New boss dusts off renewable power plan

New boss dusts off renewable power plan

The Alternative Energy Development and Efficiency Department will offer greater investment privileges for renewable energy projects in a bid to speed investment in the sector and reach the target of 25% of the country's energy mix by 2021.

Mr Viraphol presides over yesterday’s opening of the Thailand Esco Fair at Bitec. The new alternative energy chief plans a revamp of investment privileges. Somchai Poomlard

Newly appointed director-general Viraphol Jirapraditkul said the department would revamp privileges in terms of tax holidays and feed-in tariffs for all kinds of renewable energy.

The existing incentives are not in line with technology development in renewable energies such as solar, wind and gasification, he said.

Solar and municipality-waste-to-energy projects are parts of the military regime's focus on attracting investment in a second generation of renewable energy schemes.

The first generation included biomass, biogas, solar, wind and mini hydropower.

The solar rooftop scheme was launched last September for combined capacity of 200 megawatts, but the operating date was delayed by the prolonged political unrest.

So far, just 100 MW is scheduled to come on stream.

Under the national renewable energy plan, renewable energy capacity in the power sector is expected to reach 13,927 MW in 2021 from 3,788 MW last December.

According to the department's "Energy in Thailand: Facts and Figures 2013" report, renewable energy capacity in the power sector grew by 36% last year from 2,786 MW in 2012.

"We now have only seven years to achieve our target, and it's time to speed it up," Mr Viraphol said.

The department is also revising a budget allocation from the Energy Conservation Fund to the Energy Service Company (Esco) Fund that finances projects.

Each year, some 500 million baht is set aside for the fund to support more than 400 firms.

The Thai Esco Association plans to expand services to state-owned buildings and tap rising demand to offset a slowdown in the private sector caused by the recent political turmoil.

Association president Arthit Vechakij said Thai Esco would call on the military regime to revise regulations allowing Escos greater access to the bidding process for state contracts.

Thailand's Esco business is expected to resume normal growth in the second half of this year after reporting flat growth in the first six months.

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