maintained across a wide load range also at part load operation. The plant can be operated
at all loads with almost the same high efficiency.
c) Start-up, synchronisation and loading
Fast start-up, synchronisation, and quick loading are valuable benefits for power plant owners.
Quick synchronization (30 seconds) is especially valuable for the grid operator, as these plants
are the first to synchronise when an imbalance between supply and demand begins to occur.
System operators benefit from the possibility to support and stabilize the grid in many
situations, such as peaking power, reserve power, load following, ancillary services including
regulation, spinning and non-spinning reserve, frequency and voltage control, and black-start
capability.
d) Fast track EPC project delivery
Internal Combustion engine power plant construction projects can be executed with fast
delivery schedules. EPC (engineering, procurement, construction) power plant construction
projects can take as little as 10 months from the notice to proceed to final handing over. As an
example, a 102 MW Dohazari power plant in Asia was delivered in only 10 months.
4.2Wärtsilä34SGEngineTechnologyThe Wärtsilä 34SG is a four-stroke, spark-ignited gas engine that works according to the Otto process
and the lean-burn principle. The engine has ported gas admission and a pre chamber with a spark plug
for ignition. The engine runs at 720 or 750 rpm for 60 or 50 Hz applications and produces 9,340 and
9,730 kW of power, respectively. The efficiency of the Wärtsilä 34SG is among the highest of any spark-
ignited gas engines today. The natural gas fuelled, lean-burn, medium-speed engine is a reliable, high-
efficiency and low-pollution power source for baseload, intermediate, peaking and cogeneration plants.
Wärtsilä has delivered more than 1000 34SG engines (8.7 GW) to 40 countries worldwide and
accumulated more than 14 million running hours.
14
Figure 5 Wärtsilä 34SG Engine
Some of the Wärtsilä 34SG engine strengths are:
• Competitive efficiency and lube oil consumption
• Fast starting and loading
• High power density and compact size
• Reliability and low maintenance costs
• Advanced engine control & diagnostics
• Ergonomic interface.
Below is the main technical data of the Wärtsilä 34SG Engine Technology:
Parameter W34SGD
Cylinder output (kw, 720/750rpm) 480 / 500
Engine speed (rpm) 720 / 750
Bore / stroke (mm) 340 / 400
BMEP (bar) 22.0
Piston speed (m/s) 9.6 / 10.0 m/s
Cylinder configurations 9L,16V, 20V
Turbocharger location Free end
Fuel types Natural gas
Gas fuel MN optimization “High” 80, “Low” 65
NOx optimisation TA-Luft, ½TA-Luft,
15
IED2010 (0.4xTA-Luft)
Table 4 Technical data for Wärtsilä 34SG Engine Technology
Below is the engine range in the Wärtsilä 34SG Engine Technology:
Figure 6 Engine range in the Wärtsilä 34SG Engine Technology
4.3WärtsiläGasCube
The Wärtsilä GasCube is a modular, pre-engineered single-engine power plant produced within a cost
framework that justifies turnkey deliveries for small plants while still complying with the needs of
different clients and applications. With this solution, the same benefits as customers for large turnkey
power plants can be enjoyed such as proven technical and logistical solutions and reliable delivery
schedules guaranteed by a single supplier. Gas cube concept can be cost efficiently employed also for 2
and 3 engine power plant installations.
16
Figure 7 Wärtsilä GasCube
Figure 8 GasCube Bontang, Indonesia (2 x Wärtsilä 16V34SG)
Some of the advantages of the Cube Design are listed below:
Validated and reliable technical solutions
High electrical efficiency through minimization of the plant’s own consumption
17
Compact design and a minimized annex system
Fluent and cost-efficient project execution from planning to start-up
Optimized lifetime support and reduced warranty costs
Future expansion flexibility.
4.4WärtsiläEPCcapabilitiesIn addition of being the leading supplier of Internal Combustion Engines for global power generation
markets, Wärtsilä has proven capabilities to execute power plant projects on EPC/ full turnkey basis.
Once awarded the contract, Wärtsilä takes care of all engineering, logistics, construction, installation
and commissioning. The customer has a single point of contact and in the end, receives a complete
Power Plant solution which is fully ready to start operating.
Wärtsilä Global EPC experience is a total of 456 plants with 1,657 engines producing 15,873 MW in 103
countries over the last 35 years.
4.5WärtsiläO&McapabilitiesWärtsilä has provided operation and maintenance (“O&M”) services to customers owning Wärtsilä
equipped power plants for over 20 years. Wärtsilä currently operates 151 power plants worldwide with
a total of 6600 MW under O&M contracts.
4.6 CaseStudy– WärtsiläGasCube (1x20V34SG)In this case study, we evaluate the feasibility of a VSPP cogen system for an industrial user. W e have
chosen Wärtsilä GasCube with 1 unit of 20V34SG as prime mover for a VSPP engine-based cogeneration
power plant. We calculate the payback period for the VSPP cogeneration system where half of the
electric output is used to replace grid electricity purchases and the other half is sold to a distribution
utility under the VSPP tariff scheme. Thermal output of the cogenerat ion plant is assumed to partially
replace industrial natural gas use for steam generation.
18
Figure 9 3D model of a VSPP cogen system using the Wartsila GasCube (1 unit of 20V34SG)
The common assumptions are listed below in Table 5:
Item Unit Value
Project lifetime Years 20
Fx-rate THB / Eur 37.7
Natural gas cost THB/MMBTu (HHV) 299
Lube oil cost THB/litre 75.4
Altitude m 20
Barometric Air Pressure kPa 101
Ambient air temperature ° C 32
Relative humidity % 65
Gas feed pressure kPa 700
Gas Lower Heating Value (LHV) kJ/m3 36,000
Gas Methane number - 82
Table 5 Common assumptions
19
Key technical performance figures are listed in Table 6 below:
Item Unit Value
Plant configuration 1 x 20V34SG
EPC cost M THB 224
Net Electrical Output MW 9,6
Thermal Output (Steam @ 10bar a) Ton/h 4.7
MW(th)* 3.2
Net life-cycle efficiency (electrical, LHV) % 43.6
Net life-cycle efficiency (total) % 58.2
Lube Oil Consumption g/kWh 0.3
Variable O&M cost THB / MWh 170
Fixed O&M cost M THB/ Year 15
Plant operating hours (Peak; Monday-Friday 9am to 10pm)
h / Year 3380
Plant operating hours (Off-peak; other times)
h / Year 4620
Annual capacity factor % 65%
* 95% condensate return percent and 80°C condensate temperature
Table 6 Technical assumptions
In addition, we base the assumptions of the electricity sales and purchase prices on the current MEA
tariff rates for large general services, and use the most recent electricity tariff paid to VSPPs when selling
electricity to PEA and MEA. Table 7 below make a distinction between the pricing during peak hours
(weekdays from 9am to 10pm) and off-peak hours.
We also make an assumption on the avoided cost for self-generation of steam based on its production
cost in a boiler.
Item Unit Value
MEA Large general service tariff based on time of use (Peak / Off-peak)
THB/ kWh 3.6 / 2.2
VSPP Grid selling price (Peak / Off-peak)
THB / kWh 3.9 / 2.0
20
Ft rate THB / kWh 0.3
Electricity demand for industrial use (Peak / Off-peak)
MW 4.8 / 4.8
Electricity sold to distribution utility (Peak / Off-peak)
MW 4.8 / 0
Steam use Tons / hour 4.7
Steam production cost in a boiler MWh (th) 1.3
Table 7 Tariff assumptions
Based on the assumptions listed above in Tables 5, 6 and 7, we can calculate the average electricity cost
of production, as summarized in Table 8 below.
Variable costs THB/kWh M THB/year
Variable expenses 0.2 10.5
Fuel expenses 2.7 149.1
Total Variable Costs 2.9 160.0
Fixed costs
Fixed expenses 0.3 15.0
Cost of own capital (5%) 0.2 11.2
Cost of Production 3.4 185.9
Table 8 Cost of production for 1 x 20V34SG cogeneration system
Cost of production for electricity with the co-generation system doesn’t give a complete picture of the
project feasibility. In addition, we need to consider the savings from replacing steam generation by
cogeneration system. We assume that in absence of VSPP co-generation system, the steam would be
generated using natural gas in an industrial boiler. Finally, the project can generate additional revenue
by selling 50% of power output to the distribution utility under VSPP rates during peak times. The results
of the overall project costs and revenues are illustrated below in Table 9 and Figure 10.
Item Unit Value
Annual production (electricity) MWh 54 453
Annual production (steam) MWh 25 688
Project Savings 20 year average
+ Avoided cost (Grid Purchase for industrial use)
M THB /year 117.8
+ Avoided cost (Steam production) M THB /year 34.6
+ Revenue from electricity sold under VSPP scheme
M THB /year 67.4
21
- Fuel cost M THB /year - 149.1
- Variable operating cost M THB /year -10.5
- Annual fixed operating cost M THB /year -15.1
Total savings M THB /year 43.5
Payback Years 5.1
Table 9 VSPP project savings and payback time
Figure 10 Cumulative savings for a VSPP cogeneration project
The results illustrate that for an industry with some steam and electricity demand, the cogen VSPP
scheme is a good fit. The project can take advantage of time of use tariffs and sell surplus output to the
grid during times when grid sales price is high. Due to the high total efficiency of over 58%, the project
can reach significant savings with about 5 years’ payback period.
5. ConclusionTo summarize, Thailand has invested heavily in promoting energy efficiency, distributed generation, and
renewable energy through SPP and VSPP schemes. In particular, VSPP projects based on renewable and
cogeneration systems will continue to benefit from government’s policies and subsidies programme
implemented during last few years. We firmly believe that the next Power Deve lopment Plan (PDP)
- 300,000
- 200,000
- 100,000
-
100,000
200,000
300,000
400,000
500,000
600,000
700,000
0 2 4 6 8 10 12 14 16 18 20
Years
Cumulative savings
22
which is expected to be officially released in the near future, will provide further incentives for both
foreign and local investors to move towards Distributed Generation. Hence, it is clear that Distributed
Generation will keep on growing over the next few decades and represent the way forward in Thailand
This paper gives an overview of the Power Development Plan (PDP), focuses on VSPP scheme, and also,
introduces Wärtsilä V34SG gas engine model, which is an ideal choice for VSPP cogene ration systems.
For a typical VSPP system with both industrial use and electricity sales to grid, a VSPP project with 1 unit
of Wärtsilä 20V34SG can yield payback time of 5 years and total efficiency of over 58%. With such value
proposition, Wärtsilä is offering an alternative solution to VSPP owners and investors. This will
contribute in the long term to the ever-growing success of VSPP cogeneration power plants in Thailand.