Quick Links: Thailand Law Seminars and Conference | Thai Law Forum Past Issues | About Thailand Law Forum | Advertising Guidelines | Publishing Guidelines

Feature Articles :

Fringe Medical
  Practices in Thailand

Analysis: Thailand’s
  Condominium Bubble

Neither Free nor Fair -
  Burma’s Sham Elections

US Immigration and
  Thai Sex Workers

Legal Rights of
  Transgenders and their
  Partners in Thailand

Renewable Energy
  in Thailand

The Erawan Shrine   Curse and the Red Shirt   Demonstrations

Marriage and Divorce
  in Thailand

Foreign Corrupt
  Practices Act and the
  Thailand Film Festival
Foreign Mafia in
Sex Laws in Thailand:
  Part 1

Thailand News :
22 June 11
   Top Court Chief Named
22 June 11
   Philip Morris Thailand
   Applauds WTO Tax
15 June 11
   True Accuses Total
   Access of Violating
   Thailand’s Foreign
   Business Act
8 June 11
   FDA Warning to
   Include Daily Nutrition
   Amount on Snack Food
30 May 11
   UN High Court Receives
   New Case from
30 May 11
   Extension of Privileges
   Sought by Thailand
   and Nine Other Countries
18 May 11
   Firms Given Deadline
   to Abide by Industrial
   Waste Disposal Law

Contribution :

Managed by a Thailand US immigration lawyer, Chaninat and Leeds oversees all types of legal assistance, including obtaining visas for Thai fiancées.

Thailand Lawyer Blog:
 Thailand Law Forum:
  Latest Updates–Including
  “Buying Gold in Thailand”
 The New Look of
  Thailand Law Forum
 US Refugee Visas: A
  Golden Ticket Finally
  Granted to a Juarez
 US Man Indicted for
  Impersonating a Lawyer:
  A Warning to Fake
  Lawyers in Thailand
 A Visit to the Border:
  Juarez El Paso and
  Murder City
 Will Thaksin Travel to
  the USA to Give
  Testimony: US Visa
  Problems and Extradition
 “Fringe” medical options
  while in Thailand: Still
  Considered “Fringe”?
  The Thai Worker’s
  Coca Leaf?
 Two International
  Divorce Cases Highlight
  International Prenuptial
 Gay and Lesbian Partner
  Visas in the US: Part and
  Parcel of the Immigration
 The Extradition of
  Viktor Bout: Political
  or Just Wasteful?
 Will Manny Pacquiao
  Save Boxing: Mixed
  Martial Arts versus Boxing
 Nothing Spells LOVE
  More than a Prenuptial
  Agreement: UK’s new
  Prenuptial Agreement
  Case Decision
 Thai Chickens v. UK
  Chickens and Animal
  Rights in Thailand?
 Minnesota Lawyer
  Moonlights as Pimp:
  Prostitution as a New
  Lawyer Specialty?

GD extension is not Loaded!
Please load GD extension in your php.ini file.
'; ?>

Renewable Energy in Thailand: Green Policies Take off
by Jon Fox

23 April 2010

Initial regulations for SPP had only limited success, and did not take off until 1994. Many of the early projects focused on cogeneration using natural gas and steam for nearby industrial estates. Several bio-fuel projects were implemented across Thailand, utilizing the Kingdom’s robust agriculture resources. Instead of being discarded, organic wastes such as bagasse from sugar mills, used rice paddy husk, and woodchips from paper factories were recycled into renewable fuel.5

The 1997 Asian economic crisis reduced Thailand’s demand for energy, which slowed the progress of the SPP program. To further encourage eco-friendly energy production, the Thai government introduced the Very Small Power Producer Program (VSPP) in 2002. The VSPP supported even smaller private micro-production of energy, feeding up to 10 MW of energy directly into either the MEA or PEA. By producing energy near the source of consumption, the SPP and VSPP programs contributed to lowering transmission costs and waste for EGAT.
Bureaucratic uncertainty, confusing regulations, and apprehensive energy suppliers also slowed the progress of both the SPP and VSPP programs. By the end of 2006, there were only about one hundred SPP and VSPP projects supplying 2,344 MW of electricity to Thailand’s national grid.6 In 2007 after the military coup installed the Surayud Chulanond government, it made several key changes to the SPP and VSPP policies in order to promote the use of renewable energy.

First, the SPP and VSPP regulations were amended to be more “investor friendly”, practical, and transparent. Second, regulations created a financial incentive, called an “adder”, on top of the normal tariffs to encourage SPPs and VSPPs to use renewable energy. The amount of “adder” increases depending on the type of renewable energy being used. For example the “adder” provides an additional 2.5 Baht per Kilo Watt (kWh) of energy produced using municipal waste; 3.5 baht per kWh of wind power; and 8 Baht per kWh produced through solar energy.7 The new regulations paid small-scale energy producers higher tariffs for feeding electricity into the grid during peak consumption times when most needed.

In order to promote the use of domestic resources and reduce dependence on foreign fuel imports, successive governments have distributed additional loans and expanded investment subsides to support renewable energy projects. The government of Prime Minister Abhisit Vejjajiva approved a 15 year Alternative Energy plan in January 2009, placing national importance on producing renewable energy and providing support for initiatives.  Large budgets to provide technical assistance as well as pilot project funding for private investors interested in joining the green energy market have been approved. Further, Thai Ministries have been implementing micro hydro power plants in areas too difficult for the private sector to access, setting a goal of creating 112 MW of new green energy capacity by 2011.  

 Easy regulations lead to more investment

The essential requirements for successful renewable energy programs include energy prices that reflect production costs; utilization of market forces and incentives; clear rules, regulations, standards, and

incentives; competitive markets; and the development of the necessary human capacity. By 2010, Thailand has successfully addressed these requirements.

Austin Arensberg, the Business Development Manager at Nollen Group - Prime Energy Investment (PEI) Fund commented that the PEI Fund has committed €16 million for investments in biogas, landfill gas, biomass, and gasification technology companies and projects throughout Asia. Based in Bangkok, the PEI Fund seeks to bridge the gap between green energy entrepreneurs and the various financial support mechanisms available. 

Mr. Arensberg noted that from an investor’s point of view, Thailand holds the lowest risk for renewable energy markets. “There are literally hundreds of developers, thousands of installed MWs on the grid, and a strong regulatory environment that has the government as a guaranteed off-taker of all electricity produced under 10 MW with an attractive tariff,” Mr. Arensberg said. In December 2008, the Philippines passed a law facilitating grid connected renewable energy projects. Yet by the first quarter of 2010, not a single project has supplied energy into the Pilipino energy grid. According to Mr. Arensberg, if you look at the total number of actual projects installed - ranging from large hydro to the smallest solar systems selling into the national grid - “Thailand literally dwarfs other countries in the region.”

 “In Indonesia when we review an investment in a potential renewable energy project, we first have to check if the national power grid is even located within 10 km of the project site – often it isn’t. Then we would have typically a six month negotiating process with the PLN [the equivalent to Thailand’s PEA] just to get a price that would not be competitive to Thailand’s. Add country risk and ease of doing business and you can quickly see why most foreign investors in the market have chosen Thailand over its neighbors” Mr. Arensberg said. He added that in Thailand the PEI fund can conclude a project “and within six months have a BOI license granting us 7 years of income-tax free revenue.”

In order to encourage private sector investment in renewable energy in Thailand, the BOI provides a wide range of incentives. Thai regulations provide 8 years corporate income tax exemption for manufacturing solar cells, generation of alternative source energy, manufacturing of energy-saving machinery or renewable energy equipment and machinery, and energy service consulting firms who provide consulting services on the use or installation of energy-saving machinery and equipment. Depending on the location and character of the project, the BOI will also provide a 50% reduction of corporate income tax; exemption or reduction of import duties on machinery; an exemption of import duties on raw materials; land ownership rights for foreign investors and work permit and visa facilitation for foreign experts and technicians.8

Next Page

[1] [2] [3]

5. Piyasvasti Amranand, Alternative Energy, Cogeneration & Distributed Generation.

6. Piyasvasti Amranand, Alternative Energy, Cogeneration & Distributed Generation.

7. Piyasvasti Amranand, Alternative Energy, Cogeneration & Distributed Generation.

8. Thai Board of Investment, Alternative Energy Brochure. Accessed April 2010 at http://www.boi.go.th/english/services/BOI-Brochure-Energy1.pdf

Post Comment >>


Result from image:


© Copyright Thailand Law Forum, All Rights Reserved
(except where the work is the individual works of the authors as noted)