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1.3 Characteristics of Mae Hong Son Province

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1.3 Characteristics of Mae Hong Son Province United Nations Development Programme Country: Thailand ADDENDUM TO THE ORIGINAL PROJECT DOCUMENT OF THE GEF RE MHS PROJECT Project Title: Promoting Renewable Energy in Mae Hong Son Province National Priority or Managing natural resources and environmental sustainability. UNDAF Goal: CP/UNDAF outcome Thailand is better prepared to coherently address climate change and environmental (2012-2016): security issues through the enhancement of national capacity and policy readiness. Expected Outcome Power generation capacity from renewable energies in MHS increased both for on-grid Indicators (those that will as well as off-grid applications. result from the project): Renewable energy integrated into provincial development planning. Responsible Parties: The project will be implemented under DIM (Direct Implementation Modality) in close cooperation with the MHS office of the governor and the Provincial energy Office (PEO). Implementing Partner(s): MHS Office of the Governor; Provincial Energy Office (PEO), Ministry of Energy; Department of Alternative Energy Development and Efficiency (DEDE), Ministry of Energy; Electricity Generating Authority of Thailand (EGAT), Ministry of Energy; Department of National Parks, Wildlife, and Plants Conservation (DNP), Ministry of Natural Resources and Environment Royal Forest Department (RFD), Ministry of Natural Resources and Environment; Department of Public Administration MHS (DOPA); Provincial Administrative Organization (PAO); And other local government bodies. Brief Description: Despite the government’s commitment to Renewable Energy, there have been constraints to the wider and more sustained application of Renewable Energy Technologies in Thailand. This project will overcome barriers that currently prevent widespread and sustainable utilization of Renewable Energy Technologies for the provision of energy services in rural areas of Thailand. The project will work in Mae Hong Son province, which the Ministry of Energy has identified as its target to be the first energy self- sufficixx ent province in Thailand, in conformity with the king’s sufficiency economy concept. The project will facilitate an integrated RE planning xprocess Total at provincialresources required and local level, in $order xx to Programme Period: xx translate targets set at national level to local level and into real action. The four components of the Atlas Award ID: xx x Total allocated resources: $ xx projectProject ID:focus on (a) institutional capacityxx development for planning and implementing RE programmes; GEF $ xx (b)PIMS access # to financing; (c) technicalxx training and education and (d) policies for up-scaling and replication. x UNDP $ x Start date: xx Private Sector FollowingEnd Date a Mid-Term -Review (MTR) xx in Q3 of 2013, significant changes were made to the project x Total: $ xx frameworkManagement and Arrangements the implementation xx modality. In the second phase of the project the focus will be more PAC Meeting Date xx on off-grid renewable energy applications and the projectx implementation modality will be Direct Implementation (DIM). Table of Contents Table of Contents .................................................................................................................................... 2 Acronyms ................................................................................................................................................ 3 0 Introduction ......................................................................................................................................... 4 Part 1: Situation analysis ......................................................................................................................... 5 1. Context and Global Significance ......................................................................................................... 5 1.1 Energy sector in Thailand – supply ................................................................................................... 5 1.2 Renewable Energy targets, policies/incentives and installed capacity ........................................ 7 1.3 Characteristics of Mae Hong Son province ................................................................................. 13 1.4 Current energy situation in Mae Hong Son province ................................................................. 14 1.5 Renewable Energy potential in MHS .......................................................................................... 22 2 Barrier Analysis .................................................................................................................................. 24 3 Stakeholder Analysis .......................................................................................................................... 29 4 Baseline Analysis ................................................................................................................................ 32 Part 2: Strategy ..................................................................................................................................... 36 5 Design Principles and Strategic considerations ................................................................................. 36 6 Project Goal, objective, outcomes and outputs ................................................................................ 36 7 Key indicators, risks and assumptions ............................................................................................... 44 8 Sustainability and replicability ........................................................................................................... 45 Part 3: Project Results Framework ....................................................................................................... 45 Annex I: CO2 emission reduction calculations....................................................................................... 49 Acronyms Acronym Meaning APR Annual Project Report AWP Annual Work Plan BGET Border Green Energy Team CBO Community-Based Organization CO Country Office/UNDP Country Office DEDE Department of Alternative Energy Development and Efficiency DOLA Department of Local Administration DOPA Department of Provincial Administration EGAT Electricity Generating Authority of Thailand EPPO Energy Policy and Planning Office GEF Global Environment Facility Gg Gigagrams GHG Greenhouse gases GW Gigawatts kWh Kilowatt hour LEP Local energy planning LPG Liquefied petroleum gas M&E Monitoring and Evaluation MDG Millennium Development Goals MEA Metropolitan Energy Agency MHS Mae Hong Son MOI Ministry of the Interior MSW Municipal Solid Waste MW Megawatt MWh Megawatt hour NEPC National Energy Policy Council NESDB National Economic and Social Development Board NEX National Execution NGO Non-governmental Organization OPS Office of the Permanent Secretary PAO Provincial Administration Office PEA Provincial Energy Agency PIR Project Implementation Review PPG Project Preparation Grant PRO-SE Provincial Programme for Sustainable Energy PSCO Policy and Strategy Coordination Office PV Photovoltaic RE Renewable Energy REO Renewable Energy Office RET Renewable Energy Technologies RTG Royal Thai Government SML Small, Medium and Large SP Strategic Programme SPP Small Power Producer TAO Tambon (Sub-district) Administrative Organization toe Tonnes of oil equivalent ToR Terms of Reference UNDP United Nations Development Programme UNFCCC United Nations Framework Convention on Climate Change UNPAF United Nations Partnership Framework VSPP Very Small Power Producer 0 Introduction 1. The underlying document titled: “Addendum to the original project document of the GEF RE MHS project” contains the results of the strategic review. It serves as an addendum to the original ProDoc as prepared for the project in 2009 and approved by the GEF. This addendum provides an updated situation and barrier analysis, project strategy, project framework and implementation modalities for the remaining time of the GEF RE MHS project, which will run from 1 January 2014 till 31 December 2016. 2. This addendum contains specifically: An updated situation analysis of the energy situation in Thailand and Mae Hong Son (baseline); An updated analysis of the policy and regulatory environment for clean energy technologies in Thailand and Mae Hong Son as well as a stakeholders analysis; An analysis of the current barriers for the uptake of renewable energy technologies in MHS as well as an assessment of the feasibility of the various Renewable Energy Technologies (RETs); Part 1: Situation analysis 1. Context and Global Significance 1.1 Energy sector in Thailand – supply 3. Thailand is currently heavily dependent on imported fossil fuels and electricity for its energy supply, see Figure 1. Currently (figures from 2012), around 56% of the total energy demand is met from imported resources. Of the total oil consumption, 85% is imported. This makes Thailand very dependent on other countries for its energy supply and energy security is therefore high on the political agenda. Figure 1: Overview energy import situation Thailand1 4. Over the last couple of years, the total value of imported energy sources has increased steadily, see 5. Figure 2. DEDE estimates that the total value of imported energy sources is around 1,400,000 million baht, which is 18% of GDP. Around 77% of this import value is from crude oil. From an economic point of view there is significant reason to try to reduce the amount of energy imported and explore using more
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