Executive Summary - dedee-lib.dede.go.th/mm-data/BibA11347ExecutiveSummary.pdfmangosteen ) 2. Fuel...

Executive Summary

A Study on Alternative Energy Utilization in the Community Enterprise and Small Industry in Thailand

Submitted to

Department of Alternative Energy Development and Efficiency

Ministry of Energy

By

26 January 2017

Executive Summary A Study on Alternative Energy Utilization in the Community Enterprise and Small Industry in Thailand

1 Energy for Environment Foundation (EforE)

Executive Summary

Ministry of Energy has one of the policies on renewable energy development carried out by the Department of Alternative Energy Development and Efficiency (DEDE). One of the DEDE’s missions is to develop and promote renewable energy in all aspects including investment subsidy/support, community-based renewable energy development, regulation and standard, pricing, creating awareness of production and use of renewable energy at all levels. Currently, the Ministry of Energy has integrated all missions in 5 energy master plans during 2015-2036. The Alternative Energy Development Plan (AEDP) 2015 focuses on renewable energy generation from domestic sources to meet its potential target, promoting appropriate renewable energy technology, and renewable energy development considering social and environment aspects for local community. The target of use of all renewable energies is 5,588.24 ktoe or 19,684 MW in equivalent for electricity generation; 25,088.00 ktoe for heat generation; and 8,712.43 ktoe for transportation. All together is 39,388.67 ktoe, equivalent to 30% of final energy consumption in year 2036 (total final energy consumption of 131,000 ktoe).

The updated data of potential of renewable energy helps make the policy as well as the target as mentioned above to the right track and be useful for releasing appropriate measures to promote the use of renewable energy of the country. In addition, this updated data will be of use for private company/investor to make their decision on the investment and use of renewable energy.

Thus, the Alternative Energy and Efficiency Information Center, DEDE, assigns the Energy for Environment Foundation (EforE) as a consultant to conduct “A Study on Alternative Energy Utilization in the Community Enterprise and Small Industry in Thailand”. The tasks include to study and accumulate the use of traditional renewable energy in community enterprise and small industry; revise the database of use of traditional renewable energy especially in community enterprise and small industry sectors to be clear, complete, and up to date; to propose the practical suggestions for promoting the use of traditional renewable energy at community and small industry level.

Scope of work: (1) Data and literature review; (2) Site survey for production and use of the traditional renewable energy in community enterprise and small industry sectors in all region of the country; (3) Database development; (4) Analyze the potential of production and use of the traditional renewable energy including technology development, price’s trend, and its market opportunity; (5) Propose the suggestions to promote the traditional renewable energy.



The study is conducted below: The potential of traditional renewable energy’s production is analyzed from 4 major sources:

1. Fuel wood (from fruit plantation, fast-growing tree, wood yard, and roadside tree) 2. Charcoal (from charcoal plant) 3. Rice husk (from rice mill) 4. Agricultural residues (from processing factory)

The estimated use of traditional renewable energy is analyzed from 3 major sources: 1. OTOP (One Tambon One Product – OTOP registered with the Community

Development Department, Ministry of Interior B.E. 2558) 2. Community Enterprise (community enterprise registered with the department

of Agricultural Extension, Ministry of Agriculture and Cooperatives B.E. 2558) 3. Small Industry (Licensed/ registered small industry category 1 and 2 from

database of Department of Industrial Work, Ministry of Industry B.E. 2557)

In addition, the market and technology of the use of traditional renewable energy for the above mentioned sectors is carried out by data review, data collection from the secondary source, field survey, and interview with relevant stakeholders. The result is used for potential evaluation of traditional renewable energy, database development, and proposing suggestions for promoting use of renewable energy and technology in community enterprise and small industry sectors in Thailand.

Figure 1 Conceptual framework of the study

Potential Volume of Production

Market flowVolume of

consumption and technology

Licensed industry category 1 and 2 from database of Department of Industrial Work, Ministry of Industry B.E. 2558

Community Enterprise and networks registered with the Department of Agricultural Extension, Ministry of Agriculture and Cooperative B.E. 2558

OTOP registered with the Community Development Department, Ministry of Interior B.E. 2558

• Buyer Seller• Demand/ Supply• Price

1. Fuel wood from trimming at least 5 types longan, lychee, mango, orange, and mangosteen)

2. Fuel wood from fast-growing trees 3. Fuel wood from wood yard4. Fuel wood from roadside trees

1.Charcoal plant registered as industrial factory

2.Charcoal plant registered as community enterprise

Remaining potential of agricultural residues from commercial uses (bagasse, corncob, cassava rootstock, palm fiber, palm shell, palm bunches, coconut shell, coconut coir)

Remaining potential of rice husk of commercial uses

Conceptual framework



For field survey, to evaluate the use of traditional renewable energy in community enterprise and small industry, the Quota Random Sampling technique is applied as follows: (1) select 30 province samples from 77 provinces by considering the proportion of province in each region; (2) select samples using simple random sampling by considering population of community enterprise and small industry in each province (obtained 21 small industries, 2 majors & 24 minors community enterprises, and 5 majors and 22 minors OTOP); (3) select the target group those use substantially the traditional renewable energy.

To evaluate the potential production of traditional renewable energy by field survey, the Purposive Sampling is applied. The survey was implemented in the provinces where the survey of use of traditional renewable energy was conducted. If the response samples in the selected provinces are not enough, the survey is extended to neighboring province to fulfill the required samples.

The potential production of the traditional renewable energy was compiled from 231 samples, categorized into 126 fuel wood samples (80 samples from fruit plantation, 16 samples from fast-growing tree, 25 samples from wood yard, and 23 samples from roadside tree); 50 samples from charcoal plant; 28 samples from rice mill; and 9 samples from agricultural processing mill. The use of the traditional renewable energy is evaluated from 1,670 samples (631 samples from OTOP; 577 samples from community enterprise; and 462 samples from small industry). All together 1,901 samples were done (counting only from the completely returned questionnaires).

The result of field survey is summarized below: 1. Fuel Wood Fruit plantation– survey was conducted from 10 types of fruits tree i.e. longan,

durian, orange, mango, pomelo, lychee, mangosteen, rambutan, longkong (southern langsat), and coconut. It is founded that only 6 types are used to make fuelwood i.e. longan, lychee, rambutan, mango, pomelo, and mangosteen. Base on the survey results, EforE estimated the production of the traditional renewable energy from trimming as follows:

1) Total amount of wood residues from trimming (kg/number of trees)

= Round wood + Branch + Leaves

2) Wood residues producing for Traditional RE usage ratio (kg/Rai)

= (Round wood + Branch) X No. of Trees/Rai

3) Amount of wood residues for Traditional RE usage (Ton) = Producing fruit plantation area (Rai) x Wood residues producing for Traditional RE usage ratio (Ton/Rai)

4) Wood residues remaining potential (Traditional RE) (Ton) = Amount of wood residues for Traditional RE usage (Ton) x (100% - Other wood residue usage proportion (%))

The potential production of wood residues is estimated at 5.58 million tons. The production of fuel wood is substantially produced, in descending order, in North region,



Central region, southern region, and northeastern region, respectively (as shown in Table 1). When the use of the traditional renewable energy of firewood and charcoal (Figure 2) is taken into account, the potential residue is calculated about 2.9 million tons. It is abundant in Northern region, central region, southern region, and northeastern region, respectively (as shown in Table 2).

Table 1 Wood residue from each Region Unit: Ton

Figure 2 Proportion of use of wood residues from trimming

Table 2 Potential of wood residues from trimming Region Longan Mangosteen Lychee Rambutan Mango Pomelo Total of 6 Types

Total 1,963,840 37,377 55,461 461,722 372,619 5,792 2,896,812

North 1,603,032 35 45,631 40,695 140,153 1,455 1,831,001

North East 59,706 - 2,170 2,025 95,395 396 159,693

Central 301,102 19,356 7,660 124,467 133,020 3,012 588,616

South - 17,986 - 294,536 4,050 929 317,501

Fast-growing tree – The fast-growing tree is promoted by the government to increase make use of wasteful land by planting special trees for energy crop and for other purposes e.g. crutch, construction, paper, afforest, and landuse. The survey result shows that Eucalyptus is widely planted due to the fact that it is fast-growing, and can be planted along the ridge. The estimation of potential of fast-growing tree is based on Eucalyptus and Mangium as follows:

Region Longan Mangosteen Lychee Rambutan Mango Pomelo Total of 6 Types

North 3,206,065 35 173,593 41,525 217,325 2,155 3,640,698

North East 149,265 - 5,426 10,124 100,416 550 265,781

Central 568,117 21,672 19,149 430,219 210,735 5,740 1,255,631

South - 25,499 - 382,514 5,400 1,076 414,489

Total 3,923,447 47,206 198,168 864,382 533,877 9,520 5,576,599

39%

20%

48%

16%22%

33% 34%

11%

1%

24%

31%8%

6%14%

50%

79%

28%

53%

70%61%

52%

0%

20%

40%

60%

80%

100%

Longan Mangosteen Lychee Rambutan Mango Pomelo 6 Types

Fuel wood Charcoal Remains



1) Usage proportion*= Power plant supply proportion (%) + Industry supply proportion (%) + Non-Energy usage proportion (%)

2) Fast-growing tree remaining potential (Ton) = Fast-growing tree production** (Ton) x (100 (%) – Usage proportion (%))

* Use database of Study on Alternative Energy Utilization in the Industrial and Commercial Sectors (EforE) ** Fast-growing tree production used database of the department of Agricultural Extension (DOAE)

It can be found that the wood residue from fast-growing tree for the whole country in 2015 is 1.07 million tons. The utilized proportion is 99.08% and remaining potential of fuel wood from fast-growing trees for the traditional renewable energy is 0.02% or 253 tons as presented in Table 3.

Table 3 Potential of fast-growing trees

Wood yard – Wood yards are places of business entities where collecting round wood and trim from fruit plantation, fast-growing tree, and wasteful land. The types of wood collected are different from place to place. However, trim in the wood yard is generally utilized as fuel in factory or power plant, raw material for paper making and construction. The potential of fuel wood collected from wood yard is based on the report of “Study on Alternative Energy Utilization in the Industrial and Commercial Sectors” studied by EforE (2014) and data from the Department of Industrial Work as follows:

1) Utilized proportion* = Proportion of self-energy fuel use in wood yard + Proportion of power

plant supply + Proportion of industry supply + Proportion of non-energy usage 2) Remaining fuel wood potential from wood yard = (Wood amount from wood yard** – Fast-

growing tree production) x (100% - Utilized proportion ) *,** Use database of Study on Alternative Energy Utilization in the Industrial and Commercial Sectors (EforE)

It was found that the wood residue from wood yard for the whole country in 2014 is 3.64 million tons. The utilized proportion is 99.6% and remaining potential is 0.4% or 0.013 million tons. Wood amount from wood yard is mainly obtained in the northern region. The potential of fuel wood are trims and cutting edges. It is noticed that a little fuel wood is sold from wood yard for the traditional renewable energy due to the fact that the user of firewood buy them directly from sellers, not via the wood yard.

Total 1,067,932 30.9% 53.98% 15.1% 0.02% 253

North 8,179 46.3% 39.4% 11.4% 2.9% 238

North East 837,056 30.0% 55.7% 14.3% 0.002% 13

Central 222,395 33.6% 48.2% 18.2% 0.001% 2

South 302 15.0% 15.0% 70.0% 0.00% -

Region

Fast-growing

tree amount

(Ton)

Utilized Proportion (%)

Traditional RE

Remaing

Proportion (%)

Remaing

Potential

(Ton) Industry Power plant

Others (Non-

energy Use)



Roadside tree – The potential fuel wood from roadside trees is carried out into 2 parts: (1) roadside trees in Bangkok under the authority of 50 District Offices and (2) roadside trees along highways, under the authority of Department of Highways, Ministry of Transport.

In Bangkok, the roadside trees are approximately 10,176 tons/year based on the report of Bangkok Metropolitan Authority (BMA). This figure is derived from the large wood logs sent to two Fertilizer Plants (On-nut & Nongkhaem), which is converted to fertilizer. For small branches, the District Offices convert them to fertilizer for their own use. So there is no potential of fuel wood from roadside trees in Bangkok for traditional renewable energy.

For the roadside tree along 104 highways in 77 provinces, EforE evaluates the potential fuel wood by reverse approach - considering the amount of asphalt cement (AC) used in road maintenance in each year. Based on the assumption of 2 tons of asphalt cement preparation is required 1 ton of fuel wood, and it is found that the utilization rate of fuel wood is approximately at 12.5% for asphalt cement boiling, 3% for furniture utilization, 14.5% for other applications and the rest 70% for discarding (37.8% for fertilizer purpose and 32.2% for roadside tree potential). It was recorded that, in year 2015, the asphalt cement consumption was 23,078 tons, thus it consumed 11,539 tons of fuel wood for asphalt boiling. The fuel wood production is calculated as 92,313 tons and the remaining potential of fuel wood 29,725 tons (32.2%) as shown in Table 4.

Table 4 Fuel wood from roadside trees along highways

In conclusion, the potential of fuel wood from 4 sources (fruit plantation, fast-

growing tree, wood yard, and roadside trees) for the traditional renewable energy is estimated about 2.94 million tons/year. The majority is from fruit plantations 2.897 million tons, and highest combined remaining potential is in the northern region approximately 1.854 million tons as illustrated in Figure 3. However, this figure is analyzed largely based on theoretical method. There are, in fact, other factors influencing the amount of potential fuel wood, e.g. collecting trim in remote area is not worth enough doing, trimming method and behavior of firewood utilization, which varies from place to place. Therefore, this figure can be used as a ground for further study in specific area.

Figure 3 Overall remaining fuel wood potential

Region Atphalt Cement

(AC) amount (Ton)

Fuel wood used for

AC Boiling process

(Ton)

Total cutting fuel

wood (Ton)

Total fuel wood

amount (Ton)

Remaining fuel wood

potential (Ton)

Total 23,078.35 11,539.18 92,313.42 41,264.10 29,724.92

North 7,244.18 3,622.09 28,976.72 12,952.59 9,330.50

North East 5,365.46 2,682.73 21,461.82 9,593.43 6,910.71

Central 6,790.86 3,395.43 27,163.44 12,142.06 8,746.63

South 3,677.86 1,838.93 14,711.44 6,576.01 4,737.08

2,897

1,831

160

589

318

0 0 0 0 13 13 0 - -30 9 7 9 5

2,940

1,854

167

597

322

0

500

1,000

1,500

2,000

2,500

3,000

Total North North East Central South

Thou

sand

Ton Fruit plantation

Fast-growing tree

Wood yard

Roadside tree

Total fuel wood amount



Price of fuel wood Observed price of fuel wood can be derived from two sources: (1) selling price from

fuel wood collector based on type of fuel wood and (2) price based on users (OTOP, community enterprise, and small industry). It was found that the fuel wood from fruit plantation is more or less within the range of 0.5 – 1.1 Baht/kg depend on type of fruit trees. The fuel wood price from longan and lychee is much higher than the others (as shown in Figure 4). The fuel wood price based on users is in the range of 0.6 – 1.5 Baht/kg. The price is comparatively higher in Northern region and lower in Northeastern region, Central region, and Southern region, respectively for all users. The average price all over the country is estimated at 0.78 Baht/kg. Based on the above, it can be concluded that the price of fuel wood in the two sources is approximately the same. This is because the sources and users are mostly located in the same area. However, there are also other factors influencing to the price i.e. time of recording, application techniques, demand and supply in each area, and price of competitive fuel.

Figure 4 Price of fuel wood classified by type of fruit trees and by type of users

Fuel wood market: Most users normally collect the fuel wood from their fruit plantations or from wasteful area. It is therefore no explicit cost of the traditional renewable energy could be observed. The amount of fuel wood needed in each time is considerable small. In case of purchase, the traditional unit of fuel wood is packed in sack (fertilizer sack, or feed sack). In general the purchase is made directly to users as buyer and seller are in the same vicinity, or sold through the middlemen.

Fuel wood price

Fruit plantation type

Longan Mangosteen Lychee Rambutan Mango Pomelo

Price Baht/kg - - - - - . –

Fuel wood price classified by types of fruit trees

Fuel wood price classified by users

0.83

0.98

0.71 0.78

1.01

1.42

1.68

1.46

0.74

1.37 1.37 1.29

0.67

1.11

0.71

1.06

0.66 0.68

0.58 0.60

-

0.20

0.40

0.60

0.80

1.00

1.20

1.40

1.60

1.80

OTOP Community Enterprise Small industry Total

Fuel wood price (Baht/kg)Total

North

North East

Central

South



2. Charcoal

From the survey result of 50 Charcoal Plants in 22 sample provinces, it was found that the total amount of capacity of all charcoal plants in the country is about 36,526 tons/year, or 730.5 tons/year/plant. There are 33 registered charcoal plants with community enterprise under Ministry of Agriculture and Cooperatives, having capacity of 1,904 tons/year or 57.7 tons/year/plant. Whereas 17 charcoal plants registered as factory under Ministry of Industry, having total capacity of 34,622 tons/year or 2,036.6 tons/year/ plant as shown in Figure 5.

Figure 5 Total capacity of charcoal plants classified by region and by type of registration

Regarding to overall charcoal marketing channel, the charcoal plants sell 98.9% of total production to shops/users directly. Only 0.6% of charcoal is exported. The 0.3% of charcoal is sold to factory and the remaining 0.2% is for their own use. In region-wise, in northern region, the charcoal sold for production process is 27.4% and in central region, it is exported by 11.6%.

Figure 6 Proportion of charcoal utilization by region

1,904 288 311 1,010 295

34,622

150 2,137

733

31,602

-

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000


Pro

du

cin

g ca

paci

ty (T

on/

year

)

Community Enterprise Small industry

0.6% 0.0% 0.0%11.6%

0.0%

98.9%

72.4%

98.6%

88.4%

99.9%

0.3%

27.4%

0.0% 0.0% 0.0%0.2%

0.2%1.4% 0.0% 0.1%

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%


Export Convenient Store sale/ Domestic user Factory sale Self-consumption



The price of charcoal is also determined from two sources: (1) cost or selling price of charcoal plant and (2) price based on users.

It was found that there are 8 types of wood/residue used to make charcoal i.e. coconut shell, white popinac, mangrove, eucalyptus, hardwood, rubber wood, wood residues from fruit plantation (longan branch, lychee branch, tamarind branch, mango branch), other (roadside tree branch, bamboo). In addition, there are 2 plants making briquette from coconut shell charcoal and charcoal’s debris. The average cost of charcoal is 3,997 Baht/ton or 3.997 Baht/kg. The highest charcoal cost is made from white popinac, 5,375 Baht/ton (5.375 Baht/kg). By contrast, the lower cost of charcoal is made from rubber wood, 2,300 Baht/ton (2.3 Baht/kg). The overall average selling price of charcoal is 9,240 Baht/ton or 9.24 Baht/kg. The highest selling price of charcoal is made from mangrove, 15,000 Baht/ton (15 Baht/kg), while the lowest selling price of charcoal is made from rubber wood, 6,600 Baht/ton (6.6 Baht/kg) as shown in Table 5.

Table 5 Cost and selling price of charcoal by type of charcoal

For the price based on users (OTOP, community enterprise, and small industry), the charcoal price of small industry user is comparatively higher than the others two users. The average price of charcoal of the whole country is approximately 8.44 Baht/kg. In region-wise comparison of charcoal price, highest price are found, in descending order, in central region, northern region, northeastern region, and southern region, respectively. When comparison charcoal price among users, community enterprise spend comparatively lower price than OTOP and small industry. This is because some of them has produced for own use, while some community enterprise do both, producing and buying some charcoal from market.

Coconut shell 2 33.3% 1,500 600 5,100 10,000 51%

Burned coconut shell 2 100.0% 9,000 3,000 12,000 18,500 65%

White popinac 1 40.0% 750 3,500 5,375 7,000 77%

Mangrove 1 28.6% 950 250 3,575 15,000 24%

Hardwood (Monkey Flower Tree,dry

dipterocarp, Ormosia)

1 40.0% 600 3,000 4,500 10,000 45%

Rubber wood 5 50.0% 750 800 2,300 6,600 35%

Eucalyptus wood 10 52.0% 1,000 900 2,823 8,400 34%

Wood residues from friut plantation i.e.

tamarind,mango, longan, lychee.

14 35.0% 950 1,000 3,714 10,000 37%

Oter wood residues i.e. roadside residues,

bamboo

13 30.0% 1,250 100 4,267 8,000 53%

Charcoal residues 1 100.0% 1,000 4,000 5,000 12,000 42%

Total 50 3,997 9,240 43%

Wood type for charcoal producing

No. of

surveyed

sample

Charcoal

generating

proportion

(%)

Wood

capital cost

(Baht/Ton of

wood)

Other capital

costs

(Baht/Ton of

Charcoal)

Gross capital

cost (Baht/Ton

of Charcoal)

Average

selling price

(Baht/Ton)

Producing capital

cost/Selling price

(Baht/Ton of

Charcoal) (%)



Figure 7 Price of charcoal by region

Charcoal market: The market of charcoal is quite different from fuel wood. It is traded within the community as the transportation of charcoal to other area needs to be approved by the authority. This can be the main barrier. The unit of charcoal is traded in sacks of charcoal.

Fuel wood and charcoal are made from wood, which is shared the same source of raw material uses. The market structure of fuel wood and charcoal can be categorized into 4 parts: sources of origin; production (charcoal only); transportations; and users. The sources of fuel wood can be originated from fruit plantation, fast-growing trees, rubber tree, mangrove, and others. Firewood is, then, transported to user directly or through middlemen. While charcoal, it needs to be processed (controlled burning fuel wood) before sending charcoal to user directly or through middlemen (as shown in Figure 8).

Figure 8 Market of fuel wood and charcoal

8.85

7.77

9.42

8.44

7

9.39 10.00

9.21

8

5.83

9.72

7.47

13

6.34

8.00

11.70

13

6.14

7.23

-

2.00

4.00

6.00

8.00

10.00

12.00

14.00

OTOP Community Enterprise Small industry Total

Charcoal Price (Baht/kg) Total

North

North East

Central

South

Farmer•Fruit plantation•Fast-growing tree•Other wood residues

• OTOP • Community Enterprise• Small industry

Fu

el w

oo

d C

ha

rco

al

•Large industrial factory•Biomass power plant

The authority of Department of Highway Public park Use for only Asphalt Cement boiling and internal uses

Charcoal plant

•Household•Restaurant•Other service activities

Source Production Users

Saw dust etc.

Flow diagram of Fuel wood and Charcoal

Wood yardMiddleman

Cutting and collecting

Convenient store

Transportation/marketing

Scope of study

Fuel wood flow

Charcoal flow

Remark:

•Export



3. Rice husk: From the report of “Study on Alternative Energy Utilization in Industrial and Commercial sector”, it was found that the proportion of rice husk utilization for traditional renewable energy is integrated in the fuel for industry (12.3%) and fuel for household (9.9%), all together 22.2%. Partly is used as both raw material and energy sources in the brick factory. The method to derive the potential of rice husk for the traditional renewable energy is estimated as follows. Total rice husk availability is 6.48 million tons (calculated from total production of paddy 29.66 million tons in 2015, OAE). The result from survey of rice mills in this study reveals that 1.5 million tons of rice husk is used for the traditional renewable energy (0.1 million ton in Northern region; 1.4 million tons in Northeastern region, as shown in Figure 9). It should be noted that this estimated figure is derived from only 28 sample of rice mills (whose gave complete response questionnaire). It should be therefore carried out further study to get more details result.

Figure 9 Amount of rice husk and proportion of utilization

The survey result reveals that the rice husk price for all users (OTOP, community

enterprise, and small industry) in each region and the average price for the whole country is approximately 1.64 Baht/kg or 1,640 Baht/ton as shown in Figure 10. In region-wise, the rice husk price in Northern and Central regions is slightly higher than that in Northeastern region. In the Southern region, there is no rice husk used as fuel because of the abundant of rubber wood. The rice husk price was jumped to 2,000 Baht/ton (both in Northern and Northeastern regions) depending on demand and supply in each region and period. The rice husk can be used in various applications (for agricultural purpose, livestock, fuel in power plant, rice mill, factory, brick factory, etc.). It is therefore intensive competing in the market, thus making its price high.

Year 2015

Amount of

Rice

production

(Ton)

Amount of

Combining

Rice husk

(Ton)

Amount of Rice

husk use for

Traditional RE

use (Ton)

Total 29,658,454 6,480,373 1,548,918

North 9,141,269 1,997,367 139,964

North East 12,837,650 2,805,027 1,408,954

Central 7,149,079 1,562,074 -

South 530,456 115,905 -

19%

56%

56%

9%

14%

10%

43%

4%

0%

2%

7%

2%

0%24%

7%

49%

38% 18% 50% 44% 44%

0%

20%

40%

60%

80%

100%

120%

Rice husk utilized proportion (Year 2016)

Fuel for rice mill (Internal use)

Fuel for power plant

Traditional RE use

Sale for general fuel purpose

Other industry use: chicken farm

Agricultural use: planting, fertilizer, animal feeds

Total North Central North east South



Figure 10 Rice husk price by region

4. Agricultural residues – from the survey of agricultural processing factories and

agricultural trading places, the agricultural residues (rice straw, wood bark, palm fruit bunch, and corn cob) has not been utilized for the traditional renewable energy, referred to 9 samples of this survey. But it is currently used for feed mill and used as fuel in large factory. For OTOP, community enterprise, and small industry, the agricultural residues are partly used as secondary fuel. The collection of agricultural residues in their vicinity is done by themselves. So no purchase of the agricultural residues. In addition, the diversity of quantity measurement unit of each agricultural residue, it is therefore difficult to estimate the production of agricultural residues for the traditional renewable energy purpose. For precise information, the survey should be further developed in depth.

For the price of agricultural residues for use as the traditional renewable energy, since the survey was conducted on limited number of samples, the data obtained is diversified and price is considerably different. For example, rice straw price in the northern region reaches 2,000 Baht/ton, which is considerably different from report of the study on Alternative Energy Utilization in Industrial and Commercial sector (2014). The rice straw price could be varies highly depending on purpose of utilization. In livestock application, the average rice straw price is 1,072 Baht/ton, whereas it ranges 100-1,000 Baht for other applications. The other factors (demand & supply, distance, etc.) also influence the prices. For palm empty fruit bunch, the price of empty fruit bunch is 700 Baht/ton for mushroom cultivation, which is nearly the reported in the above mention which is recorded at 400-670 Baht/ton. But the empty fruit bunch is traded at 500-1,000 Baht/ton for used as fuel in industry/factory.

The market flow of rice husk and agricultural residues could not be observed obviously since the sources and users are in the same area or in the same entities. For example, when farmer harvest the rice paddy, the rice straw obtained is used for mushroom cultivation. For rice husk, the rice paddy is processed in rice mill, the rice husk obtained is then utilized. Similarly for corn cob, the corn is processed in mill, then it is used for feedmill

1.64 1.66 1.59

1.66

-

0.20

0.40

0.60

0.80

1.00

1.20

1.40

1.60

1.80

Rice husk Price (Baht/kg)




production. Saw dust is the by-product of wood mill. The middlemen plays this role to transport the agricultural residues for selling to user (as shown in Figure 11).

Figure 11 Market flow of rice husk and agricultural residues

The price of the traditional renewable energy is varied according to market’s demand and supply, and season. In wet season, wood bark and rice husk has lower availability and has high moisture content, thus making its price high. However, users can switch to other types of the traditional renewable energy. Alternatively, some user may invest in high efficiency technology to reduce fuel consumption. However, agricultural residues can be used as both the traditional renewable energy and production process (non-energy). The demand of these two markets makes it competing each other.

In conclusion, based on the survey of the traditional renewable energy comparing fuel wood, charcoal, rice husk, agricultural residues used in OTOP, community enterprise, and small industry, fuel wood is relatively widely used. The small industries (in comparison with OTOP and community enterprise) are the majority in consuming fuel wood, rice husk, and agricultural residues, while community enterprises use mostly charcoal (in terms of quantity). The number of users of the traditional renewable energy are 161 OTOPs (25.5%), 180 community enterprises (31.2%), and 111 small industries (24%) as shown in Table 6. Considering total consumption of the traditional renewable energy for all populations, it was found that fuel wood is the main source for community enterprise and small industry users. The estimated total consumption over the country is about 167,738 tons/month of fuel wood, 1,710 tons/month of charcoal, and 9,033 ton/month of rice husk, worth totally 160.13 million Baht/month as shown in Table 7.

Flow diagram of Agricultural residues

Farmer

•OTOP •Community Enterprise•Small industry

User

Rice mill Rice husk

•Agricultural residues (Corn cob, sawdust,

palm brunch, coconut coir, etc.)

Agricultural yard Silo wood

yard

Middleman

•Paddy

•Large industrial factory•Biomass power plant

•Rice straw

•Export (Energy/Non-Energy use) Scope of study

Remark:



Table 6 Summary of use of traditional renewable energy in OTOP, community enterprise, and small industry

Traditional Renewable Energy Use OTOP Community Enterprise

Small Industry

Total surveyed samples (No.) 631 577 462

Fuel wood

No. of Fuel wood use (No.) 109 102 60 Usage amount per month (kg) 63,337 367,651.61 1,081,702 Average usage amount per month (kg/ no. of user) 581 3,604.43 18,028 Usage value per month (Baht) 52,608 373,022.92 766,894 Average usage value per month (Baht/user) 483 3,657.09 12,782 Average price (Baht/kg) 0.83 1.01 0.71 Usage amount per income (kg/Baht) 0.0055 0.02 0.0572 Usage value per income 0.0045 0.02 0.0406

Charcoal

No. of charcoal use (No.) 45 42 10 Usage amount per month (kg) 11,009 8,642.83 1,314.33 Average usage amount per month (kg/ no. of user) 244.65 205.78 131.43 Usage value per month (Baht) 97,480 67,137.92 12,379.17 Average usage value per month (Baht/user) 2,166 1,598.52 1,237.92 Average price (Baht/kg) 8.85 7.77 9.42 Usage amount per income (kg/Baht) 0.002 0.0028 0.0009 Usage value per income 0.0179 0.022 0.0083

Rice husk

No. of rice husk use (No.) 2 16 35 Usage amount per month (kg) 12,630 26,972.50 281,228 Average usage amount per month (kg/ no. of user) 6,315 1,685.78 8,035 Usage value per month (Baht) 11,490 28,407.50 462,114 Average usage value per month (Baht/user) 5,745 1,775.47 13,203 Average price (Baht/kg) 0.91 1.05 1.64 Usage amount per income (kg/Baht) 0.0702 0.02 0.0678 Usage value per income 0.0638 0.03 0.1114

Agricultural residues

No. of agricultural residue use (No.) 5 20 6 Usage value per month (Baht) 17,220 59,035 152,483 Average usage value per month (Baht/user) 3,444 2,951.75 25,414 Usage value per income 0.0209 0.05 0.2186

Total of Traditional RE use (No.) 161 (25.5%) 180 (31.2%) 111 (24%)



Table 7 Summary of use of traditional renewable energy

Type of user OTOP Community Enterprise

Small industry Total

Scoped surveying population (No.)

36,085 59,919 18,168 114,172

Amount of Traditional RE use (kg/month)

Fuel wood 4,745,608 36,462,947 126,529,547 167,738,102 Charcoal 654,436 1,017,998 37,947 1,710,381 Rice husk - - 9,033,815 9,033,815

Fuel price Fuel wood 0.831 1.015 0.709 0.779 (Baht/kg) Charcoal 8.855 7.768 9.421 8.547 Rice husk - - 1.643 1.643

In addition, the survey was also conducted to investigate the intensive use of the traditional renewable energy in the specific sectors i.e. brick, earthenware, tea leaves/tobacco, longan drying, fabric dyeing, cutler hit, distilled spirits, salt, rubber smoked sheet, mushroom cultivation, and rice noodle. It was found that the use of fuel wood/plant of brick factory of 64,300 kg/month/plant is the highest consumption among others. Following by the consumption of rubber smoked sheet and cutler hit are 25,975 and 19,000 kg/month/plant, respectively. Based on the use of fuel wood per revenue, the index of cutler hit sector of 0.8444 kg/Baht (or 13.5427 MJ/Baht) is the highest sector. This is due to the fact that the cutler hit sector has lower revenue compare to index of brick factory of 0.207 kg/Baht (or 3.3097 MJ/Baht). For charcoal, the tea leave/tobacco drying sector use the highest amount of 413 kg/month/plant, equivalent to 0.0147 kg/Baht of revenue (or 0.4255 MJ/Baht). For rice husk, brick factory sector use the highest amount of 8,020 kg/month/plant. However, the amount of rice husk per unit of revenue of earthenware of 0.0916 kg/Baht (or equivalent to 1.319 MJ/Baht) is the highest, a little higher than brick factory. Therefore, the campaign/promotion scheme or increasing efficiency of use of traditional renewable energy should be focused on these specific sectors as they consumes higher traditional renewable energy than the other sectors

Production Technology, Consumption, and Improvement of traditional renewable energy EforE has gathered the production technology of the traditional renewable energy i.e.

fuel wood, consumption technology, and improvement of the traditional renewable energy for the community enterprise and small industry as follows:

Production technology of the traditional renewable energy or Charcoal production. The process of charcoal making is done in the clay kiln by heating to remove moisture. Lower part of kiln is dig into the ground, while the upper part of kiln is above the ground. This type of kiln can be widely seen in the rural area. At present, the brick kiln is used for industrial purpose. The Iwate kiln, from Japan, gives good quality and mass production.



The by-product of wood vinegar is obtained. However, the investment cost of Iwate kiln is quite high. Another type of kiln made from 200-Liter tank is appropriate for small production at the household level.

Consumption technology of the traditional renewable energy. The result from the survey gives no change to the consumption technology. However, from the secondary source of data, there is development to improve the efficiency of stove to use less fuel. Most stoves are cooking stove and drying/burning stove e.g. brazier, high efficiency stove - Tao Mahasetthi (energy saving 30%) etc.

Business using the traditional renewable energy. The stove used varies from place to place. The fuel used can be found locally. Form the survey, it was found that 10 business still using the traditional renewable energy: red brick, earthenware, tea leaves/tobacco, longan drying, fabric dyeing, cutler hit, distilled spirits, salt boiling, rubber smoked sheet, mushroom cultivation, and rice noodle. The type of fuel used can be various sources depending on specific requirement of process. For example, rice husk is used in steaming process of the sprout-rice, fuel wood is used in the process of preserved fruit, coconut shell is used in the cooking process of Krayasat, etc. The widely used traditional renewable energy is fuel wood. The businesses using a lot of traditional renewable energy are brick, earthenware, tea leaves/tobacco, longan drying, and rubber smoked sheet as shown in Figure 12.

2 Types of Brick stove Rubber Smoked Sheet Factory

Using fuel wood from rubber wood to be main fuel: rubber smoked sheet

mostly exists in south: average of fuel wood approximately 26 Ton/month

1. Using rice husk usually existing in

north and north east without stove construction, just arranging bricks then covers by rice husk for burning: 8 Ton/month of rice husk usage

2. Using fuel wood normally exists in south, stove building from brick or mud clay with both middle and

large size: 64.3 Ton/month of fuel wood usage

Tobacco/Fruit dried factory

Mostly exists in north by using fuel

wood from trimming: average of fuel usage 2.6 Ton/month

Mushroom steam oven type 200 liters

Usually exists in south due to ease collecting fuel wood: average fuel usage approximately 2 Ton/month

Community distilled spirits

Fuel wood still ease to collect in the

area: average of fuel wood usage about 3.5 Ton/month

Remark: Amount of average fuel use estimated from traditional RE users

Figure 12 Businesses using traditional renewable energy



In addition, some users have improved the consumption technology to reduce the energy cost i.e. Pluaklon community enterprise, Trang province; Pho Luang community enterprise, Nan province, Huaytubmorn community, Rayong province; Rubber community, Buriram province; Pa Miang community, Lampang province; and Mae Chamnong community enterprise, Pichit province.

Figure 13 Example of consumption technology improvement

Trend of the traditional renewable energy consumption (fuel wood, charcoal, rice husk, and agricultural residues) can be categorized into 2 groups:

1) Continual user The availability of the traditional renewable energy in the vicinity is abundant at no cost (or very cheap). These businesses are grilled chicken, krayasat, tea/longan/tobacco drying, cutler hit, brick, etc.

2) Decreasing consumption user Due to the extension of community, the use of traditional renewable energy may cause smoke to bother the neighbors. Some food production requires no contamination, so the users therefore switch from fuel wood/charcoal to LPG.

There are two important factors to determine the consumption trend of the traditional renewable energy: production of the user and price of the LPG. If the production increases for festival or large order, the demand of the traditional renewable energy also increases. For LPG, if the LPG price increases, users then switch to fuel wood/charcoal.

However, in some case, some type of the traditional renewable energy is not worth collecting when it is in remote area, make it difficult for transportation. The farmers then burn the rice straw/other residues. This needs special support/subsidy from the government to research/develop the management cost. Thus it can be of use.

Based on this study, the users (OTOP, community enterprise, and small industry) still need support from the government in terms of knowledge and subsidies to reduce their energy cost and improve the efficiency of the traditional renewable energy consumption. There are some suggestions given below:

43

Pluaklon farm women community enterprise Tambon Namphood, Muang district, Trang province– applied mushroom steam oven for producing fried banana which can decrease LPG expenses 100% (72 tanks/year approximately 28,000 Baht)

- -

Huaytubmorncommunity group, Rayong province – developed Rib Smoked Sheet stove with heat exchanging system to solve high fuel depletion, long smoked time and uncertain sheet which can reduce energy use for 45% and increase heat efficiency for60% also highly efficient sheet both quality and quantity

- - - -

Tea leave (Miang) steam oven of Pha MiangCommunity

- Ban Pha Miang located in moo7, Chaezon, Muangparn,Lampnag

- Previously, used highly amount of fuel wood, hardly controlfire burning (using flame to burn bottom of steam pot tomaintain heat and temperature in the steam oven)

- Improved the oven by designed new steam generating layoutfor heat ventilation to accelerate boiling water and installhood for vacuum flame through fire chamber

- New designed oven can reduce fuel wood using around 60%and increase heat inside steam generating chamber morethan 400%

- Reduce deforestation

- Resolve global warming due to maintain trees for absorbingGHG

Old Tea leave steam oven New designed tea leave steam oven Stoves for boiling and drying

Mae Chamnong (sugar-boiled banana puree) CommunityEnterprise – Phopratabchang district, Pichit province

- Produce sugar-boiled banana, pomelo, tamarind puree sinceB.E. 2542

- Electricity and heating are used in the production

- Electric power using for driving ingredient mixing motor andheat using LPG for boiling and fuel wood for mixing process

- Fuel wood price from nearby area of fruit plantationapproximately 750 Baht/Ton

- Fuel saving biomass stoves are supported from Pichit ProvincialEnergy office collaborated with Sub district Administrativeorganization in B.E. 2557 and established “Productionimproving to energy capital cost reduction” learning center

- Saving costs are following; mixing and drying banana reduced183,600 Baht/year or 75.5% of energy cost beforeimprovement and boiling process saved 7,776 Baht/year or72% of of energy cost before improvement



1) Policy-wise suggestion - Normally, the traditional renewable energy is co-used with main energy e.g. LPG.

Therefore, the direct measure to promote the use of the traditional renewable energy (fuel wood, charcoal, rice husk, agricultural residues) may considerably not be necessary. The measure should be focused on the efficiency improvement especially for the community enterprise and small industry that use a lot of the traditional renewable energy and have burden of energy cost e.g. brick factory, earthenware factory, tea/ longan/ rubber smoke sheet drying, etc.

- There still needs of financial subsidies to improve the stove/kiln, solar drying plant, solar PV installation, biogas.

- Need to relax some regulation/requirement e.g. user has ability to produce and transport the fuel wood and charcoal, etc.

2) Technical-wise suggestion - The capacity building, knowledge management is required to provide to

community enterprises, small industries and public institutions to have the understanding of efficient use of traditional renewable energy. The knowledge may include, but not limited to the followings, improvement of consumption technology, design of high efficiency stove/kiln, demonstration project of high efficiency technology. This will lead to worthwhile use of the traditional renewable energy, energy cost reduction. The government should also follow up the implementation to monitor and review the outcome and adjust or revise accordingly.

3) Suggestions for further study - Build the capacity to clarify the definition of “traditional renewable energy” for

both policy and technical level. It can be interpreted in different dimensions: at international level – the traditional renewable energy defines as fuel wood, charcoal, agricultural residues and dried dung for household use only. For application, the traditional renewable energy may refer to open burning.

- The survey data which is comparatively high cost, should be continual to conduct every 5 years to get the update data and reflect the real situation.

- The number of samples should be increase to have the more accurate result, higher confidence level of data particularly in specific sector and in particular area.

- The high energy consuming sectors should be focused i.e. food, textile, earthenware, brick, etc.

- The further study may extend to include the service sector especially restaurant. - The potential of the traditional renewable energy and proportion of use of the

traditional renewable energy should be incorporated the trimming behavior, use of trim, worth of residue collection, and other influencing factors.

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