www.renewables-made-in-germany.com

Tapping Thailand’s Solar Potential

Berlin, 04/03/2014

Thomas Chrometzka Director Renewable Energy, GIZ Thailand

1. Thailand‘s Energy Context

2. Solar Policy and Market Development in Thailand

3. Background on the Project Development Programme

4. Conclusion

Thailand: map, facts and figures

Area: 513,120 km²

Population: 66,720,15 (2011)

GDP (2013 estimate)

Total: US$701.554 billion

Per capita US$10,849

Currency Baht (฿) (THB)

Government: Unitary parliamentary constitutional monarchy

Households: 22.24 million

Final energy consumption by source

Not considered renewable by Thai Gvmt

~10% RE

Source: DEDE

Installed capacity for power generation (2012)

Source: DEDE

Domestic resources and import share

95

33

74

99

15

5

57

26

1

85

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Electricity

Coal

Natural Gas

Petrolium Products

Crude oil

Domestic production Import

Import Value (€)

~23 bn

~0.25 bn

~3.4 bn

~1.0 bn

~0.25 bn

TH imports 81% of oil consumed TH imports 56% of overall energy demand

Total app. ~37 bn € (18% of GDP)

Source: DEDE

Recent Black-Outs

Source: DEDE

1. Thailand‘s Energy Context

2. Solar Policy and Market Development in Thailand

3. Background on the Project Development Programme

4. Conclusion

Thailands Climate Change Policy Framework

Source: TGO

Projected Energy Consumption by 2030

0

20

40

60

80

100

120

140

160

180

1990 1995 2000 2005 2010 2015 2020 2025 2030

Industry Transport Residential Commercial Others

< Historical Projection >

Mto

e

Average growth rate (%) 1991-2010 2011-2030 TFEC 4.4 4.2 GDP 4.5 4.3 Pop. 0.9 0.3 By sector Industry 5.9 5.0 Transport 4.3 3.5 Residential 2.2 3.8 Commercial 7.5 5.5 Others 3.8 2.1

162.7

71.2

BAU

Source: DEDE, EPPO, JGSEE

Source : DEDE, EPPO, JGSEE

Projected Energy Consumption by 2030

0

20

40

60

80

100

120

140

160

180

1990 1995 2000 2005 2010 2015 2020 2025 2030

Industry Transport Residential Commercial Others

< Historical Projection >

Mto

e

Average growth rate (%) 1991-2010 2011-2030 TFEC 4.4 4.2 GDP 4.5 4.3 Pop. 0.9 0.3 By sector Industry 5.9 5.0 Transport 4.3 3.5 Residential 2.2 3.8 Commercial 7.5 5.5 Others 3.8 2.1

162.7

71.2

BAU

Total final energy demand to grow closely

with GDP at 4.2% p.a.

Energy demand in Thailand would more than

double in the next 20 years!

Solar electrification in remote areas existed from 1993 - 2011

Target areas:

Schools hospitals, community centres,

military bases, national forests, Royal

Development, Projects

1,756 systems installed

With a total capacity of 3,905 kW peak installed

History of Solar PV Development in Thailand

Source: DEDE

Introduced in 2007 for solar

Adder Scheme = Feed-in Premium

SPP/VSPP receives market electricty price + fuel tariff

rate + adder tariff

Premium (adder) of 8 Baht/kWh was decreased to 6.5 Baht/kWh in 2010

Program was over-subscribed several times, applications for more than 2,000 MW awarded

program closed for new applications

Triggered solar farm development in Thailand

However, only ~800 MW installed to date

Solar „Booster“ 2007: The Adder Scheme

Images: own sources, HighDesert

On 16th July 2013, the National Energy Policy Commission (NEPC) approved solar rooftop policy to support this development in Thailand

Full Feed-in Tariff (25 yrs) for Solar PV Rooftop to

encourage private & community investments

minimize peak load

contribute to energy security

New Initiatives I: PV Rooftop Program

Classification Scale FiT Rate (Baht/kWh) Quota

Residential 0-10 kW 6.96 (~0.22 US$) 100 MW

Small/Medium Commercial 10-250 kW 6.55 (~0.21 US$) 100 MW

Medium/Large Commercial 250 kW-1 MW 6.16 (~0.20 US$) Images: DEDE

special feed-in tariff rates for community

ground-mounted solar systems

Target 800 MW / “1 Amphoe, 1

Megawatt”

Aim

generating job opportunities

income

Local value creation

Funds will come from Thailand’s Village

Fund

projects are required to be installed and

commissioned by December 2014

New Initiatives II: Community-based Solar

Anticipated process for community-based solar programme. Implementation Guidelines are currently being developed. © GIZ / Source: DEDE

NEPC working group is currently establishing the implementation guidelines

PEA and Thai Village fund are leading the working group

EPC know-how could be needed for communities who will have a great interest in long-lasting high quality installations…

Community-based solar: next steps

Thailand has made the next step to solar market development in rooftop and community segment, leading the way in SEA

COD of rooftop projects pending, practical solution will be followed

Factory license is stalling the market currently, all ministries keen to resolve, which will happen as soon as new government is in place

Current political situation is an issue, however, support for solar is bipartisan… when resolved, expectiations for solar market development positive

Current business opportunity for commercial under the feed-in tariff

New phase for solar rooftop could be set in place in 2014

Community solar opportunity should come up in 2014 as well

Conclusion

Thomas Chrometzka

Director Renewable Energy (GIZ Thailand)

Project Development Programme South-East Asia

thomas.chrometzka@giz.de

www.renewables-made-in-germany.com

Thank you…