Future of Alternative Energy in Thailand - Implementing Environmental and Resource Management - page 97

ergy 2 , and 1.00 baht/kWh for other types of renewable energy to compensate for
risk from any political unrests (Amranand 2008). Incentives were also given
through financial soft loans and investment subsidies for energy production from
biogas and mini-hydro. Biogas can be produced from various wastes such as pig
farms, municipal wastes, and factory wastes (e.g., production of tapioca starch,
palm oil, rubber sheet, ethanol and other types of agro-industry).
Some renewable projects are not SPPs or VSPPs, but simply produce energy
for their own use or off-grid village-based projects in remote areas. Moreover,
government agencies were supported with a budget in order to implement mini
and micro hydro projects. As in most cases, obtaining the various permits would
be extremely difficult for the private sector. A financial support provision to the
private sector was made for assist in the acquisition of technical assistance for pi-
lot projects and also for aid in the venture into new or unfamiliar technologies.
Private investment is being encouraged through Energy Service Companies
(ESCO) and the ESCO Venture Capital Fund which is being established. Concern-
ing global warming reduction efforts, the trading of carbon credit through CDM
scheme has given an enormous boost to a number of marginal projects, particu-
larly biogas and municipal waste projects.

Table 10.3. SPP and VSPP Adder Costs (adapted from: DEDE 2008)

SPP
(10 MW< SPP
< 90 MW)

Adder Costs
(baht/kWh)

Initial
Target
(MW)

VSPP
(VSPP < 10 MW)

Adder Costs (baht
/kWh)

Type of Energy General Type of Energy General 3 South-

ern Prov-
inces

MSW 2.5 (fixed) 100 MSW 2.5 3.5

Wind Energy 3.5 (fixed) 115 Wind Energy 3.5 5

Solar Energy 8.0 (fixed) 14 Solar Energy 8 9.5

Other Alterna-
tive

0.3 (bid-
ding)

300 Mini-Hydro

(50-200 kW)

0.4 1.4

Total 530 Mini-Hydro

(< 50 kW)

0.8 1.8

Biomass 0.3 1.3

Biogas 0.3 1.3

10.3.1 Responses from SPP, VSPP Incentives

Feedbacks from policy changes in 2007 have been remarkable. As of 31 August
2007, 31 new cogeneration SPP projects have submitted applications for sale of
2,416 MW of electricity to Electricity Generating Authority of Thailand (EGAT),
which exceeded the target of 1,600 MW by 51%. The main hindrance to new SPPs
is probably the availability of natural gas supply. As a result, EGAT had to tempo-
2

Baht (THB) is the Thai currency, 1 THB is equivalent to $0.029 (exchange rate, Dec
2008)