Transcript Feed-in tariffs and south-south policy/technology transfer: The evolution and implementation of Very Small Power Producer (VSPP/SPP) Regulations in Thailand and Tanzania Monterey Institute for.

Feed-in tariffs and south-south policy/technology
transfer: The evolution and implementation of Very
Small Power Producer (VSPP/SPP) Regulations in
Thailand and Tanzania
Monterey Institute for International Studies
Monterey, California, USA
8 May 2010
Chris Greacen
[email protected]
Palang Thai พลังไท
พลัง (palang): n 1. Power. 2. Empowerment.
ไท (thai): adj. 1. Independence. 2. Self-reliance
• Thailand NGO
• Objective:
– To ensure that the transformations that occur in the region's
energy sector: augment, rather than undermine, social and
environmental justice and sustainability.
• Key approaches:
– We teach hands-on energy technology
– We draft / comment on policies
– We work to empower citizens to look critically at government
and industry projects and plans
– We advocate structural reform
Mae Kam Pong village microhydro
Can’t we hook it up and sell power back?
Meeting between National Energy Policy Offic (NEPO) and Mae Kam
Pong villgers to discuss grid interconnection of their village micro-hydro
$
$
Technical regulations:
• Allowable voltage,
frequency, THD
variations
• Protective relays
– 1-line diagrams for all
cases:
•
•
•
•
•
Induction
Synchronous
Inverters
Single/multiple
Connecting at different
voltage levels (LV or MV)
• Communication
channels
Commercial regulations:
• Definitions of
renewable energy, and
efficient cogeneration
• Contract parties
• Cost allocation
• Principle of
standardized tariff
determination
• Invoicing and payment
arrangements
• Arbitration
+ Standardized Power Purchase Agreement (PPA)
Thailand’s
Electricity Industry Structure
Generation
(% share)
SPPs
(10%)
(45%)
IPPs
(42%)
Import
(3%)
EGAT (100%)
Transmission
Distribution
EGAT
PEA
(66%)
MEA
(32%)
Users
Users
Direct Customers
(2%)
Thailand’s
Electricity Industry Structure
Generation
(% share)
SPPs
(10%)
(45%)
IPPs
(42%)
Import
(3%)
EGAT (100%)
Transmission
Distribution
EGAT
PEA
(66%)
MEA
(32%)
Users
Users
Direct Customers
(2%)
VSPPs
(<1%)
Thailand’s
Electricity Industry Structure
Firm / non-firm
Generation
(% share)
SPPs
(10%)
(45%)
IPPs
(42%)
Import
(3%)
EGAT (100%)
Transmission
Distribution
EGAT
Peak / off-peak
PEA
(66%)
MEA
(32%)
Users
Users
Direct Customers
(2%)
VSPPs
(<1%)
Evolution of Thai VSPP regulations
• 2002
– VSPP regulations drafted, approved by Cabinet
– Up to 1 MW export, renewables only
– Tariffs set at avoided cost (bulk supply tariff + FT)
Reduces air and water pollution
Biogas from
Pig Farms
Produces fertilizer
Produces electricity
8 x 70 kW generator
Ratchaburi
Biogas from Pig
Farms
Micro hydropower
•40 kW
•Mae Kam Pong, Chiang Mai,
Thailand
Korat Waste to Energy – biogas
… an early Thai VSPP project
• Uses waste water from cassava
to make methane
• Produces gas for all factory heat
(30 MW thermal) + 3 MW of
electricity
• 3 x 1 MW gas generators
Evolution of Thai VSPP regulations
• 2002
– VSPP regulations drafted, approved by Cabinet
– Up to 1 MW export, renewables only
– Tariffs set at avoided cost (bulk supply tariff + FT)
• 2006
– Up to 10 MW export, renewables + cogeneration
– Feed-in tariff “adder”
– If > 1 MW then utility only pays for 98% of energy
Rice husk-fired power plant
• 9.8 MW
• Roi Et, Thailand
Bangkok Solar 1 MW PV
• Project size: 1 MW
• Uses self-manufactured a-Si
Evolution of Thai VSPP regulations
• 2002
– VSPP regulations drafted, approved by Cabinet
– Up to 1 MW export, renewables only
– Tariffs set at avoided cost (bulk supply tariff + FT)
• 2006
– Up to 10 MW export, renewables + cogeneration
– Feed-in tariff “adder”
– If > 1 MW then utility only pays for 98% of energy
• 2009
– Tariff adder increase, more for projects that offset diesel
http://www.eppo.go.th/power/vspp-eng/ for English version of regulations, and model PPA
Thai VSPP feed-in tariffs
Fuel
Adder
Additional for Additional for Years effective
diesel offsetting 3 southern
areas
provinces
Biomass
Capacity <= 1 MW
$ 0.015
$
0.030
$
0.030
Capacity > 1 MW
$ 0.009
$
0.030
$
0.030
Biogas
<= 1 MW
$ 0.015
$
0.030
$
0.030
> 1 MW
$ 0.009
$
0.030
$
0.030
Waste (community waste, non-hazardous industrial and not organic matter)
Fermentation
Thermal process
Wind
<= 50 kW
> 50 kW
Micro-hydro
50 kW - <200 kW
<50 kW
Solar
7
7
7
7
$ 0.074
$ 0.104
$
$
0.030
0.030
$
$
0.030
0.030
7
7
$ 0.134
$ 0.104
$
$
0.045
0.045
$
$
0.045
0.045
10
10
$ 0.024
$ 0.045
$ 0.238
$
$
$
0.030
0.030
0.045
$
$
$
0.030
0.030
0.045
7
7
10
Assumes exchange rate 1 Thai baht = 0.029762 U.S. dollars
Tariff
=
Biomass tariff =
adder(s) + bulk supply tariff + FT charge
$0.009 + $0.049
+ $0.027
= $0.085/kWh
Generating Capacity supply to Grid
from 2006 - August 2009
การไฟฟ้ าส่ วนภูมภิ าค
PROVINCIAL ELECTRICITY AUTHORITY
MW
(31 August 2009)
Wind
350
Hydro
MSW
300
Solar
Cogeneration
www.pea.co.th
call center 1129
250
Biogas
Biomass
200
รวม
150
100
50
Year
0
2006
การไฟฟ้าส่วนภูมภิ าค
2007
2008
23
2009
VSPP project pipeline as recorded in
EPPO data
Application
under
consideration
Permission
received,
awaiting PPA
PPA signed
Leakage (Project abandoned)
Generating &
selling electricity
Jun 2009
2000
1800
1600
1400
1200
1000
800
Biomass
Solar
Wind
Garbage
600
400
Biogas
200
Coal cogen
Natural gas cogen
0
Application
pending
Received
PPA signed
permission,
awaiting PPA
Microhydro
Generating
electricity
Thailand VSPP Status
Dec 2009
2000
1800
1600
1400
1200
1000
800
Biomass
Solar
Wind
Garbage
600
400
Biogas
200
Coal cogen
Natural gas cogen
0
Application
pending
Received
PPA signed
permission,
awaiting PPA
Microhydro
Generating
electricity
Thailand VSPP Status
Mar 2010
2000
1800
1600
1400
1200
1000
800
Biomass
Solar
Wind
Garbage
600
400
Biogas
200
Coal cogen
Natural gas cogen
0
Application
pending
Received
PPA signed
permission,
awaiting PPA
Microhydro
Generating
electricity
Thailand VSPP Status
Mar 2010
2000
1800
1600
1400
811 MW online
1200
1000
800
Biomass
Solar
Wind
Garbage
600
400
Biogas
200
Coal cogen
Natural gas cogen
0
Application
pending
Received
PPA signed
permission,
awaiting PPA
Microhydro
Generating
electricity
Thailand VSPP Status
Mar 2010
PPAs signed for
additional 4159 MW
2000
1800
1600
1400
811 MW online
1200
1000
800
Biomass
Solar
Wind
Garbage
600
400
Biogas
200
Coal cogen
Natural gas cogen
0
Application
pending
Received
PPA signed
permission,
awaiting PPA
Microhydro
Generating
electricity
Thailand VSPP Status
… but it’s still a tiny part of Thailand’s electrical energy
Generation
(% share of GWh)
SPPs
(10%)
(45%)
IPPs
(42%)
Import
(3%)
EGAT (100%)
Transmission
Distribution
EGAT
PEA
(66%)
MEA
(32%)
Users
Users
Direct Customers
(2%)
VSPPs
(<1%)
Evolution of Tanzania SPP
regulations
• Approved by regulator August 2009
• Up to 10 MW export, renewables &
cogeneration
• SPP Tariffs at average of LRMC and SRMC
– Grid-connected SPP tariff (2009): $0.066/kWh
– In rural mini-grid areas offsetting diesel (2009):
$0.26/kWh
• 5 PPAs signed by March 2010
www.ewura.go.tz/sppselectricity.html for English versions of regulations, and model PPAs
Wealthy countries pay Feed-in
tariff incremental costs?
GET FiT proposed mechanism
South-south policy/technology transfer:
Technical Visit of the Delegation
from the United Republic of Tanzania to Thailand
regarding
Thailand’s Very Small Power Producer (VSPP) program
13-20 March 2010
How we have done?
การไฟฟ้ าส่ วนภูมภิ าค
PROVINCIAL ELECTRICITY AUTHORITY
•Document check
•Identify circuit connection
•System study
•Line connecting construction
•Meter installation
•Meter reading
•license check
•All test
www.pea.co.th
call center 1129
•PPA Check
Submitted
Proposals
Acceptance
Letter
•All license check
PPA signed
First synch.
•Meter reading
•Billing
COD
Every 1ft
VSPP will get first settlement within 3 month after COD.
การไฟฟ้าส่วนภูมภิ าค
40
Who have involved in PEA ?
การไฟฟ้ าส่ วนภูมภิ าค
PROVINCIAL ELECTRICITY AUTHORITY
System
Operation Div.
Research Div.
•First synch. test
•PQ test
•Identify circuit connection
•Control & Operation
•Communication
Relay Div.
call center 1129
•Switchgear &
Relay test
Meter Div.
DG office
• Technical & System Analysis
• Document
• Coordinator
•Meter installation
Area Office 1-12
& Local Office
•Line connecting construction
•Meter reading
Legal Div.
www.pea.co.th
•PPA check
Tariff Div.
•Billing
Finance Dep.
•Settlement
การไฟฟ้าส่วนภูมภิ าค
System Operation Area
Office 1-12
41
VSPP
Vietnam?
Tanzania
Thailand
Philippines?
Winter 2010-11 … community built,
community-owned, profitable VSPP
micro-hydro in Thailand
Unlimited living?
http://www.soho-properties.com/condobangkok-leraffine31/
Office of the National Economic and Social Development Board
OFFIC E
OF THE
PRIME
MINISTER
Macroeconomic Analysis
(Low margin/return)
Low
Value Creation
High
Import Contents
& Sheer size
of
export to GDP
High
Energy Intensity
& Low Efficiency
& Unsustainable
structure
Slow Technology
Development
Lack of Saving
No immunity/
High volatility
Financial System
Enabling factors:
MACROECONOMIC
MANAGEMENT
Electricity production
and consumption
(GWh)
Source: MEA, EGAT, Searin, Graphic: Green World Foundation
Impacts of Pak
Mun Dam alone
1700 families
relocated
Loss of 116
fish species (44%)
Fishery yield
down 80%
Pak Mun
Loss of livelihood
for >6200 families
Dams
Mae
Hong
Song
Malls
65
Province
Bonok-Ban Krud story
Bonok Bankrud
Power Demand: Projections vs. Actual 1992 – 2009
If no systemic bias, the chance of over-projecting demand 15 times in a row = (½)15 =
1/32,768
MW
48,000
44,000
40,000
36,000
32,000
28,000
24,000
มิ.ย.-93
ธ.ค.-94
ต.ค.-95
เม.ย.-96
ต.ค.-96
มิ.ย.-97
ก.ย.-97
Sep-98(MER)
ก.พ.-01
ส.ค.-02
Jan-04(LEG)
Jan-04(MEG)
Apr-06 (MEG)
มี.ค.-07
ACTUAL
ธ.ค.-08
20,000
16,000
12,000
8,000
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
2012
2014
2016
2018
2020
Fictional power demand did lead to real
investments that become waste & burden
(not to mention disturbed ecology, communities)
Generation capacity in excess of demand (2007-2009) Under centralized
45
monopoly
structure
40
Reserve Margin (%)
35
Excess gas/
pipeline capacity/
generation capacity
30
25
Excess capacity
20
15
10
5
2007
2008
2009
economic waste +
excess burden for
consumers
0
JAN FEB MARAPR MAYJUN JUL AUG SEP OCT NOV DECJAN FEB MAR APRMAY JUN JUL AUGSEP OCTNOV DECJAN FEB MARAPR MAYJUN JUL AUG SEP OCT NOV DEC
Very little incentives to do energy efficiency/conservation
Source of data: EGAT 2010.
หมายเหตุ คานวณจากกาลังผลิตติดตัง้ และความต ้องการไฟฟ้ าสูงสุดรายเดือน
Linear versus exponential extrapolation
50000
24 power plants
45000
35000
30000
25000
20000
15000
10000
5000
2007 Forecast
Historic peak demand trend
2021
2019
2017
2015
2013
2011
2009
2007
2005
2003
2001
1999
1997
1995
1993
1991
1989
1987
0
1985
Peak demand (MW)
40000
Fuel mix in power generation power
development
plan
2007
GWh
Import
Nuke
RE
Gas
Coal
Lignite
Hydro
PDPs of the Pacific Northwest, USA
Source: Seattle City Light
Concluding thoughts
• VSPP regulations enable small generators together to
profitably make substantial contributions to electricity
generation.
• Zero / small carbon footprint
• Useful for decreasing diesel expenditures for rural
electrification
• VSPP projects help develop local engineering / project
development capacity.
• South-South policy/technology exchange
• English versions of regulations available online
• Still a drop in the bucket in Thailand… IRP needed
Thank you
[email protected]
This presentation available at:
www.palangthai.org/docs
VSPP regulations available at:
http://www.eppo.go.th/power/vspp-eng/
And
www.ewura.go.tz/sppselectricity.html