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Title: FIT and its implementation in Thailand: Legal Measures, Implementation, Challenges, and Solutions
Contributor(s): Smith, Robert Brian  (author)orcid ; Smith, Nucharee Nuchkoom (author); Smith, Darryl Robert (author)
Publication Date: 2014-03-21
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Abstract: Thailand operates a large scale integrated power system. It has a well-developed electricity network and a high per capita energy demand in comparison with its South East Asian neighbors. Malaysia is the only neighbor with a higher degree of electrification and per capita demand. According to the latest World Bank data available (2010), Thailand has a population of around 68 million with 99.3% having access to electricity consuming 2,243 kWh per capita per annum. The electricity consumption in 2010 was 149.32 billion kWh with total energy consumption being 117.43 Mtoe. Thailand proclaimed the Energy Conservation and Promotion Act in 1992. Electricity in Thailand has been a regulated energy source since 1993. As a result Thailand has, over the years, initiated a number of energy conservation measures including measures for energy conservation in buildings and factories. The Thailand electricity sector operates under an ‘Enhanced Single Buyer’ model. The state-owned Electricity Generating Authority of Thailand (EGAT) operates under its own Act and is the own/operator of around 48% of electric generation capacity, with the remaining capacity generally supplied by private operators. Transmission and distribution are split and operated by different government utilities. EGAT operates the high voltage transmission network whilst the distribution network is operated by the Metropolitan Electricity Authority (MEA) in the Bangkok market and by the Provincial Electricity Authority (PEA) in the provinces, with the Bangkok market constituting 30% of the total market. In addition to the generation capacity of EGAT of about 48%, Independent Power Producers (IPP) supply around 38% of the power requirements, Small Power Producers (SPP) produce 7%, with imports supplying around 7%; imported power is mainly produced at hydroelectric plants in Laos, with some power also purchased from Malaysia. Weischer has identified a number of challenges facing the Thai power sector, namely: – Thailand is dependent on natural gas for over 70% of its electricity generation and imports almost 25% of its natural gas supply. – Whilst there is disagreement over future electricity demand predictions, there is general agreement that additional capacity will be required in coming years. – Thailand recognizes that it needs to reduce pollution and greenhouse gas emissions and has set an objective of being a low carbon society. – As the power sector was responsible for 42% of greenhouse gas emissions in 2011, it will have to make a significant contribution to the reduction effort. It should be noted that the levels of greenhouse gas emissions as reported would have been much far higher if coal was used as the predominant fuel source with its higher greenhouse gas emissions. As a result, Thailand decided to develop a series of Development Plans culminating in the 10-year Alternative Energy Development Plan (2012–2021), which set a target of 25% of total energy consumption by 2021 to be provided by renewable energy, with 10% of electricity consumption being met by renewable energy. Unlike other markets where renewable energy is being promoted primarily on energy security grounds, Thailand’s growth is commercially motivated and is driven by financial incentives and supporting policies. In other words, Thailand sees a commercial advantage in producing green energy from alternative energy sources. Not only does it reduce reliance on potentially costly imports, it fosters economic growth by development of new industries and the production of renewable energy sources from agricultural products. Of the six most developed ASEAN countries, Thailand is seen as having the highest renewable energy targets, the highest level of financial incentives as well as the highest level of non-financial incentives. However, Thailand, like Malaysia, is perceived to have medium importance issues/risks associated with the administrative/regulatory environment; market related issues, technical and infrastructure issues; and finally in the area of socio-cultural issues. The energy industry in Thailand operates under a mix of legislative and administrative requirements. It is primarily governed by the Energy Industry Act BE 2550 (2007).
Publication Type: Book Chapter
Source of Publication: Legal Issues of Renewable Energy in the Asia Region: Recent Development in a Post-Fukushima and Post-Kyoto Protocol Era, p. 127-146
Publisher: Kluwer Law International
Place of Publication: Alphen aan den Rijn, The Netherlands
ISBN: 9789041148568
Fields of Research (FoR) 2020: 400803 Electrical energy generation (incl. renewables, excl. photovoltaics)
Socio-Economic Objective (SEO) 2020: 170306 Energy transmission and distribution (excl. hydrogen)
HERDC Category Description: B1 Chapter in a Scholarly Book
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Editor: Editor(s): Anton Ming-Zhi Gao, Chien Te Fan
Appears in Collections:Book Chapter
School of Law

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