Dr. Twarath SutabutrDr. Twarath Sutabutr
DirectorDirector
Policy and Strategy Coordination OfficePolicy and Strategy Coordination Office
Friday 15Friday 15thth December 2006 December 2006
Policy and Strategy Coordination Office
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Thailand’s National Energy PolicyThailand’s National Energy Policy
…….. “ Government will support energy saving and promote energy efficiency as well as enhance more use of renewable energy. Promotion of exploration and develop domestic energy as well as international petroleum resources will be accelerated including those within overlap pig-claim areas with neighboring countries. Emphasis is also given to promote clean energy are establish market-based pricing structure. Reform of energy management scheme by clearly separating policy from regulatory foundations is priority along with ensuring competition in energy business as well as better feasibility R&D activities on Energy Technology” ….
H.E. General Surayud ChulanontNovember 3rd, 2006
Short Term
Long Term
Set direction toward
sustainable development
Immediate Actions
And Implementations
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1. Establish the regulatory framework for Electricity and Natural Gas Industries
2. Enhance Energy Supply Energy Security (Self Sufficiency)
3. Promote Energy Saving & Energy Efficiency
4. Promote Renewable and Alternative Energy Reduce Imports and diversify fuel types and sources
5. Market-based Pricing Structure Reflect true cost in a transparent manner and promote competition
6. Set mandate on Clean Energy Alleviate impacts on environment
Energy CDM Project
7. Promote Public and Private Participation in Policy Formulation Sustainable Development
Thailand’s National Energy PolicyThailand’s National Energy Policy
Immediate Actions and
Implementation
Set direction toward sustainable
development
+
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Establish Regulatory Framework for Electricity and Natural Gas Industries
• Enactment the Energy Industry Act to regulate the electricity and natural gas supply industries:
– The regulatory function to be separated from policy making
– Establishment of independent regulatory body
• Regulatory framework during the transitional period
– Dissolution of the temporary Electricity Regulatory Board. Responsibilities for electricity tariff, load forecast, power development plan, interconnection regulations and IPP bidding to come under National Energy Policy Council
– Establish a “Natural Gas Regulator” as a committee under Corporatization Act to take over any “state power” currently given to PTT Plc.
Enhance Energy Supply : Proposed Amendments
to the Petroleum Act B.E. 2514Objective
sObjective
s
• To change certain provisions in line with advancement in technology
• To provide incentives for marginal and declining petroleum fields by royalty reduction
• To introduce criteria on decommissioning of offshore platforms
• To revise composition of the Petroleum-Committee Members
• To streamline and shorten approval processes under the Petroleum Law
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Long-Term Natural Gas Procurement PlanLong-Term Natural Gas Procurement Plan
500
1500
2500
3500
4500
5500
6500
7500
2005 2007 2009 2011 2013 2015 2017 2019 2021
MMscfd @ 1000 btu/scf
Current NGResources in Thailand
New NG Resources in Thailand
Myanmar
LNG/Regional Gas
3,115
5,252
28%72%
28%
43%
19%
34% 27%
13%
32%
Average Growth
6%
(2006-2021)7,130
7,500
LNG (MTA) 1.3 7 9 10 10 10
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Preliminary Power Development PlanPreliminary Power Development Plan (New Capacity after 2010: Gas 40%, Coal 40%, Import 20%)(New Capacity after 2010: Gas 40%, Coal 40%, Import 20%)
Policy and Strategy Coordination Office
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The Status of IPP, SPP and VSPP(Already Supplied to Grid as of September 2006)
Type of Fuel
IPPsInstalled
Cap.(MW)
SPPs(MW)
Installed Cap.
Sell to Grid
NG 2,463 2,278 1,465
Coal 673 868 429
Bunker Oil
10 9
Biomass 988 430
Total 3,136 4,144 2,333
Type of Fuel
VSPP(MW)
Installed Cap.
Sell to Grid
Paddy Husk 2.83 2.50
Palm Shell 4.91 3.00
Rice husk 0.16 0.15
Biogas 8.16 5.37
PV 0.007 0.007
Total 15.54 11.00
Remark: Including the Pre-COD of BLCP
Promote Private Sector Investment Promote Private Sector Investment in Power Generationin Power Generation
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To encourage biddersto submit bids offering: competitive power prices
risk allocation terms attractive to the Government
capacities and related CODs that meet solicited capacity requirements
Tentative ScheduleTentative Schedule
- RFP issued April 2007April 2007
- IPPs submit bid Oct. 2007Oct. 2007
- Evaluate & select winner
April 2008April 2008
- PPA & GSA negotiations concluded
Oct. 2008Oct. 2008
Next IPP Bid SolicitationNext IPP Bid Solicitation for Generation Capacity during 2011- for Generation Capacity during 2011-
20152015
Issues still to be clarified: Amount of solicitation Eligibility of EGAT’s subsidiaries How to encourage fuel diversity, particularly coal
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Project Sale to Thailand (MW) COD
Already supplying power to Thailand
1. Nam Theun-Hinboun 187 31 March 1998
2. Houay Hoa 1263 September
1999Sub-total 313
PPA signed but not yet supplying power to Thailand
1. Nam Theun 2 920 December 2009
2. Nam Ngum 2 615 March 2011
Sub-total 1,535
Power Purchase from Lao PDR
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SPPs and VSPPs: Cogeneration and Electricity from SPPs and VSPPs: Cogeneration and Electricity from Renewable EnergyRenewable Energy
• Renewable electricity produced from biogas, biomass, MSW, Wind, Solar and other renewable energy
• Revise the VSPP’s regulation to expand the power purchase to grid from <= 1 MW to <= 10 MW and to include cogeneration facilities
• In case of VSPP’s, provide “Adder” to normal purchase price for renewable energy
• In case of SPP’s, use the bidding system for energy payment adder to the normal purchase price
• Community-scale project development– Bio-diesel– MSW fired power plants
• Development guidelines and implementation of CDM projects
Adder for VSPP Programme•Biomass 0.30 Baht/kWh•Micro Hydro (< 50 kW) 0.80 Baht/kWh•Micro Hydro (50-200 kW) 0.40 Baht/kWh•Wind 2.50 Baht/kWh•MSW 2.50 Baht/kWh
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Promote Energy Saving and Efficient Promote Energy Saving and Efficient Use of EnergyUse of Energy
• Cogeneration via SPP,VSPP, and DG
Air
Natural Gas 10 MMSCFD
Feed
Exhaust GasVent to ATM
ElectricityTotal of 50 MW
supply to the Airport
12,500 RTCooling Water
Supply to the Airport
2x 63 Ton/HrBoiler (HRSG)
2 x 20 MWGenerators
1 x 15 MWGenerator
2 x Gas TurbineEngines
WaterCondenser
Drum
Separator Drum
Liquid LiBr + Vapour H2O
Liquid Libr Conc.6x 2,500RTAbsorption
Chiller(SAC)
Low pressureEvaporateChamber
AbsorptionChamber
CombustionChamber
CoolingTower
Steam TurbineEngine
5-7 degree C Building Supply Cooling Water
12-15 degree C Building Return Cooling Water
Chiller Cooling Water
Liquid H2O Vapour H2O
Processed Steam(Waste Heat)
Flue Gas
Supplementary FiringNatural Gas/Diesel
and Fresh Air
Natural GasH2O LiquidH2O VapourFlue GasLibr Conc.Libr+H2O VapourDieselFresh AirCooling Waterfor Building
District Cooling System Power Plant Process Flow Diagram District Cooling System Power PlantDistrict Cooling System Power Plant Process Flow Diagram
Air
Natural Gas 10 MMSCFD
Feed
Exhaust GasVent to ATM
ElectricityTotal of 50 MW
supply to the Airport
12,500 RTCooling Water
Supply to the Airport
2x 63 Ton/HrBoiler (HRSG)
2 x 20 MWGenerators
1 x 15 MWGenerator
2 x Gas TurbineEngines
WaterCondenser
Drum
Separator Drum
Liquid LiBr + Vapour H2O
Liquid Libr Conc.6x 2,500RTAbsorption
Chiller(SAC)
Low pressureEvaporateChamber
AbsorptionChamber
CombustionChamber
CoolingTower
Steam TurbineEngine
5-7 degree C Building Supply Cooling Water
12-15 degree C Building Return Cooling Water
Chiller Cooling Water
Liquid H2O Vapour H2O
Processed Steam(Waste Heat)
Flue Gas
Supplementary FiringNatural Gas/Diesel
and Fresh Air
Natural GasH2O LiquidH2O VapourFlue GasLibr Conc.Libr+H2O VapourDieselFresh AirCooling Waterfor Building
District Cooling System Power Plant Process Flow Diagram District Cooling System Power PlantDistrict Cooling System Power Plant Process Flow Diagram
• Awareness Campaign
• Set targets for energy saving in both public and private sectors
Logistics•Promote mass transit and use of rail for transportation •Energy efficiency and labelings of vehicles
•Establish National Demand Side Management Office•Speed up energy efficiency labeling program•Expand scope of building codes for energy conservation•Establish minimum energy efficiency standards equipments
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Promote Alternative Transport Fuels Promote Alternative Transport Fuels : Gasohol and Bio-diesel: Gasohol and Bio-diesel
• Liberalize ethanol production Liberalize ethanol production and investmentand investment
• Promote competition in supply of ethanol and regulate ethanol price to ensure fair price for consumers
• Apply tax incentive to ensure Apply tax incentive to ensure that retail price of gasohol is that retail price of gasohol is lower than ULG-95lower than ULG-95
• Postpone ULG-95 phase out until– Ethanol production is sufficientEthanol production is sufficient– Fair alternatives exist for old Fair alternatives exist for old
carscars– Assurance of Gasohol qualities Assurance of Gasohol qualities
at all petrol stationsat all petrol stations
• Encourage production Encourage production and consumption taking and consumption taking into account the into account the economic cost and economic cost and potentialpotential
• Set clear policy and Set clear policy and direction to promote bio-direction to promote bio-diesel as new alternative diesel as new alternative for transportation fuelfor transportation fuel
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Measures to Promote NGVMeasures to Promote NGV
• Import Duty Exemption for NGV equipment and container until 2008 NGV engine
• Excise Tax Reduction for NGV- OEM from 30 % to 20%
• Excise Tax Reduction for NGV-Retrofit from 30 % to 22% but not exceed 50,000 Baht
• BOI Privileges
• ENCON Fund 2 Billion Baht
To change the NGV engine for BMTA’s vehicles and coaches.
• PTT fund 5 Billion Baht
To change the NGV engine for private transportation companies
• Truck
• BMTA vans
• Coaches
• Conversion of LPG taxies to NGV taxies
Establish clear and fair NGV pricing structure
TaxationTaxation Revolving FundRevolving Fund
Target of NGV Promotion Present 2010
No. of installed NGV in vehicles 23,193 500,000 cars
No. of NGV Filling Station 76 740
stations
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Measures to Support Clean Fuel Measures to Support Clean Fuel for Environmentfor Environment
Oil Vapor Recovery SystemOil Vapor Recovery System
Petrol stations, oil depots and oil trucks in Bangkok, Nontaburi, Pathumtani and Samutprakarn areas must install the vapor recovering units (VRU)
The regulation is expected to be approved by Cabinet by the end of November 2007. New facilities must comply immediately and existing facilities have one year to comply.
Implementation of Euro-IV Implementation of Euro-IV oil specificationoil specification Present Specification New Specification (Effective in 2012)
1. Gasoline/Gasohol1. Gasoline/Gasohol
• Lead <= 0.013 g/litre 0.005 g/litre
• Olefin - <= 18% Vol
• Sulphur <= 500 ppm <= 50 ppm
• Benzene <= 3.5% Vol <= 1% Vol
2. Diesel2. Diesel
• Sulphur <= 350 ppm <= 50 ppm
• Cetane No. >= 47 >= 50
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Market-Based Pricing structure
MARKETING MARGIN OF PRETROLEUM PRODUCTS(10 JAN 04 - 8 NOV 06)
LPG CONSUMPTION BY TYPE 2004 - 2006 (9 MONTHS)
124.4
4
36.7
1
17.4
9
140.7
0
42.0
8
36.1
5
-
25
50
75
100
125
150
COOKING INDUSTRY AUTO
M.KGS./ MONTH
+6.6%+6.0%
+0.3%+14.3%
+34.5%
+53.7%
• Promote Promote
competition and competition and
efficiency to ensure efficiency to ensure
competitive and competitive and
transparent energy transparent energy
pricesprices
For more information, log on http://www.energy.go.th