Download Renewable Energy Sources in Southeast Asia: Current Status and

7
TEAM
4
Renewable Energy
Sources in Southeast
Asia: Current Status
and Future
Implications
Wind and Solar Energy
Thailand and Vietnam
Oscar Alfaro
Ricardo Espinoza
Alejandra Mendez
Diana Servin
Rocio Vazquez
Green Energy Manufacturing
Dr Mandal
10/1/2013
1
Table of Content
Introduction .................................................................................................................................................. 3
Problem statement/issue with renewable energy sources .......................................................................... 4
Thailand and Vietnam: Technological development in the last two decades .............................................. 6
Current status of other available renewable energy sources....................................................................... 9
Thailand---Biomass.................................................................................................................................... 9
Vietnam---Biomass .................................................................................................................................. 10
Vietnam--Hydropower ............................................................................................................................ 10
Thailand ---Hydropower.......................................................................................................................... 11
Comparative studies between Thailand and Vietnam................................................................................ 12
Existing Capacity and Targeting Capacity of Thailand (MW)
2011-2022........................................... 12
Existing Capacity and Targeting Capacity of Vietnam (MW)
2011-2022 .......................................... 13
Renewable energy policies and future prospects in Thailand .................................................................... 13
Renewable energy policies and future prospects in Vietnam .................................................................... 16
Thailand Environmental Impact .................................................................................................................. 17
Vietnam environmental impact .................................................................................................................. 19
Conclusion ................................................................................................................................................... 19
References .................................................................................................................................................. 20
2
Introduction
As part of the socioeconomic development of a country, energy and energy sources play
a substantial role and it is of high importance be aware of this. In the past, fossil fuels have been
the main source of energy in the world, but in recent years, its downsides have become more
noticeable. The main issues with fossil fuels are that it is a limited nonrenewable source of
energy and that is use have led to global warming.
For many countries in the world, renewable energy can become a good source since they
have limited resources on fossil fuels and they might have a particular strength on a type of
renewable energy. Renewable energies rely on inexhaustible sources and are free from
greenhouse gases emissions. This gives them an enhancement over other energy sources. Also
the cost can be a benefit depending on the area and the energy source. Below is a table showing
costs power of generations of different energy sources along with its characteristics.
TABLE I
Costs of Power Generations
Many first world countries nowadays are very concern and very active in finding
sustainable energy sources. This has become a priority when talking about energy due to the
levels of pollution found in many of them. In developing countries, renewable sources of energy
3
are becoming not only more common but more viable solutions since in some instances they
represent less costly alternatives.
In this paper we will analyze some renewable energy sources in Southeast Asia along
with their current status and their future implications. This area is a sub region of Asia and it is
considered to have heavy seismic and volcanic activity. This zone is composed of Cambodia,
Laos, Myanmar (Burma), Thailand, Vietnam , Brunei, Malaysia, East Timor, Indonesia,
Philippines, Christmas Island, and Singapore. Overall this region has a physical area of 4.5
million km2, a population over 610 million and it has an estimated average GDP (nominal per
capita) of over $10000 (with some countries as low at $849 and as high as $49936). Below is a
map for the Southeast Asia.
Fig. 1. Southeast Asia Map
Problem statement/issue with renewable energy sources
As population grows the demand for energy increases. This leads to a greater demand and
a quest to allocate energy generation methods that are not only more cost effective but are viable
for the areas needed. Southeast Asia as a region that posses abundant natural resources and this
makes it very suitable for renewable sources. Its countries are considered rapid and dynamic
developing and this is a gate opener for development of renewable sources of energy such as
hydro, biomass, geothermal, hydro and solar. Countries like Singapore, Indonesia, Philippines,
Malaysia, Thailand and Vietnam are setting targets on renewable energy in order to supply their
4
needs in energy due to their rapid growing rate. On below figure, we can see the targets
Southeast Asia has set up as a region for 2030.
Fig. 2. Existing and Target Capacity for Southeast Asia
For this paper we will discuss two main energy sources: wind and solar. Wind energy has
become more popular and has been increasing in the last decade. Solar energy is viable and
depends on certain conditions such as weather and solar emissions.
Some of the considerations that we need to have in mind when we talk about wind energy
are tower height, the data recovery rates, quality of the equipment that is being used in building
the turbines, usage/maintenance of the turbines, areas in which the this will be a feasible option,
space allocation among other. These are elements that need to be considered thoroughly or they
will become an issue on planning for wind turbines.
Solar energy forms a vital part of most of Southeast Asian countries’ national renewable
energy plans and policies that are being enforced for the next 2 decades. These new policies
represent large scale investments. Some considerations for solar or photovoltaic energy that have
to be taken into account are location, size of the PV panels, and weather among other.
5
Thailand and Vietnam: Technological development in the last two
decades
Thailand's
's economic transformation has been occurring since the sixties thanks to an
industrial policy based on the promotion of private investment, both Thai and foreign. Public
investment has focused on the development of infrastructure, technology and public services.
The government has implemented a program called the “Adder” to promote the priva
private sector of
power producer to invest in renewable energy methods. Thailand has signed the Kyoto Protocol,
and therefore is benefiting from it. This international convention classifies Thailand as a country
on that investment in the renewable energy sector will allow a company in a developed country
to offset their carbon emissions. The government has already made energy projects covered by
this mechanism, as the construction of power plants.. As shown in table 1. The project called
“Adder” has been implemented
nted in this nation the usage of Renewable energy as an incentive.
TABLE II
Adder for renewable energy in Thailand (as of 2008)
The problems of energy sufficiency forced to seek alternative sources of energy. Power
generation in Thailand depends heavily on fuel imports. This makes the country vulnerable to
energy supply disruptions and fluctuations in world market prices. At the same time
time, Thailand is
endowed with abundant renewable energy sources such as biomes, biogas, mini
mini-hydro, solar and
wind whose use can increase the country's energy security and saving foreign exchange and
protect against fluctuations in world prices.
prices
Since 1982, Thailand as implemented a power development plan to focus on different
clean and efficient
nt energies. As seen in Figure 3.. How the installed capacity of generation system
has been modified in the past decade and how it is planned for the next two decades.
6
Fig. 3. Installed capacity of Thailand generation system
The solar industry has gained strength as a global energy source, not only for the
advancement and technological innovation that characterizes this sector, but to become a key
driver for countries to renew their energy policy. Asian companies began in the early 1990s to
invest in solar energy and have recently diversified global operations in this industry through
plant Lopburi in Thailand, one of the largest in the world. Thus, Thailand seeks to diversify its
sources of renewable energy, supply its domestic demand and, in the future, expand the model
and supply to neighboring countries, which would make a supplier and regional development
center.
Fig. 4. Renewable energy development in 3 years (2007-2009)
The government has several plans in place to diversify energy supplies and promote
alternative energy sources; the stated objective for 2011 is that 8% of the primary energy that is
sold comes from renewable energy sources.
On the other side, the demand for electricity in Vietnam has been growing significantly to
an approximation of 15%. To understand Vietnam it is important to understand that this is a
country where 20% of its population live in rural areas without access to electricity Vietnam
7
considers the technology and renewable energy as a key economic sector to boost
industrialization and modernization process in the interest of reducing poverty.
Vietnam has planned a national energy system linked to socio-economic development
and under the guidance of international integration and efficient use of natural resources. In this
sense, prevail gradually build an energy market; diversify ownership and business in favor of the
interests of consumers. As seen on figure 2. A proper development of the electricity system, coal,
oil and renewable energy, attracting investor and environmental protection has been
implemented in the last decade.
Fig. 5. Structure of energy sources generating electricity in Vietnam in the phrase 2001-2010
As seen on the above figure, there are three main sources used in the last decade such as
hydropower, thermal coal, electricity and thermo-electric gas. In Vietnam in recent years the
Government has been trying to push investors to create more diverse sources of energy. Many
foreign countries support Vietnam to assess the effect of the integration of the fountain in the
national electricity system and market operation of the sector in order to ensure security of
supply. Vietnam as a participant of the Kyoto Protocol has undertaken an active process of
development of green alternatives, attracting more and more investors friendly to the
environment in the areas of high levels of CO2 emissions. Vietnam has more than 120 000
hydroelectric plants, which generate about 300 megawatts. In addition, the power of its wind
energy is estimated at 514 megawatts. The production of electricity has increased significantly
in the last ten years in Vietnam, however the production growth is not expected to meet demand
in the coming year. Government forecasts that the country will need to import a significant
amount of fuel in the coming years.
8
Current status of other available renewable energy sources
Thailand---Biomass
Thailand is an agricultural country which has plenty of biomass fuel such as wood chip,
paddy husk, emptied palm bunch, rice.
The concept at Thailand of the biomass energy is been promoted in order to reduce
energy imports. The program started back on 1992 using several measures, including provision
of top-up money for power generation using biomass fuel, guarantee of purchase and the
provision of soft loans for the implementation of the project. The target of the (AEDP- 20082022) Alternative Energy Development plan was to have about 20% of the country’s total energy
from renewable resources.
In order to meet that target Thailand must have by the year of 2022 a total capacity
installed of 3,700MW. On September of 2011, the total capacity installed was of 1,397MW with
only 84 biomass power plants.
Fig. 6. Biomass Projection for Thailand
The main barrier of the implementation of the projects is public oppositions, because of
poor planned projects created public fear or health impacts from biomass power plants, in order
to solve this, the HIA (health impact assessment) need to work with the stakeholders creating
new policies in order restart the projects.
9
Vietnam---Biomass
Biomass is the major source of energy at in Vietnam. It is estimated that approximately
90% of domestic energy consumption in rural areas comes from the biomass energy such as fuel
wood, and agricultural residues, it is also an important source of energy for small industries
located also at the rural areas
Fig. 7. Biomass in Vietnam
The well utilization of these residues creates opportunities and will benefit the
environment. However, just only about over 30% of this resources are exploited and mainly used
for household cooking. Therefore, it is necessary to provide the related information on energy
efficiency technologies, energy conservation measures or improvements inside the country to
help the local people use energy efficiently, improve their standard of living and also contribute
to the environmental emission reduction
Vietnam--Hydropower
-Vietnam has 2360 rivers equal or greater than 10Km long
-10 Major River Systems with hydropower development potentials
By 2010 about 50 hydropower plants were put into operation, it is projected that in 2020:
80 large and medium hydropower plants will be operating.
-Hydropower plants constructed in less developed regions help boost up their socioeconomic development
-1980 hydropower accounted for only 20% of Vietnam total power capacity; early 2008
accounted for 37.09%.
10
TABLE III
Renewable Energy Consumption and Capacity
In the economically sector, the higher the proportion of hydropower in the system, the
lower the power price. The projected Hydropower consumption and capacity is been reflected on
the below table for the coming years
Thailand ---Hydropower
Thailand electricity consumption of national grid in 2010 was 121,229 GWh it increased
5.4 % over 2009. The total of national grid installed capacity in 2010was 26,269MW up 1.4%
over the year 2009. The Hydropower installed capacity and generation it’s been shown on the
below table.
TABLE IV
Hydro Installed Capacity and Generation
11
Comparative studies between Thailand and Vietnam
TABLE V
Existing Capacity and Targeting Capacity of Thailand (MW) 2011-2022
Fig. 8. Existing and Target Capacity for Thailand
12
Existing Capacity and Targeting Capacity of Vietnam (MW) 2011-2022
Fig. 9. Existing and Target Capacity for Vietnam
Renewable energy policies and future prospects in Thailand
Thailand was one of the first countries in Asia in implementing renewable energy polices
for the generation of electricity. By supporting RE policies and incentives, the Thailand’s
government aims to increase the energy stability of the country.
There is a large potential in Thailand for the implementation of renewable energy; for this
reason the government passed the 15-year Renewable Energy Development Plan (2008-2022).
The REDP has as an objective to achieve 20% of RE in final energy consumption. Then a 10year Renewable Energy Development Plan (2012-2021) increased the target to 25% in electricity
consumption (see table VI ). In order to achieve this objective, the government has implemented
the below policies and incentives to attract RE investors.
13
TABLE VI
Renewable energy potential, 2008 capacity and 2021 alternative development plan targets
In 1992 the government introduced the Small Power Producer (SPP) programme. This
policy forces to the electricity authorthy to purchase the power generated by RE plants. The RE
plants with a capacity of export 90 MW were eligible for this programme. A smiliar programme
was introduced in 2001 but for RE plants with a export capacity of 10 MW, a Very Small Power
Producer (VSPP).
Another policy implemented is the Feed-in-tariff (FiTS) or “adder”. The adder,
implemented in 2007, is a feed-in premium paid to SPP and VSPP. It offers incentives for
private investors who are willing to invest in the RE projects by guaranteeing attractive power
purchasing rates. The investors also will enjoy long-term contracts to sell the RE electricity at
specific tariff with the local utility. The purchasing rates depends on the type of renewable
energy used to generate electricity and the area where the energy is generated (Table ?). For
example, there is a special purchasing rate for the Southern area because the political instability;
and the government want to address the risk for the investor adding a special rate in this region.
Also, in order to stimulate the reduction of fossil fuel, there is also a special adder rate for RE
energy generated that replace diesel.
14
TABLE VII
Thailand’s Fits Rates
The Thailand government also has put in place low-interest loan options for large, small,
medium sized enterprises. Large-scale investors can receive financial assistance in the form of
low-interest loans (4% of interest). Smaller-sized investors can receive up to $1.7 million USD,
in form of equity investment, venture capital, and equipment leasing if the RE project is
selected.
Also, the government offers incentives to eligible RE projects. For example, the selected
projects can get corporate income tax break up for 8 years and are exempt from import duties
and equipment.
Besides the local support that the RE projects are receiving in Thailand, some
international institutions also are offering help. The Asian Development Bank (ADB) and World
Bank’s International Finance Corporation (IFC) would like to participate in the development of
solar and wind energy and they will lame available $700 millions USD in low-interest loan.
Currently, both institutions provided funding for two constructions of two Bangchak solar power
plants totaling 34.5 MW and 9.3 MW respectively.
15
Renewable energy policies and future prospects in Vietnam
The energy demand in Vietnam is expected to increase four times from 2005 to 2030 and
the electricity demand will increase nine times from 2005-2025. For this reason the government
is encouraging the implementation of renewable energy policies.
To encourage renewable projects, Vietnam has introduced different polices and
incentives. On December 2007, the government introduces the National Energy Development
Strategy; it states that the government will provide financial support for the investigation and
research of renewable energies. Also, it states that investors are exempts of import, production,
and circulation taxes.
Another policy adopted by Vietnam is the Clean Development Mechanism (CDM)
projects; including wind, solar, geothermal and tidal energy, are receiving subsides from the
government.
In 2008 another policy was implemented, the Avoided Cost Tariff (ACT). The avoided
cost is defined as “the production cost of 1 kWh of the most expensive generating unit in the
national grid, which would be avoided if the buyer purchases the 1 kWh of electricity from a
substitute small renewable power plant” (Vietnam Country Report pg. 17). The project that
qualified for the ACT also must employ the SPPA, which is the Standardized Power Purchase
Agreement for Small Renewable Energy power plants (SPPA). This policy specifies the rate for
the sale of electricity.
Vietnam is the biggest wind resource potential country in Southeast Asia, and for this
reason, the government is given more attention to wind power development. On 2011, a new
policy was implemented in specific for this renewable energy and it sets the wind electricity
price to be bought by the buyer ($7.8 US cents/kWh). This price includes a subsidy for $1 US
cent/kWh.
On the same year, 2011, the government approved the Power Development Plan (PDP),
the plan has strong emphasis on energy security, energy efficiency, and renewable energy
development. This plan states that investors who contribute to renewable projects will received
the government support.
16
Thailand Environmental Impact
The renewable resource of Thailand generation system was 3.7% of installed capacity in
2011 and if the current percent increase continues it is expected to grow up to 7.3% in 2030. The
Thailand government wants to increase its share of renewable resource; however, there are cost
versus environment impact that has to be evaluated. The Following table compares costs and
emissions in order to understand better the options.
TABLE VIII
Comparing Fuel for Generator in Thailand
When comparing the average cost projections versus the environmental impact, the
government planners can decide what percent of renewable resource is more adequate for future
planning base on the availability of financing resources. These models can be frequently visited
and recalculated in order to obtain better projections because it is estimated that the cost of fossil
resources will be increased while the renewable resources will be reduced. The following charts
are projecting until 2030 and having as a baseline the actual projections of 2010.
17
Fig. 10. Average CO2 Emissions
Fig. 11. Average Cost
18
Vietnam environmental impact
40% of the power generation in Vietnam comes from hydropower. In addition, 20% of its
energy is imported from china and Laos because it cannot keep-up with the increase of up to
15% increase per year in the past decade.
One of the negative consequences is that water sources on lower reaches of the Red River
Delta and the Mekong Delta will run out due to the hydroelectricity projects of China and Laos
and that flooding and environmental pollution will have a bad impact on millions of farmers.
Green technologies such as wind and solar are difficult to develop due to Vietnam's land
is mostly hilly and densely forested, with level land covering no more than 20%. Mountains
account for 40% of the country's land area, and tropical forests cover around 42%. These
topographical differences trigger another difficult for green technologies due to its climate
variation.
Conclusion
In conclusion we can easily understand that the implementation of renewable resources is
more difficult to implement in developing nations. Currently, Southeast Asia is a region that is
actively seeking to achieve this type of implementation. Solar and wind energy are two sources
that are gaining popularity among all, but in order to implement them several factors have to
been taken into account.
Thailand and Vietnam are two countries in Southeast Asia that are considered in rapid
development. As part of their developments they are finding new ways of producing energy in a
more efficient, ecological and less costly manner. Their governments are coming up with new
policies and regulations in order to be successful in these changes and in order to be able to have
a better opportunity as green energy producers.
With energy demand increasing on both countries, the government is encouraging
implementation on renewable energy programs. These programs also include biomass and
hydropower based on their geographical strengths. This will also create an environmental impact
by reducing their greenhouse gases emissions.
19
References
(2011). A Review Study on Trends to Wind Energy in a Global Context. Manish Kumar Das
and Thananchai Leephakpreeda, 1-13.
(2006). Alternatives to grid extension for rural electriïcation: Decentralized renewable energy
technologies in Vietnam. Energy Policy, 1, 1-6.
(2010). Assessment of Financial Feasibility of Vietnam Hydro Power Plant. IEEE, 1, 1-3.
(2012). Biomass Business Opportunities Vietnam. Dagmar Zwebe, 1, 1-78.
(2010). Biomass Energy Usage in Vietnam. Nguyen Minh Bao and Nguyen Duc Cuong, 1, 1-4.
(2009). Biomass Power Generation Development in Thailand . IEEE, 1, 1-6.
(2012). Challenges of Energy Security to the Industrialisation and Sustainable Development in
Vietnam. Technology and Investment, 1, 1-7.
(2012). Development of Thailand's First Nuclear Power Plant. Apisit Patchimpattapong, 1, 1-13.
(2009). Economic potential of renewable energy in Vietnam’s power sector. Energy Policy,
1, 1-13.
(2012). HIA and Biomass Energy Development in Thailand. Juntarawijit C.* and Juntarawijit
Y, 1, 1-6.
(2012). Impact of Renewable Energy on Thailand Power Development Plan . IEEE, 1, 1-4.
(2013). Inside stories on climate compatible development. World Resources Institutes, 1, 1-7.
(2012). Thailand’s Renewable Energy Policy: FiTs and Opportunities for International
Support. Dr. Sopitsuda Tongsopit/Dr. Chris Greacen, 1, 24.
(2012). The Evaluation of Economic and Social Effect from the Revised Nuclear Power Plant
Planning in Thailand. IEEE, 1, 1-4.
(2010). Vietnam Country Report. n/a, 1, 1-30.
20
(2011). Vietnam Energy Statistics. n/a, 1, 1-5.
(2010). Vietnam Power System Overview and Challenges. Hoang Tien Dung, 1, 1-5.
(2011). Vietnam hydropower current situation and development plan. Dr. Nguyen Huy Hoach,
1, 1-22.
(2011). Wind Energy Resource Atlas of Southeast Asia. The World Bank Asia Alternative
Energy Program, 1, 1-165.
(2006). Wind energy in Vietnam: Resource assessment, development status and future
implications. Energy Policy, 1, 1-9.
(2010). Small Hydropower in Thailand. Mrs. Duchanee Cheypet, 1, 1-36.
21