4 March 2014

“Grid-Connected Photovoltaic (PV) in Indonesia and Thailand”

Berlin, Germany

Mrs. Kulwaree Buranasajjawaraporn

Bureau of Solar Energy Development

Department of Alternative Energy

Development and Efficiency (DEDE)

Ministry of Energy

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Knowledge Base organisation and sustainable development Centre of Renewable Energy and Energy Efficiency

• Develop promote and support the production and the use of clean energy relating to local environment in the sustainable and the most valuable

• Develop clean technology commercialisation for local consumption and export

• Build co-operation among population leading country to clean-energy knowledge-based society for economy security and happiness of the society

Mission

Vision

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Thailand’s Energy situation in 2013

36.40%

35.70%

15.20%

7.50%

5.20%

Total Energy Consumption in 2013 = 75,214 ktoe

Industry

Agriculture

Commercial

Residential

Transportation

Final energy consumption by economic sector

“Grid-Connected Photovoltaic (PV) in Indonesia and Thailand”

Source: dede

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Thailand’s Electricity Situation

“Grid-Connected Photovoltaic (PV) in Indonesia and Thailand”

Thailand’s Energy Situation in 2013

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Final Energy consumption Q1-Q3 2013

“Grid-Connected Photovoltaic (PV) in Indonesia and Thailand”

Alternative Energy Development Plan

Electricity 2,000 MW Heat 100 ktoe

Electricity 1,200 MW

Electricity 3,630 MW Heat 8,200 ktoe

Electricity 600 MW Heat 1,000 ktoe Electricity 160 MW

Heat 35 ktoe

Electricity 1,608 MW

E 9 L/J B 5.97 L/J N 25 L/J

10-year Alternative Energy Development Plan (2012-2021)

Approved by National Energy Policy Commission the 30th November 2011 6

25% of RE in total energy consumption in

year 2021 Tidal wave 2 MW Geothermal 1 MW

First period (2012-2016)

Second period (2017-2021)

Renewable development strategies

Community

Incentive

Law and regulation

Infrastructure

Public Relation and knowledge

Research for RE Industry

Target 12.6%

Target 25%

Electricity 13 300 kWh Heat 6 976 ktoe Biofuel 7.7 Mlitre/day

Electricity 24 900 kWh Heat 9 335 ktoe Biofuel 39.97 Mlitre/day

7 “Grid-Connected Photovoltaic (PV) in Indonesia and Thailand”

DEDE

Measures for RE Promotion

5 Supporting Mechanisms:

RE-Electricity Generating

(4 from MoEN :

1 from Board of Invetment)

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

• Investment Grant, i.e. solar hot water, and Solar dryer (i.e. 2012 25% for SHW, 55% for Solar dryer)

• ESCO Venture Capital Fund

• “Adder” : Feed-in Premiums Policy , Feed-in Tariff

DEDE

DEDE

EPPO

1

2

3 Capital requesting

Registration for intent expression as per the time specified

Adder

Carbon credit sale

ONEP EIA

ERC

Local Admin

Offices giving licenses

Negotiation for electricity selling & buying

- Firm - Non Firm

Licenses

Technical support

BOI- Investment Incentives

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Will be released soon

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New BOI strategies

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Source: http://www.boi.go.th/upload/content/Duangjai_NZ%20delegation_Nov%202013_final_72407.pdf

“Grid-Connected Photovoltaic (PV) in Indonesia and Thailand”

New BOI strategies

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Present New Action

1. Broad-based investment promotion

Focus & Prioritized investment promotion

• Refocus the activities eligible for promotion

• Prioritize: Incentives vary, depending on the importance activity

2. Sector-based Incentives

Sector & Merit-based Incentives

• Reduce basic tax incentives • Provide additional incentives based on

project’s merits to encourage competitiveness enhancement activities such as R&D, design, advanced technological training, and local supplier development

3. Zone-based incentives

Promote New Regional Clusters

• Abolish zone-based incentives • Promote new industrial clusters in each

region or border area to create new investment concentration

“Grid-Connected Photovoltaic (PV) in Indonesia and Thailand”

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Present New Action

4. Tax-incentives oriented promotion

Tax Incentives& Facilitation- oriented promotion

• Focus on facilitation through non-tax incentive and one stop service

• Improve investment rules and regulation, reduce barriers to create better investment environment

• Promote and coordinate human resources development to support industrial sector

• Integrate supports from various government agencies as a package

5. Promote inbound investment

Promote both inbound & outbound investment

• Promote overseas investment more actively in order to increase the competitiveness of Thai businesses

6. Evaluation by Applications

Evaluation by outcomes

• Set clear KPIs to measures benefits and cost-effectiveness of investment promotion

New BOI strategies

“Grid-Connected Photovoltaic (PV) in Indonesia and Thailand”

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Action Time Frame

Announcement of the New Investment Promotion Strategy

By December 2013

Effective Date of the New Investment Promotion Strategy

1st January 2015

New BOI strategies

“Grid-Connected Photovoltaic (PV) in Indonesia and Thailand”

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Thailand PV incentive Evolution

“Grid-Connected Photovoltaic (PV) in Indonesia and Thailand”

2007

• Introduction of Adder program

• Adder for solar extended from 7 to 10 years

• Special adder for three southern provinces

2009

• March 2009 Bid bond introduction

• Special adder for replacement use of diesel generation

2010

• April 2010 Solar application is no longer accepted

• June 2010 Solar Adder reduction 8 to 6.5 THB and establishment of RE managing committee

2013 • August 2013 Release of FiT for solar rooftop and solar

community

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“Adder” : Feed-in Premiums

Fuel Adder 2007

(USD/kWh)

Adder 2009

(USD/kWh)

Adder 2010

(USD/kWh)

Special adder *

(USD/kWh)

Supporting period (Year)

Biomass - Installed capacity ≤ 1 MW - Installed capacity > 1 MW

0.01 0.01

0.017 0.010

0.017 0.010

0.03 0.03

7 7

Biogas (all categories of production sources)

- Installed capacity ≤ 1 MW - Installed capacity > 1 MW

0.01 0.01

0.017 0.010

0.017 0.010

0.03 0.03

7 7

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

- AD &b LFG - Thermal Process

0.083 0.083

0.083 0.117

0.083 0.117

0.03 0.03

7 7

Wind power - Installed capacity ≤ 50 kW - Installed capacity > 50 kW

0.117 0.117

0.150 0.117

0.150 0.117

0.05 0.05

10 10

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

0.013 0.027

0.027 0.050

0.027 0.050

0.03 0.03

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Solar power 0.267 0.267 0.217 0.05 10

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

** 1 USD= 33 THB

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“Adder” : Feed-in Premiums

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“Adder” version 2

Applying

• A bid bond requirement 200 THB/kW (3 USD/kW) for project sized > 100 kW

• Applicable to projects without PPAs before August 2009

Under consideration

• Additional acceptance criteria : projects’ readiness –Land, Loan, technology and permit from other agencies

• Approval will be done by “managing RE committee”

Accepted (To sign PPAs)

• More enforcement – Termination of the application process if failure to sign PPAs within the specified time period

PPA signed

• After signing PPAs, any request for postpone SCOD will be analyzed based of 4 aspects of readiness ; extension is allowed up to 6 month

SCOD

• A 6-month grace period for project which can not meet SCOD and are still in contact with utilities

• Contract termination for project that are not in contact with utilities

Source: Tongsopit&Greacen

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Solar SPP and VSPP status

*ERC February 2014

Proposed Project

Waiting for PPA

Signed PPA Already sell

to grid Total

Technology Project (no.)

Selling Capacity

(MW)

Project (no.)

Selling Capacity

(MW)

Project (no.)

Selling Capacity

(MW)

Project (no.)

Selling Capacity

(MW)

Project (no.)

Selling Capacity

(MW)

Solar Energy 183 1,032.58 2 4.25 165 1,072.84 229 793.89 579 2,903.56

PV 183 1,032.58 2 4.25 72 524.87 228 788.89 485 2,350.59

SPP 1 41.00 0 - 3 220.00 3 175.00 7 436.00

VSPP 182 991.57 2 4.25 69 304.87 225 613.89 478 1,914.59

Solar Thermal 0 - 0 - 93 547.97 1 5.00 94 552.97

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220,72

797,29

0

100

200

300

400

500

600

700

800

900

in

sta

lled

Cap

acit

y(M

W)

Accumulated PV installed Capacity Off grid Grid-connected

Beginning of

“Adder” Policy Solar Home

Program

Thailand PV Installation

“Grid-Connected Photovoltaic (PV) in Indonesia and Thailand”

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Feed-in Tariff: FiT on stream

National Energy Policy Committer (NEPC) resolution on July 16th 2013 • Feed-in Tariff (FiT) for solar PV rooftop • Objectives

Encouraging investment in solar power Cutting Peak Load Strengthening National energy security

FiT Rate* (THB/kWh)

Target (MWp)

1. Household 0-10kWp 6.96 100

2. Small Enterprise 10-250 kWp 6.55

100 3. Medium and large Enterprise/ factory 250-1 000 kWp

6.16

* Supporting period :25 years and COD within December 2013

“Grid-Connected Photovoltaic (PV) in Indonesia and Thailand”

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Feed-in Tariff: FiT on stream

National Energy Policy Committer (NEPC) resolution on July 16th 2013

Feed-in Tariff (FiT) for solar community • Joint project: Ministry of Energy + National Village and Urban

fund office • Objectives

Encouraging community participation via direct investment Creating Job Generating stable incomes for community Promoting distributed RE power

“Grid-Connected Photovoltaic (PV) in Indonesia and Thailand”

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Feed-in Tariff: FiT on stream

Target : 800 MWp

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PV for government building

No grid-tied no FiT

“Grid-Connected Photovoltaic (PV) in Indonesia and Thailand”

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Thailand Solar Power Industry

Solar Synergy

Upstream

Medium stream

Downstream

a-Si, mono-Si, poly-Si

“Grid-Connected Photovoltaic (PV) in Indonesia and Thailand”

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www.dede.go.th Fanpage: SolarEnergyDEDE

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