3rd Mekong Forum on Water, Food & Energy 2013. Presentation from Session 12: Alternative electricity sources and planning for the Mekong

1. Thailand’s Country Case
Study
A Review of of Renewable Energy Laws:
Lessons for Thailand
20 November 2013
Sopitsuda Tongsopit, ERI
Chris Greacen, Palang Thai
3rd Mekong Forum on Water, Food, and Energy,
Melia Hotel, Hanoi, Vietnam
Palang
Thai

2. 2
Outline
• Key Successes of Thailand’s RE Development
• Key barriers and bottlenecks
• Lessons learned from 4 Renewable Energy Laws
• Recommendations for the Development of
Thai law

3. Thailand: High Growth in Power Consumption; Limited
Resources
Total Electricity Net Consumption
(Billion Kilowatt-Hours)
160
140
120
Thailand
Indonesia
100
Malaysia
Vietnam
Philippines
80
Singapore
Myanmar
60
Brunei
Cambodia
40
Laos
20
Source: EIA (2013)
2010
2008
2006
2004
2002
2000
1998
1996
1994
1992
1990
1988
1986
1984
1982
0
1980
Billion KWh
3
Source: EPPO (2013)
based on Jan-Feb 2013 generation data

4. 4
Thailand’s Renewable Energy Status

5. 5
THAILAND: Supportive RE Framework
AEDP 2012-2021 goal: 25% of total consumption is RE by
2021
Low Interest Loan: Revolving Fund
Note: RF program was fully subscribed as of 2012
Venture Capital: ESCO Fund
Tax Incentives: BOI Privilege
Investment Subsidy (Biogas)
Feed-in Tariff: Adder

6. 6
RE Power Status (SPP+VSPP): capacity fed into the grid)

7. 7
Feed-in Tariffs
• Feed-in tariffs (FiT) has been recognized as one
of the most effective and efficient drivers of
renewable energy (RE) scale-up worldwide.
• A feed-in tariff (FIT) rate can be defined as a
power purchasing rate per kilowatt-hour from
eligible renewable power sources for a prespecified period of time.

8. THAILAND’s Adder Rates
8
8

9. 9
Trend of MW in the Pipeline (All Renewables)
Oversubscription
to the ADDER
program
has been followed
by governance
challenges

10. 10
Key Barriers in Thailand’s RE Development
▫ Policy and regulatory uncertainties:
 Interruption of support for solar power
▫ Complicated permitting process
 Average > one year of permitting process for solar & WTE plants
▫ Lack of an effective monitoring and
evaluation system
▫ Lack of a unified energy plan
 Many existing energy plans that do not synchronize
▫ Lack of integration of renewable energy with
other types of policies, including environmental,

11. 11
Thailand’s Alternative Energy Development Act
Thailand’s Alternative Energy Development Act
Chapter
1
General Provisions
2
The Alternative Energy Committee
3
Obtaining Alternative Energy Support
-roles of responsibilities of the Committee and the alternative
energy enterprise
4
Framework for Alternative Energy Support
-Priviledge, Investment , and Incentives
5
Alternative Energy Support
-RPS provision
6
Alternative Energy Fund
7
Enforcement
8
Transitional Provision

12. 12
Comparisons of the RE Laws of 4 Countries
Country
Name of the Law
The Act on granting priority to renewable
Germany energy sources
(Renewable Energy Sources Act – EEG)
Ontario
Green Energy Act
Malaysia Renewable Energy Act 2011
Japan
The Act on Special Measures Concerning
the Procurement of Renewable Electric
Energy by Operators of Electric Utilities
Year
Enacted
2000
2009
2011
2012

13. 13
Big Picture on the Reviewed Laws
1) The laws targeting RE use in the power sector and RE fuels are usually
separate.
2) Some laws amend or repeal other laws and may have subsidiary
legislations.
3) Balancing supportive measures and public interest (e.g., cost burden on
taxpayers/ratepayers); prevention of fraud; many installations on one plot
of land (Section 19 of German RE Law)
4) Policy and implementation details
-Certain laws such as the German RE Law include policy and
implementation details.
-Other laws determine a broad framework to be followed by
details from Ministerial Directives (Ontario’s Ministerial
Directives guiding the OPA) or ordinances (Japan’s METI).

14. 14
Germany

15. Germany
• Name of Law: Renewable Energy Sources
Act (EEG)
• Enacted in 2000 (with recent updates in 2012)
• FIT: solar PV
wind
geothermal
hydropower
landfill gas
biomass.
•

16. German RE law: Objectives
•
•
•
•
Protect environment and climate
Reduce cost of energy supply
Conserve fossil fuels
Promote development of renewable energy
technology

17. Note: Thai electricity consumption:
112,401 GWh in 2012
German RE law: impacts
1360000 GWh (2012)
20.35% of gross
electricity
consumption

18. Key feature 1:
Legally binding renewable energy
targets
35% by 2020;
50% by 2030;
65% by 2040;
80% by 2050;
Section 1(2): Purpose

19. Key feature 2: Quantity of renewable energy is regulated
entirely by adjusting the price offered. (No MW caps)
7400
MW
installed
in 2010
and
2011.
13.5
ct/kWh
2013
Freestanding
Rooftop 30-100 kW
Rooftop <30 kW
Rooftop >100 kW
Section 20: Reductions in tariffs and bonuses
Section 20b: Reduction in tariffs paid for electricity generated from solar radiation

20. Key feature 3: For solar: volume-based mechanism to
adjust degression in response to recent deployment
Increased degression rate if
target exceeded
Target: 2500-3500 MW per
year
Section 20b: Reduction in tariffs paid for electricity generated from solar radiation

21. opportunity
to sell in
wholesale
market
Euro cent/kWh
Key feature 4: RE Generation incentivized when
most needed

22. Key feature 5: Market integration model for
installations generating electricity from solar
• “The tariff paid for [solar] electricity larger than
10 kilowatts… shall be limited to 90 percent of
the total quantity of electricity generated in the
installation in that calendar year.”
• (This incentivizes installations where the
remaining 10% is used locally)
Section 33: Market integration model for installations generating electricity from
solar radiation

23. Key feature 6: Priority Grid access
• “Grid system operators shall immediately and as a
priority connect installations generating electricity
from renewable energy sources.”
Section 5: Connection

24. 24
Ontario

25. 25
Ontario’s Green Energy Act (GEA) 2009
Context and Driving Forces:
▫ Aging power industry infrastructure
▫ Commitment to phase out coal since 2003
(unique in North America)
▫ Economic recession & job losses

26. 26
Objectives of Ontario’s Green Energy Act
• Foster the growth of renewable energy projects
• Remove barriers to and promote opportunities
for renewable energy projects
• Promote and expand energy
conservation
• Promote a green economy

27. 27
Components of Ontario’s Green Energy Act
Source: Renewable Energy Development Symposium, 2012

28. 28
Key Feature 1: FiT with additional
incentives for energy efficiency
and communities

29. 29
Ontario Power Authority's Feed-in Tariffs 2009
Effective Date 1 October 2009
1.35918
Years €/kWh $CAD/kWh
Wind
Onshore*
Offshore*
20
20
0.10
0.14
0.135
0.19
Ontario’s FiT
1.309
USD/kWh
0.13
0.183
Photovoltaics
MicroFIT
Rooftop <10 kW
Groundmounted <10 kW (2 July 2010)
20
20
0.59
0.47
0.802
0.642
0.7724
0.6183
Rooftop >10 kW<250 kW
Rooftop >250 kW<500 kW
Rooftop >500 kW
Groundmounted <10 MW*
20
20
20
20
0.52
0.47
0.40
0.33
0.713
0.635
0.539
0.443
0.6867
0.6116
0.5191
0.4267
Hydro
<10 MW*
>10 MW<50 MW*
40
40
0.10
0.09
0.131
0.122
0.1262
0.1175
Landfill Gas
<10 MW*
>10 MW*
20
20
0.08
0.08
0.111
0.103
0.1069
0.0992
Biogas*
On-Farm <100 kW
On-Farm >100 kW<250 kW
<500 kW
>500 kW<10 MW
>10 MW
20
20
20
20
20
0.14
0.14
0.12
0.11
0.08
0.195
0.185
0.16
0.147
0.104
0.1878
0.1782
0.1541
0.1416
0.1002
Biomass
<10 MW*
20
0.10
0.138
0.1329
• Eligible Technologies
• Wind
• Solar PV <10 MW
• Hydro <50 MW
• Biogas
• Biomass
•Adder on top of base rates:
-35% premium for power supply
during peak periods
-price adder for aboriginal
participation
-price adder for community based
projects
• Local Content Requirements

30. 30
Key Feature 2: Domestic Content
Requirements
Domestic Content Requirements under Ontario’s GEA
(Wind>10 kW and all solar projects are subject to domestic content requirements)
Wind (> 10
kW)
Solar (> 10
KW)
Solar (≤ 10
kW)
From October From January From January
1, 2009
1, 2011
1, 2012
25%
25%
50%
50%
60%
60%
40%
60%
60%
Notes:
• December 2012: the World Trade Organization (WTO) ruled that the domestic
content requirements of Ontario’s GEA violated trade rules
•
May 2013: Ontario’s Minister of Energy announced the elimination of domestic
content requirements

31. Repeal
Amendment
Key Features 3: Amendments of 12 existing laws
and Repeal of 2 existing laws, e.g.
31
Environmental Protection Act
(EPA) *One permit (renewable project approval) replaces all other permits previously
required under the EPA
Planning Act
*Curtailing the power of municipalities to block renewable energy projects
Electricity Act
*Giving the authority of the Ministry to direct the OPA on RE support and FiT
programs
Ontario Energy Board Act
*adjusting the purposes of Ontario Energy Board to emphasize RE support
Energy Conservation
Leadership Act
Energy Efficiency Act

32. 32
45,000 45,000
45,000
45,000 45,00
45,000
40,500 MW
38,300 MW
40,000 40,000
40,000
35,000 35,000
35,000
670 MW
31,600 MW
300 MW
8,700
3,000
3,300 MW
2,900 MW
700 MW
500 MW
30,000 30,00
30,000
8,900
4,300 MW 2,000 MW
4,900
35,000 35,00
35,000
5,700 MW
5,100 MW
8,100
25,000 25,000
25,000
40,000 40,00
40,000
8,400
30,000 30,000
30,000
20,000
20,000 20,000
700
30 MW
670
100
Installed Capacity (MW)
Installed Capacity (MW)
Installed Capacity (MW)
Reduction of Coal and increasing RE
25,000 25,00
25,000
10,000
20,000
20,000 20,00
9,300
15,000
15,000 15,000
15,000
15,000 15,00
10,900
10,000
10,000 10,000
10,000
10,000 10,00
12,900
12,900
5,000
5,000 5,000
0
5,000
5,000 5,000
7,600
0 0
2005
2005 2005
3,300
2012
2012 2012
2015
0 0 0
2015
Coal Coal Nuclear Nuclear Natural GasGas Hydro Non-Hydro Renewables
Coal Nuclear Natural Gas
Response
Natural Hydro Hydro Non-Hydro Renewables DemandDemand Response
Non-Hydro Renewables Demand Response
Source: IESO/OPA. Figures have been rounded.
Source: Shalaby, Amir. 2012. Outlook for Electricity Demand and Supply in Ontario
APPrO 2012 Conference, Ontario Power Authority

33. 33
Impact: The Reviews of the GEA has been
mixed and currently subject to debate
• Pros:
 >40 new manufacturing facilities
 >28,000 new jobs
• Cons:
 Increasing electricity prices (increase 4060% by 2015)
 Net job losses in other sectors (mining,
manufacturing, and forestry sector)

34. 34
Recent Changes
1. Elimination of domestic content requirements:
Following the WTO’s December 2012 ruling that Ontario’s
GEA violated international trade rules
2. Ending Large-Scale FiT program and replace it by a
competitive procurement process

35. 35
Lessons learned from Ontario
• RE law can be an instrument for fulfilling development objectives, such as
economic renewal & green job creation, but this has to be accompanied by
well-structured policy design and support measures. In the case of
Ontario, this includes FiT rate adder for communities and domestic
content requirements.
• RE law can be an opportunity for revising existing laws to remove
barriers. In the case of Ontario, this took a year of lobbying effort and
lessons learned from experiments with an early form of FiT since 2006.
• Ontario’s OPA early success was attributable to the power industry
structure, with a government owned company as the main generation
company (See, e.g., Stokes (2013: 494), but public support declines over
time.
• Increasing ratepayers’ costs invite political intervention and public
scrutiny, so a FiT program should be able to demonstrate net benefits to
society

36. Malaysia: Renewable Energy Act 2011

37. 37
Objectives of the Law:
“an Act to provide for the establishment and
implementation of a special tariff system to catalyse
the generation of renewable energy and to provide
for related matters.” (Renewable Energy Law 2011)

38. Renewable Energy Act 2011
Targets: Cumulative renewable energy capacity
♦ 73
MW by no later than 2010;
♦ 985 MW by no later than 2015;
♦ 2,080 MW by no later than 2020; and
♦ 4,000 MW by no later than 2030

39. Impact of the Law
Source: SEDA Malaysia

40. Key Feature 1: Designated Authority
Sustainable Energy Development Authority Act
(SEDA Malaysia)
♦ SEDA Malaysia established on 1st September 2011 under the SEDA ACT 2011
♦ a one stop Renewable Energy (RE) centre.
♦ Functions:
-implement, manage, monitor, and review the Feed-in-Tariff
system
-advice the Minister and Government entities on all matters
relating to sustainable energy
-carry out investigations, collect, record and maintain data,
information and statistics concerning the feed-in tariff system

41. Key Feature 2: e-FIT System Allows
Real-Time Monitoring
Source: Adapted from Leong (2012)

42. 42
Recommendations for Thailand’s Renewable
Energy Law
Current Problems
Remedies through the law
1. Oversubscription to Quota causes
policy interruption
No capacity caps/quota. Instead
moderate supply by adjusting FIT price
2. If there’s no quota, there’s concerns
about impact on ratepayers.
Price signals to encourage production
where/when needed. Peak/off-peak
3. Complex permitting process involving
Simplify permit process by allowing
exemption for certain classes of
renewable energy projects
many agencies
4. Manual application process and lack of A transparent online system with realtransparency of the queuing system,
time monitoring and real-time reporting
of application process
raising question whether it is first-comefirst-serve

43. Thank you
Sopitsuda Tongsopit
tongsopit@gmail.com
Chris Greacen
chrisgreacen@palangthai.org
Palang
Thai