Executive Summary

PRESENT BY ABLE CONSULTANT CO.,LTD. NOVEMBER 2008

Executive Summary

PRESENT BY ABLEA CONSULTANT CO.,LTD . NOVEMBER 2008

Executive Summary The Monitoring and Assessment of the Development and Promotion Project

EEXXEECCUUTTIIVVEE SSUUMMMMAARRYY

The Monitoring and Assessment of the Wind Power Development and Promotion Project aims at monitoring, collecting information and practices in the development and promotion of wind power previously carried out in as well as overseas, and using them as the inputs for co-analyzing with the stakeholders in all sectors , private as well as public , and come up with the proposal for the improved implementation strategies in conformity with current situation on wind potential and technologies and provide Thailand with the most appropriate and effective measures and means in unified direction for research development and demonstration in the future and thus will enable Thailand to achieve the target of 115 MW wind power development in year 2011.

The assessment , from various sources , of the status of the previous development and promotion of wind power in Thailand reveals that Thailand launched its first wind power programme in 1975 with the study of wind potential and such study been carried out 10 times over the time. The latest was in 2007. The studys covered wind potential nationwide as well as some specific areas. The chronicle are as follow.

1. Year 1975, The National Energy Administration (Currently, the Department of Alternative Energy Development and Efficiency) produced wind speed map exhibited high and moderate wind potential nationwide by using average wind speed data from the Department of Meteorology. 2. Year 1981, The Electricity Generating Authority of Thailand in collaboration with the King Mongkut’s Institute of Technology North Bangkok produced a wind speed map using 13 years (1966-1978) wind speed data from 53 stations of the Meteorological Department and converted them to be 10 meters height by Power Law. 3. Year 1981, The Asian Institute of Technology produced a wind speed map based on the Meteorological Department’s converted data to 10 meters height.

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4. Year 1997, the King Mongkut’s University of Technology Thonburi with the financial support from USAID produced wind potential map showing wind speed and wind power at 10 meters height, with and without calm period, using Logarithmic Law. 5. Year 2001, the Department of Alternative Energy Development and Efficiency (DEDE) produced Thailand’s Wind Potential Map, using data from the Meteorological Department, DEDE, EGAT, Air Force, the National Research Council, Navy , UNOCAL (THAILAND) offshore drilling station, maritime and satellite and revealed that the areas along the gulf of Thailand from Nakorn Srithammarat Songkla Pattani Provinces and some locations in Petchaburi Province and Doi Inthanon in Chiengmai possess high average wind speed of 6.4 meter per second at the height of 50 meters. 6. Year 2001, the Provincial Electricity Authority studied specific site wind potential on the coastline of Sating Pra, Songkla Province, Talumpuk Cape, Nakorn Srithammarat Province, Prakarang Cape, Pang-nga Province and North Rawai Beach in Satul Province and found that Sating Pra is the most suitable site for wind power development as its average wind speed reaches 5.6 meters per second. 7. Year 2001, DEDE in collaboration with Prince Songkla University studied specific site wind potentials in 5 southern provinces namely Nakorn Srithammarat, Songkla, Pattani, Satul and Pattalung and found that the suitable location for development is at Noen Kuan Sipan, Tambol Kho Yai, Amphur Krasaesin, Songkla Province where its average wind speed reaches 5.3 meters per second. 8. Year 2006, the National Research Council, by the Energy Research Centre, Mae Joe University carried out study on specific site wind potential in the Upper Northern Province, covering Mae Hongson, Chiengmai, Chiengrai, Lampoon, Prae and Nan and concluded that the suitable locations for wind power development are at Ban Doi Man San, Amphur Prao, Chiengmai with the average wind speed of 5.7 meters per second, Ban Kiew Lom Amphur Pai, Mae Hongson, average wind speed 6.2 meters per second and Ban Mae Hae Amphur Samoung, Chiengmai , average wind speed 5.7 meters per second.

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9. Year 2006, the National Research Council, by Taksin University carried out study on specific site wind power potential along the Southern Coast of Thailand in 6 provinces, namely Surathani, Nakorn Srithammarat, Songkla, Krabi, Trang and Satun and found that some certain areas on the hill are suitable for wind farm installation totalled to the 355 MW, in which 291 MW are the most favorable. 10. Year 2006, Joint Graduate School of Energy and Environment, King Mongkut’s University of Technology Thonburi carried out study on wind potential for power generation in Thailand and found that Thailand’s potential amounted to 1450 MW, the high potential areas locate along the Gulf of Thailand in Nakorn Srithammarat, Songkla, Pattani and Ban Laem, Petchaburi Province.

Beside the studies of wind potential, various entitles, governmental and private, has implemented numerous wind power installations. As of September 2008, they totalled to 33 projects with installed capacity of 1062.83 kW, The details are described below.

1. From year 1983 to 1992, EGAT installed small wind turbines size 18.5, 2.0, 1.0 and 0.83 kW total 22.3 kW under Pilot Programme, at Laem Promthep Phuket, aimed at collecting data of power generation from wind power. It also added 2 units of 10 kW and connected to PEA grid for trial , together with 8 kW solar cells to form the hybrid generation. Total installed wind power at this location amounts to 42.33 kW. 2. Year 1996, EGAT installed 150 kW on grid at this installation was the biggest at that time. 3. Year 1996, King Mongkut’s University of Technology Thonburi with the assistance of the Energy Conservation Fund (ENCON FUND) established 2 hybrid, diesel solar – wind, off grid power generations at Tarutao and Kradung National Park, Each location was equipped with one unit of 10 kW wind Turbine. 4. Year 1998, KMUTT financed by ENCON FUND installed a 10 kW off grid wind turbine at Ban Talee Bang Chan, Amphur Muang, Samut Sakorn Province.

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5. Year 2004, The Re-cycle Engineering Company Limited, Amphur Kao Chan, Chonburi installed a 150 kW wind generator for own use. 6. Year 2005, KMUTT financed by ENCON FUND installed, 2 sets of 5 kW off grid wind generator at Kho Jick, Chantaburi. 7. Year 2005, Royal Thai Police Department installed a 0.2 kW wind generator operating with solar cell at Nak Kerd Repeater station Tambol Chalong, Amphur Muang. Phuket. 8. Year 2006, Pattaya Municipality implemented a wind farm at Nom Sao hill near Samae Beach west coast of Kao Lan comprised of 45 units of 4.45 kW wind generator, total 250.25 kW. 9. Year 2006, DEDE installed a 250 kW grid connected demonstration plant at Ban Ta Lae Pang, Amphur Hua Sai, Nakorn Srithammarat. 10. Year 2006, Phra Dabot Foundation in Samut Prakarn set up a 30.3 kW off – grid wind farm consists of 0.5 kW to 20 kW wind generator. 11. Year 2006, Pra Yuen, Tambon Administration Organization, Amphur Muang, Khon Kaen, set up 2 units of 0.4 kW off grid wind generator. 12. Year 2007, DEDE installed 3 units of 1 kW off grid wind generator at Sirinthorn International Environment Park. 13. Year 2007, Thanyaburi Rajmongkol University of Technology installed 0.4 to 3.0 kW wind generator at Bung Praram 9 and Sirindhorn International Environment Park totaled to 8.6 kW (off grid). 14. Year 2007, Kao Payan Village, Ranong set up a 0.4 kW wind generator (off grid). 15. Year 2007, Aji kawa Co. set up a 1 and 0.4 kW each wind generator at Amphur Pan Than Chonburi (off grid). 16. Year 2007, Krida Mahanakorn Village Bangkok set up a 1 kW wind generator (off grid). 17. Year 2007, Smooth E Co. Bangkok installed a 0.4 kW wind generator (off grid). 18. Year 2007, Ban Da Community Enterprise Amphur Nong Bua, Nakorn Sawan set up a 0.2 kW wind generator (off grid).

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19. Year 2007, GEM Global Energy Management Co. installed 7.5 kW wind – solar hybrid quarter at Chitrlada Palace Bangkok (off grid). 20. Year 2007,Wat Pa Ampawan Chonburi installed 6.5 kW, in total, wind generators (off grid). 21. Year 2007, Thai Prasith Textile Co., Samut Sakorn installed 2 kW, in total, wind generators (off grid). 22. Year 2007, Charoen Bandit Co. Amphur Bankai Rayong set up 1 kW wind generation (off grid). 23. Year 2007, Mr.Supachoke’s textile company in Klong Luang, Pathumthani installed a 0.7 kW wind generator (off grid). 24. Year 2007, A Abalone farm in Chumporn Province installed a 2 kW wind generator (off grid). 25. Year 2007, Mr.Sirichai at Khao Nak kerd Peak , Chalong Bay, Phuket installed 0.2 kW wind generator (off grid). 26. Year 2007, Chulabhorn Royal College. Amphur Kok Samrong Lopburi installed a 0.27 kW wind generator (off grid). 27. Year 2007, Wat Tamru School, Bangpoo Samut Prakarn installed a 0.2 kW generator (off grid). 28. Year 2007, Chewatit Village Klong 5, Rangsit, Phatumtani installed a 0.45 kW wind generator (off grid). 29. Year 2007, Wind Turbine Group Nonthaburi installed a 0.2 kW generator (off grid). 30. Year 2007, TESCO LOTUS Amphur Muang, Nakorn Pathom set up 3 units of 6 kW wind generator (off grid). 31. Year 2007, DEDE set up 3 unit of 5 kW wind generator at Bung Pra ram 9 for performance testing purpose (off grid). 32. Year 2007, Master Power Co. set at a 80 kW wind generator at a rice mill, Amphur Hua Sai Nakorn Srithammarat (on grid). 33. EGAT set up a 50 kW on grid wind generator at Lam Takong Dam, Nakorn Rajsima.

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In conclusion, 33 projects of wind power generation were implemental with total installed capacity of 1,062.83 kW, comprising of 530 kW on grid generator, 42.33 kW Hybrid on grid, 462.8 kW off grid and 27.7 kW hybrid off grid.

For the development of the global wind energy at the end in December 2007, the Global Wind Energy Council reported that the growth rate continue to exceed most optimistic expectation by 68 countries with the total capacity to 94,123 MW. The top ten countries in terms of installed capacity are Germany (22.3 GW), USA (16.8 GW), Spain (15.1 GW), India (8 GW), China (6.1 GW), Denmark (3.1GW), Italy (2.7 GW), France (2.4 GW), UK (2.4 GW) and Portugal (2.1 GW) Total 81,104 MW equal 86.2% of global’s installed and the power forcast of installed capacity for 2008 to 2012 with the growth rate yearly from 20,000 MW to 36,180 MW with the 12.4% increasing will be 240,000 MW in 2012.

1. The most interested wind power producer countries are in the European region 5 countries, north America 1 country, Asia region 8 countries. Total 14 countries are follow. 1.1 GERMANY, the growth of wind power continue but not rapid because of the installation in nearly year with the small amounts as in table 1.1, the period 2001-2004 with the growth rate more than 2,000 MW, but after the year 2005 with growth rate of 1,000 MW only.

Table 1.1 Germany Installed Capacity Year 2001 2002 2003 2004 2005 2006 2007 Installed 2,650 3,240 2,615 2,020 1,786 2,207 1,625 Capacity (MW)

The growth rate of wind turbines installation will slow down because the potential areas in country for increasing building. A number of Federal States have issued recommendation concerning vicinity, so the installation of modern turbine and yielding the maximum energy will be returned and look for the off-shore expectation. Germany is one of the leading country for renewable consumption, in 2006 renewable energy used as 5.3% of total power demand and the target of 10% will be set by 2050. Already renewable repowering could play a stronger role to increasing, especially for the wind power. The potential area will

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be set as Preferential zones for the building restriction and the wind turbines also regulation to be the Building Code, under which wind energy plants are regarded as so – celled privilege project. From 2006 a fixed feed – in tariff for each kWh of power produced and fed into the grid. With the initial tariff 8.19 euro cents is fixed for at least five years and may then be reduced to basic tariff 5.17 euro cents / kWh with reduced by 2% every year. Special tariffs exist for new turbines installation. There are many options to stimulate the high growth of renewable energy in Germany especially in wind energy.

1.2 SPAIN with the continuous growth in wind energy and also is the strongest growth market in Europe in 2007, with more than thousand megawatts installed in each year.

Table 1.2 Spain Installed Capacity Year 2001 2002 2003 2004 2005 2006 2007 Installed 1,102 1,488 1,375 2,060 1,764 1,596 3,522 Capacity (MW)

The Spanish government has the high ambitious in renewable energy, especially in wind energy with the target of 20,000 megawatts by 2010. The 12% of renewable energy in total demand in 1999 will be change to 29% by 2010. The incentive for renewable technologies with the current tariff system entered in to force in 1997, through the Electric Power Act 54/1997 subsequently modified by Royal Decrees 436/2004 and 1634/2006. These laws define a feed – in mechanism for renewable power. There are different levels of tariffs depending on the technology and on the size of the installation. According to the law, the power producers can choose between a fixed price and premium added to the market price. The choice is made for a duration of one year, after which the producer can decide to maintain the formula or change to the other option. In 2007 the existing law was reformed, the new law (RD 661/2007) was published. The new law is that fixed tariff in transition period of 5 years. And then in market price plus a premium. The fixed tariff option will be 7.32 euro cents/kWh, which will be reduced to 6.12 euro cent/kWh after 20 years of operation, for a fixed premium is 2.93 euro cents/kWh. The range of the tariff at between 7.13 and 8.49 euro cents/kWh and the fixed premium may be reduced when the market price is high. Spain host a world’s biggest wind farm owner. Iberdrola Gamesa Eolica Acciona and Ecotecnia are the most important and well known turbine manufacturers. These companies are now involved in wind energy operations around the globe. The Spanish wind energy sector is on course to meet

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the government is target of installing 40,000 MW of onshore and 5,000 MW of offshore wind capacity could be operating by 2020, providing close to 30% of Spain’s electricity demand.

1.3 DENMARK is one the country that interested in high using renewable energy, the beginning of wind turbines installed in 1980. Due to the country full with high wind potential, so the installation were rapidly growth, every region of country can be installed wind turbine, but after the year in 2004, there were no more new area for the new wind turbines, now a day the old turbines will replaced by a big and high yield and more efficiency new turbines.

Table 1.3 Denmark Installed Capacity Year 2002 2003 2004 2005 2006 2007 Installed 403 225 8 4 7 11 Capacity (MW)

Event Denmark has no more expansion for news turbines installed, but Denmark turbines manufacturers are among the market leader representing a global market share of 35%. The Danish Energy Authority strongly push the policy in using renewable energy and hold the policy of energy efficiency. The government set the target of 30% of energy demand is renewable energy and 50% of electricity demand by 2025. Projects for offshore wind energy in Denmark is one of the biggest wind farm in the world, and the north sea near Denmark will be the places for offshore wind farm in future, and the tariff of wind energy is 0.43 DKK/kWh.

1.4 UNITED KINGDOM : UK not so high in renewable consumption especially in wind energy , while UK has a best wind regime in north of Scotland, but the government has not so clear in wind energy policy. After EU renewable energy allocation require UK to source the energy from renewable. UK begin wind energy development.

Table 1.4 UK Installed Capacity Year 2001 2002 2003 2004 2005 2006 2007 Installed 68 78 96 240 465 609 427 Capacity (MW)

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The country planed more wind turbines installation onshore and offshore projects with 2% of renewable energy into 10% by 2010 and 15% by 2020, and also the electricity only 3% of country demand that produced by wind turbine in 2006 to be 8% by 2010 and 10% by 2020. UK introduced a green certificate based market incentive providing greater security to investors, however problems remain in progressing projects through the planning system, because local opposition preferred natural view, they need not see any wind turbines occurred anywhere of the country.

1.5 FRANCE, nuclear power is the main source of power generation. The European Renewable Directive set France a target of 21% from gross electricity production from renewable sources by 2010. In 2004 the share was only 12.6%.

Table 1.5 France Installed Capacity Year 20 03 2004 2005 2006 2007 Installed 105 137 367 810 887 Capacity (MW)

The healthy growth of wind energy in France can be the implementation of a feed-in tariff system of 8.2 euro cents/kWh with a period of 10 years for wind farms. The wind turbines had rapidly installed, many wind parks are scheduled to be built in northern part of the country. There are many manufacturers working in France such as , , Repower, and Gamesa. The France manufacturers Vergnet had set up with the product of 20% of country demand, the unsolved problem for the growth of wind energy, people not delight promote, while the number of areas where wind farms are still forbidden. Public opposition is the major issue in France, the grid systems are also the problem for wind energy. However, France get a policy for more installation because of a target of 21% for gross electricity production in 2010.

1.6 UNITED STATES : US is the high wind turbines installation country, in 2007 installing 5,243 MW, this is the top leader installed in this year.

Table 1.6 US Installed Capacity Year 2001 2002 2003 2004 2005 2006 2007 Installed 1,697 110 1,687 353 2,426 2,426 5,243 Capacity (MW)

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US play a great support in wind energy development, the wind energy that produced less than 1% of total demand in 2006 must be 20% by 2020, so the implementation of production with Tax Credit (PTC) provides a 1.9-2 dollar cents/kWh. There are Renewable Portfolio Standard (RPS) increase from 0.5% in 2001 to 4% by 2009. The power produced by RPS can be selled for 50 US dollars/MWh. The growth rate of wind energy will rapidly installed, because of there are many potential wind areas and many high efficiency wind turbine manufacturer supported, people support for wind turbine installation with the high incentive promotion suitable for investment.

1.7 INDIA, the country had widely use renewable energy for long time ago in biomass and biogas. The original impetus to develop wind energy in India came in early 1980. Its purpose is to encourage a diversification of fuel sources away from the growing demand for coal, oil and gas required to feed the country’s rapid economic growth. India is the top installed wind turbines in Asia and rank in fourth of global. Table 1.7 India Installed Capacity Year 2001 2002 2003 2004 2005 2006 2007 Installed 1,236 246 423 875 1,430 1,840 1,730 Capacity (MW)

The government give a high important policy for wind development because of the wide areas of 65,000 MW in wind potential which locate in the southern part of the country and also the fiscal incentives to the wind energy sector such as - Direct taxes 80% depreciation in the first year of installation of a project. - No income tax to be paid on power sales. - Tax holiday for 10 years. Each state can give more incentives to investor, and give a widely expansion of turbine installed for the country.

1.8 CHINA is the world’s fastest growing wind energy country because of the large land country rich in wind energy potential. Satisfying high electricity demand and reducing air pollution are the main driving forces, given the country’s substantial coal resources. Only in 2007, China installed more 3 thousand MW wind turbines.

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Table 1.8 China Installed Capacity Year 2001 2002 2003 2004 2005 2006 2007 Installed 56 67 242 197 496 2,426 5,243 Capacity (MW)

China set a target of wind turbine install 50 GW by 2015, and set a plan for wind energy development to the on-shore and off-shore project these booming the wind manufacturers in valued in wind energy. Many foreign companies from USA and Europe operating in China. With the high support incentive and the high wind potential of the country with the target of 1.5% of electricity demand by 2020. The main elements for wind power, the project should be 100 MW with the turbines no smaller than 600 kW, project investors are selected by public bidding, after the first 30,000 full load hours of operation for turbine, the feed-in tariff is reduced to the average for the power market at that time and hope that the cost of wind power will down closer to that of sources from fossil.

1.9 JAPAN, has wind energy policy surged forward in recent years, due to the typhoons and lightning strikes to obstruct for the development, and the turbines were considered to be Japanese Building Code, The application procedure for planning permission is very complicated in time consuming and expensive, so the growth of wind turbines installation are slowly.

Table 1.9 Japan Installed Capacity Year 2001 2002 2003 2004 2005 2006 2007 Installed 166 36 142 229 246 345 144 Capacity (MW)

Japan pursuit of its Kyoto Protocol objectives and has a target to reduce the level of its greenhouse gas emissions in 2008 as in 1990. To help achieve this goal, The Japanese government introduced a Renewable Portfolio Standard (RPS) law in 2003 with the aim of stimulating renewable energy to provide 1.35% of total electricity supply in 2020. So, the installation of wind turbines slowly increasing with the assistance R&D activity by Japanese Wind Energy Association.

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1.10 PHILIPPINES is the top of wind turbines installed in ASEAN countries with 25 MW in 2007 and another project in north Luzon with 417 MW in progressing installation. Philippines continue to install new turbines under the assistance of USA in the area of several islands with the total potential 70,000 MW.

1.11 VIETNAM is the leader turbine installation in Mekong River basin countries. In 2005, the first 5 to 7.5 MW wind farm in Khongdao island in southern part of Vietnam were erected and planned for 9 MW in future. Another several megawatts wind farm also be continued. Vietnam has a long coast country with the 111,916 MW wind potential and will be the leader in wind power in this region.

1.12 LAO PEOPLE’S DEMOCRETIC REPUBLIC (LAOS) is a landlocked country, the mountain wind of 27,104 MW in wind potential, which studied by World Bank. The development in wind energy need more times because the hydropower in the Laos on continues development. These provided a great incomes for the country.

1.13 CAMBODIA. The potential of wind energy of the country is as of Thailand with the capacity 1,380 MW. In 2007 Thailand set a team visited Cambodia for the studying of of Cambodia, and Cambodia begin in interested of wind power.

1.14 MYANMAR. The country tried to study and investigated meteorological data such as solar radiation and also wind velocity and direction in 2003. With the Japanese government’s assistance, the first 40 kW wind turbine had installed in the western part of the country. This was the first step of Myanmar to use the wind power. Myanmar is the rich of natural gas and oil for the source of electricity generation, therefore the renewable energy is not the first choice development in future, if Myanmar interested in wind energy, the country can get more energy from wind not less than as India get at present time.

2. More than 25 years of wind power experienced countries around the world has shown that successful frameworks for the development of wind energy must include appropriate measure in these five vital areas : 1. Legally binding targets for installation. 2. Well designed payment mechanisms. 3. Grid access and strategic development of grids. 4. Appropriate administrative procedures. 5. Public acceptance and support.

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Setting targets serves as an important catalyst for development the necessary regulatory frameworks to expand renewable. Including financial frameworks. Overall, there are two main types of incentive promote development of renewable energy: 1. Fixed Price systems where the government sets the electricity price to the developer producer and let the market determine the amount of capacity that will be built. Payments can be made in the form of: - Investment subsidies - Fixed feed-in tariffs - Fixed premium payments - Tax credits 2. Renewable quota systems where sets the quantities of renewable electricity it would like to see produced as RPS (Renewable Portfolio Standard), and leaves it to the market to determine the price. Two types of renewable quota systems have been employed: - Green certificate system - Tendering system

Any policy measure adopted by a government however needs to be acceptable to the requirement of the investor in order to be effective. There are two key issues here: 1. The price for renewable power must allow for risk return profiles that are competitive with other investment options 2. The duration of a project must allow investors to recoup their investment. In Thailand’ case, various rules, regulations and supportive measures have been established by the government to enhance the achievement of 115 MW power generation from wind in year 2011 target. Entities, private as well as public, who have role in wind power development are as follow - Ministry of Energy : Department of Alternative Energy Development and Efficiency (DEDE), Department of Energy Business (DEB), Energy Policy and Planning Office (EPPO), Electricity Generation Authority of Thailand (EGAT), Energy Regulatory Commission (ERC). - Ministry of Commerce : The Department of Business Development - Ministry of Science and Technology : National Research Council.

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- Ministry of Natural Resources and Environment : National Resources and Environmental Policy Planning Office, Pollution Control Department, Forestry Department, National Park Wildlife and Plant Conservation Department. - Ministry of Industry : Department of Industrial Work, The Institute of Industrial Energy. - Ministry of Interior : Metropolitan Electricity Authority (MEA), Provincial Electricity Authority (PEA), Department of Public Work and Town & Country Planning, Department of Local Administration, Department of Land. - Ministry of Finance : The Treasury Department, the Revenue Department, the Customs Department. - Ministry of Transport : State Railway of Thailand, Port Authority of Thailand, Marine Department. - Ministry of Education : Department of Religious Affairs, Universities. - Ministry of Defence :

For private sector, investors, developers, users and local people in the areas where wind turbines installation are developed are the key players. Currently Thailand offers various incentive program for wind power development as follow - Import tax reduction for machineries, material equipment to conserve energy and environment programme - BOI’s Investment Promotion Programme - Tax Incentive for Energy Conservation Programme (Cost Based Basic) - Tax Incentive for Energy Conservation Programme (Performance Based Basic) - ESCO - CDM - Soft Loan Programme - Housing Loan Programme

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These incentive programmes aimed at continuous and sustainable development of wind energy. However to ensure that the target of 115 MW be met in year 2011 , effective strategies and development plan deem necessary, In this regard, they are hence formulated, based on the information learned from foreign countries which have succeeded in promoting wind power development, together with proposals, ideas and conclusions in various meetings of the wind energy network as well as interviews of the stakeholders in various sectors , private and public, namely, users, developers, researches academics.

The SWOT analysis revealed major weakness of the current wind development as follows - Inaccurated data of wind potential - Lack of appropriate wind turbine technology - Lack of confident in wind power development - Not feasible investment - The following key success factors are required - State of art and accurate wind potential map nationwide , corresponding to true geography - National Standard for equipment and installation to ensure users confident - Generous measures from the government , push as well pull, to create attractive investment atmosphere

In formulating the strategies, the concept of for 4 stages implementation, R&D&D&D i.e. Research, Development, Demonstration and Deployment guidelined by International Energy Agency aimed at enhancing market competitiveness under 3 keys success factor , was taken in to consideration they are : - Significant production size - Attractive Price - Application Diversity

Two areas of wind power development are focused i.e. power generation and prime mover. 1. Power Generation comprises of large wind generator to produce electricity and small wind generation 1-10 kilowatts size for community, schools and temples and below 1 kilowatt for household. 2. Prime Mover will include wind mill for agriculture use, waste water treatment and general applications

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3. Strategies map implementation plan direction of wind power development and key success factor and their linkage are illustrated in figure 1, 2, 3 and 4

Balanced Score Card formed

Achievement of Wind Power development 115 MW (year 2011) and 700 MW (year 2022) EFFECTIVENESS EFFECTIVENESS

Strengthening Lowing cost to enhance • Significant production capacity up confident widespread development • Application Diversity EFFICIENCY EFFICIENCY

Technology transfer Investment and Marketing and demonstration Manufacturing Promotion and PR R & D PROCESS PROCESS

Implementation Plan

PR Organizer Standard and Testing INPUT INPUT

Figure 1 Wind Power Development Strategies for Thailand

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Figure 2 Implementation plant

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Figure 3 Direction of Wind Power Development

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Figure 4 Key success factor and linkage

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To achieve the target 3 implementation are proposed 3.1 Investment and Production Development Promotion Plan This Plan intends to achieve widespread installation and production of wind turbine, it consists of 2 measures. Firstly, Investment and Production Incentive to attract extensive production and installation of various type and size of wind turbine to serve all application. Secondly, the administrative Re-engineering Measures to overcome barriers and facilitate the undertaking by streamlining procedures and regulation which leads to cost reduction of the investors / developers. This Plan will help and attract the investors / developers in implementing the wind power projects at all level. The details of each measure are described as follow. 3.1.1 Investment and Production Incentives consist of various financial tools to create confident of users and investor leading to widespread installation and use of wind machineries to serve all application such as large size wind turbine for on grid generation, small size wind generator for own use and other application such as agriculture and waste water treatment. This measures deem necessary during the first stage of wind power development. These measures can be categorized in 3 areas.

3.1.1.1 Investment and Production The measures will help accelerating the investment in setting up wind machineries in form of wind farm and other usage, such as own – used electricity generation, water pumping for drinking and utilities, prime mover for rice mill and agriculture application. The measures should include - Long term, low interest investment loan. - Long term, low interest housing loan. - Investment subsidy 30% from government. - BOI’s import tax exemption for wind equipment, parts and material, for sale as well as supply to other parties.

3.1.1.2 Tax - These measure will help lowing the cost of investment and thus enable move attractive financial return of the investment. - Exemption of import tax for wind equipment part and material both for sale and supply to other.

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- Ten years income and corporate tax exemption on revenue gained from saling electricity or allow expense in implementing wind project as tax credit in computing personal income tax - Accelerated depreciation to 80 per cent write off in the first year.

3.1.1.3 Financial This will help increasing better return of the investment - Improve adder tariff to the nearest level offers in other successful Asian and European countries, using ratio of adder to conventional purchasing tariff concept. - Extend promotion period to nearest level practices by of successful Asian and European counties, says 20 years, in order to ensure that the investment can proper manage the risk and return. - Government will handle all arrangement to obtain CDM and saling , free of charge for a certain time period stipulated.

3.1.2 Administrative Reengineering Measures The measures intend to overcome barriers , facilitate and accelerate the implementing process which will trim down unnecessary expenses, by streamlining rules and procedure in obtaining license , wind potential map , acquiring repair of wind equipment and pole , re-calibration of measuring devices, to maintain accurate, completed and continuous wind speed data, Three main areas are suggested.

3.1.2.1 Streamlining Application Procedure This measures will facilitate the developer in obtaining license, saving time and money, they cover. - Co-ordination with land owner for land use - One stop service for license permit

3.1.2.2 Establish a special service unit Special Mobile Unit should be set up to deal with serving and maintaining wind measuring stations and equipment, re-calibration measuring devices , wind power stations, testing, advisory and trouble shooting should also be covered.

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3.1.2.3 Grid Connection and Power Purchasing (These include) - Clarify and improve grid connection regulation and condition to accommodate the sale of large and small wind power generation to the grid, for example the use of Net Metering System for large size wind generation and Two Meters System for small size. - Establish policy on the connection of electricity from wind as first priory in order to avoid opportunity loss since wind blow is undulated.

3.2 Marketing and Public Relation Plan This plan aims at build up instill confidence and trust in the development of wind power, it comprise, of 3.2.1 Marketing Measure This measure will raise confidence of the developer an acquiring site, co-operation and market size and lead to progressive supply and manufacturing of wind equipment the action plans under, this measure consists of

3.2.1.1 Formulate implementation plan Road map of the implementation, with short and long term target, covering every application possible and corresponding to potential, should be formulated and announced, with the following contents - Target of wind power development. - Market promotion for users, manufacturer, suppliers and improvement of rule and regulations. - Study on size of wind turbines and their financial feasibility to serve the announced road map and local manufacturing promotion program. - Build up confidence of the user on the usefulness of wind energy. - Co-ordinate with all stakeholders, government, private, research, institutes, users manufacturers, suppliers and people in the wind power development vicinity for co-operation and benefit sharing.

22 Executive Summary The Monitoring and Assessment of the Wind Power Development and Promotion Project

3.2.1.2 Designate areas for wind development (Zoning) As areas suitable for large size wind installation as wind farm are limited, therefore, government sector should assist the developer by declaring zones for development together with promotion privilege as well as facilitating the acquisition of such land.

3.2.2 Public Relation This measure aims at create people awareness and acceptance through mass communication, dissemination of information and services, comprising of - Publish and disseminate printed materials. leaflets, instruction on wind technology and application to all walk of life for their learning and understanding. - Establish web site for exchanging ideas sharing knowledge of stakeholder and interested parties as well as informing the on going and incoming activities on wind energy. - Set up and maintain a wind power network as venue for meeting and creating activities. - Organize contest of wind development successful case on periodical basis.

3.2.2.1 One Stop Service The service of DEDE’s exiting One Stop Service spanning technical consultation, adversary on government procedures, information, data base of expert and installation, etc. should be further up sealed to serve wind development activities more affectively which will help the stakeholders significantly.

3.2.2.2 Supporting Data Adequated and accurate data related to wind potential in Thailand is vital to the development of wind power therefore report on wind potential should be well prepared , updated completed and easily accessed by the public. The data should cover wind speed at various height and locations nationwide. In addition, data on each specific wind turbine technology should be available together with its appurtenant, battery, pump etc. and possibly blue print to available for interested parties for their own undertaking.

23 Executive Summary The Monitoring and Assessment of the Wind Power Development and Promotion Project

3.3 Research and Development Plan This plan aims at supporting the research on appropriate wind technology to Thailand, to obtain various type and size prototype wind turbine, wind turbine standard, improved wind map, consists of 3.3.1 Modernization of Wind Potential Map To cover various altitude as required in wind power development road map.

3.3.2 Research on Wind Technology Set up testing center (s) to test and certify wind turbine. Set up Wind Research and Development Fund, issue standards for design , testing of wind machineries, grid connection , produce prototype wind turbine for production , co-operate with various research institutes, local and abroad, to reduce research time.

3.3.3 Man-Power Development This plan aims at strengthening knowledge and capability of interested parties to enhance sustainable development and utilization of wind energy. Short Term Cooperate with academic instutions and experienced organizations in providing training courses which will be financed by government on. - General wind technology. - Maintenance. - Grid connection technology. - Design of wind turbine. Long Term Inclusion of wind technology in academic curriculum. - Vocational level for maintenance, repair and trouble shooting. - University level for design and development.

3.3.4 Support on demonstration of utilization Support community to set up wind installation for community’s usage or demonstration on utilization. - Lighting with battery storage in public common use. - Water pumping for rice plantation, salt farm and other. - Prime mover.

24 Executive Summary The Monitoring and Assessment of the Wind Power Development and Promotion Project

Time Frame Time Frame under there strategies is set in 3 stages as follow. 1. Short term (Immediate Plan) 1-3 years, target at create incentive and confidence in wind energy development. Government will play the major role with push and pull policy, investment subsidy, PR of demonstration project or technology. 2. Medium term 3-8 years, expanding the result of first stage, but on semi– commercialized basis, i.e. government reduces its roles by maintain certain necessary measures only, for example, market size quarter, tax and financial. 3. Long term after 8 years, government abandons all support, except facilitating role and let market mechanism does the work.

Short Term Plan Medium Term Long Term

(Immediate) 1-3 years 3-8 years After 8 years

Objective / target Objective / target Objective / target

• Create incentive and • Expanding result on • sustainable confidence semi commercial basis • development • Push and pull policy • using

• Dissemination of • market technology and • mechanism demonstration project

Figure 5 Plans Time Frame and Target

4. Action Strategies To archive the target of 115 kW in year 2011 the following action strategies are recommended. 4.1 Wind Potential Aspect 1. DEDE can be considered as the biggest owner of wind measuring stations , It has the considerable records of wind speed at 10, 40, 65 and 90 meters height, These records should be made available to public via website in form of average daily speed , monthly and yearly average.

25 Executive Summary The Monitoring and Assessment of the Wind Power Development and Promotion Project

2. Support the establishment of a center to calibrate wind speed measuring devices, on site as well as in laboratory, to ensure reliable data. 3. Set up inspection and maintenance unit for wind powered generation and pumping. 4. Complete wind potential map and disseminate.

4.2 Technology Aspect 1. Support organizations or academic institutes in research and development low speed wind turbine of various size , prepare VCD blue print ready for manufacturing under DEDE licenses and available for manufacturing to interested parties. 2. Support and provide training course or curriculum on wind energy covering general technology, assembly and installation, foundation construction operation and maintenance, grid connection. 3. Support techno costs and interested parties in developing wind turbine for power generation pumping and other uses (agriculture / waste water treatment) and its related equipment through various incentives DEDE will also act as the co-ordinator in dealing with the concerned government agencies. 4. Set up demonstration project on wind power generation and pumping in various location where potential exists for people learning and publicity of wind energy utilization. 5. Co-operate with overseas organization in research and development.

4.3 Equipment Standard and Testing Aspect 1. Provide service on performance testing, on-site and in laboratory evaluation of technical and financial viability of wind turbine, implemented abroad or innovation. 2. Co-ordinate with Thai Industrial Standards Institute to set up standard for wind power pumping and electricity generation.

4.4 Government Supports Aspect 1. Re-study the existing adder tariff of 3.50 baht per unit for 10 years to match the situation, as ratio of this tariff to conventional electricity purchasing price is lower than those offered in foreign countries such as France and Denmark. 2. Provide soft loan interest with 10 years term. 3. Expand BOI privilege to allow importer of wind turbine for own installation or supply enjoy tax exemption as well.

26 Executive Summary The Monitoring and Assessment of the Wind Power Development and Promotion Project

4. Allow 80 per cent depreciation of wind machineries by the first year. 5. Buyer can use receipts as the evidenced to deduct tax. 6. DEDE should act as the core agency in designating high potential area for wind farm and co-ordinating with land owners for land use. 7. Put high effort to set up entity to carry out CDM Project, throughout i.e. consultation. implementation co-ordination and finalization , free of charge for a certain period of time set under promotion programme. 8. Modify, streamline rule and regulation on grid connection to accelerate the permission. 9. Publicize various wind implementation, from research to demonstration, nationwide as well as in vicinity where wind installation implemented. 10. Support Wind power network’s activities in overcoming barrier, supporting and promotion the utilization of wind energy. 11. Exempt and reduce tax on sale of electricity revenue. 12. Encourage government to provide subsidy for the investment of wind power development (30 per cent subsidy for example).

4.5 Marketing Aspect 1. Establish action plan for continuous implementation in line with formulated road map, promotion program and potential. 2. Provide study on size of wind turbine appropriate to Thai application , promote the use of wind energy for the benefit of wind industry and business, co-ordinate with stakeholders in sharing benefit among all parties concerned. 3. Provide publicity on benefit from wind energy, and successful case to community and nationwide. 4. Provide website for the benefit of all interested parties, such as wind power generation group prime mover group, agriculture application group, research group, manufacturer and supplier. 5. Extend service of One Stop Service Center to provide co-ordination, disseminate of wind technology manual, trouble shooting. 6. Provide service and maintenance manual of self undertaking. 7. Provide fund to support the activities.

27 Executive Summary The Monitoring and Assessment of the Wind Power Development and Promotion Project

5. Installation of database on production and utilization of wind The Project website WWW.THAIWINDNET.COM was developed and operated. It provides information on production and utilization of wind energy in Thailand, network members, wind potential, technology, news and linkage to other importance agencies relating to wind energy and alternative energy.

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