Recent Support Mechanism and Targets for Biomass and Biogas in Thailand

12th February 2014 PEP-Information Workshop Energy from Biomass and Biogas-Market

Opportunities in Thailand and Philippines, Berlin Germany

Miss. Jariya Budnard

By

Engineer Biogas Group, Energy Research Bureau

Content

• Thailand’s Energy situation in 2012 1

• Related Energy Policies 2

• Alternative Energy Development Plan 3

• Biomass and Biogas Development in Thailand 4

2

1. Thailand’s Energy Situation in 2012

3

Thailand’s Final energy consumption in 2012

2012 Total final energy consumption was

73,316 ktoe , an increase of 3.9% from 2011

4,224 ktoe

27,164 ktoe 3,990 ktoe

11,097 ktoe

3,873 ktoe

5,840 ktoe

Total 56,188 ktoe 4

Q1-Q3 (2013)

2012 Increase

3.9%

www.dede.go.th

Energy import value in 2012

1,441,790 million baht

Increased 16.7% from 2011

2012 Crude oil Petroleum

product NG+LNG Coal Electricity Total

Import value(million baht) 1,115,366 122,634 138,952 46,770 18,069 1,441,790

Growth (%) 14.1 30.1 23.8 10.5 30.4 16.5

2012

Crude oil 77%

Petroleum product

9%

NG+LNG 10%

Coal 3% Electricity

1%

Thailand’s Energy import value in 2012

Source : Ministry of Energy 2013

P : Preliminary

Energy Import value Million baht

2008 2009 2010 2011 2012p

Elec. Coal Natural gas+LNG Petroleum Crude oil

5

2. Related Energy Policies

6

2.Related Energy Policies

1

Creating the just society

2

Developing a lifelong learning society

3

Strengthening of the agricultural sector and security of food and energy

4

Restructuring the economy toward quality growth and sustainability

5

Creating regional connectivity for social and economic stability

6

Managing natural resources and the environment toward

sustainability.

Source : www.nesdb.go.th

THE ELEVENTH “NATIONAL ECONOMIC AND SOCIAL DEVELOPMENT PLAN” (2012-2016)

7

Development Strategies

Green Economy

Balance & Develop Public

management

Growth

&

Competitiveness

Green Growth

Inclusive Growth

Fostering economic growth and development in environmental

friendly way

People/Quality of life /Knowledge/Justice

Infrastructure/ Production/R&D

Laws & Regulations

Economic Growth Sustainable Development Environmental Friendly

8

Country Strategy

2.Related Energy Policies

Prime Minister Yingluck Shinawatra

Enhance Energy-related Industries & Business to be next generation value creator Secure Thailand Energy supply

Energy Pricing

Target Energy Intensity reduction by 25% within 20 years (based on 2010 level)

Up-scaling renewable energy mix to 25% in 10 years

Thailand’s Energy Policies

2.Related Energy Policies

9

10

3. Alternative Energy Development Plan (AEDP)

(2012-2021)

Committed to the development of low-carbon society

Government Funding On R & D Activities

Encouraging Private-Led Investment

Alternative Energy Development Plan (AEDP : 2012-2021)

Solar

3,000 MW

100 ktoe (Heat)

Small + Mini Hydro

324 MW

Bio Energy

Biomass Biogas MSW

4,800 MW 3,600 MW 400 MW

8,500 ktoe

(Heat)

1,000 ktoe

(Heat)

200 ktoe (Heat)

Target 25 % of RE in Total Energy Consumption By 2021

Biofuels

• Ethanol

9 Million l/d

• Biodiesel

7.2 Million l/d

• 2nd –Gen. Biofuels

3 Million l/d

• CBG 1,200 tons/d

Wind

1,800 MW

Others

• Tidal wave

2 MW

• Geothermal

1 MW

Alternative Energy Development Plan (AEDP) Rev ♯ 1 (16 July 2013)

From Napier grass

3,000 MW 11

Promote RE on the

Community scale

Encouraging Private

Investment

Improve Relevant

Infrastructure

Promote R&D as a

tool for RE industry

Promote better

understanding

Modifying outdated rules and

regulations

Strategies for AEDP

12

Carbon credit sale

Private Investor

CDM

Electricity

authorities Consumers

Promotion requesting

Support from the Ministry

of Energy

• Renewable energy maps • Info from demonstration site • One-Stop Service Renewable energy potential info

•Subsidy, i.e. Biogas , Solar hot

water

• “Energy Soft Loan”

Revolving funds for RE and

energy conservation Projects

• ESCO Venture Capital Fund

• “Adder” : Feed-in

Premiums Policy , Feed-in

Tariff

DEDE

DEDE & EPPO

DEDE

EPPO

DEDE

2

3

4

5

Banks

To raise a loan

Capital requesting

Registration for intent expression as per the time specified

ONEP EIA

ERC

Local Admin

Offices giving licenses

Negotiation for electricity selling & buying

- Firm - Non Firm

Licenses Technical support

BOI- Investment Incentives

Adder/ FIT

Depart. Of Industrial

RE Promotion Mechanism

13

1

Fuel Adder

(Baht/kWh) VSPP

Extra adder * (Baht/kWh)

Supporting period (Year)

Biomass - Installed capacity <= 1 MW - Installed capacity > 1 MW

0.50 0.30

1.00 1.00

7 7

Biogas (all categories of production sources) - Installed capacity <= 1 MW - Installed capacity > 1 MW

0.50 0.30

1.00 1.00

7 7

Waste (community waste, not hazardous industrial waste, and inorganic waste)

- AD &b LFG - Thermal Process

2.50 3.50

1.00 1.00

7 7

Wind power - Installed capacity <= 50 kW - Installed capacity > 50 kW

4.50 3.50

1.50 1.50

10 10

Mini and micro hydropower - capacity 50-200 kW - capacity < 50 kW

0.80 1.50

1.00 1.00

7 7

Solar power 6.50 1.50 10

Pilot project on green energy for community enterprise (biogas production from Napier grass) (1 MW)

Feed-in-Tariff 4.50

20

Solar PV Rooftop 0-10 kW >10-250 kW

>250-1,000 kW

6.96 6.55 6.16

25 25 25

Solar Community (1 MW)

9.75 (Year 1-3) 6.50 (Year 4-10)

4.50 (Year 11-25)

25

• Note : Special Adders for - 3 Southern Provinces - Diesel-Gen. replacement on PEA system

Adder cost : a supplement of normal purchasing tariff of electricity to the national grid

Performance on Alternative and Renewable Energy Policy Q1 – Q3/2013

TYPES OF ENERGY Unit Target in 2021 2012 Capacity(Q1-Q3,2013)

Solar MW 3,000 376.72 619.87

Wind MW 1,800 111.73 222.71

Small Hydro MW 324 101.75 104.73

Biomass MW 4,800 1,959 2,210.25

Biogas MW 3,600 193.40 260.33

MSW MW 400 42.72 46.98

New Energy MW 3 - -

Total Electricity MW 13,927 2,786 3,465

ktoe 1,138 973

Solar Ktoe 100 4 4

Biomass Ktoe 8,500 4,346 3,399

Biogas Ktoe 1,000 458 409

MSW Ktoe 200 78 61

Total Heat Ktoe 9,800 4,886 3,873

Ethanol ML/Day 9 1.4 2.5

Biodiesel ML/Day 7.20 2.7 2.8

New Energy Replacing Diesel ML/Day 3 - -

Compressed Bio-methane Gas (CBG) ton 1,200 - -

Total Biofuel ML/Day 39.97 4.1 5.3

ktoe 1,270 1,169

RE Consumption : Energy Consumption 25% 9.9% 10.7%

Ele

ctr

icit

y

He

at

Bio

fue

l

15

www.dede.go.th

2013

Performance on Alternative and Renewable Energy Policy Q1 – Q3/2013

Electricity Heat

Biofuel

16

www.dede.go.th

MAP OF RENEWABLE ENERGY IN THAILAND (2012)

POWER PLANT HEAT CONSUMPTION BIOFUEL PLANTS

WWW.DEDE.GO.TH 17

4. Biomass and Biogas Development in Thailand

4. Biomass Development in Thailand

- Bagasse, rice husk, palm, etc.

- Biomass Power plant -Community power plant

- Industrial: sugar cane, palm oil, paper, etc)

- Community (high-eff. stove)

Item Electricity Generation (MW)

Heat Generation (ktoe)

AEDP target in 2021 4,800.00 8,500.00

Capacity(Q1-Q3,2013)

2,210.25 3,399.00

www.dede.go.th

19

Sugar cane leaf and trash

Palm Frond

Tapioca rhizome Rice Straw

Corn cob Woody Branch

4. Biomass Development in Thailand

Potential

20

Opportunities

1. Promoting higher potential biomass

• Rice straw

• Sugarcane leaves

• Cassava rhizome

• Oil palm leaves and bunch

• Corncob & stalk

• Wood chips & Pellets

2. Promoting plantation of fast growing crops for power generation

4. Biomass Development in Thailand

21

o Industrial waste water

- Tapioca starch* - Palm oil - Ethanol - Food & Beverage

o Livestock farm * Only tapioca starch factories with capacity over 300 ton/day

4. Biogas Development in Thailand

Item Electricity Generation (MW)

Heat Generation (ktoe)

CBG (tons/day)

AEDP target in 2021 3,600.00 1,000.00 1,200

Capacity(Q1-Q3,2013) 260.33 409.00 -

o Industrial waste water

- Tapioca starch* -Palm oil - Ethanol - Food & Beverage

- Paper -Rubber

o Livestock farm

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Target groups

Livestock farm

large & medium

size pig farms

Chicken & Slaughter

Energy crop

Processed agriculture &

industrial waste

Palm oil

extraction factories

Sugar mills&

ethanol factories

Cassava starch factories Chicken & Slaughter

1. Future focus on biogas production by household and community

2. Implement pilot project “Utilization of biogas in transport sector” (bio-methane) technology)

Opportunities

Biogas Development in Thailand 4. Biogas Development in Thailand

National Energy Policy committee resolution on July 16th,2013

=> Joint project among 9 ministries => Pilot project by Ministry of energy (Pilot project on green energy for community enterprise biogas production from Napier grass)

(1) Energy (2) Social (3) Agriculture (4) Education (5) Sci & Tech (6) Industry (7) Interior (8) Natural resource and Envi (9) Commerce

Napeir grass => Biogas

Objective 1. Power generation 3,000 MW 2. CBG for transportation 3. Replace LPG

Principle

• Encourage community enterprise for energy crop production • Contract between community enterprise & biogas plant • Secure income for farmers • All stakeholders generate income from biogas utilization • Energy security in Thailand

Napeir grass project

24

Environment

• Reduce CO2 emission

• Alleviate global worming

Economic

• Decrease import energy

• Increase income from CO2 trading

Benefits of AEDP

Society

• Increase employment

• Healthier society 25

www.dede.go.th Email: biogas@dede.go.th

DEDE: Knowledge Base organisation and sustainable development Centre of RE and EE