Thailand's National Energy Policy

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Thailand's National Energy Policy
Dr. Twarath Sutabutr Director Policy and Strategy
Coordination Office Friday 15th December 2006
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Thailands National Energy Policy
Short Term

• .. Government will support energy saving and
  promote energy efficiency as well as enhance more
  use of renewable energy. Promotion of
  exploration and develop domestic energy as well
  as international petroleum resources will be
  accelerated including those within overlap
  pig-claim areas with neighboring countries.
  Emphasis is also given to promote clean energy
  are establish market-based pricing structure.
  Reform of energy management scheme by clearly
  separating policy from regulatory foundations is
  priority along with ensuring competition in
  energy business as well as better feasibility
  RD activities on Energy Technology .
• H.E. General Surayud Chulanont
• November 3rd, 2006

Immediate Actions And Implementations
Long Term
Set direction toward sustainable development
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Thailands National Energy Policy

• Establish the regulatory framework for
  Electricity and Natural Gas Industries
• Enhance Energy Supply ? Energy Security (Self
  Sufficiency)
• Promote Energy Saving Energy Efficiency
• Promote Renewable and Alternative Energy ?
  Reduce Imports and diversify fuel types and
  sources
• Market-based Pricing Structure ? Reflect true
  cost in a transparent manner and promote
  competition
• Set mandate on Clean Energy ? Alleviate impacts
  on environment
• ? Energy CDM Project
• Promote Public and Private Participation in
  Policy Formulation ? Sustainable Development

Immediate Actions and Implementation

Set direction toward sustainable development
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Establish Regulatory Framework for Electricity
and Natural Gas Industries

• Enactment the Energy Industry Act to regulate the
  electricity and natural gas supply industries
• The regulatory function to be separated from
  policy making
• Establishment of independent regulatory body
• Regulatory framework during the transitional
  period
• Dissolution of the temporary Electricity
  Regulatory Board. Responsibilities for
  electricity tariff, load forecast, power
  development plan, interconnection regulations and
  IPP bidding to come under National Energy Policy
  Council
• Establish a Natural Gas Regulator as a
  committee under Corporatization Act to take over
  any state power currently given to PTT Plc.

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Enhance Energy Supply Proposed Amendments
to the Petroleum Act B.E. 2514
Objectives

• To change certain provisions in line with
  advancement in technology
• To provide incentives for marginal and declining
  petroleum fields by royalty reduction
• To introduce criteria on decommissioning of
  offshore platforms
• To revise composition of the Petroleum-Committee
  Members
• To streamline and shorten approval processes
  under the Petroleum Law

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Long-Term Natural Gas Procurement Plan
MMscfd _at_ 1000 btu/scf
LNG/Regional Gas
Myanmar
New NG Resources in Thailand
Current NG Resources in Thailand
LNG (MTA) 1.3 7
9 10 10 10
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Preliminary Power Development Plan (New Capacity
after 2010 Gas 40, Coal 40, Import 20)
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The Status of IPP, SPP and VSPP(Already Supplied
to Grid as of September 2006)
Promote Private Sector Investment in Power
Generation
Remark Including the Pre-COD of BLCP
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Next IPP Bid Solicitation for Generation
Capacity during 2011-2015

• To encourage biddersto submit bids offering
• competitive power prices
• risk allocation terms attractive to the
  Government
• capacities and related CODs that meet solicited
  capacity requirements

• Tentative Schedule
• - RFP issued April 2007
• - IPPs submit bid Oct. 2007
• - Evaluate select winner
• April
  2008
• - PPA GSA negotiations concluded
• Oct.
  2008

• Issues still to be clarified
• Amount of solicitation
• Eligibility of EGATs subsidiaries
• How to encourage fuel diversity, particularly
  coal

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Power Purchase from Lao PDR
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SPPs and VSPPs Cogeneration and Electricity from
Renewable Energy

• Renewable electricity produced from biogas,
  biomass, MSW, Wind, Solar and other renewable
  energy
• Revise the VSPPs regulation to expand the power
  purchase to grid from lt 1 MW to lt 10 MW and to
  include cogeneration facilities
• In case of VSPPs, provide Adder to normal
  purchase price for renewable energy
• In case of SPPs, use the bidding system for
  energy payment adder to the normal purchase price
• Community-scale project development
• Bio-diesel
• MSW fired power plants
• Development guidelines and implementation of CDM
  projects

• Adder for VSPP Programme
• Biomass 0.30
  Baht/kWh
• Micro Hydro (lt 50 kW) 0.80 Baht/kWh
• Micro Hydro (50-200 kW) 0.40 Baht/kWh
• Wind 2.50
  Baht/kWh
• MSW 2.50
  Baht/kWh

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Promote Energy Saving and Efficient Use of
Energy

• Establish National Demand Side Management Office
• Speed up energy efficiency labeling program
• Expand scope of building codes for energy
  conservation
• Establish minimum energy efficiency standards
  equipments

• Set targets for energy
• saving in both public
• and private sectors

• Awareness
• Campaign

• Logistics
• Promote mass transit and use of rail for
  transportation
• Energy efficiency and labelings of vehicles

• Cogeneration via
• SPP,VSPP, and DG

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Promote Alternative Transport Fuels Gasohol
and Bio-diesel

• Liberalize ethanol production and investment
• Promote competition in supply of ethanol and
  regulate ethanol price to ensure fair price for
  consumers
• Apply tax incentive to ensure that retail price
  of gasohol is lower than ULG-95
• Postpone ULG-95 phase out until
• Ethanol production is sufficient
• Fair alternatives exist for old cars
• Assurance of Gasohol qualities at all petrol
  stations

• Encourage production and consumption taking into
  account the economic cost and potential
• Set clear policy and direction to promote
  bio-diesel as new alternative for transportation
  fuel

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Measures to Promote NGV
Taxation
Revolving Fund

• ENCON Fund 2 Billion Baht
• To change the NGV engine for BMTAs vehicles and
  coaches.
• PTT fund 5 Billion Baht
• To change the NGV engine for private
  transportation companies
• Truck
• BMTA vans
• Coaches
• Conversion of LPG taxies to NGV taxies

• Import Duty Exemption for
• NGV equipment and container until 2008
• NGV engine
• Excise Tax Reduction for NGV- OEM from 30 to
  20
• Excise Tax Reduction for NGV-Retrofit from 30
  to 22 but not exceed 50,000 Baht
• BOI Privileges

• Target of NGV Promotion
  Present 2010
• No. of installed NGV in vehicles
  23,193 500,000 cars
• No. of NGV Filling Station
  76 740 stations

Establish clear and fair NGV pricing structure
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Measures to Support Clean Fuel for Environment

• Oil Vapor Recovery System
• Petrol stations, oil depots and oil trucks in
  Bangkok, Nontaburi, Pathumtani and Samutprakarn
  areas must install the vapor recovering units
  (VRU)
• The regulation is expected to be approved by
  Cabinet by the end of November 2007. New
  facilities must comply immediately and existing
  facilities have one year to comply.
• Implementation of Euro-IV oil specification

• Present
  Specification New Specification
  (Effective in 2012)
• 1. Gasoline/Gasohol
• Lead lt 0.013
  g/litre 0.005
  g/litre
• Olefin -
  lt 18
  Vol
• Sulphur lt 500 ppm
  lt 50 ppm
• Benzene lt 3.5 Vol
  lt 1 Vol
• 2. Diesel
• Sulphur lt 350 ppm
  lt 50 ppm
• Cetane No. gt 47
  gt 50

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Market-Based Pricing structure
MARKETING MARGIN OF PRETROLEUM PRODUCTS (10 JAN
04 - 8 NOV 06)

• Promote competition and efficiency to ensure
  competitive and transparent energy prices

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Thank you from
Ministry of Energy
For more information, log on http//www.energy.go.
th