6. Success of biomass energy program in Thailand
EPPO reported that during 1995–2004 the energy conservation fund has financed
15 biomass and 21 biogas projects [17]. The total investments for the two energy sources
were 2125 and 1320 million Baht, respectively. However, the distribution of the fund was
rather uneven. There are few large projects that took substantial share of the ENCON fund.
A single largest biomass project was the subsidy for a renewable SPP project worth 2060
million Baht, for example. The support was given as externality cost subsidy of not more
than 0.009 cent/kWh. Initially, EPPO was overwhelmed by 43 proposals for SPP projects
with total capacity of 775 MW. The ENCON fund committee approved 17 projects with a
combined installed capacity of 313 MW on 15 March 2002. This requires a total of 1956
million baht support from the ENCON fund. Out of the 17 projects, 14 are biomass with a
combined installed capacity of 279 MW. However, before contract granting, every project
must be agreed upon by local communities residing within the radius of 5 km from the
plant through the public hearing. Several projects were opposed by local communities.
Finally, 20 projects were approved for 243.3 MW capacity [17]. Interestingly, only one
project fuelled by rubber wood (20 MW) and none for oil palm residue despite of the fact
that the fuel supply is secured for long-term operation. The rest are bagasse, rice husk and
mini-hydro. Up until now (early 2005) construction of 14 projects are completed and the
other six projects are under construction.
During the same period (1995–2004) biogas project seems very successful, especially
in pig farms. ENCON Fund has committed 961 million Baht for financial subsidy (for
system construction) to pig farm biogas projects. The total capacity is 326,000 m3 (gas),
which is sufficient to treat manure from 2.3 million heads of pigs. Considering the total
head count of 10 million pigs, there is opportunity to increase the biogas project and
extend to other livestock.