Bundit Fungtammasan - Addressing Technical Challenges in Introducing FiT

8/6/2019 Bundit Fungtammasan - Addressing Technical Challenges in Introducing FiT

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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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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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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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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. . .

Bundit Fungtammasan - Addressing Technical Challenges in Introducing FiT

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