Net Metering Project Promotes Renewable Energy Generation in Thailand
With a view to strengthening its national energy security and competitiveness, Thailand has increasingly focused on efficient energy management and developing domestic renewable energy resources as an alternative to importing energy supplies to meet growing domestic consumer and industrial needs. Promoting the efficiency and environmental gains obtainable by increasing renewable energy supplies, the United States-Asia Environmental Partnership (US-AEP) has supported government initiatives to legislate net metering, whereby small and medium-sized renewable energy providers can connect to the power grid.With assistance from US-AEP, a group of volunteers drafted legislation to allow small and medium-sized producers of renewable energy to connect to the Thai power grid in 2002. This development was initiated in part due to the stakeholder dialogue catalyzed by a US-AEP-sponsored study tour to the United States and a training course in Bangkok that involved the Provincial Electricity Authority, the Metropolitan Electricity Authority, the Electric Generating Authority of Thailand, and the former National Energy Policy Office. Expertise and guidance was supplied to the group through a partnership with the Sacramento Municipal Utility District and Pacific Gas and Electric, both California-based utility providers with substantial experience in renewable energy. In 2003, US-AEP facilitated the institutionalization of net metered renewable energy through a mix of workshops, study tours, professional exchanges, networking, stakeholder meetings, and consultations with policy makers.
In May 2002, the Thai Parliament ratified legislation that requires state-owned electric utility monopolies to permit net metering whereby small and medium-sized solar, wind, micro-hydroelectricity, biomass, and biogas generators that produce up to one megawatt of electricity can connect to the power grid. By ensuring small scale renewable energy producers market access and fair prices, ratification of the legislation has created income opportunities for rural communities and offers significant potential to reduce Thailand's dependence on imported oil and coal. The multi-stakeholder partnership catalyzed by US-AEP activities has generated increased industry support for net metering by creating and nurturing local institutions to further promote this innovative management system and address technical issues. US-AEP-sponsored activities have also achieved significant success in mitigating disputes between renewable energy providers and large electric utilities concerned about protecting their market share. In 2004, US-AEP activities will build on these successes to further promote capacity building and increase confidence in the important role that small and medium-sized renewable energy generators can play in expanding and improving Thailand's power grid. Continued progress in 2004 will stimulate the deployment of 10 MW of community-owned, or small entrepreneur-owned, net-metered renewable energy by 2005.
"Thai government studies have determined that economically viable renewable energy potential exceeds 1800 MW -- more than 10% of Thailand's total peak electricity demand. Net metering legislation offers the opportunity for many of these clean energy resources to be developed -- improving Thailand's environment, building local economies, and reducing reliance on imported fossil fuels. We're making good progress in lowering remaining technical, bureaucratic, and information barriers to these projects. Our outreach efforts have led to at least 3 MW of additional planned installations -- enough electricity for 12,000 Thai homes. US-AEP's support throughout has been essential to our efforts." Chris Greacen, Director, Palang Thai