Download RENEWABLE ENERGY DEVELOPMENT AND DEPLOYMENT IN THAILAND

OVERVIEW OF “BIOMASS TO
ENERGY” IN THAILAND : The Current
Situation and Government Policy
Prof. Naksitte Coovattanachai
Director, RGJ-Ph.D. Program, TRF
and
Chairman of ARC, JGSEE, KMUTT
Joint International Seminar:
Biomass to Energy
14Feb06_The Grand Hotel Bangkok
The Grand Hotel
Bangkok
February 14, 2006
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OVERVIEW OF “BIOMASS TO ENERGY” IN
THAILAND : The Current Situation and
Government Policy
Outline of the Presentation
• Thailand energy situation and energy
problems
• Government policy on biomass energy
• Current biomass energy utilization
• Potential biomass as an energy source
• Challenges in biomass energy
development and deployment
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THAILAND ENERGY SITUATION AND ENERGY PROBLEMS
Primary Energy Consumption (PEC)
Total Thailand Primary Energy Consumption in 2004 : 98.1 Mtoe
Hydro 1 .6 %
Biomass
1 6 .0 %
Fossil fuels
8 2 .4 %
(Source : Thailand Energy Statistics, DEDE, 2004)
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THAILAND ENERGY SITUATION AND ENERGY PROBLEMS
Final Energy Consumption (FEC)
Total Thailand Final Energy Consumption in 2004 : 61.1 Mtoe
Electricity, 16.1%
Biomass, 17.1%
Fossil Fuels, 66.8%
(Source : Thailand Energy Statistics, DEDE, 2004)
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THAILAND ENERGY SITUATION AND ENERGY PROBLEMS
Trends of Final Energy Consumption by Economic Sector
(Source : Thailand Energy Statistics, DEDE, 2004)
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THAILAND ENERGY SITUATION AND ENERGY PROBLEMS
Energy Sources for Electricity Generation
Diesel
3.0%
Coal &
lignite 18.7%
Hydro 4.3%
Fuel Oil
and others
1.0%
Hydro 3.0%
Fuel oil
18.8%
Natural gas
57.6%
Coal &
Lignite
17.0%
Natural
gas 76.0%
2004
1999
Source
: Electric Power in Thailand, DEDE, 2003
: Thailand Energy Statistics, DEDE, 2004
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THAILAND ENERGY SITUATION AND ENERGY PROBLEMS
Thailand’s Outstanding Energy Problems
(1) Thailand has limited indigenous fossil
fuel reserves.
Thailand’s main fossil fuel resources:
•
•
Natural gas
- Proven reserves (15579 bcf) will last 25-30
years at present rate of utilization.
Lignite (installed capacity: 2400 MW)
- Reserves (2942 Mton) will last 60-100
years at present rate of utilization.
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THAILAND ENERGY SITUATION AND ENERGY PROBLEMS
Thailand’s Outstanding Energy Problems
(2) Thailand has not been able to increase the contributions
of the main indigenous energy resources to the
country’s energy demand.
•
Thailand’s main indigenous energy sources:
Hydropower:
- current installed hydroelectric capacity: 3000 MW
- reserve hydropower potential : 8000 MW
lignite:
- installed capacity of lignite powerplants: 2400 MW
- reserves: 2342 Mton (2003)
•
•
It has not been possible to develop additional hydropower
and lignite powerplant projects due to public resistance.
The public confidence in utilizing coal and hydropower for
large scale power generation is currently very low.
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THAILAND ENERGY SITUATION AND ENERGY PROBLEMS
Thailand’s Outstanding Energy Problems
(3) Although renewable energy sources appear to
have great potential, their current contributions
to the country’s commercial energy need is not
significant.
• Only about 400 MW of power generating capacity
have been installed to operate on biomass and
biomass residues during the past 5 years.
• About 6 MWp of PV have been installed and a 36
MWp solar home project for rural households has
been approved and started.
• The capacities of small hydropower and wind
turbine systems installed during the past 5 years
have not been significant.
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THAILAND ENERGY SITUATION AND ENERGY PROBLEMS
Thailand’s Outstanding Energy Problems
(4) Rising in oil price is having adverse effect on
the country’s economy.
• The burden of energy import on the economy has been rising.
• It is estimated that the energy import/GDP for 2005 will be over 10%.
Effect of Energy Import on the Economy
1998
2000
2002
2003
2004
Energy import/Total import (%)
8.3
12.6
12.1
13.0
14.6
Energy import/Total export (%)
6.5
11.3
11.4
12.2
14.3
Energy import/GDP (%)
3.2
6.4
6.2
6.9
8.7
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(Source : Thailand Energy Statistics, DEDE, 2004)
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GOVERNMENT POLICY ON BIOMASS ENERGY
Energy Conservation (ENCON) Program(1994)
• The ENCON Program also promoted renewable
energy through funding support.
• A renewable SPP project which gave subsidy of
up to 0.36 B/kWh was launched in 1995 and 16
biomass projects were approved for about 200
MWe.
• The ENCON Program also provided financial
subsidy (for system construction) of pig farm
biogas projects with the total funding of nearly
1000 million baht during 1995-2004.
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GOVERNMENT POLICY ON BIOMASS ENERGY
• The Thai government has clear policy to
promote renewables in a significant scale.
• Ministry of Energy’s Strategy for
Competitiveness (August 2003) set clear
goals for renewables:
 Increasing the contribution of commercial
renewable energies from 0.5% in 2002 to 8%
of the primary energy demand in 2011
 5 % RPS (renewable portfolio standard) for
the power sector from now to 2011
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GOVERNMENT POLICY ON BIOMASS ENERGY
• In May 2005 the Thai Cabinet approved a
new Energy Strategic Plan with very
aggressive targets for biomass energy :
 Reducing oil for the transportation sector by
25% by 2009 with use of natural gas, gasohol
and biodiesel
 Increasing the contribution of biodiesel to 8.5
million litre per day (10% of diesel
consumption) by 2012
 Transforming the agricultural sector into a
modern energy supply base
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CURENT BIOMASS ENERGY UTILIZATION
Biomass Resources in Thailand
Being an agricultural country and one of the largest
food exporters in the world, Thailand has abundant supplies
of biomass resources.
Productions of the Main Agricultural Products in (2002)
Paddy
26.10
Mton
Sugar cane
74.26
Mton
Maize
4.23
Mton
Cassava
16.87
Mton
Oil palm
4.00
Mton
Rubber
2.46
Mton
(Source : Ministry of Agriculture and Cooperatives)
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CURENT BIOMASS ENERGY UTILIZATION
Main Biomass Resources
1. wood residues from forest plantations
2. biomass from the agricultural sector (rice husk,
bagasse, corn cobs, etc.)
3. biomass residues from wood and furniture industries
(bark, sawdust, etc.)
4. wood and wood residues from dedicated energy
plantations
5. biomass for ethanol production (cassava, sugar cane,
etc.)
6. biomass for biodiesel production (palm oil, jatropha oil,
etc.)
7. biomass wastes (waste water) from agro-industry
8. biomass solid wastes from animal farms
9. municipal wastes
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CURENT BIOMASS ENERGY UTILIZATION
Traditional Use of Biomass Energy
• Currently biomass accounts for as much as
16% of Thailand’s primary energy need.
• Most biomass is used as traditional energy,
i.e. domestic cooking and providing heat in
rural industries.
• Wood and charcoal contribute about 65% of
the total energy used in the residential
sector.
• Significant efficiency improvement in
traditional uses of biomass can still be
made.
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CURENT BIOMASS ENERGY UTILIZATION
Power Generation
• Bagasse has been used to produce
electricity for onsite power requirement in
sugar mills.
• Power generation using biomass residues
has recently been promoted through the
Government’s SPP and VSPP program.
• About 600 MWe of power generating capacity
have been installed to operate on biomass
and biomass residues.
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CURENT BIOMASS ENERGY UTILIZATION
Biofuel for Transport
Ethanol Program
• Promoting E10 (gasohol: mixture of 90%
gasoline and 10% ethanol) in place of MTBE
• 25% of ULG95 already replaced
• Exempting excise tax on ex-plant ethanol
• Pricing policy: gasohol at US¢3.75 cheaper
• Current production of ethanol: 200,000 l/d
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CURENT BIOMASS ENERGY UTILIZATION
Biofuel for Transport
Biodiesel Program
• Promoting B3 as an additive to diesel to
increase pubricity
• Similar promotional privileges to ethanol
• Promoting community based biodiesel
production plants
• Current production of biodiesel : 10000 l/d
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POTENTIAL OF BIOMASS AS AN ENERGY SOURCE
Potential Supplies of Biomass
• As an agricultural country, Thailand appears
to be well endowed with biomass resources.
• Additional biomass can be produced in
energy plantations with better land
management.
• More biomass could be produced from the
same land through genetic improvement of
crops.
• It is also possible to regulate the crop
growing areas to increase the productions of
specific crops if needed.
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POTENTIAL OF BIOMASS AS AN ENERGY SOURCE
Potentials of Biomass for Power
Generation (Various Estimates)
• Biogas
365 MWe
• Biomass residues
(maximum possible)
4400 MWe
• Fast growing (short rotation)
trees
1400-12000 MWe
• Municipal solid Waste
400 MWe
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POTENTIAL OF BIOMASS AS AN ENERGY SOURCE
Potential of Biomass As Transport Fuels
• Ethanol
2,800,000 l/d
(based on surplus cassava & molasses)
• The production of cassava could be increased
through improving farming management.
• Biodiesel
400,000 l/d
(based on surplus palm oil)
• The growing areas for oil palm have to be increased
to increase its production.
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CHALLENGES IN BIOMASS ENERGY
DEVELOPMENT AND DEPLOYMENT
• The real potential of biomass will be
much lower than the technical
potential.
• There are several barriers in large scale
deployment of biomass energy.
• These barriers will have to be
addressed so that the full potential of
biomass resources can be exploited.
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CHALLENGES IN BIOMASS ENERGY
DEVELOPMENT AND DEPLOYMENT
Feedstock Problems
• Biomass residues are difficult and costly to
transport.
• It is difficult to collect large quantities of
biomass residues for large scale power
production as they are disperse.
• The annual yields of most crops fluctuate
depending on climatic conditions.
• The costs of some biomass residues
fluctuate widely depending the productions
and the prevailing economic condition.
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CHALLENGES IN BIOMASS ENERGY
DEVELOPMENT AND DEPLOYMENT
Competing Uses
• Biomass residues are widely used for other
purposes:
– Wood, wood residues and bagasse can be
used to make particle boards and paper.
– Rice husk is used as fuel in rural industries and
other applications.
– Palm oil is widely used in food and cosmetic
industries.
– Cassava is widely used to produce modified
starch and animal feeds.
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CHALLENGES IN BIOMASS ENERGY
DEVELOPMENT AND DEPLOYMENT
Institutional Barriers
• Poor coordination among several government
agencies involved in renewable energy promotion
and development
• Insufficient cooperation and understanding from
the utilities
• Conflicting policies from different ministries
involved
• Difficulty in the implementation of the operation
plans for increasing biomass feedstocks
• Lack of a neutral national regulatory body
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CHALLENGES IN BIOMASS ENERGY
DEVELOPMENT AND DEPLOYMENT
Improvement of the Promotional
Mechanisms
• More effective financial and tax incentive
schemes should be implemented.
• More flexible supporting measures are
needed.
• There is a need for a neutral body that can
make decision on suitable prices for biofuels
for transport.
• The public confidence and awareness of the
benefits of bioenergy should be created
continuously.
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