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Addressing Technical Challenges inIntroducing FiT: the Case of
ThailandRenewable Energy Policy and Regulation:Workshop on Feed-in Tariff Policy
ess on : ress ng ec n ca a engesJune 21, 2011ADB Headquarters, Manila
Bundit Fungtammasan
The Joint Graduate School of Energy and Environment(JGSEE) andCenter for Energy Technology and Environment (CEE)King Mongkuts University of Technology Thonburi, Thailand
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Scope
Policies and regulations on distributedRE generation
Successes to date
Addressing present technicalchallenges: the case of grid code
Planning for the future
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Thailands Renewable EnergyPolicy and Regulation in Brief
Introduced Feed-in premium, oradder in 2007 first in the re ion
Several years of experience dealingwith distributed co-generation and REgenerators prior to adder
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Thailands Renewable EnergyPolicy and Regulation in Brief (2)
Energy Conservation and PromotionAct (1992), amended 2007
Basis for providing financial and logistics,
efficiency and renewable energy projects
Basis for setting up ENCON program andENCON Fund (1995) - derived from a levy
on domestically sold petroleum andchanneled to support RE and EE projects,R&D, etc
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Thailands Renewable EnergyPolicy and Regulation in Brief (3)
Power Purchase Regulation for SPPs (1992,< 60 MW, later 90 MW in 2006)
Obligating state-own generation company toallow SPPs to connect to the grid and to
purchase power from SPPs using RE and/orfossil fuels (co-gen)
Power Purchase Regulation for VSPPs (2002,initially < 1 MW, later 10 MW in 2006)
Allows renewable generators to connect tostate-owned distribution companies andreceived tariffs at the utilitys avoided cost
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Thailands Renewable EnergyPolicy and Regulation in Brief (4)
Early policy targets under SPPprogram
Typically 300 400 MW for each round ofbids
Policy targets under EnergyStrategy for Competitiveness (2003)
8% RE share of final energy consumption by2011 (from less than 1%), includingelectricity, heating and biofuels
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Thailands Renewable EnergyPolicy and Regulation in Brief (5)
Policy targets under REDevelopment Plan (2008 2022)
14% RE share of final energy consumption
by 2022. Challenges for the next 10 years- Triple capacity of renewable electricity
to nearly 6,000 MW
- Triple renewable heat to 7,400 ktoe
- 4.5 times usage of biofuels to 13.5 Ml/d
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Financial Incentives
Tariff subsidies (prior to 2007) for firm and
non-firm SPPs , pricing based on bids andother criteria
Feed-in premiums (adder provision)
intro uce in 2007 or VSPPs an SPPs -additional purchasing price guaranteed on topof normal tariff for 7 10 years, technologyand capacity differentiated (price fixed for
VSPPs; for SPPs, fixed for some fuels, otherwisebidding required)
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Adder for renewable electricity (on top ofnormal tariff of ~ 8 10 US Cents/kWh)
Technology Us Cents/kWh Duration (y)
Biomass 1MW 1.0 7
Biogas 1MW 3.3 7
Wastes
Landfill/anaerobicdigestion 8.3 7
Wastes - Thermal Process 11.6 7
Wind 50kW 11.6 10
Hydro 50-
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Results on RE deployment
Early SPP and VSPP schemes (until mid-2008)
promoted on-grid generationNo.
GeneratorsInstalled
Capacity (MW)Fuel
Since redefining capacity range and introducing addersin 2007 (as of March 2011)
VSPP 100 215 Biomass, biogas
No.Generators
InstalledCapacity (MW)
Fuel
SPP 26 637 Biomass
VSPP 221 954 Biomass, biogas,
solar, MSW
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Distributed Renewable Generation:
Proposed and Installed Capacity bySPPs (MW)
As of March 2011
1200
1400
1600
Source: EPPO 2011
0
200
400
600
800
Solar Biomass MSW Wind Others
Accepted: 427 MW
Pending: 2,394 MW
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Distributed Renewable Generation:
Proposed and Installed Capacity byVSPPs (MW)
As of March 2011
2,000
2,500
3,000
3,500
Operating: 952 MW
Source: EPPO 2011
0
500
1,000
1,500 Accepted: 4,197 MW
Pending: 1,785 MW
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Grid Structure
GeneratingCompanyVSPPs SPPs
Transmission
Distribution(Provincial)
UsersUsers
DirectCustomers
Distribution(Metropolitan)
Distribution
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Barriers Prior to 2008
High technical standards for gridprotection (IEEE)
Complicated procedures and long time
lags for permitting Limited access to grid in some areas
High costs
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Improvements Since 2008
Energy Business Act (2007): coveringelectricity generation and distribution,and transportation and distribution of
gas Energy Regulatory Commission (ERC)
established in 2008
Issues permits for setting energy businesses,sets standards and regulates price
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Improvements since 2008 (2)
Energy Business Act (2007) obligates
grid operators to accept grid connectionby licensed generators
issued a new grid code (Dec 2008) forVSPPs superseding previous regulations(2003)
New code simplified to allow easier,more predictable access, still veryprotective
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The New Grid Code (2008)
PEA GridCode
ServiceCode
OperationCode
ConnectionCode
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The New Grid Code
Service Code
scope and guidelines for requesting permitsto connect to the grid
Connection Code
Minimum, requirements on technical design;detailed specifications of electric equipment;and installation standards
Maximum power connection limits (
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The New Grid Code (2)
Barriers and challenges
A number of requirements on design andoperation on the part of DGs, responsibilityin meeting the cost of several equipment
items DGs to bear the cost of upgrading or
extending the grid to meet the needs of DGs
Limited feeders (occupied by investors who
have obtained licenses but not generating)
Increase of much more intermittent Res (PVand wind) in the near future
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Planning for the Future
PEA announced a clear policy on smart grids
and working on a 15-yr roadmap
EGAT (Generating) and MEA also studyingsmart rids
EGAT still more conservative, giving lowdependability factor for PV and windgenerators in current power development
plan (PDP2010) Changes could be expected following
postponement of nuclear plan
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Thank you. . .