CPN Retail Growth Leasehold Rpoperty Fund (CPNRF) has priced 544.83 million new unit trusts at Bt8.90 per unit as part of its plan to invest Bt5.68 billion of fresh funds in Central Plaza Pinklao.
"The offering price was based on the book-building process hile the investment in Central Plaza Pinklao seems to be appropriate with the asset quality," Jotika Savananada, president of SCB Asset Management, said yesterday.
The offering price is below the peoperty fund's market price of Bt9.15.
To raise Bt4.85 billion, at least a half of the new units will be sold to existing holders at the ratio of 0.2505 of a new unit to each existing unit, while the rest will be sold throuht private placement and public offering.
Subscriptions, starting at 5,000 uints, will be acceptedfrom
"The offering price was based on the book-building process while the investment in Central Plaza Pinklao seems to be apporopriate with the aset quality." October 16-27 at Siam Commercial Bank branches nationwide.
SCB last week extended a Bt1 billion credit facility to the property fund to finance the investment in Central Plaza Pinklao by partially letting the shopping plaza, two office buildings, and in-building parking spaces totalling 58,303 square metres, for a term of 15 years.
Following the fund-raising, CPNRF's assets will increase to as much as Bt17 billin from Bt10.92 billion, making it the largest property fund in the country.
The investment in Central Pinklao allows CPNRF, which currently is invested in Central Plaza Rama II and Central Plaza Rama III, to diversify its income risk, she said.
The property fund is expected to produce a return of 10.7-11.1 per cent next year.
Wednesday, September 30, 2009
Map Ta Phut ruling hits SET
Share prices of companies in the networks of PTT Plc and Siam Cement Group fell in a range of 1% to 7% during trading yesterday as the country's leading industrial conglomerates faced a new blow over unsettled pollution problems at Map Ta Phut.
Among the 76 projects worth 400 billion baht ordered to halt construction by the Administrative Court on Tuesday,25 are being developed by subsidiaries and affiliates of PTT, said PTT chief financial officer Tevin Vongvanich.
These ongoing projects include a sixth gas separation plant, due to be operational by the end of this year,petrochemical plants, and an upgraded refinery to meet Euro 4 emission standards.
The court ordered the suspension of operating permits for new investments in Map Ta Phut Industrial Estate in Rayong, following an outcry from environmental activists and residents who claim the permits violated Section 67 of the 2007 Constitution.
"The (temporary) suspension of these projects will affect our trading and contract partners, financial institutions, and related industries across the supply chain. Moreover, it will put at risk over 100,000 jobs, including hiring in [Map Ta Phut]," Mr Tevin said.
"We are planning to hold talks with concerned government agencies to seek ways to soften the impact from the court's ruling, or we may lodge an appeal."
Siam Cement said the court order would force its wholly owned subsidiary,SCG Chemicals, to halt nearly completed construction of its upstream naphtha cracker, as well as projects of its downstream subsidiaries and joint-venture units, expected to be completed between late 2009 to mid-2011.
"In this regard, SCC will be working closely with all relevant government authorities to jointly conclude a solution for all concerned parties, while minimising any effect on SCG Chemicals'investment projects," president and chief executive Kan Trakulhoon said in a statement to the Stock Exchange of Thailand yesterday.
Also affected is SET-listed Glow Energy, whose 660-megawatt power plant is likely to be postponed.
Kim Eng Securities said the court was expected to review the case immediately when an appeal is lodged.
"This issue cannot drag on for long because it will affect the sentiment of the stock market in general," said a Kim Eng spokesman.
However, Bualuang Securities said the court ruling was unlikely to push the overall index down even though it caused a sudden shock.
"This news represents a negative
surprise and is certainly a near-term headwind against the stock of any company with facilities in or near Map Ta Phut," Bualuang said.
Surong Bualakula, senior executive vice-president for the international business unit of PTT, said Thailand's competitiveness had been crimped by the Map Ta Phut case.
The development could prompt PTT to look at neighbouring countries such as Cambodia, which has larger natural gas and oil reserves, as well as a pipeline network. The Cambodian government is considering a plan to build an energy complex in Sihanoukville, he said.
"Map Ta Phut is the centre of Thailand's industrial development region with a competitive advantage in the gas-based petrochemical industry," Mr Surong said."What downstream manufacturers or automakers will invest in Thailand now because they cannot be sure if they will have enough raw materials in the future?"
Shares of Siam Cement (SCC) closed yesterday at 222 baht, down 5 baht, in trade worth 1.11 billion. PTT shares rose 3 baht, but PTTAR fell 1.10 baht to 24.40 in trade worth 1.7 billion while PTTCH fell 4 baht to 73.25 in trade worth 844 million. GLOW fell 1.75 baht to 32.75 in trade worth 135 million.
Among the 76 projects worth 400 billion baht ordered to halt construction by the Administrative Court on Tuesday,25 are being developed by subsidiaries and affiliates of PTT, said PTT chief financial officer Tevin Vongvanich.
These ongoing projects include a sixth gas separation plant, due to be operational by the end of this year,petrochemical plants, and an upgraded refinery to meet Euro 4 emission standards.
The court ordered the suspension of operating permits for new investments in Map Ta Phut Industrial Estate in Rayong, following an outcry from environmental activists and residents who claim the permits violated Section 67 of the 2007 Constitution.
"The (temporary) suspension of these projects will affect our trading and contract partners, financial institutions, and related industries across the supply chain. Moreover, it will put at risk over 100,000 jobs, including hiring in [Map Ta Phut]," Mr Tevin said.
"We are planning to hold talks with concerned government agencies to seek ways to soften the impact from the court's ruling, or we may lodge an appeal."
Siam Cement said the court order would force its wholly owned subsidiary,SCG Chemicals, to halt nearly completed construction of its upstream naphtha cracker, as well as projects of its downstream subsidiaries and joint-venture units, expected to be completed between late 2009 to mid-2011.
"In this regard, SCC will be working closely with all relevant government authorities to jointly conclude a solution for all concerned parties, while minimising any effect on SCG Chemicals'investment projects," president and chief executive Kan Trakulhoon said in a statement to the Stock Exchange of Thailand yesterday.
Also affected is SET-listed Glow Energy, whose 660-megawatt power plant is likely to be postponed.
Kim Eng Securities said the court was expected to review the case immediately when an appeal is lodged.
"This issue cannot drag on for long because it will affect the sentiment of the stock market in general," said a Kim Eng spokesman.
However, Bualuang Securities said the court ruling was unlikely to push the overall index down even though it caused a sudden shock.
"This news represents a negative
surprise and is certainly a near-term headwind against the stock of any company with facilities in or near Map Ta Phut," Bualuang said.
Surong Bualakula, senior executive vice-president for the international business unit of PTT, said Thailand's competitiveness had been crimped by the Map Ta Phut case.
The development could prompt PTT to look at neighbouring countries such as Cambodia, which has larger natural gas and oil reserves, as well as a pipeline network. The Cambodian government is considering a plan to build an energy complex in Sihanoukville, he said.
"Map Ta Phut is the centre of Thailand's industrial development region with a competitive advantage in the gas-based petrochemical industry," Mr Surong said."What downstream manufacturers or automakers will invest in Thailand now because they cannot be sure if they will have enough raw materials in the future?"
Shares of Siam Cement (SCC) closed yesterday at 222 baht, down 5 baht, in trade worth 1.11 billion. PTT shares rose 3 baht, but PTTAR fell 1.10 baht to 24.40 in trade worth 1.7 billion while PTTCH fell 4 baht to 73.25 in trade worth 844 million. GLOW fell 1.75 baht to 32.75 in trade worth 135 million.
Throw the book at them
Today is the day that the US Commerce Department's contract with the Internet Corporation for Assigned Names and Numbers (Icann) expires; therefore, it is also the day that much of the world, primarily the European Union, demands that President Barack Obama be replaced by a diverse world committee to oversee the Internet; the issue is likely to become a major sticking point between America and Europe, but most Internet users will be blissfully unaware that anything needs to be fixed in the first place; the Europeans' plan for a "G12 for Internet governance" would not seem to affect content at first, because the US only oversees the technical machines that keep the Internet going, without any attention to content; it's unbelievable that a new system bringing in other governments could similarly avoid that temptation.
Several European scientists, who believe that genetic modification should be labelled Frankenfood and that cellphones cause brain damage, said that nanoparticles "might" pose a health danger; Susanne Stark, a chemist employed by the Consumer Information Association, said that clothing which contains little teensy particles should be labelled as potentially dangerous,and so should cosmetics and food products; a doctor who specialises in en-vironmental hygiene, claimed that nanoparticles in food could enter the body through the mouth.
Engineers in Germany, which recently began dismantling many of its nuclear power plants, now are rethinking the safety of planned geothermal replacements; some believe that a geothermal project set off an earthquake, and scientists in the US and Switzerland are equally concerned.
Adobe Systems bought the web analytics and website building firm Omniture for $1.8 billion; the deal was made faster than you can say "Flash website".
China began building its fourth space launch base, the Wenchang Space Satellite Launch Centre on Hainan island;it is a major departure for the Chinese,who until now have kept their space launch sites well hidden even from their own people; the Hainan launch pad will fire the new Long March 5 rocket,due for flight in 2014 and likely to become the country's workhorse rocket for the country's manned space flights.
Communications Minister Stephen Conroy announced the government plans to break up Telstra , the biggest telecoms group in Australia, with strict regulation; partly government owned Telstra has two choices - split its retail and network arms voluntarily or invol-untarily; the company will be barred from acquiring further wireless spectrum until it restructures.
The luggable iron Post Database Quote of the Week Trophy goes to US media mogul Rupert Murdoch, who predicts newspapers will be printed on "flexible devices instead of crushed trees.It won't be soon; it could take 20 years.But there will be no paper, no printing plants, no unions. It will be a great future." Speaking of quotations:"I don't think the world will be a better or safer place without me"; those are the last words of executed prisoner Jeffery Doughtie, as recorded on a web page of the Texas Department of Criminal Justice at www.tdcj.state.tx.us/stat/executedoffenders.htm.
If you want your book sold and advertised at Amazon.com , you (or your publisher of course) will provide the volume in PDF format, no exceptions;Amazon says it's more eco-friendly, and also just by coincidence it makes it much easier to index every word of your book and let browsers look inside it - even though Amazon has opposed Google 's plan to do the same; as part of its justification for the onerous formatting instructions, Amazon.com notes that books that are searchable for free outsell unsearchable books.
The US Justice Department notified a New York federal judge that it expects to oppose the plan by Google to scan,copy and perhaps get copyright to millions of out of print books; a 28-page decision said the Obama administration had "significant legal concerns with the breadth of a proposed settlement"under which Google would set up a $150 million fund in case of copyright breaches; even the government was bright enough to realise that a properly structured deal "[could] breathe life into millions of works that are now effectively off limits to the public"no matter what Amazon.com says. Google announced it will re-issue 2 million out-of-print books in its library as paperbacks; the firm's Espresso Book Machine can turn out a paperbackbound,300-page book in less than five minutes from scanned PDF copies; it is by far the biggest boost since the Jurassic Age for On Demand Books , makers of the Espresso Machines.
Google released Chrome 3.0, another minor update to their fast but unfeatured browser, with customisable themes but still virtually no add-ons or support for webapps; this raised the question of how Google could possibly justify calling the tweaks a full-version upgrade.
Avaya of America won the auction to buy bankrupt networking vendor Nortel of Canada for $900 million; Avaya promised to fire no more than 25 percent of Nortel workers.
Several European scientists, who believe that genetic modification should be labelled Frankenfood and that cellphones cause brain damage, said that nanoparticles "might" pose a health danger; Susanne Stark, a chemist employed by the Consumer Information Association, said that clothing which contains little teensy particles should be labelled as potentially dangerous,and so should cosmetics and food products; a doctor who specialises in en-vironmental hygiene, claimed that nanoparticles in food could enter the body through the mouth.
Engineers in Germany, which recently began dismantling many of its nuclear power plants, now are rethinking the safety of planned geothermal replacements; some believe that a geothermal project set off an earthquake, and scientists in the US and Switzerland are equally concerned.
Adobe Systems bought the web analytics and website building firm Omniture for $1.8 billion; the deal was made faster than you can say "Flash website".
China began building its fourth space launch base, the Wenchang Space Satellite Launch Centre on Hainan island;it is a major departure for the Chinese,who until now have kept their space launch sites well hidden even from their own people; the Hainan launch pad will fire the new Long March 5 rocket,due for flight in 2014 and likely to become the country's workhorse rocket for the country's manned space flights.
Communications Minister Stephen Conroy announced the government plans to break up Telstra , the biggest telecoms group in Australia, with strict regulation; partly government owned Telstra has two choices - split its retail and network arms voluntarily or invol-untarily; the company will be barred from acquiring further wireless spectrum until it restructures.
The luggable iron Post Database Quote of the Week Trophy goes to US media mogul Rupert Murdoch, who predicts newspapers will be printed on "flexible devices instead of crushed trees.It won't be soon; it could take 20 years.But there will be no paper, no printing plants, no unions. It will be a great future." Speaking of quotations:"I don't think the world will be a better or safer place without me"; those are the last words of executed prisoner Jeffery Doughtie, as recorded on a web page of the Texas Department of Criminal Justice at www.tdcj.state.tx.us/stat/executedoffenders.htm.
If you want your book sold and advertised at Amazon.com , you (or your publisher of course) will provide the volume in PDF format, no exceptions;Amazon says it's more eco-friendly, and also just by coincidence it makes it much easier to index every word of your book and let browsers look inside it - even though Amazon has opposed Google 's plan to do the same; as part of its justification for the onerous formatting instructions, Amazon.com notes that books that are searchable for free outsell unsearchable books.
The US Justice Department notified a New York federal judge that it expects to oppose the plan by Google to scan,copy and perhaps get copyright to millions of out of print books; a 28-page decision said the Obama administration had "significant legal concerns with the breadth of a proposed settlement"under which Google would set up a $150 million fund in case of copyright breaches; even the government was bright enough to realise that a properly structured deal "[could] breathe life into millions of works that are now effectively off limits to the public"no matter what Amazon.com says. Google announced it will re-issue 2 million out-of-print books in its library as paperbacks; the firm's Espresso Book Machine can turn out a paperbackbound,300-page book in less than five minutes from scanned PDF copies; it is by far the biggest boost since the Jurassic Age for On Demand Books , makers of the Espresso Machines.
Google released Chrome 3.0, another minor update to their fast but unfeatured browser, with customisable themes but still virtually no add-ons or support for webapps; this raised the question of how Google could possibly justify calling the tweaks a full-version upgrade.
Avaya of America won the auction to buy bankrupt networking vendor Nortel of Canada for $900 million; Avaya promised to fire no more than 25 percent of Nortel workers.
Sunday, September 27, 2009
EGAT SLAMMED BY LOCALS AT FORUM ON SONGKHLA PLANT
In a public forum organised yesterday, the Electric Generating Authority of Thailand (Egat) was heavily criticised by the local public in Songkhla's Chana district over a controversial power plant.
The plant began operating in 2005 and is still in its first phase.
A resident accused Egat of being a "criminal" that had been plundering Thailand and the local public, as fish in several farms in a village had died last year and early this year. "Egat must show to us how to solve this problem and to compensate those affected, or the problems will become unending," said Hame Tohduan.
Another resident, who asked not to be identified, said Egat instigated conflicts among local residents by treating well a group of them who would be of benefit to Egat - giving them grand meals and free hotel rooms - while a group of farmers who had been affected had been ignored and even had their requests to meet local Egat officials turned down repeatedly.
"Egat has chosen to hear opinions from people of its choice and failed to treat wastewater it has discharged in a canal. The water appears clear but becomes toxic to certain fish, making some fish become extinct," he said.
The forum was the second of its kind in the district. Many years ago Egat had a conflict with Songkhla people concerning a pipeline project, which sparked violent confrontations between police and opponents.
Adirek Madman, chief of the Na Tab Tambon Administrative Organisation, said the new conflict over the power plant project stemmed solely from Egat's lack of sincerity by hiding the entire truth about the project from the local public. He called on Egat to promptly educate the people about the good and bad consequences of the plant as a gesture of goodwill.
Pheeradis Hremae showed pictures of shrimp and fish killed by hot water discharged by the plant into canals to counter an Egat claim that it cooled down hot water before discharging it. He said Egat had acquired public approval from people living in the nearby tambons of Khlong Pia and Pa Ching, but did not do so with Na Tab people before building the power plant.
The plant began operating in 2005 and is still in its first phase.
A resident accused Egat of being a "criminal" that had been plundering Thailand and the local public, as fish in several farms in a village had died last year and early this year. "Egat must show to us how to solve this problem and to compensate those affected, or the problems will become unending," said Hame Tohduan.
Another resident, who asked not to be identified, said Egat instigated conflicts among local residents by treating well a group of them who would be of benefit to Egat - giving them grand meals and free hotel rooms - while a group of farmers who had been affected had been ignored and even had their requests to meet local Egat officials turned down repeatedly.
"Egat has chosen to hear opinions from people of its choice and failed to treat wastewater it has discharged in a canal. The water appears clear but becomes toxic to certain fish, making some fish become extinct," he said.
The forum was the second of its kind in the district. Many years ago Egat had a conflict with Songkhla people concerning a pipeline project, which sparked violent confrontations between police and opponents.
Adirek Madman, chief of the Na Tab Tambon Administrative Organisation, said the new conflict over the power plant project stemmed solely from Egat's lack of sincerity by hiding the entire truth about the project from the local public. He called on Egat to promptly educate the people about the good and bad consequences of the plant as a gesture of goodwill.
Pheeradis Hremae showed pictures of shrimp and fish killed by hot water discharged by the plant into canals to counter an Egat claim that it cooled down hot water before discharging it. He said Egat had acquired public approval from people living in the nearby tambons of Khlong Pia and Pa Ching, but did not do so with Na Tab people before building the power plant.
Lamphun community forest wins honours
Baan Ta Pa Pao community forest in Lamphun has won the "Best National Community Forest" award and HRH Princess Maha Chakri Sirindhorn trophy, as part of the "Love the Forest and the Community" programme of the Royal Forest Department and Ratchaburi Electricity Generating Holding.
With an area of 13,000 rai, the forest has a rich variety of plants, following 10 years of rehabilitation. The forest also contains over 500 types of easy-to-find herbs and serves as a learning centre for children and academics.
The fertile forest provides an abundant supply of water to the community, which is delivered via a supply system than runs through the surrounding mountains.
Baan Ta Pa Pao community forest, which is managed under a three-party collaboration of households, temples and schools, beat other 673 forests listed for the competition.
There were 190 award-winning community forests, including 64 winners for the "Best Provincial Community Forests" and 120 consolation prizes awarded to other projects.
"Our focus is to promote participation in all areas, build networks in all segments and promote comprehensive and sustainable reforestation for economic forests, community forests and innovative forest villages" said Natural Resources and Environment Minister Suwit Khunkitti.
To Noppol Milinthanggoon, president of Ratchaburi Electricity Generating Holding, the awards are expected to boost the spirits of these communities and encourage them to protect and preserve their natural resources and ensure the fertility and sustainability of their food sources. "As a good corporate citizen, we strive to encourage all communities to protect forest resources in an ongoing manner," he said.
With an area of 13,000 rai, the forest has a rich variety of plants, following 10 years of rehabilitation. The forest also contains over 500 types of easy-to-find herbs and serves as a learning centre for children and academics.
The fertile forest provides an abundant supply of water to the community, which is delivered via a supply system than runs through the surrounding mountains.
Baan Ta Pa Pao community forest, which is managed under a three-party collaboration of households, temples and schools, beat other 673 forests listed for the competition.
There were 190 award-winning community forests, including 64 winners for the "Best Provincial Community Forests" and 120 consolation prizes awarded to other projects.
"Our focus is to promote participation in all areas, build networks in all segments and promote comprehensive and sustainable reforestation for economic forests, community forests and innovative forest villages" said Natural Resources and Environment Minister Suwit Khunkitti.
To Noppol Milinthanggoon, president of Ratchaburi Electricity Generating Holding, the awards are expected to boost the spirits of these communities and encourage them to protect and preserve their natural resources and ensure the fertility and sustainability of their food sources. "As a good corporate citizen, we strive to encourage all communities to protect forest resources in an ongoing manner," he said.
MEA underground grid begins transmission
The Metropolitan Electricity Authority yesterday started the transmission of 230 kilovolts of electricity via the 7-kilomtre tunnel that runs from Bang Kapi to Chidlom.
MEA governor Pornthape Thunyapomgchai said the underground grid would serve the electricity demand of the business districts of Bangkok, from Silom and Sukhumvit to Phya Thai.
The planned underground relocation of electricity cables, and therefore the removal of poles, in these areas will also mean more pleasant views, he said.
"The timing of the investment in the underground system project was good. If we had invested at this time, it would have cost about Bt10 billion," he added.
The Bt3.9-billion construction of the underground transmission system began in May 2005 and was completed this month.
Bt3 billion of the total was funded by a soft loan from the Japan International Cooperation Agency, featuring a repayment period of 25 years and carrying an interest rate of between 1 per cent and 2 per cent with a seven-year grace period.
Meanwhile, the state agency saw a 4.2-per-cent year-on-year decline in electricity consumption in the metropolitan area during the first eight months of the year.
While demand in the manufacturing sector dropped, consumption by the household and department-store segments improved.
The state agency expects an improving situation during the remainder of the year and now forecasts a 2-per-cent drop in demand this full year in the metropolitan area.
MEA governor Pornthape Thunyapomgchai said the underground grid would serve the electricity demand of the business districts of Bangkok, from Silom and Sukhumvit to Phya Thai.
The planned underground relocation of electricity cables, and therefore the removal of poles, in these areas will also mean more pleasant views, he said.
"The timing of the investment in the underground system project was good. If we had invested at this time, it would have cost about Bt10 billion," he added.
The Bt3.9-billion construction of the underground transmission system began in May 2005 and was completed this month.
Bt3 billion of the total was funded by a soft loan from the Japan International Cooperation Agency, featuring a repayment period of 25 years and carrying an interest rate of between 1 per cent and 2 per cent with a seven-year grace period.
Meanwhile, the state agency saw a 4.2-per-cent year-on-year decline in electricity consumption in the metropolitan area during the first eight months of the year.
While demand in the manufacturing sector dropped, consumption by the household and department-store segments improved.
The state agency expects an improving situation during the remainder of the year and now forecasts a 2-per-cent drop in demand this full year in the metropolitan area.
MEA power-line plan hits difficulties
The Metropolitan Electricity Authority plans talks with City Hall, telecom firms and mass-transit operators to speed up the installation of underground power transmission lines in most areas of the capital.
At present, only Silom Road and the area around the Grand Palace have underground power lines, while work is under way in the Phaya Thai, Sukhumvit and Phahon Yothin areas under a 3-billion-baht project, said MEA governor Pornthape Thunyapongchai.
"It's very difficult for us to bury the transmission lines in Bangkok due to our financial burden and a poor city development plan, which was done several decades ago," he said.
Meanwhile, underground installation has stalled in some areas because some telecom operators are not ready to bury telecom wires due to delayed budget allocations for the project, said Mr Pornthape.
"On some routes, there are many underground objects such as the pipelines for natural gas, tap water and waste water that obstruct us in installing our underground project," he said.
"Consequently, we have to discuss this matter with the operators of those systems."
The authority has estimated it will need to spend more than 160 billion baht to bury all power lines covered by the scheme. The project, however, has been delayed.
"In some area such as Chinatown,the local residents do not welcome this project because it has to close traffic for many years, or because of loud noise during the night time, when construction takes place," he said.
The MEA has discussed with mass transit operators ways to prepare for underground installations along train routes to facilitate the project's development.
"Amid the concerns over climate change, rainstorms in the city have become more severe than before and that would affect security of power transmission along the roads," he said."The MEA, however, has been reluctant to cut down trees because we want to keep as many green areas as possible."
The MEA yesterday officially switched on its second 230,000-volt transmission line from its Phloen Chit headquarters to Min Buri. The route of the 3.9-billionbaht project runs for 7 kilometres under the Saen Saep Canal.
Last year, the first high-voltage line,worth 3 billion baht, was set up, linking Lat Phrao to Vibhavadi Rangsit Road with a length of 8 km.
Two high-voltage transmission tunnels feature in the MEA's multi-billionbaht underground development plan to secure power transmission and improve tourism.
At present, only Silom Road and the area around the Grand Palace have underground power lines, while work is under way in the Phaya Thai, Sukhumvit and Phahon Yothin areas under a 3-billion-baht project, said MEA governor Pornthape Thunyapongchai.
"It's very difficult for us to bury the transmission lines in Bangkok due to our financial burden and a poor city development plan, which was done several decades ago," he said.
Meanwhile, underground installation has stalled in some areas because some telecom operators are not ready to bury telecom wires due to delayed budget allocations for the project, said Mr Pornthape.
"On some routes, there are many underground objects such as the pipelines for natural gas, tap water and waste water that obstruct us in installing our underground project," he said.
"Consequently, we have to discuss this matter with the operators of those systems."
The authority has estimated it will need to spend more than 160 billion baht to bury all power lines covered by the scheme. The project, however, has been delayed.
"In some area such as Chinatown,the local residents do not welcome this project because it has to close traffic for many years, or because of loud noise during the night time, when construction takes place," he said.
The MEA has discussed with mass transit operators ways to prepare for underground installations along train routes to facilitate the project's development.
"Amid the concerns over climate change, rainstorms in the city have become more severe than before and that would affect security of power transmission along the roads," he said."The MEA, however, has been reluctant to cut down trees because we want to keep as many green areas as possible."
The MEA yesterday officially switched on its second 230,000-volt transmission line from its Phloen Chit headquarters to Min Buri. The route of the 3.9-billionbaht project runs for 7 kilometres under the Saen Saep Canal.
Last year, the first high-voltage line,worth 3 billion baht, was set up, linking Lat Phrao to Vibhavadi Rangsit Road with a length of 8 km.
Two high-voltage transmission tunnels feature in the MEA's multi-billionbaht underground development plan to secure power transmission and improve tourism.
Ratchaburi targets wind
Ratchaburi Electricity Generating Holding Plc (RATCH) plans to invest more in wind-power projects, possibly in the North and Northeast, for which it is now conducting a feasibility study.
Thawat Vimolsarawong, senior executive vice-president for business development, said billions of baht in new investment would be spent on additional wind-power project, with further details should be concluded within next year.
"We are currently gathering information on prime locations and discussing possibilities with potential partners. Project capacities would depend on the prevailing wind magnitude in each location," said Mr Thawat.
For each megawatt of wind power,60 million baht in investment is needed.
He said wind power was the most promising renewable power source for Thailand. Other sources do not offer as satisfactory a level of return on investment.
Its 60-megawatt wind farm worth 4.274 billion baht in Khao Kho, Phetchabun, is currently awaiting approval from the Royal Forestry Department to use 1,000 rai of land. Construction is expected to start late this year or early next year as planned.
The project is being developed by Sustainable Energy Corporation (SEC)which is 60% owned by Renewable Energy Co, a local research house for alternative fuel,35% by Ratchaburi and 10% by retail investors.
The Thai power producer also has four ongoing projects in Laos but some are on hold as domestic power demand has been affected by the global slump.
Its Nam Ngum 3 and Xe Pien Xe Nam Noi hydropower projects, which are both undergoing price negotiations with the Electricity Generating Authority of Thailand (Egat), could be delayed by one or two years from the original plan to operate by 2013.
The increase in construction costs driven by more expensive crude last year has led the company to propose a new power price to Egat, which is also reassessing domestic demand.
Mr Thawat said the Nam Ngum 2 plant, on which construction is 80%complete, would start producing power next year, while the power sales contract for its lignite-fired Hong Sa plant is awaiting Thai cabinet approval.
"This process should be completed within this year and the construction should commence within two years,with power generation beginning in 2015," Mr Thawat said.
President Noppol Milinthanggoon said Ratchaburi's revenue would decrease slightly in the second half due to a planned shutdown for maintenance.
However, he remains certain of seeing 5% revenue growth this year from 42.21 billion baht recorded last year.
The company recorded a revenue drop of 22.1% in the first half of the year to 16.5 billion baht from 21.29 billion last year. Its net profit over the period increased 31.3% to 3.9 billion from 2.97 billion.
The company is also in talks with financial institutions to lower the interest burden for its Ratchaburi Power.
"Details should be disclosed within this year, but the aim is to reduce our interest burden and the refinancing plan will help maximise shareholders' value,"said Mr Noppol.
RATCH shares closed yesterday on the Stock Exchange of Thailand at 37.75 baht, down 75 satang, in total trade of 27.56 million baht.
Thawat Vimolsarawong, senior executive vice-president for business development, said billions of baht in new investment would be spent on additional wind-power project, with further details should be concluded within next year.
"We are currently gathering information on prime locations and discussing possibilities with potential partners. Project capacities would depend on the prevailing wind magnitude in each location," said Mr Thawat.
For each megawatt of wind power,60 million baht in investment is needed.
He said wind power was the most promising renewable power source for Thailand. Other sources do not offer as satisfactory a level of return on investment.
Its 60-megawatt wind farm worth 4.274 billion baht in Khao Kho, Phetchabun, is currently awaiting approval from the Royal Forestry Department to use 1,000 rai of land. Construction is expected to start late this year or early next year as planned.
The project is being developed by Sustainable Energy Corporation (SEC)which is 60% owned by Renewable Energy Co, a local research house for alternative fuel,35% by Ratchaburi and 10% by retail investors.
The Thai power producer also has four ongoing projects in Laos but some are on hold as domestic power demand has been affected by the global slump.
Its Nam Ngum 3 and Xe Pien Xe Nam Noi hydropower projects, which are both undergoing price negotiations with the Electricity Generating Authority of Thailand (Egat), could be delayed by one or two years from the original plan to operate by 2013.
The increase in construction costs driven by more expensive crude last year has led the company to propose a new power price to Egat, which is also reassessing domestic demand.
Mr Thawat said the Nam Ngum 2 plant, on which construction is 80%complete, would start producing power next year, while the power sales contract for its lignite-fired Hong Sa plant is awaiting Thai cabinet approval.
"This process should be completed within this year and the construction should commence within two years,with power generation beginning in 2015," Mr Thawat said.
President Noppol Milinthanggoon said Ratchaburi's revenue would decrease slightly in the second half due to a planned shutdown for maintenance.
However, he remains certain of seeing 5% revenue growth this year from 42.21 billion baht recorded last year.
The company recorded a revenue drop of 22.1% in the first half of the year to 16.5 billion baht from 21.29 billion last year. Its net profit over the period increased 31.3% to 3.9 billion from 2.97 billion.
The company is also in talks with financial institutions to lower the interest burden for its Ratchaburi Power.
"Details should be disclosed within this year, but the aim is to reduce our interest burden and the refinancing plan will help maximise shareholders' value,"said Mr Noppol.
RATCH shares closed yesterday on the Stock Exchange of Thailand at 37.75 baht, down 75 satang, in total trade of 27.56 million baht.
Wednesday, September 23, 2009
A piece of the action
And the crowd went wild as Steve "President for Life" Jobs of Apple Computer came out on the stage to emcee the now-annual September music sales pitch, with loads of new stuff; in the biggest news, the iPod Nano got a video camera and FM radio, and Steve showed off the new iTunes Ver 9 management software; he also showed off the iPhone OS 3.1, available for download, which actually recommends apps you might like, has better synching for music and video, and lets you save video from email attachments into your playlist, aka Camera Roll.
Apple cut the prices of its old iPod models just hours ahead of announcing new iPod models; the price of the 32-gigabyte iPod Touch was cut $120 to $279, or 9,500 baht in real money; a 120-gig iPod Classic now costs $229, a $20 cut by the generous folks who run Apple. Palm introduced a smaller,cheaper smartphone than the successful Pre; the Pixi, as it's called, is aimed at younger users; it's slimmer, has a smaller screen, but features a Qwerty keyboard,8GB of memory and a two-megapixel camera.
US President Barack Obama, in a controversial school-time speech to most US children, advised them to be careful about what they put on Facebook and other social networks;"Whatever you do, it will be pulled up again later somewhere in your life," he warned.
First Solar of America signed a contract with the Chinese government to build the world's largest solar power plant in Inner Mongolia; assuming it is built, the Ordos City plant will push out 2,000 megawatts of electricity,around four times the size of the projects being built by the US Army in the Mojave Desert and by First Solar in California;the China project isn't near anything much; Ordos City is a coal-producing,eight-year-old, planned low-carbon development with about 1.5 million residents, roughly 800km west of Beijing.
Networking firm Huawei of China,which has suffered a scandal or two in its Thailand work, was stung to the quick by mean stories in the Australian media that it might be tied to the Chinese espionage services; Guo Fulin, managing director of Huawei in Australia, was hurt by the insensitive stories that his company was under investigation by the Australian Security Intelligence Organisation; Huawei is a public-owned company, he said, and it is unthinkable that any government agency would be using Huawei to conduct spying.
The government of Cuba took a huge security gamble, and authorised post offices to provide Internet access to the public - just in case the Cuban government ever authorises the public to use the Internet at some point in the future; the only public access currently allowed is to an inside-Cuba intranet for email, provided by post offices at a cost of the equivalent of 55 baht an hour, in a country where the average wage is 680 baht a month.
Japan fired an unmanned cargo craft into orbit; the 16.5-tonne unmanned H-II Transfer Vehicle (HTV) is on a mission to re-supply the space station;it will stay up there to continue ferrying stuff to the US shuttle fleet next year.
Prime Minister Gordon Brown publicly apologised for the way that people treated World War Two code-breaker and extraordinary computer geek Alan Turing for being gay; Turing was prosecuted for homosexual conduct in 1952,and a mere two years later, he committed suicide;"I am pleased to have the chance how deeply sorry I and we all are," said Mr Brown.
Google , which plans to give away grazillions of books in order to get the (commercial) goods on its customers,offered to let all its opponents have a piece of the action;Amazon.com , which wants to sell grazillions of books to make tonnes of money directly, scoffed.Rupert Murdoch, the American media mogul, began collecting money at the tollgate to his news sites, in an interesting experiment to see if people will actually pay for news on the Net.
IBM, Microsoft, Oracle Corp and Google all responded to a plaintive "Help" from the Newspaper Association of America on how to get money from customers who don't want to pay for news; Randy Bennett, who is the senior president for vice in newspapers, said he's looking over 11 different proposals on how to squeeze money out of you;Google, to no one's surprise, offered to put all newspapers behind one vast,semi-expensive firewall, because that would be so convenient for everyone to just pay one company one time, and then Google would spread the money around; sure, that ought to work.
South African technology firm Unlimited IT dispatched Winston, a pigeon,from its office in Pietermaritzburg, with some data for its main hub in Durban strapped to the bird's leg; it took Winston one hour and eight minutes to fly the data card; meanwhile, Unlimited IT tried to send the same data via the speedchallenged Internet connections provided by leading Internet Telkom , and that download was four percent finished by the time Winston arrived; so it's not only countries that start with "T" that have Internet problems.
T-Mobile of Germany and Orange of France merged their yuppiephone operations in Britain, creating a new $13.5 billion company with 28.4 mobile phone customers; the Deutsche Telekom-France Telecom venture will be the biggest provider in the UK, with a 37 percent market share, larger than O2 of Telefonica.
Apple cut the prices of its old iPod models just hours ahead of announcing new iPod models; the price of the 32-gigabyte iPod Touch was cut $120 to $279, or 9,500 baht in real money; a 120-gig iPod Classic now costs $229, a $20 cut by the generous folks who run Apple. Palm introduced a smaller,cheaper smartphone than the successful Pre; the Pixi, as it's called, is aimed at younger users; it's slimmer, has a smaller screen, but features a Qwerty keyboard,8GB of memory and a two-megapixel camera.
US President Barack Obama, in a controversial school-time speech to most US children, advised them to be careful about what they put on Facebook and other social networks;"Whatever you do, it will be pulled up again later somewhere in your life," he warned.
First Solar of America signed a contract with the Chinese government to build the world's largest solar power plant in Inner Mongolia; assuming it is built, the Ordos City plant will push out 2,000 megawatts of electricity,around four times the size of the projects being built by the US Army in the Mojave Desert and by First Solar in California;the China project isn't near anything much; Ordos City is a coal-producing,eight-year-old, planned low-carbon development with about 1.5 million residents, roughly 800km west of Beijing.
Networking firm Huawei of China,which has suffered a scandal or two in its Thailand work, was stung to the quick by mean stories in the Australian media that it might be tied to the Chinese espionage services; Guo Fulin, managing director of Huawei in Australia, was hurt by the insensitive stories that his company was under investigation by the Australian Security Intelligence Organisation; Huawei is a public-owned company, he said, and it is unthinkable that any government agency would be using Huawei to conduct spying.
The government of Cuba took a huge security gamble, and authorised post offices to provide Internet access to the public - just in case the Cuban government ever authorises the public to use the Internet at some point in the future; the only public access currently allowed is to an inside-Cuba intranet for email, provided by post offices at a cost of the equivalent of 55 baht an hour, in a country where the average wage is 680 baht a month.
Japan fired an unmanned cargo craft into orbit; the 16.5-tonne unmanned H-II Transfer Vehicle (HTV) is on a mission to re-supply the space station;it will stay up there to continue ferrying stuff to the US shuttle fleet next year.
Prime Minister Gordon Brown publicly apologised for the way that people treated World War Two code-breaker and extraordinary computer geek Alan Turing for being gay; Turing was prosecuted for homosexual conduct in 1952,and a mere two years later, he committed suicide;"I am pleased to have the chance how deeply sorry I and we all are," said Mr Brown.
Google , which plans to give away grazillions of books in order to get the (commercial) goods on its customers,offered to let all its opponents have a piece of the action;Amazon.com , which wants to sell grazillions of books to make tonnes of money directly, scoffed.Rupert Murdoch, the American media mogul, began collecting money at the tollgate to his news sites, in an interesting experiment to see if people will actually pay for news on the Net.
IBM, Microsoft, Oracle Corp and Google all responded to a plaintive "Help" from the Newspaper Association of America on how to get money from customers who don't want to pay for news; Randy Bennett, who is the senior president for vice in newspapers, said he's looking over 11 different proposals on how to squeeze money out of you;Google, to no one's surprise, offered to put all newspapers behind one vast,semi-expensive firewall, because that would be so convenient for everyone to just pay one company one time, and then Google would spread the money around; sure, that ought to work.
South African technology firm Unlimited IT dispatched Winston, a pigeon,from its office in Pietermaritzburg, with some data for its main hub in Durban strapped to the bird's leg; it took Winston one hour and eight minutes to fly the data card; meanwhile, Unlimited IT tried to send the same data via the speedchallenged Internet connections provided by leading Internet Telkom , and that download was four percent finished by the time Winston arrived; so it's not only countries that start with "T" that have Internet problems.
T-Mobile of Germany and Orange of France merged their yuppiephone operations in Britain, creating a new $13.5 billion company with 28.4 mobile phone customers; the Deutsche Telekom-France Telecom venture will be the biggest provider in the UK, with a 37 percent market share, larger than O2 of Telefonica.
Egat sells off three decommissioned Mae Moh generators
The Electricity Generating Authority of Thailand has sold three decommissioned generators from its Mae Moh power station for 297 million baht.
Egat sold the 25-year-old generators so it could mine lignite coal located under the units, the assistant director for production at Mae Moh, Polrit Setthakamnerd, said.
The generators were taken out of service between nine and 10 years ago.
Thepprathanporn Construction and Recycle Co of Bangkok bought the three generators for 297 million baht on Sept 9 in an electronic auction. Eight other companies meeting Egat's selection criteria participated in the auction.
Thepprathanporn will remove the plants fromMae Moh compound in 18 months. An Egat source said the com-pany was expected to use the generators at its power plants in Indonesia.
Egat started building the three generators at the Mae Moh lignite mine in 1975. They began generating and distributing electricity in 1978,1979 and 1981, respectively, Mr Polrit said.
The first plant was decommissioned on Oct 1,1999, and the other two followed on March 1,2000.
The three units must be removed by 2011, Mr Polrit said. Mae Moh now has another 10 generating units in operation.
The power station has been at the heart of an environmental controversy for years.
Greenpeace in 2004 said the power station released 1.6 million tonnes of sulphur gas into the air every day, making it the largest source of sulphur dioxide in Thailand.
Egat sold the 25-year-old generators so it could mine lignite coal located under the units, the assistant director for production at Mae Moh, Polrit Setthakamnerd, said.
The generators were taken out of service between nine and 10 years ago.
Thepprathanporn Construction and Recycle Co of Bangkok bought the three generators for 297 million baht on Sept 9 in an electronic auction. Eight other companies meeting Egat's selection criteria participated in the auction.
Thepprathanporn will remove the plants fromMae Moh compound in 18 months. An Egat source said the com-pany was expected to use the generators at its power plants in Indonesia.
Egat started building the three generators at the Mae Moh lignite mine in 1975. They began generating and distributing electricity in 1978,1979 and 1981, respectively, Mr Polrit said.
The first plant was decommissioned on Oct 1,1999, and the other two followed on March 1,2000.
The three units must be removed by 2011, Mr Polrit said. Mae Moh now has another 10 generating units in operation.
The power station has been at the heart of an environmental controversy for years.
Greenpeace in 2004 said the power station released 1.6 million tonnes of sulphur gas into the air every day, making it the largest source of sulphur dioxide in Thailand.
PEA PLANS BT10 BN ENERGY PROJECTS
The Provincial Electricity Authority will spend Bt10 billion on alternative-energy projects via its upcoming wholly owned PEA Encom subsidiary, in accordance with its five-year investment plan.
PEA governor Adisorn Kiatchokewiwat yesterday said the state agency would register PEA Encom as a business on December 18. It will be a holding company for the expenditure.
The PEA will also set up another subsidiary in which it will own not more than half, to start promising energy project with state and private agencies.
The state agency will spend Bt10 billion on some projects, in accordance with its 2007-11 investment plan. One is the production of electricity from wood scraps at a cost of Bt8 billion.
The project will start commercial production in 2011.
The World Bank has already granted the PEA a soft loan for 30 per cent of the Bt8 billion.It carries low interest of 0.75 per cent with 20 years'repayment.
The second project involves the installation of energy-savings equipment on road-light poles and other public light poles nationwide over three years for Bt2 billion, beginning next year.
The PEa has shouldered more than Bt3 billion a year to generate electricity for road lights and public lights. The project will help the state agency save cost of Bt1 billion.
The PEA itself has budgeted Bt500 million from 2007-11 to develop alternative-energy projects, including a wind-power project. It is now conducting a study on wind speed in the Northeast and the South and is expected to begin the construction of the project's first wind power plant in 2011.
The other projects include establishment of 10 small hydropower plants, each with capacity of 200 kilowatts, and the installation of solar cells, each with capacity of 200kW, on the roofs on 12 PEA buildings.
Another is the installation of 10,000 solar-cell sets on road-light poles nationwide, to pilot the use of solar cells, each with capacity of 40 watts, to generate electricity for road lights.
Besides producing the substitute energy by its own, PEA has purchased energy from very small power producers (VSPPs). It has already purchased 297 megawatts from VSPP and is considering to buy additional 5,004MW.
Adisorn said the Kingdom's electricity consumption expanded for the first time last month and at the rate of 2.5 per cent after a several consecutive months of decline, suggesting an economic recovery. Adisorn predicts power consumption will expand 1 per cent this year.
Average power consumption dropped 3.1 per cent in the first eight months of the year.
PEA governor Adisorn Kiatchokewiwat yesterday said the state agency would register PEA Encom as a business on December 18. It will be a holding company for the expenditure.
The PEA will also set up another subsidiary in which it will own not more than half, to start promising energy project with state and private agencies.
The state agency will spend Bt10 billion on some projects, in accordance with its 2007-11 investment plan. One is the production of electricity from wood scraps at a cost of Bt8 billion.
The project will start commercial production in 2011.
The World Bank has already granted the PEA a soft loan for 30 per cent of the Bt8 billion.It carries low interest of 0.75 per cent with 20 years'repayment.
The second project involves the installation of energy-savings equipment on road-light poles and other public light poles nationwide over three years for Bt2 billion, beginning next year.
The PEa has shouldered more than Bt3 billion a year to generate electricity for road lights and public lights. The project will help the state agency save cost of Bt1 billion.
The PEA itself has budgeted Bt500 million from 2007-11 to develop alternative-energy projects, including a wind-power project. It is now conducting a study on wind speed in the Northeast and the South and is expected to begin the construction of the project's first wind power plant in 2011.
The other projects include establishment of 10 small hydropower plants, each with capacity of 200 kilowatts, and the installation of solar cells, each with capacity of 200kW, on the roofs on 12 PEA buildings.
Another is the installation of 10,000 solar-cell sets on road-light poles nationwide, to pilot the use of solar cells, each with capacity of 40 watts, to generate electricity for road lights.
Besides producing the substitute energy by its own, PEA has purchased energy from very small power producers (VSPPs). It has already purchased 297 megawatts from VSPP and is considering to buy additional 5,004MW.
Adisorn said the Kingdom's electricity consumption expanded for the first time last month and at the rate of 2.5 per cent after a several consecutive months of decline, suggesting an economic recovery. Adisorn predicts power consumption will expand 1 per cent this year.
Average power consumption dropped 3.1 per cent in the first eight months of the year.
Monday, September 21, 2009
Egat warns of more blackouts
Thailand may face more frequent power blackouts next year as electricity demand rises with the economic recovery, says a senior executive of the Electricity Generating Authority of Thailand (Egat).
Sutat Patmasiriwat, Egat's deputy governor for power generation, said the country may face a risk of natural gas shortages as industrial activity rises in response to the improving economy,resulting in higher power demand.
In the past month, the country has faced shortages of natural gas, which represents 70% of total fuel use in generating power. The need to use more hydroelectric power after gas pipelines were disrupted has cost Egat about 1 billion baht.
The incidents not only caused damage to Egat but they also reflected a poor policy that placed too much reliance on natural gas, Mr Sutat.
Even though reserved power is as high as 25% of normal demand, the risks of blackouts persist since the country may face shortages of some fuels to generate power at certain times.
Egat is preparing to improve the early warning system at its power plants across the country to one day from three days.
"Although new capacity from the Nam Theun 2 hydropower plant in Laos will start operating in November, the 920-Megawatt generator can secure power output only for the northeastern region, but the western and southern regions, where we had trouble lately,still need to be managed carefully as there is no new capacity there," said Mr Sutat.
Including the capacity from Nam Theun 2, the northeastern provinces would have nearly 2,000 MW of electricity available, equal to demand.
"We have no other choices so far, if the gas supply falls short again, other than increasing hydropower output and using fuel-oil instead, which costs us more than three to five baht per kilowatt/hour (unit)," he said."In case there is not enough [to serve demand] we will need to use diesel which costs seven to eight baht per unit compared with the normal rate of two baht per unit for gasfired power plants."
Mr Sutat added that the state utility would also have a higher financial burden resulting from the government's power price subsidies that run until July next year, since the fixed rate for the fuel tariff (Ft) was based on US$40 per barrel of crude compared with the current price of $70.
"Our job will be harder next year as crude oil would likely rise above $80,"said Mr Sutat.
Egat has shouldered a burden from the government's Ft subsidy totalling 20 billion baht and it would rise to 30 billion baht until the end of subsidy programme, he said.
Sutat Patmasiriwat, Egat's deputy governor for power generation, said the country may face a risk of natural gas shortages as industrial activity rises in response to the improving economy,resulting in higher power demand.
In the past month, the country has faced shortages of natural gas, which represents 70% of total fuel use in generating power. The need to use more hydroelectric power after gas pipelines were disrupted has cost Egat about 1 billion baht.
The incidents not only caused damage to Egat but they also reflected a poor policy that placed too much reliance on natural gas, Mr Sutat.
Even though reserved power is as high as 25% of normal demand, the risks of blackouts persist since the country may face shortages of some fuels to generate power at certain times.
Egat is preparing to improve the early warning system at its power plants across the country to one day from three days.
"Although new capacity from the Nam Theun 2 hydropower plant in Laos will start operating in November, the 920-Megawatt generator can secure power output only for the northeastern region, but the western and southern regions, where we had trouble lately,still need to be managed carefully as there is no new capacity there," said Mr Sutat.
Including the capacity from Nam Theun 2, the northeastern provinces would have nearly 2,000 MW of electricity available, equal to demand.
"We have no other choices so far, if the gas supply falls short again, other than increasing hydropower output and using fuel-oil instead, which costs us more than three to five baht per kilowatt/hour (unit)," he said."In case there is not enough [to serve demand] we will need to use diesel which costs seven to eight baht per unit compared with the normal rate of two baht per unit for gasfired power plants."
Mr Sutat added that the state utility would also have a higher financial burden resulting from the government's power price subsidies that run until July next year, since the fixed rate for the fuel tariff (Ft) was based on US$40 per barrel of crude compared with the current price of $70.
"Our job will be harder next year as crude oil would likely rise above $80,"said Mr Sutat.
Egat has shouldered a burden from the government's Ft subsidy totalling 20 billion baht and it would rise to 30 billion baht until the end of subsidy programme, he said.
Wednesday, September 16, 2009
More gas supply interruptions cause headaches for Egat
Just one month after a gas pipeline leak touched off a chain of events that led to flooding in Kanchanaburi, supplies from two pipelines to power plants in the western and southern provinces were disrupted last weekend, with total damage estimated at 1 billion baht.
The Electricity Generating Authority of Thailand (Egat) was again required to respond to the shortage of natural gas to power plants due to technical errors affecting pipelines from Burma's Yetagun field and the Malaysia-Thailand Joint Development Area (JDA).
Wirach Kanchanapibul, an Egat deputy governor, said the JDA pipeline was shut down for five hours from 10 am on Saturday and again for nine hours from 2 am on Sunday. The pipeline from Yetagun was shut for seven hours to 6.30 pm on Saturday, and on Sunday from 1.40 to 10.55 am.
Egat executives declined to disclose the causes of the disruptions.
The state power utility had to step up hydropower production after a gas pipeline leak in Kanchanaburi last month,and the subsequent release of water from the Srinakarin dam led to flooding in nearby communities.
Natural gas from the JDA is the main fuel for the Chana power plant serving southern provinces, and Yetagun gas feeds the Ratchaburi plant, the country's largest, serving the western provinces.
The weekend's natural gas shortages are estimated to have caused the loss of 2,000 megawatts or almost 10% of the country's electricity demand.
Egat tackled the problem by increasing production from its Ratchaprapha plant to run at its 240 MW capacity to serve the southern provinces. It also bought 150 MW from Malaysia at two baht per kilowatt/hour higher than the normal five-baht rate.
For the western network, Egat asked the operator of the Ratchaburi plant to use fuel-oil.
There were no reports of flooding this time but the additional cost to Egat is expected to total 2.7 million baht.
Chitrapongse Kwangsuksthit, chief operating officer of PTT Plc, the sole natural gas supplier, said the problem in the JDA did not originate in the pipeline but in a drifting gas rig operated by the Malaysian oil company Petronas.
Piyasvasti Amranand, a former energy minister, said such incidents were unacceptable and measures to reduce the country's risk of blackouts are crucial.
"Thai power users should have now learned to accept the truth that if you want to use cleaner fuel, you have to pay more," he said.
Many other energy experts have warned that Thailand's dependence on gas for 70% of its power generation is dangerous in the long term.
The Electricity Generating Authority of Thailand (Egat) was again required to respond to the shortage of natural gas to power plants due to technical errors affecting pipelines from Burma's Yetagun field and the Malaysia-Thailand Joint Development Area (JDA).
Wirach Kanchanapibul, an Egat deputy governor, said the JDA pipeline was shut down for five hours from 10 am on Saturday and again for nine hours from 2 am on Sunday. The pipeline from Yetagun was shut for seven hours to 6.30 pm on Saturday, and on Sunday from 1.40 to 10.55 am.
Egat executives declined to disclose the causes of the disruptions.
The state power utility had to step up hydropower production after a gas pipeline leak in Kanchanaburi last month,and the subsequent release of water from the Srinakarin dam led to flooding in nearby communities.
Natural gas from the JDA is the main fuel for the Chana power plant serving southern provinces, and Yetagun gas feeds the Ratchaburi plant, the country's largest, serving the western provinces.
The weekend's natural gas shortages are estimated to have caused the loss of 2,000 megawatts or almost 10% of the country's electricity demand.
Egat tackled the problem by increasing production from its Ratchaprapha plant to run at its 240 MW capacity to serve the southern provinces. It also bought 150 MW from Malaysia at two baht per kilowatt/hour higher than the normal five-baht rate.
For the western network, Egat asked the operator of the Ratchaburi plant to use fuel-oil.
There were no reports of flooding this time but the additional cost to Egat is expected to total 2.7 million baht.
Chitrapongse Kwangsuksthit, chief operating officer of PTT Plc, the sole natural gas supplier, said the problem in the JDA did not originate in the pipeline but in a drifting gas rig operated by the Malaysian oil company Petronas.
Piyasvasti Amranand, a former energy minister, said such incidents were unacceptable and measures to reduce the country's risk of blackouts are crucial.
"Thai power users should have now learned to accept the truth that if you want to use cleaner fuel, you have to pay more," he said.
Many other energy experts have warned that Thailand's dependence on gas for 70% of its power generation is dangerous in the long term.
Sunday, September 13, 2009
"Natural" fuels ignite power struggle
Villagers in many parts of the country are up in arms over proposed natural gas and biomass power plants in their communities By Tunya Sukpanich
"This project must stop," said Wanna Rodpitak, a member of the Chachoengsao Provincial Administration Organisation who has led the protest against a natural gas-fueled power plant in Bang Khla district,about 60 kilometres east of Bangkok. Protests against the proposed power plant on 500 rai of land in tambons Samed Nue and Samed Tai, with a generating capacity of 1,600 megawatts, have been ongoing for almost two years.
The scene is being repeated in many provinces with planned natural gas and biomass power plants, with determined protestors in Chiang Rai, Saraburi, Ubon Ratchathani, and Prachuab Khiri Khan among other places demanding the projects be terminated and refusing any compromise. In some areas locals are blocking roads or obstructing work on construction sites.
Mr Wanna insists that such protests represent the true voice of the communities which will be most affected by the plants. His group began their protest in early 2008 soon after learning of the project in their district.
They were not included in any decision to construct a power plant in their backyard,they say, and only became aware of the project after their suspicions were aroused that something was going on, as more and more land in the area was being bought up, and later large pipes were delivered to some of the sites.
More than 20,000 locals signed a petition requesting detailed information from every agency that might be involved, including the Ministry of Energy, the Ministry of Industry,the Office of the Parliament and provincial authorities
"We tried every method to make the authorities listen to our reasons why we do not want the power plant, but nothing happened.Finally, in July last year we blocked the road for three days," said Mr Wanna.
"After negotiations, a so-called tripartite committee and a sub-committee were set up to find a solution, but they never functioned,"he continued.
The locals worry that the plant might cause air pollution, but they are most concerned about the tremendous amount of water it will need for its operation from the Bang Pakong River."We know the plant will need 60,000 cubic metres of water per day for its system. Of that, half will evaporate into the air and another 20,000 cu m will be treated and released back into the river.
"What will happen in the dry season, what will happen to farmers? We need water too,"he said.
Water is also the reason for the locals'protest in Saraburi's Nong Saeng district,where another gas-fueled power plant is in the works. They are very disappointed that the plant's environment impact assessment (EIA) was recently approved by the Office of Natural Resources and Environmental Policy and Planning (Onep).
"Both the state authorities and the company involved want to deny us the right to protect our way of living as farmers. What is really ironic is that the power plant site is in a planned agricultural preservation zone in the province," said Tee Trairattanamanee, who along with two other villagers was recently arrested for obstructing work on the construction site.
Villagers have petitioned concerned authorities in an attempt to obstruct any work on the planned construction site, and have asked various organisations to help study the rich biodiversity of the area to establish its ecological value. This site too is part of a planned agricultural zone.
"We plant rice three or four times a year.Any project with the possibility of damaging our environment and the natural resources essential to farming should not be allowed,"said Mr Tee.
BENEFITS DOUBTED
Villagers in Chiang Rai, Phayao, Ubon Ratchathani and Prachuap Khiri Khan provinces are protesting proposed power plants fueled by biomass in the form of agricultural waste.
The government believes biomass is most suitable for Thailand because it is a renewable energy source, using rice husks, bagasse, coconut wastes, wood chips, animal dung and other agricultural waste as fuel.
A study from the Department of Alternative Energy Development and Efficiency shows that each year about 13 million tonnes of bagasse, five million tonnes of rice husks,and 1.7 million tonnes of cassava roots are left as farm waste. The study says one MWhour of electricity can be produced by 14,100 tonnes of bagasse,9,800 tonnes of rice husks or 14,687 tonnes of cassava roots.
The government has been promoting biomass power plants among the private sector. At the present time,17 biomass power plants - most of which fall into the category of Very Small Power Producer (VSPP), referring to a generating capacity of not more than 10MW - using bagasse, cornstalks, woodchips, rice husk, and waste from palm trees sell electricity to the Electricity Generating Authority of Thailand (EGAT).
Most of the opposition against biomass power plants is based on the air pollution that results in burning the organic matter to create energy. As well, many locals are angry that they have been left out of the decisionmaking process.
Article 67 of the Constitution says that individuals and communities have the right to conserve, protect and to benefit from local natural resources and biodiversity, and prohibits any projects or activities which can cause serious negative impacts to the environment, natural resources and public health.The Constitution further states that if the authorities want to pursue a project with the potential to cause these negative impacts a comprehensive EIA must be conducted. This must include a public hearing process with the participation of locals and independent environmental and public health organisa-tions. Local communities can file a lawsuit against government agencies, local authorities or state enterprises if they do not follow the rules.
However, many small power plants avoid the EIA process because regulations state that plants with less than a 10MW capacity don't need to conduct an EIA. A number of power plants are proposed which will generate only 9.9MW.
Locals feel the rules are being manipulated to deny them participation in the process and they are distrustful of assurances from the government and the companies involved that environmental impacts will be minimal.They feel a thorough study is essential to ensuring the protection of their lifestyle and environment.
A planned biomass power plant which will use coconut waste as its energy source in Tap Sakae district of Prachuab Khiri Khan province has faced a strong protest from the locals,even though many will earn extra income from selling coconut waste to the plant. Initially the plan was for a 5MW capacity plant but this was changed to 9.6MW.
Locals are concerned about the possibility of air pollution, and, according to Anchulee Chumrum, of the Huay Yang conservation group, they also fear the plant might shift to other fuel sources such as coal if there is not enough coconut waste to supply it.
Villagers in Wiangchai and Wiang Chiangrung district of Chiang Rai province are protesting against a planned rice husk-fueled power plant with a capacity of 9.4MW. The company involved, Palang Gharn Sa-ad Dee 2, is in the process of preparing a suit to be filed at the Administrative Court to allow it to construct the plant as soon as possible.
A representative of Palang Gharn Sa-ad Dee 2 said the company has done everything according to the law and regulations. He said that the operation of rice husk-fueled power plants in Surin and Pichit provinces, run by other companies, has proved that they are friendly to the environment, and pointed out that promoting biomass power plants is government policy. He called on the government to take an active role in solving the widespread and ongoing protests which threaten the industry.
Protests have halted the development of even plants much smaller than the 10MW limit, such as a planned plant with a capacity of 1.8MW in Tambon Mae Na Rue of Phayao province. Last year, a proposed 9.6MW biomass power plant in Dok Kham Tai in Phayao was also called off because of strong protest from the locals.
Deunnapa Panyawong, of the Mae Na Rue conservation group, said that the tambon administration organisation (TAO) and villagers turned down the smaller project because it is located close the community,and the local school. She pointed out that without the proper system and management even a small plant can cause significant pollution.
She questioned if the company had studied the local farm production before they came up with the scheme. The plant was supposed to use rice husks and cornstalks as fuel.
"This is doubtful because there is no rice mill in the area since we don't plant much rice here," she said.
Ms Deunnapa added that many locals fear that lignite coal might be used as fuel, especially as the mines that supply the Mae Moh lignite power plant in nearby Lampang province are in the vicinity of Mae Na Rue.
Meanwhile, some plant operators are apparently concerned that the government's promotion of biomass power plants will result in a problem in fuel supply. One operator told Spectrum that with high competition from both Thai and foreign investors, farm biomass will be much more expensive.
NOT IN MY BACKYARD: The past decades of reckless energy management in Thailand have resulted in widespread suspicions and protests whenever a new power plant is proposed.
ACTIVIST: Wanna Rodpitak has led the protest against the power plant in Bang Khla district of Chachoengsao province for almost two years
OPPOSED: Left, Tee Trairattanamanee is leading the protest against the power plant in Saraburi province.
"This project must stop," said Wanna Rodpitak, a member of the Chachoengsao Provincial Administration Organisation who has led the protest against a natural gas-fueled power plant in Bang Khla district,about 60 kilometres east of Bangkok. Protests against the proposed power plant on 500 rai of land in tambons Samed Nue and Samed Tai, with a generating capacity of 1,600 megawatts, have been ongoing for almost two years.
The scene is being repeated in many provinces with planned natural gas and biomass power plants, with determined protestors in Chiang Rai, Saraburi, Ubon Ratchathani, and Prachuab Khiri Khan among other places demanding the projects be terminated and refusing any compromise. In some areas locals are blocking roads or obstructing work on construction sites.
Mr Wanna insists that such protests represent the true voice of the communities which will be most affected by the plants. His group began their protest in early 2008 soon after learning of the project in their district.
They were not included in any decision to construct a power plant in their backyard,they say, and only became aware of the project after their suspicions were aroused that something was going on, as more and more land in the area was being bought up, and later large pipes were delivered to some of the sites.
More than 20,000 locals signed a petition requesting detailed information from every agency that might be involved, including the Ministry of Energy, the Ministry of Industry,the Office of the Parliament and provincial authorities
"We tried every method to make the authorities listen to our reasons why we do not want the power plant, but nothing happened.Finally, in July last year we blocked the road for three days," said Mr Wanna.
"After negotiations, a so-called tripartite committee and a sub-committee were set up to find a solution, but they never functioned,"he continued.
The locals worry that the plant might cause air pollution, but they are most concerned about the tremendous amount of water it will need for its operation from the Bang Pakong River."We know the plant will need 60,000 cubic metres of water per day for its system. Of that, half will evaporate into the air and another 20,000 cu m will be treated and released back into the river.
"What will happen in the dry season, what will happen to farmers? We need water too,"he said.
Water is also the reason for the locals'protest in Saraburi's Nong Saeng district,where another gas-fueled power plant is in the works. They are very disappointed that the plant's environment impact assessment (EIA) was recently approved by the Office of Natural Resources and Environmental Policy and Planning (Onep).
"Both the state authorities and the company involved want to deny us the right to protect our way of living as farmers. What is really ironic is that the power plant site is in a planned agricultural preservation zone in the province," said Tee Trairattanamanee, who along with two other villagers was recently arrested for obstructing work on the construction site.
Villagers have petitioned concerned authorities in an attempt to obstruct any work on the planned construction site, and have asked various organisations to help study the rich biodiversity of the area to establish its ecological value. This site too is part of a planned agricultural zone.
"We plant rice three or four times a year.Any project with the possibility of damaging our environment and the natural resources essential to farming should not be allowed,"said Mr Tee.
BENEFITS DOUBTED
Villagers in Chiang Rai, Phayao, Ubon Ratchathani and Prachuap Khiri Khan provinces are protesting proposed power plants fueled by biomass in the form of agricultural waste.
The government believes biomass is most suitable for Thailand because it is a renewable energy source, using rice husks, bagasse, coconut wastes, wood chips, animal dung and other agricultural waste as fuel.
A study from the Department of Alternative Energy Development and Efficiency shows that each year about 13 million tonnes of bagasse, five million tonnes of rice husks,and 1.7 million tonnes of cassava roots are left as farm waste. The study says one MWhour of electricity can be produced by 14,100 tonnes of bagasse,9,800 tonnes of rice husks or 14,687 tonnes of cassava roots.
The government has been promoting biomass power plants among the private sector. At the present time,17 biomass power plants - most of which fall into the category of Very Small Power Producer (VSPP), referring to a generating capacity of not more than 10MW - using bagasse, cornstalks, woodchips, rice husk, and waste from palm trees sell electricity to the Electricity Generating Authority of Thailand (EGAT).
Most of the opposition against biomass power plants is based on the air pollution that results in burning the organic matter to create energy. As well, many locals are angry that they have been left out of the decisionmaking process.
Article 67 of the Constitution says that individuals and communities have the right to conserve, protect and to benefit from local natural resources and biodiversity, and prohibits any projects or activities which can cause serious negative impacts to the environment, natural resources and public health.The Constitution further states that if the authorities want to pursue a project with the potential to cause these negative impacts a comprehensive EIA must be conducted. This must include a public hearing process with the participation of locals and independent environmental and public health organisa-tions. Local communities can file a lawsuit against government agencies, local authorities or state enterprises if they do not follow the rules.
However, many small power plants avoid the EIA process because regulations state that plants with less than a 10MW capacity don't need to conduct an EIA. A number of power plants are proposed which will generate only 9.9MW.
Locals feel the rules are being manipulated to deny them participation in the process and they are distrustful of assurances from the government and the companies involved that environmental impacts will be minimal.They feel a thorough study is essential to ensuring the protection of their lifestyle and environment.
A planned biomass power plant which will use coconut waste as its energy source in Tap Sakae district of Prachuab Khiri Khan province has faced a strong protest from the locals,even though many will earn extra income from selling coconut waste to the plant. Initially the plan was for a 5MW capacity plant but this was changed to 9.6MW.
Locals are concerned about the possibility of air pollution, and, according to Anchulee Chumrum, of the Huay Yang conservation group, they also fear the plant might shift to other fuel sources such as coal if there is not enough coconut waste to supply it.
Villagers in Wiangchai and Wiang Chiangrung district of Chiang Rai province are protesting against a planned rice husk-fueled power plant with a capacity of 9.4MW. The company involved, Palang Gharn Sa-ad Dee 2, is in the process of preparing a suit to be filed at the Administrative Court to allow it to construct the plant as soon as possible.
A representative of Palang Gharn Sa-ad Dee 2 said the company has done everything according to the law and regulations. He said that the operation of rice husk-fueled power plants in Surin and Pichit provinces, run by other companies, has proved that they are friendly to the environment, and pointed out that promoting biomass power plants is government policy. He called on the government to take an active role in solving the widespread and ongoing protests which threaten the industry.
Protests have halted the development of even plants much smaller than the 10MW limit, such as a planned plant with a capacity of 1.8MW in Tambon Mae Na Rue of Phayao province. Last year, a proposed 9.6MW biomass power plant in Dok Kham Tai in Phayao was also called off because of strong protest from the locals.
Deunnapa Panyawong, of the Mae Na Rue conservation group, said that the tambon administration organisation (TAO) and villagers turned down the smaller project because it is located close the community,and the local school. She pointed out that without the proper system and management even a small plant can cause significant pollution.
She questioned if the company had studied the local farm production before they came up with the scheme. The plant was supposed to use rice husks and cornstalks as fuel.
"This is doubtful because there is no rice mill in the area since we don't plant much rice here," she said.
Ms Deunnapa added that many locals fear that lignite coal might be used as fuel, especially as the mines that supply the Mae Moh lignite power plant in nearby Lampang province are in the vicinity of Mae Na Rue.
Meanwhile, some plant operators are apparently concerned that the government's promotion of biomass power plants will result in a problem in fuel supply. One operator told Spectrum that with high competition from both Thai and foreign investors, farm biomass will be much more expensive.
NOT IN MY BACKYARD: The past decades of reckless energy management in Thailand have resulted in widespread suspicions and protests whenever a new power plant is proposed.
ACTIVIST: Wanna Rodpitak has led the protest against the power plant in Bang Khla district of Chachoengsao province for almost two years
OPPOSED: Left, Tee Trairattanamanee is leading the protest against the power plant in Saraburi province.
Saturday, September 12, 2009
Power producers call for deeper cut in reliance on natural gas
Energy business operators say the use of natural gas for electricity generation should be cut even lower than the 60%planned under the revised power development plan (PDP), saying the risk of dependence on gas is still too high.
Policymakers' plans to revise down natural gas use in the power sector to 60% from the current 74% are still not enough to limit the risk of blackouts in the future, said Suvit Limvattanakul,chairman of the Power Producer Industry Club of the Federation of Thai Industries.
In addition to reducing gas usage,the 15-year PDP ending in 2022 aims to maintain lignite and imported coal usage at 20-21% and increase hydropower purchases from neighbouring countries to 10% from 1%. Nuclear power would account for 5% of the total.
"They should have cut natural gas more to as low as 50% to assure our power users that serious disruptions will not happen. Power blackouts are one of the major concerns - once one happens it causes very severe damage," he said.
A gas pipeline leak in Kanchanaburi last month resulted in blackouts and also forced the Electricity Generating Authority of Thailand to lift output from a hydroelectric plant, which resulted in flooding in nearby communities.
Mr Suwit said rising gas prices were another risk for Thailand.
"You can see the prices of imported gas from Burma and liquefied natural gas from Qatar are both higher than gas from the Gulf of Thailand by 20% and 40%, respectively. We have less bargaining power than suppliers if we still depend on them too much and we are even more disadvantaged," he said.
Manoon Siriwan, an independent energy expert, agreed that fuel usage should be adjusted as Thailand's proven gas reserves are very limited, expected to serve domestic demand only for another seven years.
Power producers will need to import more natural gas unless the country discovers more reserves.
"In the long term, energy policymakers should rethink importing gas only. Coal and nuclear fuels should be taken into consideration. In doing so, fuel costs can be better balanced," said Mr Manoon.
In Malaysia, for instance, gas reserves are high but gas accounts for just 45% of power generation. The country imports high volumes of lower-priced coal while exporting gas at good prices instead.Malaysia is also studying nuclear power plants, said Mr Manoon.
Indonesia, on the other hand, is an example of a poor fuel mix. It has large crude reserves but subsidises oil for domestic consumption and became a net importer last year.
Wirash Kanchanapibul, an Egat deputy governor, admitted that Thailand's fuel usage needs to be better balanced, saying that in developed countries, different types of fuel have been used in almost equal amounts.
"We also cannot guarantee that the gas shortage that happened last month will not happen again," he said.
"To tackle the immediate crisis, we may cut power transmission in some areas to save fuel supplies for the areas where shortages exist."
Policymakers' plans to revise down natural gas use in the power sector to 60% from the current 74% are still not enough to limit the risk of blackouts in the future, said Suvit Limvattanakul,chairman of the Power Producer Industry Club of the Federation of Thai Industries.
In addition to reducing gas usage,the 15-year PDP ending in 2022 aims to maintain lignite and imported coal usage at 20-21% and increase hydropower purchases from neighbouring countries to 10% from 1%. Nuclear power would account for 5% of the total.
"They should have cut natural gas more to as low as 50% to assure our power users that serious disruptions will not happen. Power blackouts are one of the major concerns - once one happens it causes very severe damage," he said.
A gas pipeline leak in Kanchanaburi last month resulted in blackouts and also forced the Electricity Generating Authority of Thailand to lift output from a hydroelectric plant, which resulted in flooding in nearby communities.
Mr Suwit said rising gas prices were another risk for Thailand.
"You can see the prices of imported gas from Burma and liquefied natural gas from Qatar are both higher than gas from the Gulf of Thailand by 20% and 40%, respectively. We have less bargaining power than suppliers if we still depend on them too much and we are even more disadvantaged," he said.
Manoon Siriwan, an independent energy expert, agreed that fuel usage should be adjusted as Thailand's proven gas reserves are very limited, expected to serve domestic demand only for another seven years.
Power producers will need to import more natural gas unless the country discovers more reserves.
"In the long term, energy policymakers should rethink importing gas only. Coal and nuclear fuels should be taken into consideration. In doing so, fuel costs can be better balanced," said Mr Manoon.
In Malaysia, for instance, gas reserves are high but gas accounts for just 45% of power generation. The country imports high volumes of lower-priced coal while exporting gas at good prices instead.Malaysia is also studying nuclear power plants, said Mr Manoon.
Indonesia, on the other hand, is an example of a poor fuel mix. It has large crude reserves but subsidises oil for domestic consumption and became a net importer last year.
Wirash Kanchanapibul, an Egat deputy governor, admitted that Thailand's fuel usage needs to be better balanced, saying that in developed countries, different types of fuel have been used in almost equal amounts.
"We also cannot guarantee that the gas shortage that happened last month will not happen again," he said.
"To tackle the immediate crisis, we may cut power transmission in some areas to save fuel supplies for the areas where shortages exist."
Wednesday, September 9, 2009
Germans seek Thai CDM partners
EnBW, the third-largest German energy utility, is searching for Thai partners to jointly develop a dozen clean development mechanism (CDM) projects in Thailand, its first such foray overseas.
Each 10-megawatt biomass power plant would cost 12.5 million (about 600 million baht), and EnBW will invest both equity and project financing if required.
"Thailand is among the world's top potential locations for CDM projects because you have a lot of supplies of biomass, as well as a stable business environment," said Boris Dossmann,who is in charge of EnBW CDM projects in Southeast Asia.
The German utility, which has installed generating capacity of 15,000 MW, will buy all credits from CDM projects for its own consumption, which amounts to 2.5 million certified emission reduction (CERs) per year.
CDM is a concept that allows developing countries such as Thailand to sell carbon credits to industrialised nations that have emission reduction obligations under the Kyoto Protocol.
Thailand is among the 10 focus countries of EnBW's climate programme alongside Vietnam, South Africa, Zambia, Kenya, Uganda and others in Central and South America, with planned equity investment of $700 million.
EnBW is among six German firms at a three-day business matchmaking seminar organised by the German-Thai Chamber of Commerce from yesterday.
In a presentation at the forum, EnBW is looking for Thai partners who can supply biomass of at least 10,000 tonnes per month, or large amounts of waste water from starch, ethanol, palm oil or food and beverage production.
The first CDM project of EnBW in Thailand is expected to be set up within this year, said Mr Dossmann.
Kurujit Nakornthap, director-general of the Department of Mineral Fuels at the Energy Ministry, said Thailand was interested in and looking forward to producing biogas from biomass such as rice straw, palm leaves, bagasse or animal feed, common raw materials for the fuel.
But despite the abundant supply of biomass, Thailand still faces some obstacles to developing renewable energy, including in vast, open agricultural areas.
"In some areas where there is an abundant supply of biomass, the increasing number of renewable energy power plants, especially those using biomass, has intensified competition for the supply. This has driven up the prices of fuel crops to unreasonable levels," said Mr Kurujit.
Also, finding the right balance between the increasingly conflicting demands for using land for energy crops and for food crops is a challenge.
"The idea of developing renewable energy is not to switch the use of land from food crops to energy crops, but to find unused or wasted area to plant energy crops and leave the original foodcrop areas unharmed," he added.
Mr Kurujit said biomass would have a significant share in Thailand's energy consumption in 2022 when the use of renewable energy sources is targeted to rise to 20% from only 6% at present.
Each 10-megawatt biomass power plant would cost 12.5 million (about 600 million baht), and EnBW will invest both equity and project financing if required.
"Thailand is among the world's top potential locations for CDM projects because you have a lot of supplies of biomass, as well as a stable business environment," said Boris Dossmann,who is in charge of EnBW CDM projects in Southeast Asia.
The German utility, which has installed generating capacity of 15,000 MW, will buy all credits from CDM projects for its own consumption, which amounts to 2.5 million certified emission reduction (CERs) per year.
CDM is a concept that allows developing countries such as Thailand to sell carbon credits to industrialised nations that have emission reduction obligations under the Kyoto Protocol.
Thailand is among the 10 focus countries of EnBW's climate programme alongside Vietnam, South Africa, Zambia, Kenya, Uganda and others in Central and South America, with planned equity investment of $700 million.
EnBW is among six German firms at a three-day business matchmaking seminar organised by the German-Thai Chamber of Commerce from yesterday.
In a presentation at the forum, EnBW is looking for Thai partners who can supply biomass of at least 10,000 tonnes per month, or large amounts of waste water from starch, ethanol, palm oil or food and beverage production.
The first CDM project of EnBW in Thailand is expected to be set up within this year, said Mr Dossmann.
Kurujit Nakornthap, director-general of the Department of Mineral Fuels at the Energy Ministry, said Thailand was interested in and looking forward to producing biogas from biomass such as rice straw, palm leaves, bagasse or animal feed, common raw materials for the fuel.
But despite the abundant supply of biomass, Thailand still faces some obstacles to developing renewable energy, including in vast, open agricultural areas.
"In some areas where there is an abundant supply of biomass, the increasing number of renewable energy power plants, especially those using biomass, has intensified competition for the supply. This has driven up the prices of fuel crops to unreasonable levels," said Mr Kurujit.
Also, finding the right balance between the increasingly conflicting demands for using land for energy crops and for food crops is a challenge.
"The idea of developing renewable energy is not to switch the use of land from food crops to energy crops, but to find unused or wasted area to plant energy crops and leave the original foodcrop areas unharmed," he added.
Mr Kurujit said biomass would have a significant share in Thailand's energy consumption in 2022 when the use of renewable energy sources is targeted to rise to 20% from only 6% at present.
Tuesday, September 8, 2009
Glow Energy price hits 3-month high
Glow Energy, a local power producer controlled by Paris-based Suez, gained its most in more than three months in Bangkok trading on speculation a plan to increase capacity would boost profit.
The stock jumped 5.6 per cent to close at Bt33 on the Stock Exchange of Thailand (SET), its steepest climb since May 19.
The benchmark SET Index gained 2.1 per cent.
Glow Energy may raise as much as Bt17 billion over the next two years to fund expansion. The funds, to come from bank loans and the sale of bonds, will help the Bangkok-based company increase its power-generation capacity 67 per cent, said CEO Esa Heiskanen.
Glow has a very strong outlook, with its clear strategy to expand its power production with new power plants, Songklod Wongchai, an analyst at Finansia Syrus Securities, which has a "buy" recom-mendation on the stock, said by telephone yesterday.
"Higher production of domestic manufacturers will also boost sales of its power and steam," he said.
Glow's Heiskanen was not immediately available for comment, because he was in a meeting, said a person who answered his office phone.
Thailand's economy, the second biggest in Southeast Asia, may grow as much as 3 per cent next year, rebounding from a contraction this year, the government said on August 24.
The stock jumped 5.6 per cent to close at Bt33 on the Stock Exchange of Thailand (SET), its steepest climb since May 19.
The benchmark SET Index gained 2.1 per cent.
Glow Energy may raise as much as Bt17 billion over the next two years to fund expansion. The funds, to come from bank loans and the sale of bonds, will help the Bangkok-based company increase its power-generation capacity 67 per cent, said CEO Esa Heiskanen.
Glow has a very strong outlook, with its clear strategy to expand its power production with new power plants, Songklod Wongchai, an analyst at Finansia Syrus Securities, which has a "buy" recom-mendation on the stock, said by telephone yesterday.
"Higher production of domestic manufacturers will also boost sales of its power and steam," he said.
Glow's Heiskanen was not immediately available for comment, because he was in a meeting, said a person who answered his office phone.
Thailand's economy, the second biggest in Southeast Asia, may grow as much as 3 per cent next year, rebounding from a contraction this year, the government said on August 24.
Sunday, September 6, 2009
Green fuels to make up 20%
The share of alternative fuels in Thailand's total energy consumption is expected to rise sharply in the next 15 years, allowing the country to cut greenhouse gas emissions by nearly fourfold.
Under Thailand's 15-year alternative energy master plan, alternative sources will account for 20.4% of all energy consumed in 2023, compared with 6% this year, according to the Department of Alternative Energy Development and Efficiency (DEDE).
The sources covered include ethanol,biodiesel, compressed natural gas, hydropower, biogas, biomass, wind power and solar cells.
"Some of those projects will apply to the UN carbon-trading scheme. We expect that greenhouse gas emissions will be cut to 42 million tonnes per year once the plan is fulfilled," said Krairit Nilkuha, the newly appointed directorgeneral of the DEDE.
The DEDE expects that by 2023, solar cells will generate 650 megawatts of electricity, biogas 270 MW, biomass 9,720 MW, community waste 368 MW, hydropower 770 MW, and wind turbines 1,300 MW.
Mr Krairit said that because some alternative energy sources were more costly than traditional ones, the agency would offer attractive rates, known as adder tariffs, for power purchased from such projects.
The adder rates are 3.50 baht per unit (kilowatt.hour) for wind turbine power,2.50 baht for community waste, 0.30 baht for biomass and biogas. The incentives would be offered for the first seven years of operation.
For solar power, an adder of eight baht a unit would be offered for 10 years,he added.
Rangsan Sarochawikasit, executive director of the Bureau of Energy Research,said the Energy Ministry would support the plan through Board of Investment privileges and soft loans to encourage energy services companies to apply to the United Nations for carbon credit trading.
At present, utilities are buying 4.1 MW of electricity from 47 solar cell operators,20.5 MW from 25 biogas operators,244 MW from 46 biomass operators,2.4 MW from three power-from-waste projects, 0.06 MW from 2 minihydropower plants, and 0.08 MW from a wind turbine operator.
In the transport sector, the use of ethanol is expected to rise to 9 million litres per day from 1.3 million, methyl ester (B100) to 4.5 million litres from 1.4 million, and compressed natural gas to 690 million standard cubic feet (mmscfd)from 108 mmscfd.
Under Thailand's 15-year alternative energy master plan, alternative sources will account for 20.4% of all energy consumed in 2023, compared with 6% this year, according to the Department of Alternative Energy Development and Efficiency (DEDE).
The sources covered include ethanol,biodiesel, compressed natural gas, hydropower, biogas, biomass, wind power and solar cells.
"Some of those projects will apply to the UN carbon-trading scheme. We expect that greenhouse gas emissions will be cut to 42 million tonnes per year once the plan is fulfilled," said Krairit Nilkuha, the newly appointed directorgeneral of the DEDE.
The DEDE expects that by 2023, solar cells will generate 650 megawatts of electricity, biogas 270 MW, biomass 9,720 MW, community waste 368 MW, hydropower 770 MW, and wind turbines 1,300 MW.
Mr Krairit said that because some alternative energy sources were more costly than traditional ones, the agency would offer attractive rates, known as adder tariffs, for power purchased from such projects.
The adder rates are 3.50 baht per unit (kilowatt.hour) for wind turbine power,2.50 baht for community waste, 0.30 baht for biomass and biogas. The incentives would be offered for the first seven years of operation.
For solar power, an adder of eight baht a unit would be offered for 10 years,he added.
Rangsan Sarochawikasit, executive director of the Bureau of Energy Research,said the Energy Ministry would support the plan through Board of Investment privileges and soft loans to encourage energy services companies to apply to the United Nations for carbon credit trading.
At present, utilities are buying 4.1 MW of electricity from 47 solar cell operators,20.5 MW from 25 biogas operators,244 MW from 46 biomass operators,2.4 MW from three power-from-waste projects, 0.06 MW from 2 minihydropower plants, and 0.08 MW from a wind turbine operator.
In the transport sector, the use of ethanol is expected to rise to 9 million litres per day from 1.3 million, methyl ester (B100) to 4.5 million litres from 1.4 million, and compressed natural gas to 690 million standard cubic feet (mmscfd)from 108 mmscfd.
CROWDS SWAMP GERMANY'S BIGGEST ELECTRONICS TRADE FAIR
Dominated by flat-panel televisions in every variation, the IFA consumer electronics trade fair began on Friday in Berlin, offering hundreds of thousands of European fans a look at the world's newest audio and video gadgets.
Chancellor ANgela Merkel ceremonially opened IFA at a Thursday evening reception at the city fairgrounds, where an industry leader told her the booming sector was all but recession-proof.
"Our sector is defying the crisis," said Rainer Kecker, head of the GFU German consumer electronics trade association that runs the event.
A total of 1,164 manufacturers from 60 nations are axhibiting at the event, which runs until September 9.
Many products are being promoted with claims of green technology inside through reduced use of heavy metals and other pollutants.
Cutting power use by plasma and liquid-crystal-display (LCD) television sets is a key aim of the industry.
LCD sets with light-emitting diode (LED) backlights are centrepieces at this year's show.
Backlights shine through the screens to create an image.
Makers say thatg converting backlights to LED light sources, instead of using fluorescent tubes, reduces electricity use by up to 40 per cent.
Merkel said many products introduced at IFA quickly become big sellers but she chided German broadcasters for their long delay in introducing high-definition television, which is only now starting in Germany.
"It was first demonstrated at IFA 24 years ago, she said.
Two big Japanese-based electronics groups, Sony and Panasonic, have said this week they are on the verge of launching home televisions that play three-dimensional (3D) recordings and broadcasts.
The illusion requires viewers to wear special spectacles.
But the two company's systems are currently incompatible, raising fears of a new format war in the industry.
Crowds of consumer-electronics fans swarmeld trough the fairground on Friday.
Europe's biggest annual gadgets event features 1,164 brands from 60 nations.
Temporary cinemas demonstrated big-screen 3D movies, whihc manufacturers Sony and Panasonic hope to introduce on home television screens next year.
However some executives grumbled that too much talk of the future was distracting the public from the new products that are actually on display, including high-definition televisions and DVD players.
Unlike trade-only events such as the Consumer Electronics Show (CES) in Las Vegas, IFA encourages crowd attendance, with masses of leaflets and plenty of products to try out, mostly held by steel cables to deter thieves.
"Would you like me to demonstrate our new television?" says one smiling hostess to anyone who will listen.
"Have you heard about our new coffee maker?" warbles another.
At IFA, nobody goes home without having accepted several free cups of hot coffee from the hostesses.
Celebrity chefs from German television food shows were manning many of the home-appliance booths, demonstrating labour-saving kitchen gear and handing out titbits.
Chancellor ANgela Merkel ceremonially opened IFA at a Thursday evening reception at the city fairgrounds, where an industry leader told her the booming sector was all but recession-proof.
"Our sector is defying the crisis," said Rainer Kecker, head of the GFU German consumer electronics trade association that runs the event.
A total of 1,164 manufacturers from 60 nations are axhibiting at the event, which runs until September 9.
Many products are being promoted with claims of green technology inside through reduced use of heavy metals and other pollutants.
Cutting power use by plasma and liquid-crystal-display (LCD) television sets is a key aim of the industry.
LCD sets with light-emitting diode (LED) backlights are centrepieces at this year's show.
Backlights shine through the screens to create an image.
Makers say thatg converting backlights to LED light sources, instead of using fluorescent tubes, reduces electricity use by up to 40 per cent.
Merkel said many products introduced at IFA quickly become big sellers but she chided German broadcasters for their long delay in introducing high-definition television, which is only now starting in Germany.
"It was first demonstrated at IFA 24 years ago, she said.
Two big Japanese-based electronics groups, Sony and Panasonic, have said this week they are on the verge of launching home televisions that play three-dimensional (3D) recordings and broadcasts.
The illusion requires viewers to wear special spectacles.
But the two company's systems are currently incompatible, raising fears of a new format war in the industry.
Crowds of consumer-electronics fans swarmeld trough the fairground on Friday.
Europe's biggest annual gadgets event features 1,164 brands from 60 nations.
Temporary cinemas demonstrated big-screen 3D movies, whihc manufacturers Sony and Panasonic hope to introduce on home television screens next year.
However some executives grumbled that too much talk of the future was distracting the public from the new products that are actually on display, including high-definition televisions and DVD players.
Unlike trade-only events such as the Consumer Electronics Show (CES) in Las Vegas, IFA encourages crowd attendance, with masses of leaflets and plenty of products to try out, mostly held by steel cables to deter thieves.
"Would you like me to demonstrate our new television?" says one smiling hostess to anyone who will listen.
"Have you heard about our new coffee maker?" warbles another.
At IFA, nobody goes home without having accepted several free cups of hot coffee from the hostesses.
Celebrity chefs from German television food shows were manning many of the home-appliance booths, demonstrating labour-saving kitchen gear and handing out titbits.
Thursday, September 3, 2009
Serving the nation
Your CAT board of directors gave an ultimatum to the underwhelming team in charge of the CDMA yuppiephone service available and widely ignored in 51 provinces, and currently along with Hutch ranked as No 4 in the nation: Give us 500,000 customers by the end of the year, or you will be revamped; board spokesman Krisada Kaweeyarn refused todefine "revamped," but it can't be good; the CAT board noted that the managers are adding about 5,000 users a month to the claimed 350,000 subscribers, when the three leading services are gaining that many subscribers in a typical day;meanwhile Hutch, available in 25 provinces in and around Bangkok, claims to have about 900,000 users.
Your CAT Telecom announced it will try to push Hutchison Group out of the Bangkok-area CDMA service by New Year's Eve; the ever-rancorous Hutchison CAT Wireless Multimedia firm known as Hutch is 75 percent owned by the Hong Kong firm, but CAT has wanted it all for some time.
No 1 yuppiephone network Advanced Info Service of Shingapore gave yet more gloomy news to its shareholders;managers revised revenue growth and planned expenditures downward again,given a horrible first quarter; Pornrat Janejarassakul, president for vice, said it had reduced total costs in a companywide belt-tightening, and still expected to make its target of 15 percent rise in free cash flow; but profit was down 33.7 percent year on year in the second quarter to 4.2 billion baht, and revenue fell 6.5 percent to 23.5 billion; it that was bad, Mr Pornrat saved the worst for last:"The 43 percent reduction in our international roaming revenue in the second quarter plunged to a record low." No 3 yuppiephone firm True Move of Thailand reported that revenue in the second quarter grew 2.4 percent year on year to 5.6 billion baht; interconnection charges were down, the company ordered in-house belttightening, and non-voice revenue grew by a healthy 7.3 percent.
Also smiling was Electricity Generating Authority of Thailand (Egat) governor Sombat Sarntijaree; electricity usage in August was up by two percent,the first rise in almost a year; Mr Sombat believes that is a sign the economy is coming back; the country burned up almost 8.3 billion kilowatt/hours in the first 20 days of August; that was higher than consumption last October, when electricity use began to fall each month,year on year; annual economic growth is still well below zero.
Four seats are coming vacant on the National Telecommunications Commission, and the frantically busy Information and Communications Technology Minister Ranongruk Suwanchawee was working hard to fill them; until she does, the NTC will continue its hard work with just three members; three of the original Magnificent Seven drew short straws to see who would be first to end their terms, and a fourth seat was left vacant when board member Artorn Chantvimol resigned; at the moment,35 people have applied to serve the nation selflessly as NTC members.The National Telecommunications Commission managed to register 4,500 community radio stations in its scheme to control the airwaves; the NTC convinced almost all owners of stations that if they did not register, they would be deemed illegal; the NTC has decreed that the stations can continue to broadcast for a year without any sort of licence,although the commission also claims the right to close any station for broadcasting bad stuff; it is not known how many stations rejected the NTC control,although the voice of the People's Alliance for Democracy (PAD) flatly refused to register.
Asia Books , a success story in the 20th century, blamed a drop in tourists for flat sales so far this year; sales to foreigners have dropped 30 percent since January, with sales to Thais up by 10 percent, although managing director Phumate Manuphibul said prospects for the second half of the year look brighter; some wonder, however,whether Asia Books' reluctance to get into the e-book business has some effect.Electronics manufacturers reported their sales were rising again, and collectively they are using 80 percent of capacity as third-quarter performance built on the recovery in the second quarter; big firms like Cal-Comp Electronics (Thailand)and Western Digital saw surging profits in the second quarter, and are taking on staff again to keep up with demand,especially from overseas.
Kodak (Thailand), which can hardly sell a camera any more, said it expects 2009 revenue to at least match last year's mark, by stressing printing of photos;the company is pushing Kodak Kiosk and Kodak Express Digital Online, and claims customers love the convenience;by next month, Kodak should have kiosks in post offices. Photos flourish on paper, and so does advertising;Thailand Post said actual mail delivery rose from 1.05 billion letters in 2005 to 1.3 billion last year; but the type of letter has changed;"The number of letters has increased over the past four years,but most of them are business letters,"said Wiboon Sereechaiporn, assistant president for vice; most letters these days are company mail and advertising,as people move to the computer for their correspondence.
Your CAT Telecom announced it will try to push Hutchison Group out of the Bangkok-area CDMA service by New Year's Eve; the ever-rancorous Hutchison CAT Wireless Multimedia firm known as Hutch is 75 percent owned by the Hong Kong firm, but CAT has wanted it all for some time.
No 1 yuppiephone network Advanced Info Service of Shingapore gave yet more gloomy news to its shareholders;managers revised revenue growth and planned expenditures downward again,given a horrible first quarter; Pornrat Janejarassakul, president for vice, said it had reduced total costs in a companywide belt-tightening, and still expected to make its target of 15 percent rise in free cash flow; but profit was down 33.7 percent year on year in the second quarter to 4.2 billion baht, and revenue fell 6.5 percent to 23.5 billion; it that was bad, Mr Pornrat saved the worst for last:"The 43 percent reduction in our international roaming revenue in the second quarter plunged to a record low." No 3 yuppiephone firm True Move of Thailand reported that revenue in the second quarter grew 2.4 percent year on year to 5.6 billion baht; interconnection charges were down, the company ordered in-house belttightening, and non-voice revenue grew by a healthy 7.3 percent.
Also smiling was Electricity Generating Authority of Thailand (Egat) governor Sombat Sarntijaree; electricity usage in August was up by two percent,the first rise in almost a year; Mr Sombat believes that is a sign the economy is coming back; the country burned up almost 8.3 billion kilowatt/hours in the first 20 days of August; that was higher than consumption last October, when electricity use began to fall each month,year on year; annual economic growth is still well below zero.
Four seats are coming vacant on the National Telecommunications Commission, and the frantically busy Information and Communications Technology Minister Ranongruk Suwanchawee was working hard to fill them; until she does, the NTC will continue its hard work with just three members; three of the original Magnificent Seven drew short straws to see who would be first to end their terms, and a fourth seat was left vacant when board member Artorn Chantvimol resigned; at the moment,35 people have applied to serve the nation selflessly as NTC members.The National Telecommunications Commission managed to register 4,500 community radio stations in its scheme to control the airwaves; the NTC convinced almost all owners of stations that if they did not register, they would be deemed illegal; the NTC has decreed that the stations can continue to broadcast for a year without any sort of licence,although the commission also claims the right to close any station for broadcasting bad stuff; it is not known how many stations rejected the NTC control,although the voice of the People's Alliance for Democracy (PAD) flatly refused to register.
Asia Books , a success story in the 20th century, blamed a drop in tourists for flat sales so far this year; sales to foreigners have dropped 30 percent since January, with sales to Thais up by 10 percent, although managing director Phumate Manuphibul said prospects for the second half of the year look brighter; some wonder, however,whether Asia Books' reluctance to get into the e-book business has some effect.Electronics manufacturers reported their sales were rising again, and collectively they are using 80 percent of capacity as third-quarter performance built on the recovery in the second quarter; big firms like Cal-Comp Electronics (Thailand)and Western Digital saw surging profits in the second quarter, and are taking on staff again to keep up with demand,especially from overseas.
Kodak (Thailand), which can hardly sell a camera any more, said it expects 2009 revenue to at least match last year's mark, by stressing printing of photos;the company is pushing Kodak Kiosk and Kodak Express Digital Online, and claims customers love the convenience;by next month, Kodak should have kiosks in post offices. Photos flourish on paper, and so does advertising;Thailand Post said actual mail delivery rose from 1.05 billion letters in 2005 to 1.3 billion last year; but the type of letter has changed;"The number of letters has increased over the past four years,but most of them are business letters,"said Wiboon Sereechaiporn, assistant president for vice; most letters these days are company mail and advertising,as people move to the computer for their correspondence.
Tuesday, September 1, 2009
A RETURN TO "RIGHT VALUES" URGED
Thai business leaders joined a vice dean of the University of Pennsylvania's Wharton School to give their views on leadership in challenging times at a conference last week, hosted by the Siam Cement Group. The Nation's Pichaya Changsorn reports.
The world that is waiting for us is new and strange. Things have changed too far and too fast for anyone to fully comprehend those changes.
So says Thomas Colligan, vice dean of Wharton School's Aresty Institute of Executive Education.
"We are currently preparing students for jobs that don't yet exist using technologies that haven't been invented in order to solve problems we don't even know are problems yet," he said.
Speaking on the topic "Leadership in a Changing World" at a Thailand Top Leaders' Forum hosted by the Siam Cement Group last week, Colligan drew on advice recently delivered to Wharton students by Google CEO Eric Schmidt.
Schmidt said that very soon all of the world's information would be translated into all of the world's languages, so we will be able to find out what everybody really thinks. Moreover, we will be able to develop new insights into what other people care about, and they will be able to do the same with us.
According to Colligan, Schmidt said that within 10 years, people would be able to have the equivalent of an iPod in their purse or on their belt holding 85 years of video.
"This means that if it's given to you at birth, you're going to be frustrated all the time, because you'll never be done watching all the videos. That's how profound this technological revolution is."
Still, in a world where everything is remembered and everything is kept forever, Schmidt told the Wharton students they should live for the future and the things they really cared about.
"And in order to know that," Colligan said, continuing Schmidt's advice, "even the chief executive of Google said: 'You're going to have to turn off your computer. You're actually going to have to turn off your phone and discover all that is human around you'."
To navigate change in this challenging period, the Wharton vice dean suggested business leaders get down to basics and attain the right values and right attitudes, such as keeping one's word, transparency, basic honesty and the courage to do the right thing.
Leaders must seek points of view horizontally and vertically within their organisations and from outsiders, including customers, vendors and competitors, to help them make better decisions.
"Don't forget that Tiger Woods has three coaches," he said.
Human-resources professionals have a duty to provide the right leaders, with the right skills, at the right time, holding the right values and attitudes, and working much faster than before, he said. And in a changing world, executives should have "peripheral vision", with expertise in negotiation, persuasion and winning others over.
Speaking at the same forum, Siam Cement Group (SCG) president and CEO Kan Trakulhoon said agility, or an ability to move rapidly and effectively, was a major challenge for leaders in current times because the strength of an organisation no longer guaranteed its survival.
SCG is sticking to its four core business values - fairness, dedication to excellence, a belief in the value of the individual, and concern for social responsibility - even though it is embracing a more open and challenging culture in an effort to become an innovative organisation, he said.
Kan urged Thai business leaders to prepare for "Asia rising" and adjust their pay scales in bid to tap talent from Western nations that would soon be moving to the region.
Toyota Motor Thailand chairman Pramon Suthivong said his company had succeeded in its cost-reduction initiatives, introduced after the emergence of the global economic crisis late last year, mainly because of its ability to communicate and engage participation of staff at all levels.
Last November, the company initiated a "Challenge the Change" campaign, encouraging staff to join forces in cutting costs. Among its first directions was that every department and unit explore redundant jobs, dissolve those functions and either move staff to newly established units that did jobs of more benefit and value or send them for retraining, he said.
"SCG has succeeded because it has blended the good elements of the Western, Thai and Japanese cultures," Pramon said.
Siam Commercial Bank's president Kannikar Chalitaporn said a "Change Programme" introduced by SCB eight years ago had made its staff familiar with change, so they were able to adjust well.
Unlike SCG, which had a policy of "promoting and developing from within", Kannikar said it was sometimes necessary for SCB to take in veterans with "hands-on" experience in particular areas into which the bank was moving, rather than training novices from inside the bank.
"Before hiring, we tell them straight: 'We're hiring you because you have something new the bank does not have. You must deliver on that point. If you don't, you're not worth the wage, and we would rather hire existing staff'," she said.
Federation of Thai Industries chairman Santi Vilassakdanont, who is also a senior executive of the Saha Group, said people were a very important factor. The Saha Group has grown because its people trust one another.
The world that is waiting for us is new and strange. Things have changed too far and too fast for anyone to fully comprehend those changes.
So says Thomas Colligan, vice dean of Wharton School's Aresty Institute of Executive Education.
"We are currently preparing students for jobs that don't yet exist using technologies that haven't been invented in order to solve problems we don't even know are problems yet," he said.
Speaking on the topic "Leadership in a Changing World" at a Thailand Top Leaders' Forum hosted by the Siam Cement Group last week, Colligan drew on advice recently delivered to Wharton students by Google CEO Eric Schmidt.
Schmidt said that very soon all of the world's information would be translated into all of the world's languages, so we will be able to find out what everybody really thinks. Moreover, we will be able to develop new insights into what other people care about, and they will be able to do the same with us.
According to Colligan, Schmidt said that within 10 years, people would be able to have the equivalent of an iPod in their purse or on their belt holding 85 years of video.
"This means that if it's given to you at birth, you're going to be frustrated all the time, because you'll never be done watching all the videos. That's how profound this technological revolution is."
Still, in a world where everything is remembered and everything is kept forever, Schmidt told the Wharton students they should live for the future and the things they really cared about.
"And in order to know that," Colligan said, continuing Schmidt's advice, "even the chief executive of Google said: 'You're going to have to turn off your computer. You're actually going to have to turn off your phone and discover all that is human around you'."
To navigate change in this challenging period, the Wharton vice dean suggested business leaders get down to basics and attain the right values and right attitudes, such as keeping one's word, transparency, basic honesty and the courage to do the right thing.
Leaders must seek points of view horizontally and vertically within their organisations and from outsiders, including customers, vendors and competitors, to help them make better decisions.
"Don't forget that Tiger Woods has three coaches," he said.
Human-resources professionals have a duty to provide the right leaders, with the right skills, at the right time, holding the right values and attitudes, and working much faster than before, he said. And in a changing world, executives should have "peripheral vision", with expertise in negotiation, persuasion and winning others over.
Speaking at the same forum, Siam Cement Group (SCG) president and CEO Kan Trakulhoon said agility, or an ability to move rapidly and effectively, was a major challenge for leaders in current times because the strength of an organisation no longer guaranteed its survival.
SCG is sticking to its four core business values - fairness, dedication to excellence, a belief in the value of the individual, and concern for social responsibility - even though it is embracing a more open and challenging culture in an effort to become an innovative organisation, he said.
Kan urged Thai business leaders to prepare for "Asia rising" and adjust their pay scales in bid to tap talent from Western nations that would soon be moving to the region.
Toyota Motor Thailand chairman Pramon Suthivong said his company had succeeded in its cost-reduction initiatives, introduced after the emergence of the global economic crisis late last year, mainly because of its ability to communicate and engage participation of staff at all levels.
Last November, the company initiated a "Challenge the Change" campaign, encouraging staff to join forces in cutting costs. Among its first directions was that every department and unit explore redundant jobs, dissolve those functions and either move staff to newly established units that did jobs of more benefit and value or send them for retraining, he said.
"SCG has succeeded because it has blended the good elements of the Western, Thai and Japanese cultures," Pramon said.
Siam Commercial Bank's president Kannikar Chalitaporn said a "Change Programme" introduced by SCB eight years ago had made its staff familiar with change, so they were able to adjust well.
Unlike SCG, which had a policy of "promoting and developing from within", Kannikar said it was sometimes necessary for SCB to take in veterans with "hands-on" experience in particular areas into which the bank was moving, rather than training novices from inside the bank.
"Before hiring, we tell them straight: 'We're hiring you because you have something new the bank does not have. You must deliver on that point. If you don't, you're not worth the wage, and we would rather hire existing staff'," she said.
Federation of Thai Industries chairman Santi Vilassakdanont, who is also a senior executive of the Saha Group, said people were a very important factor. The Saha Group has grown because its people trust one another.
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