Energy Industry Act and RE in Thailand

A complementary view

Energy Industry Act, B.E. 2550

The Act cover• Composition and roles of the regulatory body• Relation between government and the ERC• Regulation processes• Energy consumer protection• Utilization of immovable properties• Redress of disputes and lodging of appeals• Competent officials • Disciplinary procedures • Punishment

Energy industries in EI Act• Electricity industry

– Production– Procurement– Transmission– Distribution– Control of a power system

• Natural gas industry– transmission through pipelines– natural gas storage – transformation of natural gas from liquid to gas– natural gas procurement and wholesale, – natural gas retail via a natural gas distribution system(exclude NG industry operation in the transportation sector)

Objective of the Act

Section 7:The objectives of this Act are to:…(8) promote the use renewable energy that has less

adverse impact on the environment in the electricity industry operation.

Objective of the Act

• promote adequate and secure energy service provision

• protect energy consumers’ benefits • promote competition in the energy industry • promote fairness and transparency • promote the efficient energy industry operation• protect the rights and liberty in terms of

participation, accessibility, utilization and management of energy

Government’s duties

Section 8: The government should establish the fundamental

policy guidelines on energy (1) Procure energy to adequately meet the demand, with

good quality, security as well as reasonable and fair prices, emphasizing full exploitation and development of renewable energy and indigenous energy resources for the purpose of sustainable development of the country in social, economic and environmental aspects, including reducing dependency on imported energy from foreign sources. …

Commission’s duties

Section 11: The Commission shall have the following authority

and duties: …(16) promote economical and efficient use of energy

and the use of renewable energy and energy that has less adverse impact on the environment, with due consideration of the efficiency of the electricity industry operation and the balance of natural resources;

The power development fund

Section 93:A fund shall be set up in the Office, under the name

“Power Development Fund,” with the following objectives: … to promote the use of renewable energy and technologies in the electricity industry operation that have less impact on the environment, with due consideration on the balance of natural resources; …

The fund’s objectives

• to support extensive extension of electricity service provision to various localities so as to decentralize prosperity to provincial areas;

• to develop the local communities affected by the operation of a power plant;

• to promote the use of renewable energy and technologies

• to create fairness for power consumers.

Ministry’ authorities and duties

• Recommendi policy and strategies on – energy industry structure and operation standard– diversification of power generation– energy procurement – protection against energy shortages– energy services and consumers’ petitions– contribution and utilization of Power Development

Fund

ERC’s authorities and duties

• Ensure the objective of the Act under the policy framework of the government

• Determine the types of licenses for energy industry • Establish measures, regulations, or guidelines on – security and reliability of the power system – industry efficiency and transparency– customer service standards – protection against adverse impacts

ERC’s authorities and duties (2)

• Promoting and supporting – research study– Public knowledge and awareness– human resources development for the energy

industry operation– economical and efficient use of energy and the use

of renewable energy and balance of natural resources;

ERC’s authorities and duties (3)

• Regulate power procurement – Establish and issue regulations, criteria, and

proposal – monitor the selection procedures

• Provide comments on – power development plan– electricity industry investment plan– natural gas procurement plan– energy network system expansion plans

• Energy Industry has never been freely mobilized

Demand

NEPC

ERC

Regulating context

• Reliable– To what extent? – Under what assumption?

• Fairness– Within whose concern?

• Environmental friendly– Precautionary

• Political friendly– @#$!?

Regulating within the RE context

• Reliable– Switching speed – Changes in consumption mode/technology

• Fairness– Investment cost vs environmental cost

• Environmental friendly– Precautionary

• Political friendly– :)