2011 International Conference on Alternative Energy in Developing Countries and Emerging Economies
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spend a significant budget on research and
development on more advanced technologies such as
biogas, ethanol, algal biodiesel, green gasoline
(extracting oxygen from sugar to produce
hydrocarbon), biobutanol, advanced generation
biofuels (from genetically modified organism)) as
well as biomass to liquid (BTL), gas to liquid (GTL),
E-diesel, hydrogenation (e.g. Bio-Hydrogenated
Diesel – BHD), and DME (Di-methyl Ether).
Hydrogen.
Thailand aims to be “hydrogen
economy”. In the future, the country hopes to use
hydrogen extensively in transportation and logistics
sectors. The long-term plan sets into three phases.
Phase 1: Preparation phase (present – 2017). This
phase involves enacting important laws and
regulations for hydrogen use such as Hydrogen
Transportation Act. At the same time, government
subsidies, tax incentives, and public education
programs have to be implemented. By the end of
2017, Thailand hopes to reach hydrocarbon use of
100,000 kg/day level.
Phase 2: Hydrogen economy starting phase (2017
– 2024). Commercialization of technologies into the
market will begin in this phase, along with
production infrastructure investment. Thailand plans
to be one of the leaders in the commercial hydrogen
energy sector.
Phase 3: 2
nd
Clean coal technologies (CCTs).
Thailand will
continue to use coal in the energy supply mix.
However, they aim to use cleaner coal by employing
CCTs. The success will foster by public and private
sectors and NGOs. Government will invest in studies
and research to upgrade brown coal, coal
liquefaction, integrated coal gasification, and carbon
capture storage. The coal technology standards and
public education will have to be implemented to
succeed this goal.
Phase of the hydrogen economy
(2024 – onward). Assuming the public has strong
confidence in technology and infrastructure, the local
hydrogen energy market should thrive during this
phase. Thailand will begin to export the excessive
hydrogen and become “hydrogen economy”.
Nuclear power.
Thailand is a member of the party
to nuclear non-proliferation and peaceful uses of
nuclear energy, and plans to participate in the
relevant IAEA (International Atomic Energy
Agency) conventions to accommodate their nuclear
power development. Human capital development is
the key; therefore, education and training will be
provided to potential workforce in this energy field.
Also, the understanding of cost structure and public
opinion are crucial for long-term success. Under
Thailand’s PDP, electricity capacity will increase
from 28,530 MW in 2007 to 52,028 MW by the end
of 2021. Nuclear will be used to help the country
achieve this goal. Two-1,000 MW nuclear power
plants will be established and the commercial
operation should be starting by 2020-21.
Way forward: Thailand’s new feed-in-tariff program
to expedite commercialization and to promote private
financing roles
Previously planned for five-1,000 MW nuclear
plants, accounting for 11% of its electricity
generation by 2030 under the PDP 2010, Thailand
has faced strong public opinion against nuclear
energy due to the nuclear crisis in Japan.
Given this concern, it’s likely that the nuclear
power in Thailand will not be materialized within the
next 10 years. Therefore, to substitute the absence of
nuclear power, and to speed up renewable energy
commercialization, the Thai government has to
introduce more attractive and more efficiently
structured feed-in-tariff program.
Having been launched and implemented for 3
years, the existing “Adder” program has presented
some practical drawbacks as follows:
i) The content of PPA (power purchase agreement)
is relatively weak, especially considering legal
aspects.
ii) The conditions of PPA are relatively rough and
not attractive enough, raising bankability
concerns for developers and bankers, such as the
5 years, with two 5-year extensions, term of the
PPA.
iii) The program couldn’t effectively screen quality
of projects, especially for solar, resulting in over-
submission.
Considering such weaknesses, a feed-in-tariff
committee has been working on the full feed-in-tariff
structure, using European system as a benchmark,
which will be launched in 2011. Solar rooftop will be
launched first, and then solar, wind, biomass, and etc.
According to an announcement by policy makers
(e.g. DEDE and ERC), the new feed-in-tariff
program is designed to be more effective and
attractive for developers and lenders. Moreover, the
weaknesses such as legal framework, short period of
subsidy, and too-long COD will be fixed.
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Public finance mechanisms are government-
backed subsidy programs. This can be in forms of
equity, debt, grant, guarantee, and etc. In the
renewable energy industry, public finance
