Renewable energy use could bring rewards
The government is revising rules for very small power producers (VSPP) to reward production of electricity from renewable sources. Metta Buntherngsook, director of the Energy Policy and Planning Office (EPPO), said the proposal, to be forwarded to Energy Minister Viset Choopiban for official endorsement, would increase the allowable purchase of renewable energy from one to six megawatts.In addition the amendment would provide a state subsidy to VSPP operators generating electricity from viable, renewable sources.
The proposal asks for 650 million baht from the energy conservation promotion fund to subsidise the cost of electricity produced from renewable energy for six years beginning next Jan 1.
The cost of producing electricity from renewable sources remains much higher than traditional methods used in Thailand _ burning petroleum or hydro power.
The government national energy strategy calls for increasing the amount of renewable energy to 8% of the national total consumption by 2011, from 0.5% at present.
New hydro power generation projects will count toward the amount.
The policy also mandates that newly built power plants coming onstream after 2009 must produce 6% of their electricity from renewable energy sources.
Mr Metta said he wondered whether new power plants could meet the requirement. Hydro and biomass _ agricultural and municipal waste _ to be used as alternative fuels are likely to become more scarce. Dam building has virtually halted in Thailand in recent years.
EPPO will propose to the minister to order a tax on electricity sales to support the project to increase renewable energy power production.