The World's #1 Renewable Energy Network for News, Information, and Companies.
Untitled Document

Thailand: 4,300 MW of Renewables with Feed-in Tariffs

Since the introduction of its small power program in 2006, Thailand has signed contracts to develop 4,300 MW of renewable generation. Nearly half of the contracts--1,800 MW--are for solar energy alone.

Currently 850 MW of generation is online as a result of the program, says Chris Greacen, a former consultant to the Thai government. The large majority of that, 700 MW, is from biomass. Only 16 MW of solar is in operation, but the number of projects is growing rapidly, according to Greacen.

Thailand's Very Small Power Producer (VSPP) program uses the "bonus model" of feed-in tariff design where the final tariff paid is composed of several "adders" on top of the avoided wholesale cost of generation.

As in successful program elsewhere, the Thai feed-in tariffs are differentiated by Technology. However, the Thai feed-in tariff program contains several unique features. There is a specific "adder" or bonus for offsetting diesel-fired generation. There is also a location adder or risk premium for projects in three southern provinces and an adder to compensate for fossil-fuel price volatility.

Thailand joins several other Asian countries, such as China, Malaysia, and the Philippines, that have moved to feed-in tariffs or are in the process of doing so.

The Thai program includes anti-gaming provisions to discourage "briefcase" project developers from clogging the program with applications that are unlikely to be built. The program requires 200 baht/kWh ($6/kW) deposit to prove the developer's good faith. Further, no adder will be paid if project completion is more than 1 year past its due date.

Contracts to date are dominated by proposed biomass and solar thermal electric projects. There are 1,400 MW of solar thermal electric projects under contract, and 2,100 MW of biomass projects under contract.

To increase project diversity, Thailand is providing government-backed loans at 4% interest up to 50 million baht ($1.6 million) per project. Similar to Germany's KfW (the German Bank for Reconstruction and Finance), the government has loaned 4 billion baht to 13 banks at 0.5% interest for use in the program.

The Thai program followed the introduction of a net-metering policy in 2002. The current feed-in tariff program went into effect in 2006.

Projects are limited to 10 MW.

Contracts vary from 7 to 10 years.

Most solar photovoltaic projects under contract are large, groundmounted arrays. Interestingly, nearly all will use inverters made by a domestic Thai manufacturer.

Payment for a typical solar project not located in the southern provinces would include 8 baht/kWh solar bonus, 2.6 baht/kWh for the wholesale avoided cost, plus 0.93 baht/kWh for the fuel volatility bonus. The total payment, 11.5 baht/kWh is about $0.38 USD/kWh. However, solar contracts are good for only ten years.

For more information, see Palang Thai.

[]

Untitled Document

RELATED ARTICLES

Suntech Parent Company Buys Majority Share of US-based Suniva

Ehren Goossens Shunfeng International Clean Energy Ltd., the Hong Kong-based solar company controlled by billionaire Zheng Jianming,...

Sunrise in Pakistan as the Country Delves into Solar PV

Robert Harker Pakistan has joined the list of countries that are exploring solar power as a means to bridge critical energy generat...

Global Renewable Energy Roundup: China, Kenya, Turkey, India Seeking More Renewables

Bloomberg News Editors China is being encouraged by three industry groups to double the nation’s solar-power goal for 2020 to make up for sh...

Why Smarter Grids Demand Smarter Communications Networks

Mark Madden

Historically, utility networks and communications networks have had little in common.

PRESS RELEASES

20 days to GRC Annual Meeting & GEA Geothermal Energy Expo

The Geothermal Resources Council (GRC) has announced that it is only 20 days to go to t...

AWS Truepower Announces Major Expansion of its Due Diligence Team in Response to Growing Market Demand

AWS Truepower, an international leader in wind and solar energy consulting and engineer...

Array Technologies’ DuraTrack HZ v3 Continues to (R)evolutionize at SPI

Array Technologies, Inc. (ATI) prepares to showcase its recently launched tracking syst...

Appalachian's Energy Center assists counties with landfill gas to energy projects

The Appalachian Energy Center at Appalachian State University recently completed a proj...

FEATURED BLOGS

How To Get People To Do Stuff

It’s no secret that psychology and sales go hand in hand. If you understand the principles of human psychology ...

Get In The Groove

When we talk about strategies for boosting productivity, we often overlook the fact certain projects lend themselves ...

Transitioning to Net-Zero Living

Judith and Jeffrey adore living in Belfast, Maine – a quaint harbor town of Belfast, Maine. They previously res...

The True Cost of Electric Vehicles in Australia

In order to avoid increased congestion, further greenhouse warming and lessen Australia’s reliance on imported ...

FINANCIAL NEWS

Paul Gipe has written extensively about renewable energy for both the popular and trade press. He has also lectured widely on wind energy and how to minimize its impact on the environment and the communities of which it is a part. For his efforts,...

CURRENT MAGAZINE ISSUE

Volume 18, Issue 4
1507REW_C11

STAY CONNECTED

To register for our free
e-Newsletters, subscribe today:

SOCIAL ACTIVITY

Tweet the Editors! @jennrunyon

FEATURED PARTNERS



EVENTS

Doing Business in South Africa – in partnership with GWEC, the Glob...

Wind Energy in South Africa has been expanding dramatically, growing fro...

Intersolar Europe 2016

Exhibition: June 22-24, 2016; Conference: June 21-22, 2016 Intersolar Eu...

Intersolar North America 2016

Exhibition: July 12 - 14, 2016; Conference: July 11 - 13, 2016 Intersola...

COMPANY BLOGS

Pushing Beyond The Cushion

Efficiency projects are all too often viewed as “optional” o...

Less Is More

When you’re giving a presentation, one of the easiest things to do...

Captivology

One of the biggest challenges we face as efficiency sales professionals ...

NEWSLETTERS

Renewable Energy: Subscribe Now

Solar Energy: Subscribe Now

Wind Energy: Subscribe Now

Geothermal Energy: Subscribe Now

Bioenergy: Subscribe Now  

 

FEATURED PARTNERS