11

Renewable Energy Development Renewable Energy Development and Environment in Thailandand Environment in Thailand

Executive Director of Energy Research Bureau Executive Director of Energy Research Bureau Department of Alternative Energy Development and EfficiencyDepartment of Alternative Energy Development and Efficiency

Ministry of EnergyMinistry of Energy

2nd Asian Science and Technology ForumTokyo, Japan

8 September 2006

Mr. Rangsan Sarochawikasit

22

• Thailand Energy Policy and Strategies• Energy Situation in Thailand• Renewable Energy (RE) Strategic Plan• Environment issues in Energy Sector• R&D Activities in RE• Conclusion

Presentation OutlinesPresentation Outlines

33

Thailand Energy Policy and VisionThailand Energy Policy and Vision

To conserve, develop and promote the efficient consumptionof energy, while balancing the development with indigenousNatural resources and the environment, with ultimate goal toReduce the degree of reliance on energy imports

HE. Dr. Thaksin Shinawatra, Feb 26, 2001

National Policy

Strategic objectives

Enhancecompetitivenessof the real sector

Supply the kingdomwith clean and

continuous energy

Energy forbetter

living for all

Thailand asSE ASIA

Energy Hub

1 2 3 4

44

Thailand Energy Strategies Thailand Energy Strategies for Economic Development and Regional Integrationfor Economic Development and Regional Integration

• Strategy for Efficient Use of EnergyReduce Energy Elasticity from 1.4:1 to 1:1 by 2007

• Strategy for Energy SecurityEnsure sufficient and reliable energy supply for at least 30 yrs

• Strategy for Thailand as a Regional Energy CenterDevelop Strategic Energy Land Bridge and Energy Hub

• Strategy for Renewable Energy Development Increase share of RE from 0.5% to 8% of total final energy by 2011

• Strategy for Participation and Environment ConcernPromote utilizing of clean fuels i.e. ethanol, biodiesel and nat. gas

550

10,000

20,000

30,000

40,000

50,000

60,000

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003

ktoe

Transportation

Industry

Residential & Commercial

Agriculture

Industry=Manufacturing+Mining+Construction

Final EnergyConsumptionby Economic Sectors

Source: Thailand Energy Situation Report 2004 , DEDE

Energy Situation in ThailandEnergy Situation in Thailand

Billion US$ 25Billion US$ 25

TRANSPORTATION AGRICULTURE MINING MANUFACTURING

COMMERCIAL RESIDENTIAL CONSTRUCTION

2004 Energy Demand61,080 ktoe

36%37%

6% 13%

6%

0.5%

0.2%

66

CommercialEnergy83.0%

TE16.5%

NRE0.5%

TE = Traditional EnergyNRE = New & Renewable Energy

2554255481,753 KTOE81,753 KTOE

Renewable Energy Policy

TE11%

NRE8%(6,650 KTOE)

Commercial Energy81%

52,939 KTOE

2003(265 ktoe)

201183,200 kTOE

National Agenda

77

Target and Strategy of RE

RE8%

RE0.5%

Heat(Incentive)

3,200 KTOE

Bio Fuel (Incentive)2,500 KTOE

Ethanol 3.0 M liter/dayBio diesel 4.0 M liter/day

Heat~ 0.00 KTOE

Bio fuel~ 0.00 KTOE

R & D

RPS

INCENTIVE

Electricity

Facilitator

RPS 140 MW- Solar- Wind- MSW- Biomass- Hydro

Incentive1,425 MW

ElectricitySolar 6 MWWind 0.2 MWBiomass 560 MW

StrategiesStrategies

TargetCountryDemand

2003 201152,939 kTOE 83,200 kTOE

88

Renewable Energy DevelopmentRenewable Energy Development1.1. ResearchResearch and Demonstrationand Demonstration

Future technology

Government

AcademicInstitute

Private Sector

Innovation

Increase eff.Decrease cost

Demonstration

Prototype

Present Technology

3.3. Market SimulationMarket Simulation

IPPs

Private Sector

EGAT

RE 5% of new conventionalelectricity plantInvest

Invest

RPSRPS

Renewable by RPS140 MW in year 2554

Incentive/Policy support

Private Sector

Community Sector

Government

Develop Initiatemarket

Power Producer

2.2. Promotion and Promotion and Community developmentCommunity development

KnowledgeBase Center

government/Private Sector

Community Sector

99

0

4

8

12

16

2546 2547 2548

ลานบารเรล

เชื้อเพลิงชีวภาพน้ํา

กาซชีวภาพ

ชีวมวล

ขยะ

ลม

แสงอาทิตย

30,000 M Baht

53,000 ลานบาท

120,000 ลานบาทลานบารเรล

8% ของการใชพลังงานทั้งหมด(53.4 ลานบารเรล)

300350400450500550600650700

48 49 50 51 52 53 54

53,000 M.baht

120,000 M.baht

8% of energy consumption

3. Tax incentive3. Tax incentive

4. Soft loan4. Soft loan

1.RPS(Renewable Portfolio Standard)1.RPS(Renewable Portfolio Standard)

1. Technology Development

1. Technology Development

2. Implementation2. Implementation

2. Feed-in tariff2. Feed-in tariff

5. Carbon Credit5. Carbon Credit

Cooperate with private individual

and other

Cooperate with private individual

and other

Renewable Target Performance year’46 -’48

Stategic Plan and Policy measure

Policy measure

1010

Formulate policy on utilizing High Performance Vehicles for E10 and FFV

- Spec. of Gasohol 95 & 91- Emission test on using Gasohol 95-Defined gasohol use in Spec. of new vehicle procurement- Requested governments’vehicles to refill gasohol

Formulated policy on fade out MTBE in ULG 95 and promote Gasohol 91 in some areas

Gasohol Strategic Plan

Phase IMTBE replacement

Ethanol1.0 mill. lts /d

Ethanol3.0 mill. lts /d

Cabinet Resolution9 Dec. 2003

Cab. Res. 18 May 04

Phase IIGasohol Mandate

2004

200520062007

2008 20120092010

1111

Action Plan on Bio-diesel Utilization Promotion and Development

0.26 0.6 0.67 1.07 1.40

0.03 0.06 0.36 0.46 0.76 1.76 3.96 8.50

R&D

Bio-diesel Production

(MLPD)

0.6 1.2 7 79 8535159Utilization(MLPD)

Raw Material

Expanding palm oil cultivation areas: 4 million Rai in Thailand and 1 million Rai in neighbouring countries

R&D on yield of palm oil (2.7 to 3.3 tonnes/Rai/year)

R&D on yield of Jatropha (0.4 to 1.2 tonnes/Rai/year)Expanding Jatropha Cultivation Areas

Community-based Commercial-based

20122011201020092008200720062005

Commercial Scale of B100 Production and Utilization of B5 in the South and

the Central Part of Thailand

Community Scale development and B100

Specification Establishment

Substitute B100 to

10% Diesel

Intensive R&D on enhancing values of by-products from bio-diesel production

1212

GHG Emission Amount in Thailand in 2003 GHG Emission Amount in Thailand in 2003 Classified by Economic SectorsClassified by Economic Sectors

344,210,000Total Emission

22,610,000

4. Landuse change & forestry

82,790,000

3. Agriculture

18,740,000

2. Industrial Process

193,204,00

0

1. Energy

GHG Emission(tons)

Emission Sector(% share)

26,870,000

5. Wastes

193,200

10,777

3,188 50,221

26870

020,00040,00060,00080,000

100,000120,000140,000160,000180,000200,000

EnergyIndustrial

Agriculture

Landuse change

Wastes

Economic sectorsEconomic sectors

CO2 (ktons)

(56%)

(5%)

(24%)

(7%)

(8%)

Source: Framework & Guidelines for CDM Implementation in Energy Sector Dec.,2004

1313

37.133.5

30.427.7

25.223.923.521.6 22.0

0

5

10

15

20

25

30

35

40

1990 1995 2000 2001 2005 2010 2015 2020 2025

Industrialized Countries Eastern Europe/FSU Developing Countries

CO2 EmissionCO2 Emission

-

50

100

150

200

1998 1999 2000 2001 2002 2003 2004

Mill. Tons

Transport Power Manufacturing Res&Com Others

CO2 Emission in 2003

0.0

0.5

1.0

1.5

2.0

2.5

3.0

THAILAND

CHINA

KOREAJA

PANMALA

YSIAIN

DIAIN

DONESIAWORLD

OECDASIA

AFARICA

tCO

2 / t

oeSources: EIA, International Energy Outlook 2005

DEDE, 2005

World Carbon Dioxide World Carbon Dioxide Emissions by RegionEmissions by RegionCO2 in Energy Sector in Thailand

CO2 Emission per Capita in 2003

0

2

4

6

8

10

12THAILA

NDCHIN

AKOREAJA

PANMALA

YSIAIN

DIAIN

DONESIAW

ORLDOECD

ASIAAFARIC

A

t CO

2/ c

ap

1414

Draft CDM Approval ProcedurePotential of CDM Potential of CDM Project in ThailandProject in Thailand

• According to the Framework & Guidelines for CDM Implementation in Energy Sector in Thailand; Electric Production from RE : Biomass i.e. palm fiber, EFB, bagasse, rice husk;Waste to energy i.e. Biogas from waste water & MSW;Bio-diesel production from used oil;Boiler improvement;Combustion efficiency improvement;Biodiesel & Ethanol productions;Wind power, Solar energy.

1515

Barriers of Renewable Energy DevelopmentBarriers of Renewable Energy Development

Complexity of regulations and high

investment in gridconnection

High investmentand operation costs

Unattractive of existing development

models

No continuouspolicies and measures of

renewable energy

Low qualities anddiscontinuity of supply

Insufficient of public relation works and

lacks of networking

1616

ObjectivesObjectives

Energy Conservation Energy Conservation Promotion FundPromotion FundTarget & Plan for Target & Plan for Energy ConservationEnergy ConservationEnergy Performance Energy Performance StandardsStandardsR & DR & DHRDHRDPromotional Promotional CampaignCampaign

Energy Conservation Energy Conservation Promotion Act 1992Promotion Act 1992 ENCON FundENCON Fund

Sources of fundSources of fund–– Initial from Oil FundInitial from Oil Fund

(~ 40 million USD)(~ 40 million USD)–– Tax from gasoline, diesel, Tax from gasoline, diesel,

etc. etc. (~ 0.1 cents/(~ 0.1 cents/ltlt ))–– Interests Interests

Applications Applications –– Grants for R&D, Pilot Grants for R&D, Pilot

projects, Training, Higher projects, Training, Higher EducationEducation

–– Soft Loan for Investment Soft Loan for Investment i.e. Revolving Fundi.e. Revolving Fund

1717

Biofuel R&D ActivitiesBiofuel R&D Activities• Improvement of supply security

- Yield improvement of palm oil, Jetropha, cassava, etc.;- Best practice of cultivation;

• Technology R&D - Model development: Community base scale (100 – 2000, 10000-20000 lts/d); - Performance test on B5 – B100 and E10 for carburetor;- Emission assessment.

• Value Chain Development -Oleochemical : Medicine / Food additives / Cosmetics / Biochemical for household applications;

1818

Present R&D ActivitiesPresent R&D Activities• Technology R&D

150 lts/ 8 hrs

10

20

30

40

50

30 50 70 90 110 130Speed (km/hr)

Power (kW)

100%Diesel B20 B40 B100

250300350400450500550600650

30 50 70 90 110Speed (km/hr)

Torque (Nm)

diesel100% B20 B40 B100

Cheiang Mai Biodiesel Model Project Performance test

1919

Other Oleochemical Industry

Cosmetics & Pharmaceutical Industry

Value added

Value added

Value added

Value added

Basic Oleochemical(Bio diesel)

By Products

Palm OilPlantation

Crude palm oil & Palm sterine Extraction Plant

Palm Oil Refineries

Margarine ShorteningAnd Specialty Fat

Value Chain Development

Improvement of glycerin impurity

Palm oilCHP plant

Fibre & shell

2020

Future Trend Of Biofuel UseFuture Trend Of Biofuel Use

2. Environment & GHG

PRESENTFUTURE

1. Increasing of Oil Price 3. Development of FFV Technology & Market

2121

2000

2010

2020

Linka

ges

Linka

ges

2030

H2 - rich Biogas

Fuel cells, H2storage

H2 from SynGas

H2H2

hydrocarbonshydrocarbons

Biofu

el

Develo

pmen

t

Biofu

el

Develo

pmen

tBio Oil -Pyrolysis

Ethanol from starch/sugar

CH4 – rich Biogas

Biodiesel

Ethanol from cellulose

SynGas

Biomass Integrated Gasification Combined Cycle ( BIGCC)

Polygeneration of energy, chemicals and H2

From proof of concept to implementation

Technology readily

available

Need specification and market for co-products

Limited experiences and further R&D needed

Direct combustion

Diesohol

BiomassBiomass

Bio-energy Pathway

2222

Regional CooperationRegional Cooperation

Thai West

Thai East

• Oil Importing Countries

• Best Geographical Location for Biofuel Production

• Strong on Agriculture

ASEAN

ACMECS

BIMSTEC

APEC

2323

•• Policy andPolicy and measures to promote and encourage RE measures to promote and encourage RE must be clearly stated and targeted,must be clearly stated and targeted,

•• R&D should lead to creation of local knowledge R&D should lead to creation of local knowledge development,development,

•• AllAll related stakeholders should be involved and related stakeholders should be involved and participated. participated.

ConclusionConclusion

Further question:Further question:ee--mail: mail: rsan@dede.go.thrsan@dede.go.th

2424

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