Feed in Tariff grid-connected renewable energy technologies

promotion in ThailandPresented by Dr. Prasert Sinsukprasert

Director of Planning Division

20 November 2012

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Agenda

• Thai’s Power Generation Overview

• Renewable Energy Policy

• Renewable Energy Situation in Thailand

• Thai’s Feed-in Tariff Program (Adder)

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World ASEAN Thailand

GasCoalOilRenewHydroGeothermalNuclear

World Fuel Mix in Power Generation

Source: The Institute of Energy Economics, Japan 3

Power Generation in 2011

4Total 162,343

GWH

Policy Statement of Prime Minister Yingluck Shinawatra to the National Assembly, Tuesday 23 August 2011

Renewable Energy Policy

“ Energy sources and types will also be diversified so that Thailand will be able to meet its energy needs from a variety of sustainable energy sources ”

“ Support the production, use, research and development of renewable and alternative energy sources, with the objective of replacing 25% of the energy generated by fossil fuels within the next decade ”

Thai’s Government Energy Policy

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Renewable Energy Policy

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Low-Interest Loan: Revolving Fund

Venture Capital: ESCO Fund

Tax Incentives: BOI privilege

Feed-in tariff: ADDER

Financial Mechanism in support of RE

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IRR %

Production cost

IRR %

Adder

Electricity price

•Adder rates vary, depending on the technology used.• Support duration: 7 yrs

from COD (10 yrs for solar and wind projects).• Consumers pay in the

form of Ft.

Base tariff regulation + automatic tariff adjustment mechanism (Ft)

Adder program

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2006 • Adder measure approved by the NEPC

2007• Adder provision implemented by utilities• Adder rate for wind power projects increased

and support period for wind & solar power projects extended (10 yrs)

2009• Adder rates adjusted to promote very small-

scale generation• Some rules &regulations adjusted (bid bond,

dispatch and rooftop solar)

2010• Adder rate for (new) solar power projects was

reduced • The suspension of power purchase from solar

power projects was approved by the NEPC.• “Feed-in Tariff” research in progress

“Adder” Provision -- Evolution

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Adder Rate

Renewable Energy Situation in Thailand

Renewable Energy Target Development

Energy/Fuel REDP

Target in 2022 (MW)

AEDP Target in 2021

(MW)Solar 500 2,000Wind 800 1,200Hydro Power 324 1,608Biomass 3700 3,630Biogas 120 600MSW 160 160New energy 3 3

Total 5,607 9,201

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• Approved in Jan 2009• RE Target: 20% in 2022• Electricity Target: 5,608 MW

REDP

• Approved in Dec 2011• RE Target: 25% in 2021• Electricity Target: 9,201 MW

AEDP

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Power Purchased from Renewable Energy

As of August 2012

COD

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Renewable Energy selling to the grid

Thai’s Feed-in Tariff Program (Adder)

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3. Study on impact of RE promotion

System reliability, environmental impact, Ft Impact, etc.

Future prospects

1. Adder provision

Existing proposed project continually receive

adder till the subsidy duration

2. RE Project Screening Committee

To oversee, support and accelerate the consideration of power purchase from RE in order to meet with the national RE target

Feed-in Tariff Implementation

Thank you for your kind attention