Energy Industry Act and RE in Thailand A complementary view

Energy Industry Act, B.E. 2550 The Act cover Composition and roles of the regulatory body Relation between government and the ERC Regulation processes Energy consumer protection Utilization of immovable properties Redress of disputes and lodging of appeals Competent officials Disciplinary procedures Punishment

The Act cover

Composition and roles of the regulatory body

Relation between government and the ERC

Regulation processes

Energy consumer protection

Utilization of immovable properties

Redress of disputes and lodging of appeals

Competent officials

Disciplinary procedures

Punishment

Energy industries in EI Act Electricity industry Production Procurement Transmission Distribution Control of a power system Natural gas industry transmission through pipelines natural gas storage transformation of natural gas from liquid to gas natural gas procurement and wholesale, natural gas retail via a natural gas distribution system (exclude NG industry operation in the transportation sector)

Electricity industry

Production

Procurement

Transmission

Distribution

Control of a power system

Natural gas industry

transmission through pipelines

natural gas storage

transformation of natural gas from liquid to gas

natural gas procurement and wholesale,

natural gas retail via a natural gas distribution system

(exclude NG industry operation in the transportation sector)

Objective of the Act Section 7: The objectives of this Act are to: … (8) promote the use renewable energy that has less adverse impact on the environment in the electricity industry operation.

Section 7:

The objectives of this Act are to:

…

(8) promote the use renewable energy that has less adverse impact on the environment in the electricity industry operation.

Objective of the Act promote adequate and secure energy service provision protect energy consumers’ benefits promote competition in the energy industry promote fairness and transparency promote the efficient energy industry operation protect the rights and liberty in terms of participation, accessibility, utilization and management of energy

promote adequate and secure energy service provision

protect energy consumers’ benefits

promote competition in the energy industry

promote fairness and transparency

promote the efficient energy industry operation

protect the rights and liberty in terms of participation, accessibility, utilization and management of energy

Government’s duties Section 8: The government should establish the fundamental policy guidelines on energy Procure energy to adequately meet the demand, with good quality, security as well as reasonable and fair prices, emphasizing full exploitation and development of renewable energy and indigenous energy resources for the purpose of sustainable development of the country in social, economic and environmental aspects, including reducing dependency on imported energy from foreign sources. …

Section 8:

The government should establish the fundamental policy guidelines on energy

Procure energy to adequately meet the demand, with good quality, security as well as reasonable and fair prices, emphasizing full exploitation and development of renewable energy and indigenous energy resources for the purpose of sustainable development of the country in social, economic and environmental aspects, including reducing dependency on imported energy from foreign sources. …

Commission’s duties Section 11: The Commission shall have the following authority and duties: … (16) promote economical and efficient use of energy and the use of renewable energy and energy that has less adverse impact on the environment, with due consideration of the efficiency of the electricity industry operation and the balance of natural resources;

Section 11:

The Commission shall have the following authority and duties:

…

(16) promote economical and efficient use of energy and the use of renewable energy and energy that has less adverse impact on the environment, with due consideration of the efficiency of the electricity industry operation and the balance of natural resources;

The power development fund Section 93: A fund shall be set up in the Office, under the name “Power Development Fund,” with the following objectives: … to promote the use of renewable energy and technologies in the electricity industry operation that have less impact on the environment, with due consideration on the balance of natural resources; …

Section 93:

A fund shall be set up in the Office, under the name “Power Development Fund,” with the following objectives: … to promote the use of renewable energy and technologies in the electricity industry operation that have less impact on the environment, with due consideration on the balance of natural resources; …

The fund’s objectives to support extensive extension of electricity service provision to various localities so as to decentralize prosperity to provincial areas; to develop the local communities affected by the operation of a power plant; to promote the use of renewable energy and technologies to create fairness for power consumers.

to support extensive extension of electricity service provision to various localities so as to decentralize prosperity to provincial areas;

to develop the local communities affected by the operation of a power plant;

to promote the use of renewable energy and technologies

to create fairness for power consumers.

Ministry’ authorities and duties Recommendi policy and strategies on energy industry structure and operation standard diversification of power generation energy procurement protection against energy shortages energy services and consumers’ petitions contribution and utilization of Power Development Fund

Recommendi policy and strategies on

energy industry structure and operation standard

diversification of power generation

energy procurement

protection against energy shortages

energy services and consumers’ petitions

contribution and utilization of Power Development Fund

ERC’s authorities and duties Ensure the objective of the Act under the policy framework of the government Determine the types of licenses for energy industry Establish measures, regulations, or guidelines on security and reliability of the power system industry efficiency and transparency customer service standards protection against adverse impacts

Ensure the objective of the Act under the policy framework of the government

Determine the types of licenses for energy industry

Establish measures, regulations, or guidelines on

security and reliability of the power system

industry efficiency and transparency

customer service standards

protection against adverse impacts

ERC’s authorities and duties (2) Promoting and supporting research study Public knowledge and awareness human resources development for the energy industry operation economical and efficient use of energy and the use of renewable energy and balance of natural resources;

Promoting and supporting

research study

Public knowledge and awareness

human resources development for the energy industry operation

economical and efficient use of energy and the use of renewable energy and balance of natural resources;

ERC’s authorities and duties (3) Regulate power procurement Establish and issue regulations, criteria, and proposal monitor the selection procedures Provide comments on power development plan electricity industry investment plan natural gas procurement plan energy network system expansion plans

Regulate power procurement

Establish and issue regulations, criteria, and proposal

monitor the selection procedures

Provide comments on

power development plan

electricity industry investment plan

natural gas procurement plan

energy network system expansion plans

Energy Industry has never been freely mobilized NEPC ERC Demand

Energy Industry has never been freely mobilized

Regulating context Reliable To what extent? Under what assumption? Fairness Within whose concern? Environmental friendly Precautionary Political friendly @#$!?

Reliable

To what extent?

Under what assumption?

Fairness

Within whose concern?

Environmental friendly

Precautionary

Political friendly

@#$!?

Regulating within the RE context Reliable Switching speed Changes in consumption mode/technology Fairness Investment cost vs environmental cost Environmental friendly Precautionary Political friendly :)

Reliable

Switching speed

Changes in consumption mode/technology

Fairness

Investment cost vs environmental cost

Environmental friendly

Precautionary

Political friendly

:)