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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. The Grand Hotel Bangkok. February 14, 2006.
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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 The Grand Hotel Bangkok February 14, 2006 14Feb06_The Grand Hotel Bangkok
OVERVIEW OF “BIOMASS TO ENERGY” IN THAILAND : The Current Situation and GovernmentPolicy • 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 Outline of the Presentation 14Feb06_The Grand Hotel Bangkok
THAILAND ENERGY SITUATION AND ENERGY PROBLEMS Primary Energy Consumption (PEC) Total Thailand Primary Energy Consumption in 2004 : 98.1 Mtoe (Source : Thailand Energy Statistics, DEDE, 2004) 14Feb06_The Grand Hotel Bangkok
THAILAND ENERGY SITUATION AND ENERGY PROBLEMS Final Energy Consumption (FEC) Total Thailand Final Energy Consumption in 2004 : 61.1 Mtoe (Source : Thailand Energy Statistics, DEDE, 2004) 14Feb06_The Grand Hotel Bangkok
THAILAND ENERGY SITUATION AND ENERGY PROBLEMS Trends of Final Energy Consumption by Economic Sector (Source : Thailand Energy Statistics, DEDE, 2004) 14Feb06_The Grand Hotel Bangkok
THAILAND ENERGY SITUATION AND ENERGY PROBLEMS Energy Sources for Electricity Generation 2004 1999 Source : Electric Power in Thailand, DEDE, 2003 : Thailand Energy Statistics, DEDE, 2004 14Feb06_The Grand Hotel Bangkok
THAILAND ENERGY SITUATION AND ENERGY PROBLEMS Thailand’s Outstanding Energy Problems • 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. 14Feb06_The Grand Hotel Bangkok
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. 14Feb06_The Grand Hotel Bangkok
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. 14Feb06_The Grand Hotel Bangkok
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 (Source : Thailand Energy Statistics, DEDE, 2004) 14Feb06_The Grand Hotel Bangkok
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 subsidyof 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. 14Feb06_The Grand Hotel Bangkok
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 14Feb06_The Grand Hotel Bangkok
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 14Feb06_The Grand Hotel Bangkok
CURENT BIOMASS ENERGY UTILIZATION Biomass Resourcesin 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) (Source : Ministry of Agriculture and Cooperatives) 14Feb06_The Grand Hotel Bangkok
CURENT BIOMASS ENERGY UTILIZATION Main Biomass Resources • wood residues from forest plantations • biomass from the agricultural sector (rice husk, bagasse, corn cobs, etc.) • biomass residues from wood and furniture industries (bark, sawdust, etc.) • wood and wood residues from dedicated energy plantations • biomass for ethanol production (cassava, sugar cane, etc.) • biomass for biodiesel production (palm oil, jatropha oil, etc.) • biomass wastes (waste water) from agro-industry • biomass solid wastes from animal farms • municipal wastes 14Feb06_The Grand Hotel Bangkok
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. 14Feb06_The Grand Hotel Bangkok
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. 14Feb06_The Grand Hotel Bangkok
CURENT BIOMASS ENERGY UTILIZATION Biofuel for Transport • 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 Ethanol Program 14Feb06_The Grand Hotel Bangkok
CURENT BIOMASS ENERGY UTILIZATION Biofuel for Transport • 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 Biodiesel Program 14Feb06_The Grand Hotel Bangkok
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. 14Feb06_The Grand Hotel Bangkok
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 14Feb06_The Grand Hotel Bangkok
POTENTIAL OF BIOMASS AS AN ENERGY SOURCE • 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. Potential of Biomass As Transport Fuels 14Feb06_The Grand Hotel Bangkok
CHALLENGESIN 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. 14Feb06_The Grand Hotel Bangkok
CHALLENGESIN 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. 14Feb06_The Grand Hotel Bangkok
CHALLENGESIN 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. 14Feb06_The Grand Hotel Bangkok
CHALLENGESIN 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 14Feb06_The Grand Hotel Bangkok
CHALLENGESIN 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. 14Feb06_The Grand Hotel Bangkok