Channel 0108 Electricity

Asia-Pacific Utilities Facing Capex & Tariff Risks

2010-02-07T05:28:00.000-08:00

Fitch Ratings has today said that the 2010 credit outlook for the Asia-Pacific Power and Utilities sector is broadly stable, although some countries and companies face negative credit trends.

"Asia-Pacific utilities' credit quality remained broadly stable during the economic slowdown caused by the global financial crisis," notes Steve Durose, head of Fitch's Asia-Pacific Energy & Utilities team. "However, the increase in fuel costs may place some pressure on margins, and a return to robust electricity demand growth may accelerate the industry's capex requirements," adds Mr. Durose.

In its special report entitled "Asia-Pacific Power and Utilities Credit Outlook 2010", Fitch provides a credit overview for the sector in each country in the region where it has ratings.

Broadly speaking, utilities' margins improved in 2009 as the global financial crisis caused primary fuel costs to fall significantly from 2008's record levels. If fuel costs rise above their current level for a sustained period and governments or price regulators do not allow customers to bear the full cost impact, companies are likely to face margin compression, as happened in 2008.

The slowdown in economic growth in the last two years provided some developing countries with some respite from the desperate need to increase electricity generation capacity and infrastructure. However, as economic growth starts to improve, capacity shortages will become more acute and investment programmes may have to be accelerated. Even countries which are not facing serious electricity shortages generally have significant capital expenditure programmes to improve security of supply, replace aging infrastructure, or to invest in greener generation to meet carbon policy objectives.

However, even taking tariff and capex risks into account, almost all Asia-Pacific Power and Utility companies rated by Fitch have Stable Outlooks, as the agency has already incorporated these risks into its ratings. In addition, many of the companies have very close links to governments which provides significant liquidity benefits. However, if margins decline or debt-funded capex increase beyond Fitch's current expectations, then the agency may take negative rating actions.

The report also shows which Asia-Pacific Energy and Utility companies have high, medium or low headroom in their ratings.

Ratchaburi Holding Records BHT6,740 Billion of Net Profit in 2009 Increasing 3.8%

2010-01-30T02:09:00.001-08:00

- Allocates 4 billion Baht budget this year for project development and new investment

- Expects to increase 800 megawatts installed capacity this year

Ratchaburi Electricity Generating Holding Public Company Limited today announces the Company and its subsidiaries’ operating performance of 2009, which records net profit of 6,740 million Baht increasing 3.8% from 2008 or equivalent to 247 million Baht. It represents 4.65 Baht of earnings per share.

Mr. Noppol Milinthanggoon, the President of Ratchaburi Electricity Generating Holding PCL. (“Ratchaburi Holding”) discloses that the Company actively continues seeking for opportunities to build sustainable growth and strengthen its financial statement. According to the Company’s 2010 business strategy, Ratchaburi Holding will focus more on acquisition of operated power plants in aboard aiming to gain the prompt return on investment. In regards to domestic investment, the SPP and VSPP projects are our priority as well as renewable energy from agricultural waste biomass, solar cell and also wind energy in order to support the government renewable energy policy. It is expected that the Company would increase about 800 MWs deriving from projects having significant developing progress in this year and high potential income generating in the future. They include 751 MW-Hongsa Thermal Power Plant (accounted for 40% equity holding), 9 MW-renewable energy from agricultural waste biomass project, 110 MW-Nam Ngum 3 Hydroelectric Power Plant (accounted for 25% equity holding) and 18 MW-Wind Power Project (accounted for 30% equity holding).

For the overall operating performance of 2009, the Company remains net profit growth as projection, which net profit in 2009 records 6,739.60 million Baht increasing by 3.8% or 246.70 million Baht from last year. This resulted from the increase of shared profit of its joint ventures accounted at 1,720.71 million Baht, higher by 84.68% or equivalent to 789.01 million Baht compared to 2008, which mainly generated from Ratchaburi Power Company Limited where its two-combined cycle fully operated. Thanks to the success of interest rate reduction with financial institution lenders and the consistent principal repayment, the interest expense was substantially declined by 432.27 million Baht in 2009. Nevertheless, in 2009 the Company paid 830.94 million Baht income tax increasing by 613.59 million Baht from the previous year, resulting from the expiration of the BOI’s tax exempt of Thermal Power Plant Unit 1 and 2 of Ratchaburi Power Plant since October 2008.

In 2009, the Company realizes total revenue of 37,653.83 million Baht. Besides, the shared profit from the joint-ventures of 1,720.71 million Baht, Ratchaburi Holding earns 35,350.59 million Baht from sales revenue, 139.67 million Baht from management and service fee, 258.45 million Baht from interest income and 184.41 million Baht from other incomes. Whereas, the Company’s cost of sales and expenses was 29,222.19 million Baht, dividing into 28,530.84 million Baht cost of sales and 691.35 million Baht administration expense. However, it was exclusive the interest expense of 861.10 million Baht and the income tax of 830.94 million Baht, which the Company was committed to pay in 2009.

“In 2010, the Company allocates investment budget of 4 billion Baht for developing six joint-venture projects and other prospective projects. Currently, there are three developing projects, which have significant progress. Nam Ngum 2 Hydroelectric power plant would expect to start impounding in March 2010. Hongsa Thermal power plant is likely to sign the Power Purchase Agreement (PPA) with EGAT within the first quarter of this year. Regarding a 60 MW-Wind power project in Phetchabun, it is going to start its construction. Furthermore, Nam Ngum 3 Hydroelectric Power Plant is expected to sign the Tariff MOU with EGAT in the beginning of the year. Moreover, the Company expects to gear up new investments, which aims at least one of renewable energy project this year. In near future, Ratchaburi Holding tends to accomplish the joint venture agreement for a project of renewable energy from agricultural waste biomass with 9 MW.” Mr. Noppol added.
Company’s Information

Established in March 2000, Ratchaburi Electricity Generating Holding PCL is a leading independent power producer in Thailand with 4,347 MW total effective installed capacity. They derive from a 3,645-MW Ratchaburi’s Power Plant (99.99% stakeholding), a 350-MW Tri Energy’s Power Plant (50% stakeholding), a 350-MW Ratchaburi Power’s Power Plant (25% stake holding), and a 1.75-MW power generating from associated gas, Pratu Thao Power Plant in Sukhothai province, which the Company currently invests in the expansion of 0.875 MW-Pratu Thao Power Plant. Furthermore, There is 4 projects under development in Lao PDR with total capacity 1,108 MW according to equity holding, which consists of a 153.75-MW Nam Ngum 2 Hydroelectric Power Plant (25% stake), a 751-MW Hongsa Termal Power Plant (40% stake), a 110-MW Nam Ngum 3 Hydroelectric Power Plant (25% stake) and a 98-MW Xe-Pian Xe-Namnoy Hydroelectric Power Plant (25% stake). For renewable energy development, the Company invests in Wind Power Project in Phetchabun with capacity proportion of 18 MW (30% stake). The Company aims to achieve the total installed capacity of 5,479 MW from its investment and developing projects.

As of December 31, 2009, the Company’s total asset was 69,341.82 million Baht, consisting of the current asset of 19,196.40 million Baht and the non-current asset of 50,145.42 million Baht. The Company’s total liabilities were 24,817.68 million Baht, a decrease of 3,880.22 million Baht from 2008, and the total shareholders’ equity was 44,524.14 million Baht. The Company’s financial status is demonstrated by its ratio of debt to equity at 0.56 times and debt service coverage ratio at 2.55 times

EEI all out in 2010 with energy management business, hoping to raise over 80 million baht

2010-01-24T05:46:00.000-08:00

in revenue after joining forces with Burns and Roe Asia, leading engineering firm from the United States to bolster service capabilities

Mr. Arthit Vechakij Managing Director of Excellent Energy International Company Limited (EEI) disclosed that in the last 11 years, his company had proved to be a leading Energy Service Company (ESCO) in Thailand with recognition including ESCO Excellence Award 2009 from the Federation of Thai Industries (FTI) supported by Department of Alternative Energy Development and Efficiency (DEDE),Ministry of Energy. “Our clients also commended with several recognitions for their efficiency. These companies include Thai Yamaha Motor Co., Ltd., Grand China Princess Hotel, Dusit Princess Hotel in Korat and Royal Princess Hotel Chiang Mai as they are selected to be successful business operators using the ESCO system in 2009 (ESCO Project Award 2009). This is the 2nd year in a row for EEI to have its clients nominated for the award and receive privileges as well as support from the government sector. There are still several other projects that have made our company proud such as services provided to Thai Beverage, 4 new cogeneration power plants development for CPF, Energy Management System (EMS) for Pataya Food Industry, manufacturer of Nautilus canned tuna, whose confidence has resulted in repeat order. In addition, EEI is the consultant for Department of Industrial Promotion, making industrial and business operators having greater confidence in the company. Our latest move to strengthen our position is the cooperation with Burns and Roe Asia, leading integrated engineering company from the United States. The firm, which has already been accepted for expertise by several companies operating in Thailand, is considered a fresh development in Energy Service Company (ESCO) business in Thailand,” he said.

Mr. Arthit Vechakij said: “The cooperation between EEI and Burns and Roe Asia was a result of new opportunity seeking on the part EEI. Discussions were made with Burns and Roe Asia to allow the 2 companies to see good potential together in facilitating to the growing demands from larger size customers. Our services will help make Thai business operators confident and continue relying on ESCO in the future.”

“EEI believe in 2010 it can generate revenue of 80 million baht, which is higher than before by 15%. We predict to help the country save by as much as 200 million baht, as a result of new projects from CPF Group worth 450 million baht, which include 4 new cogeneration power plants that can save up to 117 million baht a year. Projects made in cooperation with Burns and Roe Asia, which is similar to what we have provided to Thai Oil will also help save around 80 million baht a year. Our clients who are business operators believe that investment in energy conservation measures will help them save energy and cost. The rising oil prices of over US$80 per barrel will compel business operators to seek to reduce energy expense in order to maintain costs and create competitive advantages especially in the long run. We are seeing good improvement this year as the government continues to support business operators to seek proper energy management,” he added.

Meanwhile, Mr. Ruamlarp Anantasanta, Deputy Managing Director – Marketing & Business

Development of Excellent Energy International Company Limited (EEI) added on the business direction of EEI in 2010, saying the company would focus its business on what it does best, which would be the Cogeneration Power Plants and Energy Management System (EMS), including the Development and Energy Efficiency Management services “For the past 11 years, Cogeneration Power Plants have been the proud projects of EEI, where success can be proven and accepted widely, from thesuccess of Thailand ESCO Pilot Project with BKP to 4 more Cogeneration Power Plants for CPF Group. We also plan to establish a Energy Management System (EMS) which is the real time monitoring system of power consumption behaviors and coordination among concerned personnel in each area to allow business operators to utilize energy with maximum efficiency to reduce energy costs.

“In the current economic situation, the low investment cost of 5-20 million baht and payback period of only 1-2 years have been our value proposition . This is why our clients trust in our Energy Management System (EMS). EEI is able to develop software suitable to each individual operation following its strong experience and skills in energy management business in Thailand to deliver to each business’s specific needs perfectly. Our service also complies to the recent Energy saving act 2007 with integrated line of services could not be found in other operators. EEI’s unique services include application for necessary approval as required by the laws and regulations, seeking funding support from commercial banks, finding funding sources that provide privileges (special interest rate) in case of energy saving scheme and seeking privileges from the government sector such as financial support, DSM bidding and BOI,” said Mr. Ruamlap.

Mr. Mark Hunt, Managing Director of Burns and Roe Asia, Ltd. stated that his company’s recent cooperation with EEI, a leading Energy Service Company (ESCO) and well trusted by leading Thai operators, is an advantageous and strategic partnership that will benefit both companies’ quality of service. “Burns and Roe Asia’s presence and capabilities will be enhanced by the new opportunities brought forth by EEI. Our joint success will be achieved through a combination of world class services and skills in energy project management in Thailand, while maintaining a beneficial cost structure. We expect to execute at least 1 to 2 energy projects this year with an investment cost of 200-500 million Thai Baht, which will generate savings for Thailand by as much as 100-200 million Thai Baht a year,” he said.

“Thailand’s economy is recovering and moving in a positive direction, and that has a direct impact on domestic energy consumption. According to the Ministry of Energy, at the end of 2009, the amount of energy consumption recorded was higher than that recorded at the same time in 2008. This increase in energy consumption provides evidence that Thailand’s demand for energy is steadily moving in an upwards direction. In addition, the government policy which encourages the use of domestic energy sources and alternative energy, and promotes energy savings initiatives have contributed positively to the country’s energy industry by attracting new investments and expanding existing businesses,” he added.

“Our latest cooperation with EEI will help facilitate the growing energy needs in Thailand and advance the Thai government policy regarding domestic energy management and energy saving campaign. The goal is to find long term energy sources and while curbing the causes of global warming, which will ultimately improve the quality of life in Thailand,” he explained.

Burns and Roe Asia, Ltd. was founded in 1932. The company, with over 1,700 employees worldwide, is specialized in engineering, design, and consulting services in the power generation industry. They provide technical expertise in fossil-fueled power plants, including coal and natural gas combined cycle, as well as in biomass, cogeneration, and nuclear power plants. Studies in advanced technologies and alternative fuel solutions are also offered. Current clients include the Electricity Generating Authority of Thailand (EGAT), Gulf JP, Advance Agro, and GDF Suez.

JDR Cable Systems to Provide Inter Array Cables for London Array Offshore Wind Farm

2009-12-16T19:23:00.000-08:00

JDR Cable Systems, a global provider of subsea power cables, offshore
umbilical systems and specialised marine cables has been awarded the
contract for the supply of subsea power array cables for the first phase
of London Array Offshore Wind Farm by the project consortium of DONG
Energy, E.ON and Masdar.
The first phase of the development, consisting of 175 wind turbines and
2 offshore substations will be installed in water depths of up to 23
meters some 20km (12 miles) from the Kent and Essex coasts in the outer
Thames Estuary. The wind farm will be connected by subsea export cables
to an onshore substation at Cleve Hill, on the North Kent coast. From
the substation, the electricity will be fed into the existing 400kV
transmission network.
The scope awarded to JDR includes the engineering, design and
manufacture of over 200km of 33kV array cables complete with proprietary
hang-off and termination systems providing the essential link between
individual wind turbine generators, wind turbine generator arrays and
the offshore substations. The cables will be produced in 2010 and 2011.
“The London Array project team were very clear in their determination to
procure array cables that would provide the highest long-term
reliability available in the market. JDR’s dedication to the highest
levels of quality management and continuous improvement, developed over
many years of providing subsea power cables and umbilical systems for
deepwater oil & gas projects, is fully aligned with the needs of
offshore wind farm operators. We shall also be providing JDR’s
proprietary array cable termination systems, which have been
specifically designed to minimise offshore installation costs. We are
very pleased that JDR was selected as the array cable supplier and we
look forward to embarking on this world class project,” stated Patrick
Phelan, managing director of JDR Cable Systems Ltd.
When complete the first phase of London Array will be among the world’s
largest offshore wind farms, delivering up to 630MW. This is enough
power for approximately 470,000 homes and will make a substantial
contribution to the UK Government’s target of providing 15% of all
electricity supply from renewable sources by 2015.
“JDR has made significant investments over the last three years to
address the growing and vital renewable energy initiatives taking hold
in the UK and other parts of the world. Our plant in Hartlepool was
carefully chosen to be located in the heart of the UK offshore community
to best serve their ambitious projects yet optimally service all of
Northern Europe and other geographies around the world”, commented Pat
Herbert, group CEO, JDR Cable Systems (Holdings) Ltd.
Richard Rigg, the London Array Project Director stated that “London
Array Limited and its Shareholders are very pleased that JDR Cable
Systems have been successful in acquiring this scope of work and that
the project is supporting the new UK facilities developed by JDR at
Hartlepool to serve the offshore wind industry.”
About JDR Cable Systems
JDR is a leading provider of custom-designed and manufactured static and
dynamic subsea power cables, umbilical systems and marine cables for a
broad range of applications throughout the oil and gas sector, offshore
renewable energy industry, and seismic and defence markets.
JDR was featured in The Sunday Times Buyout Track 100 of the UK’s top
Private Equity-owned businesses. JDR ranked twelfth on the annual list
of 100 companies, and was the highest Original Equipment Manufacturer on
the list.
About the London Array Consortium
London Array Limited has three shareholders: E.ON, DONG Energy and
Masdar.

E.ON is one of the UK’s leading power and gas companies – generating and
distributing electricity, and retailing power and gas – and is part of
the E.ON group, the world’s largest investor-owned power and gas company.
DONG Energy is one of the leading energy groups in Northern Europe. We
are headquartered in Denmark. Our business is based on procuring,
producing, distributing and trading in energy and related products in
Northern Europe.
Masdar, wholly owned by the Mubadala Development Company (Mubadala), is
Abu Dhabi’s multi-faceted initiative in the development and
commercialization of renewable energy and sustainable technology.

Ratchaburi Holding Reports progress of 1,878-MW Hongsa Thermal Power Plant Project - signing 25-year concession agreement for electricity generation

2009-12-15T05:09:00.000-08:00

Ratchaburi Electricity Generating Holding Public Company Limited (Ratchaburi Holding) has reported to the Stock Exchange of Thailand (SET) that Hongsa Power Co., Ltd. (HPC) and Phu Fai Mining Co., Ltd. (PFMC), both of which are joint venture companies with 40% and 37.5% respectively of equity acquired by Ratchaburi Holding are set to the operate Hongsa Thermal Power Plant project. The concession agreement was signed yesterday with the Lao PDR. (November 30, 2009).

According to the concession agreement, HPC will perform obtain a concession for electricity generation whereas PFMC will receive a concession for lignite mining from the Lao PDR. Both agreements have 25-year durations starting date of commercial operations for electricity generation and lignite mining.

Mr. Noppol Milinthanggoon, the President of Ratchaburi Electricity Generating Holding PCL., said that “the concession agreement signing between HPC and Lao PDR. is a significant milestone for the Hongsa Thermal Power Plant project, which is a joint investment by the Company, Banpu Group and LHSE (Lao Holding State Enterprise). This is an IPP with a high project value, which combined the expertise of the joint-ventures. Ratchaburi Holding has a proven record in IPP project development and management while Banpu Group has expertise in the coal mining industry and LHSE has long standing experience in electricity utility development in the Lao PDR. With the above mentioned factors, the Company strongly believes that this project will enhance the stability of the electricity system in both Thailand and the Lao PDR.”

Hongsa Thermal Power Plant is coal-fired using lignite as the primary fuel for electricity generation. It is a shared equity enterprise from Ratchaburi Holding with 40%, Banpu Power Co., Ltd. with 40% and Lao Holding State Enterprise with 20%. With a total installed capacity of 1,878 MW, the project has 3 units, 626 MW each, and it is expected to start commercial operation by 2015. According to the MOU signed on May 13, 2009, electricity of 1,473 MW will be sold to the Electricity Generating Authority of Thailand (EGAT) and approximately 100 MW will be sold to Electricite du Laos: EDL to support the power demands of the Lao PDR, the remainder will be used for the lignite mining operation and the project’s electricity generation.

Free Green Technologies Seminar and Exhibition

2009-12-07T14:08:00.002-08:00

The Royal Danish Embassy in Bangkok is hosting a combined green technology exhibition and seminar as a lead-up to the COP15 conference in Copenhagen in December 2009.

Beside the invited government and state enterprise officials, academics in engineering and architecture, and corporate firms with interest in green tech¬nologies and energy reduction, the Danish Embassy would like to invite interested among the public. The seminar is free of charge and will be held in Thai language.

Different green technology products will be presented during the whole day event comprising of solar panels, cooling systems based on the burning of biomass suitable for larger cooling systems and buildings, organic waste water treatment systems, smart solutions for electric grids that reduced the usage of electricity, low energy houses, machinery for the fishing/shrimp industry that reduced the usage of water and chemicals, recycling of organic waste and others.
It is expected that 300 delegates, including government officials, academics, and business people with interest in eco technologies will be participating in the event. H.E. Dr. Wannarat Channukul, Minister of Energy in Thailand and the Danish Ambassador to Thailand, H.E. Michael Sternberg will preside over the opening ceremony.

Glow’s profitability on track in Q3 2009

2009-12-07T14:08:00.001-08:00

Glow Group (“Glow”) posted consolidated total revenues of THB 25,836 million, Earnings Before Interest Taxes Depreciation and Amortization (“EBITDA”) of THB 5,743 million and Normalized Net Profit (“NNP”, net profit before unrealized foreign exchange gains and losses) of THB 2,669 million for the 9 months of 2009.

The 3rd quarter NNP of 2009 for Glow stood at THB 899 million. The key drivers for the result were strong industrial customers’ sales, whose power and steam consumption have returned back to normal levels since mid year, and favorable operating margins, where fuel prices have stabilized along with the electricity tariffs.

The 3rd quarter result is THB 274 million below the previous quarter, mainly because of two key reasons. First, unlike in the previous quarter, the 3rd quarter result does not include the business interruption compensation for the outage earlier this year of the 150 MW coal-fired Unit 1. The Company expects to receive the remaining business interruption claim of more than THB 100 million. Secondly, there was lower availability in the 3rd quarter due to a minor forced outage and a one-month major maintenance of the 150 MW coal-fired Unit 2, which was deferred from the previous quarter, the total effect was a reduction in profitability in the 3rd quarter by about 100 million baht. The 4th quarter plant availability is expected to return to normal as there is no other major maintenance scheduled until later 2011

Mr. Esa Heiskanen, the CEO of Glow Group commented: “The operation and performance of the Group have returned to normal and our industrial customer sales volumes have returned to expected levels. Our operating margin has also recovered to normal levels as the Ft remains high and fuel prices have stabilized .”

Mr. Esa continued to add “We are following up very closely on what the impact of the temporary suspension ruling has on our numerous customers in Map Ta Phut, Glow currently has all the necessary permits for our expansions, including the 115 MW coal-fired, 382 MW gas-fired, and 660 MW coal-fired IPP. Our expansions will utilize proven technology to ensure low emissions and will include reduction in emission from our existing plants, where the net result will be an improvement in the overall air quality in Map Ta Phut. We are confident that our projects are environmentally sound and will benefit surrounding communities as the total emission from our existing and new plants would be lower than current levels.

”Glow’s year-to-date interest expenses and corporate income tax have increased from same period last year. The effective tax rate has gradually been increasing year on year, as tax privileges for some of Glow’s older plants are starting to expire. However, the overall effective tax rate for the group will come down after the tax exemption period begins for the expansion projects after commercial operation starting in 2010.

Mr. Suthiwong Kongsiri, the CFO of Glow Group further explained: “The increased interest expenses is not due to higher funding costs but it is reflecting the higher debt level due especially to our strategy to pre-fund some of our funding needs at the beginning of the year, this strategy is aimed at mitigating liquidity risk which has resulted from troubles in global financial market. We now have the necessary funding through to the 2nd quarter of 2010 and are very confident in our ability to secure the remaining funds needed for our expansion projects, thanks to our solid business fundamentals, robust performance and improved market conditions.”
About Glow Energy

Glow Energy is a member of the Glow Group who is a major energy player in Thailand. Glow Group combined installed capacities include 1,860 MW (Glow’s stake is 1,775 MW) of electricity and 967 tons per hour of steam.

Glow Group generate and supply electricity to Electricity Generating Authority of Thailand (EGAT) under Thailand's SPP (Small Power Producer) and IPP (Independent Power Producer) programs, as well as electricity, steam, industrial water and services to large industrial customers principally located in the Map Ta Phut area and nearby.

GDF SUEZ Energy Europe & International is Glow Energy’s major shareholder and is a division of the GDF SUEZ Group, one of the largest international industrial and services groups in the world.

Bangkok Bank supports 3 KSL projects valued at more than Baht 8 billion

2009-12-07T14:07:00.000-08:00

Bangkok Bank is providing Baht 8,134 million of financial support to Khon Kaen Sugar Industry (KSL) to invest in 3 new projects at Bo Ploy District, Kanchanaburi Province.

Bangkok Bank Senior Executive Vice President and Head of Corporate Banking, Chansak Fuangfu, said Bangkok Bank has signed an agreement to provide loans of Baht 8,134 million to Khon Kaen Sugar Industry (KSL) and its subsidiaries, including New Krung Thai Sugar Factory Co., Ltd., Khon Kaen Sugar Power Plant Co., Ltd and Khon Kaen Alcohol Co., Ltd.

Mr. Chansak added that under the loan agreement, New Krung Thai Sugar Factory Company will use the funds to relocate its sugar mill from Tamaka District to Bo Ploy District, Kanchanaburi Province, and expand its production capacity, from 8,385 tons of cane per day (TCD) to 20,400 TCD. The sugar from this factory will be distributed to large food and beverage manufacturers in Thailand and other countries as a key ingredient of their products. Major export markets are Indonesia, Japan, the Philippines, Russia and China.

In terms of alternative energy investment projects, the Khon Kaen Sugar Power Plant Company will build its second plant with an electricity production capacity of 90 MWH using biomass and biogas as raw materials. The company will sell electricity and steam to the Electricity Generating Authority of Thailand and KSL’s subsidiaries.

The third and final project under this agreement is Khon Kaen Alcohol Company’s construction of a second plant. This plant will produce up to 200,000 litres of ethanol per day from molasses and other waste products from sugar production process. Ethanol is mixed with gasoline to make the vehicle fuel, gasohol.

“KSL Group’s investments increase sugar productivity and add value to the by-products of sugar manufacturing,” concluded Mr Chansak. “The company’s investment in value-added projects also supports the government’s energy and environmental policies. Sugar production is one of Thailand’s core industries and Thailand is the second-largest sugar exporter after Brazil, exporting mainly to countries in Asia.”

Bangkok Bank supports 3 KSL projects valued at more than Baht 8 billion

2009-11-19T05:50:00.000-08:00

Stoppage hits Glow's Q3

2009-11-12T22:16:00.001-08:00

       The SET-listed power producer Glow Energy saw earnings slow in the third quarter due to a one-month maintenance closure of one of its plants.
       Two factors caused its normalised net profit to drop to 899 million baht in the third quarter, down by 274 million from the second quarter, the company said in its statement.
       Reduced power output due to a onemonth maintenance closure at its 150 MW coal-fired station affected te thirdquarter performance.
       The quarter's results also weakened as Glow had not booked the business interruption liability for a stoppage earlier this year at the 150 MW station.
       Output is expected to return to normal in the final quarter as there are no more major maintenance stoppages scheduled until late 2011. The company also plans to book the remaining business inter-ruption claim of more than 100 million baht in the fourth quarter.
       Glow reported sales of 26.6 billion baht over the first nine months, up 3.3%year-on-year from 25.7 billion. But its net profit fell by 5% from the same period last year to 3.04 billion baht.
       Chief executive Esa Heikanen said higher interest payments of 705.5 million baht, up from 605 million last year, from increasing project finance caused the weaker performance. Fuel costs also rose by 2.8% for natural gas and 1.8% for coal.
       However, Mr Heikanen said that performance declined at a slower pace than the rise in costs, thanks to revitalised sales to industrial customers.
       Shares of Glow closed yesterday on the Stock Exchange of Thailand at 33 baht, up 3 baht, in trade worth 41.53 million baht.

Egco profit steady

2009-11-12T22:15:00.001-08:00

       The Electricity Generating Plc (EGCO) reported a steady net profit in the third quarter, with profit growth for the nine-month period,thanks to additional capacity.
       Thailand's first private power producer posted a consolidated net profit of 2 billion baht, unchanged from a year earlier. Nine-month consolidated net profit was 6.65 billion (12.64 baht a share), up from 6.26 billion baht (11.91 baht a share).
       This year, the company gained more income from new capacity at its Kaeng Khoi 2 Unit 2 plant, which started operations in February.
       However, performance was affected by lower electricity sales of subsidiaries Rayong Electricity Generating Co (Regco) and Khanom Electricity Generating Co (Kegco), caused by a reduction in the base availability credit; and lower service income from Egco Engineering & Service Co Ltd.
       Since late last year, Egco has focused on expanding in Asean countries to maintain profit and revenue at a time of lower demand in Thailand. It also is looking to acquire new fuel-related and renewable energy businesses locally.
       Egco Group has 13 plants with 3,980.7 MW, representing 12.3% of Thailand's total installed capacity.
       Egco shares closed yesterday on the SET at 75.25 baht, up 25 satang,in trade worth 14.5 million baht.

Banpu profit rises 22%

2009-11-12T22:14:00.000-08:00

       The coal miner Banpu Plc reported thirdquarter profits of 3.8 billion baht, an increase of 22% from the same period last year.
       Consolidated nine-month net profit jumped 68% from the same period last year to 12.58 billion baht.
       In a statement to the Stock Exchange of Thailand, the company said its thirdquarter revenues fell 3% year-on-year to 13.9 billion baht, due primarily to lower coal prices. Coal sales totalled 12.8 billion baht, down 4% year-on-year and representing 92% of total revenue.
       Coal sales volume in the quarter was 5.31 million tonnes, up 15% year-onyear and up 18% from the previous quarter thanks to increased production at its Indonesian mines. Average selling prices for the quarter were $69.49 per tonne, a decline of 17% year-on-year and 6%quarter-on-quarter due to lower market prices and quality of coal.
       Quarterly profits included a gain of 1.03 billion baht from financial derivatives on coal swaps and 109 million from oil hedging and interest-rate swaps.
       Total reserves at the end of September were 581.37 million tonnes, compared with 588.1 million at the end of June.
       Shares of Banpu closed yesterday on the SET at 448 baht, down two baht.

SAMSUNG HAS BT4-BN PLAN TO UP MARKET SHARE

2009-11-04T05:34:00.000-08:00

       Thai Samsung Electronics will invest around Bt4 billion to increase proฌduction capacity and research and development next year to boost its share in the segments in which the brand is not a market leader.
       Deputy managing director Arnut Changtrakul yesterday said the Board of Investment (BoI) had proฌmoted Thai Samsung's investment.
       The investment of Bt4 billion will cover R&D, new machines and new mole to develop new innovative products and increase production capacity for four products - refrigerators, frontloaded washing machines, airconditioners and TV monitors at the existing plants at Sriracha, Chonburi province.
       The investment could help create 500 to 1,000 jobs next year. Currently it employs 5,000 people.
       Samsung's Sriracha plant is a major production base for Samsung electronics products such as LED TV, LCD TV, refrigerators, washing machines, air conditioners, and microwave ovens.
       Of the total production at the Sriracha plant, about 30 per cent goes to the domestic market and the rest are exported to Southeast Asia and the Middle East.
       The segments in which Thai Samsung is not the market leader are refrigerators, frontloaded washฌing machines, airconditioners, notebooks, digital cameras and mobile phones. However, Samsung expects to emerge as market leader in the mobilephone market by the yearend.
       Samsung will be the first interฌnational brand to do TV mobile phones, starting next year.
       Samsung ranks third and fourth in refrigerator, front loaded washing machines, air conditioner, notebook and digital camera.
       Arnut said the company's goal next year is to boost shares in those segments or at least go up by one rank. aMoreover, Samsung has to secure the position in the top tier in all segments.
       Samsung is currently the market leader in LED TV, LCD TV, PDP TV, Slim TV, sidebyside refrigerator and LCD monitor.
       He said Samsung next year will focus more on the segment that the brand does not market leaders.
       "We have five keys to success: new technology, value for money, potenฌtial distribution, brand creation and aftersales services," he said.
       He said the focus on products in which Samsung is not the market leader will also boost domestic revenue next year. Thai Samsung is targeting domestic sales worth $1.5 bilฌlion (Bt50.1 billion) compared to expected sales of $1 billion this year.
       "We expect our sales to increase next year because of the positive signs of the global economic recovฌery. Moreover, Thai consumer conฌfidence index in the fourth quarter this year is likely to be positive at 1.5 per cent from negative earlier this year.
       Thai Samsung expects the consumer confidence index to continue improving to 34 per cent in the first quarter next year," said Arnut.
       The US gross domestic product is expected to grow by 3.5 per cent next year. This is a positive sign for the export market as well, Arnut said.
       The company is targeting exports of $1.6 billion next year from the expected $1.3 billion this year.

Community forests capture hearts, minds

2009-11-04T05:33:00.000-08:00

       Ratchaburi Electricity Generating Holding Plc joins forces with Thailand's Royal Forest Department to develop a new generation of woodland guardians
       Story and photos by PURICH TRIVITAYAKHUN CHIANG MAI
       During a brief discussion before he rejoined his group, Kiettisak Jaiban, 13, said that he had never been more enthused to protect and preserve his "community forest". He and his campmates were preparing to present their findings after hours of trekking in a forest in Chiang Mai province.
       Kiettisak was one of the many students at the camp who came from communities located near a forest. Such communities have been benefiting from their forests generation after generation. When the camp came to an end, all of the other attendants probably felt the same way as Kiettisak did - that the preservation of community forests is one of their vital tasks as good citizens. Camp foliage
       Kiettisak made his comments at an event that took place last month. The Royal Forest Department, in collaboration with Ratchaburi Electricity Generating Holding Plc ("Ratch"), had arranged for 80 high school students from Ratchaburi province and three other northern provinces - Chiang Mai, Mae Hong Son and Lamphun - to participate in the "Kla Yim Youth Camp".(Kla yim usually means dare to smile, but this phrase can also be a play on words to mean "smiling sprouts", as in encouraging youths to smile.)
       The camp, one of the activities carried out in the "Love the Forest and the Community" campaign, was initiated by the two entities. The Young People Development Centre was involved as co-organiser of the camp, which was held in Doi Suthep-Pui National Park, a reservation adjacent to Chiang Mai city.
       "This is the second time that we are holding this kind of camp," said Prayut Thongsuwan, Ratch's executive vicepresident of corporate administration.This year, most of the campers had been selected from communities that use community forests, whereas last year most of the campers were students from Bangkok.
       "We wish to foster a sense of environmental awareness among youngsters so that they will love and protect local natural resources. The most important objective of this camp is to attain a new generation that will continue the work of the current generation in taking care of community forests. We believe that in this way, we can effectively and efficiently ensure the long-term existence of community forests," Mr Prayut explains. For posterity
       Currently, Thailand has approximately 90 million rai (14.4 million hectares)covered by forests. Of this area, around 2.7 million rai (432,000 hectares) are designated as community forests, which fall under the responsibility of 7,700 communities scattered all over the country.Nearly half of the community forest land,or approximately 1.3 million rai (208,000 hectares), is in the northern region of Thailand.
       The crux of the community forest concept, according to Pralong Dumrongthai, director of the Community Forest Management Bureau in the Royal Forest Department, is to foster the well-being of the people who live in the communities adjoining or surrounding such forests.
       Human activities inside forest reserves,such as national parks and wildlife sanctuaries, are strictly controlled by the government. In contrast, a community forest is that part of a national reserve where the community of people living nearby is permitted by the government to benefit from the forest's resources.
       However, activities that are actually carried out inside the community forest have to be approved and supervised by the Royal Forest Department and a community committee responsible for the community forest.
       "We want to reduce the household expenses of the local residents and increase their income," said Mr Pralong."That does not mean, however, that the focus is on encouraging the communities to only sell products obtained from their forests. On the contrary, we have a programme of activities that stresses the need for them to maintain and protect these natural treasures as they are the ones benefiting from them, and we hope that they will respond positively," he added.
       At the camp, Mr Pralong gave a presentation on the overall objectives of establishing community forests. Green food bank
       Personal experience is worth more than a thousand words. One of the ranges of activities at the camp was the visit by campers to the Ban Talad Khilek community forest in Doi Saket district, to the northeast of Chiang Mai city.
       Even though many campers have been living around forests all their life, this was a good opportunity for them to gain hands-on experience about the functions of forests and how experts manage them.
       There, the campers trekked a twokilometre trail through a forest in bloom at the end of the rainy season. They spotted wild flowers, orchids, mushrooms and herbs like Do Mai Ru Rom , the prickly-leaved elephant's foot plant;Sab Sua , or bitter bush;Makham Pom , the Malacca tree; and many other types of vegetation.
       Along the walk, committee members of the Ban Talad Khilek community forest were present at several stations to dispense information to the youngsters upon their arrival there. The information provided at the stations covered topics like the functions of check dams and the management of herbs and bamboo.
       "The villagers now earn higher incomes than they did before," said Somboon Thaiyanto, head of the Ban Talad Khilek community forest committee and the chief guide who led the students through the forest.
       Various products from the forest, such as herbs and mushrooms, are collected and sold among the villagers themselves."We don't want them to sell these items to outsiders because the forest will cease to be sustainable if the products are commercialised," said Mr Somboon.
       "A long time ago, outside investors carried out logging in the area. Nowadays,the villagers help preserve the forest.We have to do this for our children," he added.
       Mr Somboon said that what he hoped the campers gained from their visit was not only knowledge about the forest,but also an appreciation of the importance of the ideas for managing a community forest, so that the youngsters would carry on the concepts learned at Ban Talad Khilek and apply them to local community forests.
       After returning from the community forest, the next day the young campers had the chance to trek through the forest in Doi Suthep-Pui National Park to observe the differences between the two forests. Besides trekking and learning more about different kinds of forests,the campers engaged in several other activities that raised their awareness of environmental conservation. Friends of the forests
       "The healing powers of local herbs are the same as those of expensive foreign medicines!" Ngamsiri Kladnuam said excitedly upon learning about the properties of several herbs found in the Ban Talad Khilek community forest.
       "I've seen many herbs that I cannot find in my community. For example,the fruit of the Malacca tree can alleviate thirst and sore throats, and Sab Sua can stop bleeding," said Ngamsiri, revealing her newfound knowledge enthusiastically."Check dams can prevent floods,act as water reservoirs, and maintain the moisture in forests. On special occasions, community members gather to help each other build a check dam.This fosters local harmony, too."
       Unlike Kiettisak, who lives in Chiang Mai, this 14-year-old girl from Ratchaburi does not live near any forest and had never attended a forest camp before.Her participation in last month's camp has made her permanently aware of what it means to go "green". She said that when she returned home, she would take steps to promote in her school the creation of more green areas in her neighbourhood, as well as tell her schoolmates about the many benefits of forests.
       As for Kiettisak, he said that when he returned to his home in Mae Rim district,he would inform as many of his fellow community members as possible of how everyone could effectively manage a satisfactory level of income from selling herbs, vegetables and mushrooms plucked from their community forest."Right now, we mostly consume all of the products that we collect and sell only a small portion [to outsiders]," said the child who has grown up alongside a forest."At the camp, I learned the names of many more plants and herbs, what their properties are, and how to grow and use them."
       Kiettisak agreed that the camp added to his knowledge."I will return home and try my best to disseminate what I have learned from this camp to my friends - such as, information on rare and new kinds of herbs, and how to grow, use and preserve them," Kiettisak promised,adding that he would spread the news in his school first and later try to find ways to expand the coverage to include his entire community. Future devotees
       Ratch has stated that the company is willing to support the youngsters if they want to initiate future projects or actions to preserve their community forests after they return to their communities.
       In the end, these little hands will one day become a major force in ensuring the continued existence of community forests, thereby enabling humans and nature to successfully exist together in harmony.
       "People and forests have to depend on one another. If we don't have forests,it will be very difficult for us to survive or earn a living. If the forests don't have people who love and understand them,they will be unprotected from the risks of abuse and destruction," said Kiettisak.

Way out of line

2009-10-28T19:37:00.000-07:00

       Prime Minister Abhisit Vejjajiva announced that he expects third generation phone service before New Year's Eve; he then announced why there probably won't be any; in a speech to mark the fifth anniversary of the Magnificent Seven National Telecommunications Commission, Mr Abhisit set out the conflicting criteria he expects to see in Asia's last, most dysfunctional 3G campaign: service before the end of the year after fair bandwidth auctions that favour small Thai telecom operators;on one hand,"3G services can no longer be postponed," he insisted, but on the other, the NTC must bias bidding to favour a more competitive structure;the English translation of this speech:DTAC of Norway and AIS of Shingapore have way too much market power now and 3G contracts must show that.
       Information and Communications Technology Minister explained that Mr Abhisit was way out of line in calling for 3G phone service in Thailand by the end of the year; the highly dynamic Ranongruk Suwunchwee said that the auction for 3G service should be postponed indefinitely, but certainly until at least 2010; the minister patiently diagrammed the truth for Mr Abhisit,showing that any auction before next year would favour "foreign players"(translation:DTAC of Norway and AIS of Shingapore) while dealing setbacks to the telecoms duopoly of your TOT and your CAT Telecom ; after hearing the minister's clear (as always) and expert (as always) statement, Mr Abhisit said,"I have sympathy for the NTC in carrying out this complicated work,"and went back to his office.
       Speaking of foreign companies, the Japanese Internet firm Rakuten bought a controlling 67 percent of Thailand's largest e-commerce portal; the online shopping service TARAD.Com , which claims to have 2 million users buying 1.4 million items from 160,000 merchants, will be directly controlled by three senior Rakuten executives to be flown in for the jobs; it's all about the scale - Rakuten.co.jp has 60 million users able to buy 40 million products from 30,000 merchants; executives of Tarad.com and Rakuten were so excited they forgot to mention the sale price.
       The cabinet took a quick look, guffawed and quickly waved away a dis-tasteful proposal by the Commerce Minister to fine and arrest people who buy pirated songs, movies, software, etc;Prime Minister Abhisit Vejjajiva spoke up and said it was a dreadful idea, probably illegal and fraught with the danger that most arrested people would simply sue the police back; Commerce Minister Porntiva Nakasai and deputy Alongkorn Ponlaboot apparently got caught up in the spirit of taking draconian action to stamp out piracy; but the bill will probably come back to cabinet with one key point still in it: punishment for store or mall owners who allow their premises to be used to sell pirated or counterfeit goods, which seems an equally iffy accusation.
       Finally, you can buy a Kindle e-book reader for a mere $279 that will download all the k3w1 books and newspapers (and charge your credit card) from Amazon.com that works (or soon will,says Amazon) on the Edge/GPRS networks in Thailand -9,600 baht in real money.
       Sixty four percent of Thais favour nuclear energy but 66 percent insist they be in other Thais' provinces; that was the result of a poll on nuclear energy conducted on behalf of the Electricity Generating Authority of Thailand ; Egat has hired a consulting firm to conduct studies on plants currently planned to be opened starting in 2020; deputy governor Somboon Arayasakul lauded alternative energy projects throughout the country but said there was no way they would supply enough electricity;Egat has carefully refrained from specifying any province or site as its preferred spot for the first plant.
       Marine scientist Suchana Chavanich left on a four-month trip to study the impact of climate change in Antarctica;the 37-year-old Chulalongkorn University lecturer was chosen as part of the Japanese Antarctic Research Expedition.

IS THAILAND HEADING FOR A NUCLEAR FUTURE?

2009-10-28T19:36:00.000-07:00

       The demand for electricity keeps rising,but consumer savings and domestic solar power generation may help considerably By Nina Suebsukcharoen
       While Thailand is pushing ahead with plans to build two nuclear power plants, energy policymakers are not overlooking other choices,including solar power, and are encouraging consumers to embrace conservation, says Direk Lavansiri, chairman of the Energy Regulatory Commission.
       It could take up to 10 years before work starts on the nuclear plants, assuming they win government approval and are accepted by a sceptical public.
       A government organisation has already been set up to study the safety issues and acceptance of this form of energy generation,as well as where the two nuclear plants should be located.
       "In a year's time they will decide whether to build them or not, but according to the plan, two will be built with 1,000 megawatts each. In 10 years we will build them," said Mr Direk.
       Many parts of the country have been considered as suitable sites for the nuclear plants,but he stressed the government had to focus on safety issues.
       The Electricity Generating Authority of Thailand (Egat) would be in charge of producing nuclear energy for this country because it has the skills to do so.
       Now Thailand's power generating capacity is 30,000 megawatts, but according to the long-term power development plan (PDP),this will increased to between 50,000 and 54,000 megawatt in 15 years' time.
       A breakdown of power generation shows that 70% is obtained from natural gas, about 15% from lignite, while hydropower amounts to 7-8%. The country buys 10% of its energy requirements from Laos which has suitable geographical conditions to generate hydroelectric power, and a small amount from Malaysia.
       "In 15 years' time the natural gas portion will decrease and there may be some nuclear power - this is according to the plan - and lignite will increase," said Mr Direk.
       Several countries already meet 20-30% of their energy needs through nuclear power,notably Japan. South Korea too is generating a large amount of nuclear energy, as is China.
       France generates the most nuclear energy,with as much as 70% of its needs being met through nuclear plants. The UK generates about 10-20% of its power from nuclear plants because it is able to buy a substantial amount from France.
       "The US too is partly nuclear but a lot of it is through lignite - much more energy is generated through lignite but it does have some nuclear," he said.
       "At one time people were afraid - for example they were going to build a nuclear plant on the US west coast but it had to be scrapped [due to public pressure]. Today the US east coast has a lot of projects around seven or eight."
       Mr Direk explained that nuclear energy is now seen to be far cleaner because it does not cause greenhouse gas as fossil fuels do.The fear is over the disposal of nuclear waste,but this too has now advanced, and today it is possible to reprocess spent nuclear fuel in a way that allows plutonium to be reused for nuclear fuel but not for nuclear weapons.
       However, in the end radioactive waste has to be disposed off, and the way it is being done in other countries is to carefully bury it deep in the ground.
       "Previously, activists didn't agree with it [nuclear power] but now they do because it doesn't cause greenhouse effect. Many groups agree with it because it's cleaner and doesn't release carbon dioxide."
       In fact, environmentalists are more concerned about the use of lignite to generate power than nuclear. Their concern about lignite even outweighs the heavy use of petroleum today, he added.
       Thailand is not only focusing on nuclear energy for its future needs but also other renewable sources of energy such as solar and wind. Where wind power is concerned Mr Direk mentioned that Denmark is a shining example because it generates so much energy this way that it is able to export some to neighbouring countries.
       It would be possible for Thailand to generate some wind power in future because some parts of the country are extremely windy,including Lop Buri and some areas in the South.
       While the bigger issues of power generation are very important, Mr Direk revealed that the authorities have not forgotten how much energy could be saved at the individual level.With this in mind both the metropolitan and provincial electricity authorities are now willing to buy solar energy from houses that generate it through the installation of solar panels on the roof.
       Householders can now contact both metropolitan and provincial electricity authorities to install a separate meter to sell the solar energy they generate at eight baht a unit,while buying power at a little more than three baht a unit, thus making a profit of five baht a unit.
       "You have to consider whether this is worthwhile, you have to consider whether getting eight baht [a unit] will cover the cost of the solar cells, which will be recovered in seven years. After that, from the eighth or ninth year on, they won't cost you anything so you could then use solar energy at home and not pay three baht a unit - it's free."
       Mr Direk added that the lifespan of solar cells is about 10-20 years and some countries,with Germany at the forefront, are heavily encouraging their use.
       "It started in Thailand a long time ago,but the regulations have just been changed to allow people to sell directly. So sell at eight baht and buy at three baht - that's a profit of five baht."
       Mr Direk added that in these difficult times people could cut their electricity bills if they used less electricity during the peak period from 9am to 10pm. One way would be to run washing machines after 10pm or at weekends.
       "Saving energy is government policy, and it would help decrease the amount of investment the government would have to make.It has to invest, but power consumption only climbs during the peak period when demand is high. Other times they can't sell anything - investing a lot to sell a little is not worthwhile."
       While it is now well known that energysaving bulbs do cut costs, what the majority do not know is that fluorescent tubes can do so too if fitted with electronic ballast. This is able to cut fluorescent power consumption by half - the big fluorescent tubes consume 40 watts, while smaller ones consume 36 watts, and this could come down to 18 watts.
       Mr Direk advised people to check this point when buying fluorescent tubes and although those fitted with electronic ballast are expensive, their cost-saving feature does pay for itself within a year.

PTT, EGAT PLAN TO INVEST BT1.8 TRILLION

2009-10-28T19:35:00.000-07:00

       PTT Group and the Electricity Generating Authority of Thailand (Egat), both major national energy units, yesterday affirmed plans for Bt1.8 trillion of investment from 2010-2014 in order to ensure energy security.
       However, they urged the government to better communicate with local communities if it wanted to see the investments proceed smoothly.
       At the "Energy Solves Thailand's Crisis" seminar hosted by the Energy Ministry, PTT president and CEO Prasert Bunsumpun said his company's investment would further strengthen the country's energy security.
       For absolute security, he said, PTT needed to be a world-class player with a large business size, integrated value chain, strong competitiveness and strength in good governance.
       He added that since its privatisation in 2001, PTT had raced ahead in terms of its development.
       "Yet, as a national energy company, PTT still needs support from the government and the general public. Otherwise, PTT would have difficulties in competing against others. Based on the earnings ratio on sale or assets, PTT is relatively small compared to competitors like ExxonMobil or Malaysia's Petronas," he said.
       While PTT Exploration and Production (PTTEP) will invest Bt480 billion in the period, PTT and other subsidiaries will invest a combined Bt1 trillion - and Egat another Bt300 billion.
       Prasert lamented the government's policy that required PTT to shoulder oil price subsidies worth about Bt40 billion last year. Meanwhile, PTT had to subsidise the price of liquefied petroleum gas to the tune of about Bt5 billion, which only weakened the company.
       "In 2008, PTT's net profit totalled US$1.6 billion [Bt53.7 billion] and some social groups said this was too high. Yet, compared to $15 billion at Petronas or $45 billion at ExxonMobil, the profit is small. Meanwhile, PTT is responsible for seeking new energy supplies. Without profits, good governance and government support, how can PTT mobilise funds to finance the expansion?" he said.
       PTTEP chief executive officer Anon Sirisaengtaksin echoed Prasert's point, saying that government support was necessary or projects could be disrupted due to high risks.
       PTTEP's investment plan is aimed at ensuring sufficient supply, as Thailand's oil consumption will rise from 1.7 million barrels per day to 2.7 million in the next 10 years.
       The company now supplies 260,000 barrels a day and is in the process of raising this to 400,000. It is involved in 40 exploration and production projects in 13 countries, with 20 of them under exploration.
       Egat governor Sombat Sarntijaree said his agency's investment would depend on the national power development plan, which is being revised.
       He said it was necessary for Thailand to diversify fuels for power generation and for the government to further educate the public on nuclear power.
       Jiraphol Jirapraditkul, director-general of the Energy Policy and Planning Office, said that at present, local communities and non-government agencies were opposed to fuels like biomass, coal and nuclear.
       He said the situation would pose threats to national energy security, and the government would therefore do its best to communicate with the public - or no investors would dare to commit to energy projects.

EGAT, FIRMS INVITED TO MUMBAI

2009-10-20T20:45:00.000-07:00

       The Electricity Generating Authority of Thailand (Egat) and local energy companies have been asked to join an exhibition in Mumbai, were they can also explore investment opportunities in India.
       Raj Eswaran, organising chairman of Elecrama 2010, said all of the exhibitors already signed on were ready of joint ventures and product transactions. The Thai organisations have shown their strength in power transmission and distribution through expansion into neighbouring countries.
       "We're also looking for opportunities to hold an exhibition here, to respond to Asean's power-transmission and-distribution needs," he told a press conference in Bangkok yesterday.
       The invitation follows the potential expansion of investment and trade between Thailand and India in the wake of free-trade pacts between the countries and between the subcontinent and Asean, Eswaran said.
       This would boost bilateral trade from US$6 billion (Bt200 billion) now to $10 billion next year, while Indian-Asean trade woul dincreasde from $48 billion to $60 billion.
       He said the event would allow Thai operators to find opportunities for power investment in India.
       The Indian economy is expected to grow 8 per cent this year in the face of the global slowdown. Trade and investment in India are expected to triple from $200 billion, and power demand will increase accordingly, offering a huge investment potential for interntional investors, he added.
       Organised by the Indian Electricial and Electronics Manufacturers Association, the world-class Elecrama is held every two year. Prior to the ninth event, set for next January 20-24, the exhibition has generated more than $900 million worth of joint ventures, orders, strategic investment, supply contracts, brand sales and other trade opportunities.
       Next year's event will feature 1,000 exhibitors from 20 countries, including Germany, Spain, China and South Korea. More than 50,000 visitors from 40 countries, including Thailand, are expected.

       The invitation follows the potential expansion of investment and trade in thei wake of FTAs between the two nations.

Ministry takes a close look at wind power

2009-10-14T21:34:00.000-07:00

       The feasibility of wind power will be studied by an Energy Ministry department as part of plans to reduce Thailand's dependence on imported energy, a senior officials says.
       The Thai Meteorological Department conducted the last study on wind power a decade ago and found that only limited areas in Thailand could make use of wind power to generate electricity due to the technology's low level of development at the time, said Krairit Nilkuha,director-general of the Energy Ministry's Department of Alternative Energy Development and Efficiency (DEDE).
       The state agency now needs a new study to help encourage private investment in wind-power as the DEDE plans to auction concessions, under an independent power producer model, for the technology.
       "Most of Thailand's highland areas are the property of state agencies," he said."So, any projects developed on such land will have to be operated as concessions."
       Silpakorn University has been assigned to conduct the feasibility study which is scheduled to be completed within the first quarter of next year.
       "The old data only found potential sites [for wind power turbines] in the lowlands and near to the coast," he said."However, with new technology, even highland areas that are 800 to 900 metres above sea level, such as mountains and cliffs, can be used to develop projects.We need a new study to confirm the possibility."
       Many of the old wind-power projects failed commercially. Some were only able to operate for a few days every month due to low wind speeds, Mr Krairit said.
       Under Thailand's renewable power development plan for 2007 to 2022, windpower would be developed to produce 115 megawatts of electricity per year within 2011, rising to 375 MW in 2016 and 800 MW in 2022.
       The DEDE will also conduct a feasibility study on solar power in Thailand to reflect recent developments in solar cell technology.
       "Both solar and wind-power should be promoted and developed, either the public or private sector should be gathered to help speed up our progress on renewable energy," he said."We depend too much on imported energy."
       Thailand's current wind-power capacity is just one megawatt per year,according to DEDE, but this is expected to increase to more than 10 MW within 2011 with Ratchaburi Generating Holding Plc's development of new projects in Nakhon Ratchasima and Phetchabun.

Glow upbeat on Map Ta Phut despite court ruling

2009-10-13T05:12:00.001-07:00

       Glow Energy Plc's three ongoing power plant projects worth 60 billion baht in Map Ta Phut remain on track despite concerns that a court ruling may force their clients to suspend operations.
       The SET-listed power producer, however, said its local and foreign creditors have started asking how its projects'future prospects could be dampened by stricter environmental regulations.
       Glow, which is majority-owned by France-based GDF Suez Energy International, targets to secure as many bank loans as possible to finance the 60-billionbaht expenditure required for its three power projects,including a115-megawatt coal-fired power plant set to be operational in December this year.
       "Investors and creditors are concerned about the uncertainties over the Thai regulations that additional requirements might be introduced in the near future,"Suthivong Kongsiri, executive vicepresident and chief financial officer of Glow told the Bangkok Post ."Those criteria might put our (power)business in a tougher situation than before."
       Major clients of Glow are subsidiaries of Siam Cement Group (SCG), US-based Dow Chemical, and Vinythai Plc. SCG's 20 ongoing projects worth 106 billion baht are among 76 projects totalling 400 billion baht that were forced to suspend construction by a Sept 29 Administrative Court ruling.
       "We updated with customers last week and found that nothing has changed.Construction of those projects have continued," Mr Suthivong said, noting that the 115-megawatt (MW) power plant is projected to lift Glow's net profit by 500 million baht in 2010 from this year's target of 4 billion.
       "If their projects cannot proceed, we might have to look into the viability of our coming projects," he said.
       Glow's 382-MW gas-turbine power plant, which is scheduled to be come online in Sept 2011, is another project that could be affected by the Map Ta Phut ruling. The company is also developing a 660-MW coal-fired power plant with operations due to start in Dec 2011 under an independent power producer license with the Electricity Generating Authority of Thailand.
       Finansia Syrus Securities said in the worst-case scenario Glow may have to delay its 115-MW project for a year which could lower the power producer's earnings next year by 17% from an estimated 5.1 billion baht.
       The brokerage forecasts Glow to post a net profit of 3.59 billion baht this year on revenue of 32.4 billion. Next year's turnover is projected at about 40.2 billion baht.
       "But that scenario has minimal chance to happen, therefore, we have maintained our annual earning growth for Glow at 31% on average during 2010 to 2012,"FSS said in a recent report.
       Shares of Glow closed yesterday on the Stock Exchange of Thailand at 33.25 baht, down 50 satang, in trade worth 25.79 million baht.

Egat unit shifts to services

2009-10-07T21:41:00.001-07:00

       With power demand falling, Egat International Co, an overseas investment arm of the Electricity Generating Authority of Thailand, is shifting its focus to operating and maintenance services for power plant operators.
       The international business subsidiary,established in 2007, oversees all of Egat's investments outside Thailand, said Sutat Patmasiriwat, a deputy governor of the state power utility.
       But plummeting power demand has made Egat International postpone two overseas projects - the 440-megawatt Nam Ngiep hydropower plant in Laos and the Hutgyi hydropower plant in Burma - neither of which have started construction.
       Egat holds both plants' operating licences from their governments.
       To develop its new business focus,Egat International is in talks with the US-based GE Group on conducting a feasibility study into providing operating and maintenance services to privately run power plants.
       Egat is not only looking at the domestic market but has hopes of opportunities across Indochina. The company may also hold discussions with Siemens AG on doing business together. It is also planning to diversify into coal mines,but Mr Sutat declined to give details.
       In June, Egat invested in Egat Diamond Service, a new joint venture in which Egat and the Mitsubishi Group each hold 45% and Ratchaburi Power Generating Holding Plc 10% of the registered capital of 623 million baht.
       It aims to provide gas-turbine generator part repairs, targeting overseas gasfired power plants, starting from 2011.

Wind farms may pay off

2009-10-02T19:03:00.001-07:00

       Investment in wind power generation could pay off for Thais, says the Senate's committee on energy.
       Senator Lertrat Ratanawanich,who chairs the committee, said many investors had shown an interest in developing this alternative form of energy.
       The government could help with research and development of technologies to make the most of wind power, he said.
       However, legal barriers facing plans to build wind farms in forest areas were holding back development of the sector.
       Proposals to develop wind energy generation by the government and the Electricity Generating Authority of Thailand have been submitted for approval.
       The wind farms, if built here,could produce 1,000 megawatts of energy.
       Once wind energy generation facilities are fully developed, the total output could reach that of a typical nuclear power plant, or 2,000 to 3,000 megawatts of electricity.

PTT, EGAT PLAN TO INVEST BT1.8 TRILLION

2009-10-02T19:02:00.001-07:00

CPN FUND SETS PRICES OF UNIT TRUSTS AT BT8.90 FOR CENTRAL PINKLAO INVESTMENT

2009-09-30T21:54:00.000-07:00

       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.

Map Ta Phut ruling hits SET

2009-09-30T21:53:00.001-07:00

       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.

Throw the book at them

2009-09-30T21:50:00.000-07:00

       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.

EGAT SLAMMED BY LOCALS AT FORUM ON SONGKHLA PLANT

2009-09-27T20:03:00.000-07:00

       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.

Lamphun community forest wins honours

2009-09-27T20:02:00.000-07:00

       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.

MEA underground grid begins transmission

2009-09-27T20:01:00.001-07:00

       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 power-line plan hits difficulties

2009-09-27T19:59:00.000-07:00

       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.

Ratchaburi targets wind

2009-09-27T19:58:00.001-07:00

       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.

A piece of the action

2009-09-23T22:06:00.000-07:00

       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.

Egat sells off three decommissioned Mae Moh generators

2009-09-23T22:05:00.000-07:00

       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.

PEA PLANS BT10 BN ENERGY PROJECTS

2009-09-23T22:03:00.000-07:00

       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.

Egat warns of more blackouts

2009-09-21T23:12:00.000-07:00

       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.

More gas supply interruptions cause headaches for Egat

2009-09-16T07:38:00.000-07:00

       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.

"Natural" fuels ignite power struggle

2009-09-13T19:43:00.000-07:00

       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.

Power producers call for deeper cut in reliance on natural gas

2009-09-12T17:00:00.000-07:00

       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."

Germans seek Thai CDM partners

2009-09-09T23:24:00.000-07:00

       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.

Glow Energy price hits 3-month high

2009-09-08T19:55:00.000-07:00

       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.

Green fuels to make up 20%

2009-09-06T20:33:00.000-07:00

       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.

CROWDS SWAMP GERMANY'S BIGGEST ELECTRONICS TRADE FAIR

2009-09-06T04:35:00.000-07:00

       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.

Serving the nation

2009-09-03T20:05:00.000-07:00

       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.

A RETURN TO "RIGHT VALUES" URGED

2009-09-01T20:41:00.000-07:00

       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.

Power plant protesters get six months in prison

2009-08-31T05:27:00.000-07:00

       The Chiang Rai Court on Friday sentenced 13 demonstrators to six months' jail for leading their supporters to block a road while rallying against the planned construction of a power plant.
       The rally was held on July 2 in protest against the building of a privately-run biomass-fired power plant in Wiang Chai district. Each of the 13 defendants - including two women - were also fined 100 baht for blocking the Mae Korn intersection on Phahon Yothin Road and using loudspeakers in a public place without official permission.
       The court said such action by the 13 was troubling and showed their disrespect for the law.
       Initially, the court had handed them a one-year jail and 200 baht fine, but the punishment was reduced due to their confessions.
       The court, however, granted them bail so they could prepare their appeal.
       Wiang Chai district chief officer Somchai Rungsakhon said more talks were needed to resolve the conflicts between villagers and the company.
       As there were also locals who supported its construction, the company agreed to allow residents of five villages around the plant's construction area to sit on an panel to monitor environmental damage, said Mr Somchai.

PEA to construct and develop Power system and substation at Mahidol University's Salaya Campus

2009-08-26T19:24:00.001-07:00

       To cope with an increasing demand for electricity, Mr. Adisorn Kiatchokewiwat, Provincial Electricity Authority (PEA) Governor, and Clin. Prof. Piyasakol Sakolsatayadorn, President of Mahidol University's Salaya Campus, signed an agreement to commission the PEA to construct the university's 115-22 kV substation station and develop a 22 kV distribution system. The contract ceremony was held at International Varsity Building, Mahidol University, Salaya Campus, Nakhon Pathom Province. The 73-million-baht contract also includes maintenance and training services at the station and calls for construction to be completed within 240 days from the date that the agreement is signed.
       Over the years, the PEA has forged a reputation for providing reliable and efficient electricity and energy-related services to industrial, business and residential customers throughout 73 provinces. Many of the PEA's satisfied customers which have entrusted the PEA to design and maintain their substation and distribution systems include both public and private organisations, such as the Thailand Institute of Nuclear Technology; Silpakorn University; Metropolitan Waterworks Authority; Siam PTT Exploration Co.,Ltd.; Chulachomklao Royal Military Academy; Central Plaza, Khon Khaen; and Ubon Ratchathani University.
       As such, the PEA will continue to provide international standard quality services in order to satisfy all of its customers' needs.
       Proprietors seeking reliable services in electricity engineering are invited to contact the PEA's Engineering and Testing Department at 0 2590 9590-6

A Pride of MEA to Achieve 5 State of Enterprise Awards (SOE Awards) for the year 2009

2009-08-24T20:55:00.000-07:00

On August 20-At Centara Grand. As Metropolitan Electricity Authority (MEA) Governor, Mr. Pornthape Thunyapongchai was graciously granted five State of Enterprise Awards 2009 from Mr. Korn Jatikavanich-Finance Minister. These includes Organization management Honorary Award, , Outstanding State of Enterprise Board of Directors Award, Outstanding State of Enterprise Board of Directors Award, Outstanding Organizational leader Award, outstanding Corporate Social and Environmental Responsibility Award as well as Consolation Innovation Award. These awards reflect MEA's commitment to provide excellence service to Thai community nationwide.

EGCO CALLS FOR LESS DEPENDENCE ON NATURAL GAS

2009-08-23T21:02:00.000-07:00

       Thailand should not rely too heavily on natural gas for electricity generation to avoid putting national power security at risk, an energy producer said.
       Vinit Tangnoi, president of major private producer Electricity Generating (Egco), said the country should strive for the right balance between natural gas and other sources such as coal in generating the electricity.
       According to the Energy Ministry's information, 70 per cent of the 148,790 gigawatt hours of electricity the country produced last year was generated using natural gas.
       Of the remainder, 20 per cent was generated by coal, 5 per cent by hydro power, 2 pe rcent by imported fuel, 2 per cent by renewable energy and 1 per cent by other fuel.
       Vinit's remarks came in response to recent disruptions in gas supply.
       The Energy Ministry reported to the Cabinet last week three instances at the gas fields in the Gulf of Thailand and Burma, which had failed to supply gas to Thailand from August 13 to 18.
       The gas-transmission system at A18 field in the Thailand-Malaysia Join Development Area was shut down temporarily for maintenance from August 9 to 19, prompting a drop in gas supply to Thailand from the normal level of 400 million cubic feet per day. The system resumed normal operations on August 19.
       There was also a leakage of condensate pipelies in the Bongkoch field in the Gulf of Thailand, prompting a temporary shutdown for inspections. The system has since resumed normal operations.
       Also, the Yadana gas field in Burma, which supplies gas to the Kingdom, experienced a technical glitch, prompting a temporary shutdown on August 15. The system has resumed normal operations.
       The three instances had prompted the coal-fired power plant of BLCP, in which Egco holds 50 per cent, to run at full capacity to make up for the losses in power output.
       Due to the three incidents, the Electricity Generating Authority of Thailand decided to release water from the Srinakarin Dam in Kanchanaburi province in the last two weeks to generate power and avoid a blackout in western Thailand.
       This resulted in flooding and the agency said it would take responsibility for the damage.
       Earlier, Egat also had expressed concern over the country's heeavy dependence on natural gas in the electricity production.

       Seventy per cent of the electricity the country produced last year was generated using natural gas, 20 per cent by coal, 5 per cent by hydro power, 2 per cent by imported fuel, 2 per cent by renewable energy and 1 per cent by other fuel.

DESPITE WARNINGS DAM WAS LEFT TO BURST

2009-08-23T21:00:00.000-07:00

       Russian authorties were reportedly warned in 1998 that Siberia's massive Sayano-Shushenskaya hydroelectric power plant had fallen into serious neglect anh was unsafe, more than a decade before this week's deadly accident.
       The death toll rose to 66 yesterday as rescuers continued to drain the dam's destroyed turbine room and recovered 19 more bodies amid the twisted metal and concrete wreckage from Monday's unexplained explosion.
       Nine workers were still missing from teh accident, which has highlighted the dangers of Russia's creaking infrastrucure.
       For years, the Kremlin was urged by independent experts and even its own ministries to invest some of its oil-and-gas billions to update Soviet-era infra-structure.
       But a lack of expertise combined with government apathy means that not only Russian power plants but dan gerous roads, decaying utilities, ageing transport fleets and creaking buildings continue to take victims as they fall further into disrepair.
       Prime Minister Vladimir Putin, who on Friday toured the crippled Sayano-Shushenskaya plant, has acknowledged that Russia must plan for the regular upgrade of "vital parts of infrastructure".
       The plant, located 3,400 kilometres east of Moscow, is Russia's largest hydroelectric facility.
       Vladimir Tikhomirov, chief economist at the Moscow-based bank UralSib, says Russia has to spend big of it wants to reverse the neglect of the stagnant 1990s.
       "It's about more than $100 billion (Bt3.4trillion) to $200 billion if we're talking about all infrastructure -and you can't make it all in one year," he said Friday.
       The latest statistics show that as litlte as 7.4 per cent of all equipment in the power sector was replaced by 2007. Studies showed that half needed replacing and 15 per cent was worn out beyoud repair.
       Energy Minister Sergei Shmatko has said it would cost 40 billion rubles ($1.2 bilion) just to rebuild the plant's damaged turbine room.
       Putin on Friday urged the stateowned operator RusHydro to compensate the families of the dead at the plant. RusHydro has already pledged to pay 1 million rubles ($31,300X to the families-a sizeable sum for residents in Khakasia, the remote suouthern Siberian region where the yenisei River dam stands. Putin promised to match the company's payouts with federal money.
       Regional emergency ofcial Dmitry Kudryavtsev said nine workers remained missing after teh latest bodies were found Saturday.
       "I am almost sure that the remaining missing will be found," he said.

2%rise in power use signals recovery

2009-08-21T20:25:00.000-07:00

       National power consumption is up by 2% this month, the first increase in eight months and a sign of recovery, said Electricity Generating Authority of Thailand (Egat) governor Sombat Sarntijaree.
       Consumption was up to 8,293.7 million units (kilowatt/hours) in the first 20 days of August,2% more than in the same period last year.
       "This is the first time that power use has been on the rise since the economic crisis began. Since October last year until last month, power consumption has kept declining in line with the slowdown in industry and consumers' purchasing power," he said.
       Power demand was below last year's figures from January to July. Consumption in January was down by 13% to 10,140 million units, in February by 0.03%to 10,862 million, March by 3% to 12,628 million, April by 3.3% to 11,898 million,May by 1.7% to 12,552 million, June by 3% to 12,389 million and July by 2.23%to 12,509 million.
       In the first quarter there was a 5.5%decline to 33,615 million units.
       Last year power consumption edged up almost 1%, with political conflict and high oil prices curbing growth. This year Egat expects power consumption to shrink by between 2% and 2.5% from 2008, said Mr Sombat.
       Until this year, Thailand's power de-mand had fallen only once in the last 25 years - during the financial crisis in 1998, when demand slipped 2% before growing 2% the following year.
       "The positive growth of demand was genuinely an indicator for the economy that it was recovered. We hope the positive growth this time will also be the same," said Mr Sombat.
       He also said Egat was now assessing the damage in suffered from PTT's gas pipeline leak last weekend and would bill PTT."We handled the immediate crisis by using other fuels instead of natural gas and these fuels were more expensive than gas," he said.
       An extra 400 million baht in production costs corresponds to one satang per unit of fuel, he said.
       The incident shows that the country badly needs to improve its power management, said Egat deputy governor Somboon Arayaskul."At that time [last weekend], we needed to use reserve capacity,which is about 25% of total power capacity. Yet we had to push hydroelectric generators to work exceeding their limits to control the situation," he said.
       This reflected Thailand's excessive reliance on natural gas, which accounts for 74% of fuel used in power generation,creating a high risk of blackouts, he said.
       Developed countries balance fuels such as gas, coal, nuclear and hydro.When one fuel is disrupted, the impact is limited and others can compensate.

Egco starts up green power

2009-08-20T21:48:00.000-07:00

       NET PROFIT FOR H12009 vs H12008 B4.6 billion B4.2 billion
       Egco Group Plc, Thailand's secondlargest private power producer, will spend 2 billion baht developing renewable energy next year, president Vinit Tangnoi said yesterday.
       The company is conducting a feasibility study and seeking equipment suppliers and contractors for the projects.
       The plan envisages an eight-megawatt wind turbine project worth one billion baht in Nakhon Ratchasima and a solar power grid with a capacity of 13.5 megawatts in Lop Buri.
       Its renewable business will invest through its subsidiary Natural Energy Development Co, the equal-stake venture of Egco, Hongkong-based China Light Power Asia and Diamond General Asia, a subsidiary of the Japanese industrial conglomerate Mitsubishi Heavy Industry.
       Although solar power production is not viable commercially at present due to the high cost, the company is hopeful of gaining support from the climate change concern body, the United Nations, in carbon-credit trading.
       "We can't sell power from our solar farm, even with the adder tariff (a special purchasing rate that is higher than that for conventional fuels) provided by pol-icymakers to help us shoulder the high cost," Mr Vinit said.
       "But we hope if we are success in receiving the certification on carbon credit from the United Nation, the carbon-credit income should be enough to offset the cost and make the project viable."
       The Electricity Generating Authority of Thailand has offered special purchasing rates for power generated from renewable energy.
       For solar power, producers get eight baht a unit more than the three baht that Egat pays for power generated from mainstream fuels.
       For wind power, producers will get an adder tariff of 4.50 baht a unit, Mr Vinit said.
       Egco's first-half revenue rose 11% to 19.7 billion baht from 17.7 billion baht a year earlier, with net profit rising 9%year-on-year to 4.6 billion baht from 4.2 billion baht.
       He attributed the growth to the additional power output from its newly started-up power plants in Saraburi,Kaeng Khoi Power Plant unit 2 and the Philippines' coal-fired Quezon power plant.
       The company also confirmed the startup schedule of its new 1,086-megawatt hydropower plant in Laos, Nam Theun 2, on Dec 15 as planned.
       Shares of EGCO closed yesterday on the Stock Exchange of Thailand at 75.25 baht, unchanged, in trade worth 22.36 million baht.

Egat under attack over safety of dams

2009-08-20T21:46:00.000-07:00

       The tourism industry has taken the Electricity Generating Authority of Thailand to task for failing to warn people about water discharge from Srinakarin dam which caused flooding in Muang district on Saturday.
       Surin Chanpian, chairman of the Kanchanaburi tourism association, said the lack of warning from the power agency posed a serious cause for concern for residents of the quake-prone province.
       Srinakarin and Vajiralongkorn dams are situated on major faults - Sri Sawat and Three Pagodas - which remain active. There have been widespread fears of dams collapsing when earthquakes strike.
       Following Saturday's deluge, Egat issued an apology for the discharge which caused the River Kwai to break its banks and flood residential areas in Muang district.
       But Mr Surin said an apology would not save the lives of people living below the two dams if an earthquake hit and caused the dams to burst.
       Egat cited a need to increase hydroelectricity generation to offset a production shortfall caused by an abrupt stoppage of gas from Burma.
       "An advance warning should have been issued before the production began," Mr Surin said."This is not a natural disaster like an earthquake which is hard to predict.
       "It is clear that Egat does not have a plan and massive losses will be unavoidable.
       "State agencies have promised to install an early warning system but there is no progress."
       Pinant Chotirosseranee, president of the Kanchanaburi Conservation Group,yesterday questioned whether the need to increase electricity production fully explained the flood.
       She believed an earthquake in the Indian Ocean off India's Andaman islands on Aug 11 had an impact on the dam.
       Mrs Pinant also rejected Egat's claim that the Srinakarin dam was strong enough to withstand a major earthquake.
       "If Egat was forced to open the floodgates to release water when all the machines were functioning, there was something wrong with the design," she said.
       "So its claim that the dam is designed to withstand an earthquake is very much doubted."
       Mrs Pinant called on Egat to reveal all information about the dams and their safety margins to allow local residents to assess risks and prepare for any emergency.

EGCO TARGETS MORE REGIONAL POWER PLANTS

2009-08-20T21:45:00.000-07:00

       Electricity Generating (Egco) is interested in investing in power plants in the Philippines, Indonesia and Vietnam as part of a plan to maintain its net profit at Bt5 billion per year over the next four to five years.
       The company is targeting plants for which the power-purchase agreements with their customers have at least 10 years to run, and whose business is not too large, Egco president Vinit Tangnoi said yesterday.
       It hopes to invest at the rate of at least one project every year over the next four to five years, in order to seek new income sources to maintain its net profit at an annual Bt5 billion.
       He said the group would however still give top priority to investment in Thailand.
       Egco is currently invested in 14 power plants, of which four are overseas. They have a combined capacity of 7,265 megawatts, of which 4,252MW equates to the proportion of its shareholding in the plants.
       Of the four overseas plants in which it has invested, three are in the Philippines and the other in Laos - the Nam Theun 2 project.
       Sakda Sreesangkom, Egco group senior executive vice president for finance, said the global economic downturn had worked in favour of the company's planned investment in more overseas plants, as the crisis had driven US and European investors in the foreign power-plant business to sell assets in order to ease their debt burden.
       Last year, the company acquired 26 per cent of Quezon Power (Philippines). The coal-fired plant has a production capacity of 502MW.
       The group is financially ready to invest in further regional power plants, thanks to its cash flow of Bt4 billion, he said.
       Egco posted consolidated net profit of Bt1.44 billion for the second quarter, up Bt963 million or 67 per cent over the same period last year. Its consolidated net profit in the first half was Bt4.64 billion, up 9 per cent year on year.
       Sakda expects net profit to decline in the second half and over the next four to five years, prompting Egco to seek new investment in order to maintain the annual Bt5-billion level.
       The company expects the Nam Theun 2 power plant will realise profit in the second half of next year. The plant has a production capacity of 1,086MW.

Green Power on hold

2009-08-19T19:55:00.000-07:00

       For a country that's right on the equator,relying on solar energy in Singapore seems like a bright idea. Try and get off the grid, however, and it quickly loses its shine.
       The tropical city-state's per capita greenhouse gas emissions are similar to Europe,and it imports all its fuel which on paper makes solar power attractive.
       "There's a lot of roof top space in almost any housing: Why not have an array of solar water heaters?" said Yatin Premchand of the Singapore Environment Council.
       But in reality, solar panels are so pricey it makes little economic sense to get off the grid.
       The bulk of Singapore's almost 5 million people also live in high-rise buildings, rather than houses, which makes putting up cells on the roof nearly impossible for individuals.
       Solar power garnered increasing attention as oil prices soared last year and as Asian governments are under pressure to help curb climate change.
       Singapore is trying to become a hub for the clean energy sector, having attracted Norway's REC to build the world's largest solar manufacturing plant. The government hopes the sector will create 7,000 jobs by 2015 and add S$1.7 billion (40.2 billion baht) to the economy.
       But these solar panels will be exported and authorities have provided few local incentives or targets to use solar power, unlike some European countries.
       The cost of solar panels are falling amid the economic gloom, but are still considered pricey at about S$50,000(1.18 million baht)for a solar module that generates 10 kilowatts per hour, enough to provide for a family of four.
       This means it would take 16 years to break even compared to buying electricity on the grid, said Frank Phua of Singaporean solar manufacturer Sunseap Enterprise. So it comes as no surprise that few commercial buildings use it either.
       Manufacturers said the government will have to implement a tariff system that allows users to sell solar energy back to the grid for up to four times the buying cost, in order to attract households or private firms to install panels.
       "The positive element of using clean energy is the holistic PR and esoterical value, but it doesn't seem to work in terms of cost benefit,"said Mr Premchand.
       Singapore's Economic Development Board (EDB), which looks to increase foreign investment, said the country would only use solar power when its price hit parity with the cost of buying it from the grid, which it said could happen next decade.
       "Singapore is very much focused on the innovation know-how," said Goh Chee Kiong,EDB's clean tech director."We would like to think we are in a good position to scale up very quickly."
       A recent pilot project covered a handful of government housing blocks with enough panels to power lifts, lights and water pumps,but at a cost of S$600,000 for seven blocks.
       Ngiam, an electrician who only gave his family name, is one of a few Singaporeans who took the technology in his own hands and installed a solar panel outside his apartment. But he found there was hardly any sun getting through the adjacent tower blocks to his apartment in the densely populated citystate. He dismantled the solar panel in a week.
       "We paid nearly S$1,000 and powered only two 20 watt light bulbs," Mr Ngiam said."I did it for my son to play about and for fun, but it did not work well."

Fuel sourcing needs rethink

2009-08-19T19:54:00.000-07:00

       It was most fortunate that no life was lost in Kanchanaburi province over the weekend when the famous River Kwai suddenly broke its banks,inundating many resorts and residential areas,after a large volume of water was discharged from the Srinakarind dam without advance warning. Nevertheless, several resorts and houses were damaged by the unexpected deluge, which raised the water level in the river by almost two metres in some areas.
       The Electricity Generating Authority of Thailand (Egat), which oversees all hydro-electric dams in the country, later issued an apology to the affected victims in Kanchanaburi and promised proper compensation.The power-generating authority also explained that the release of water from the dam was prompted by an emergency situation which involved the sudden cutback of natural gas - reportedly some 1,600 million cubic feet of natural gas from Yadana gas field in Burma and from Bongkot gas field in the Gulf - which is needed each day to feed the power plants to generate electricity.Thus it was necessary to offset the production shortfall via hydro-electric generation in order to avoid a "brown out" which would have inflicted greater and wider damage to the economy. Several hydro-electric dams and power plants fuelled by coal and bunker oil had to increase production during the critical period.
       Even though Egat's excuse for the need to open the floodgates to release water from the Srinakarind dam may seem reasonable, it should strive to ensure better safety for the provincial population and their property.An early warning system which alerts people in case of an emergency situation that necessitates the sudden release of water from the dam must be devised and installed. Egat should count itself lucky that this time no lives were lost.
       Of greater concern than the threat of flooding downstream of a dam, however, is Thailand's future energy security. The "technical" problem at the Yadana gas field in Burma may have been beyond Egat's control.But a proper explanation is needed from the Burmese side to expel suspicions held by some in Thailand that the incident may have been politically motivated. By chance or by design, the "technical hitch" occurred one day after Thailand circulated a letter to Asean member countries at a meeting in Chiang Mai asking them to adopt a consensus urging the release of prodemocracy leader Aung San Suu Kyi, following her conviction by the Burmese court for illegally housing an American visitor.
       Whatever the real reason for the abrupt stoppage of the gas flow from Burma (which resumed a couple of hours later), the incident should serve as a wake-up call for our energy policy-makers and for Egat to rethink our energy policy, particularly our heavy dependence on gas supplies from Burma.
       About 70% of Thailand's electricity is generated by gas-fired power plants, with most of the gas supplied through the pipeline linked to the Yadana field in Burma. Also, all the gas supplied by various sources is just enough to feed the power plants.
       In other words, there is nothing in reserve. In case any of the sources is disrupted, the power plants fuelled by gas would have to revert to other fuels such as coal,bunker oil or hydro-electricity.
       Given the political instability in Burma and the unpredictability of the military junta, it is too risky for Thailand to put all its eggs in one basket. Attempts must be made to diversify our energy sources and to lessen our lopsided dependence on gas, despite the fact that it is considered the greenest of all the fuels.

PROTESTS IN MAE MOH OVER POLLUTION

2009-08-19T19:53:00.000-07:00

       Hundreds of villagers in Lampang's Mae Moh district have continued to block a road to a power plant in a bid to halt lignite mining, which they say has caused them problems and bad pollution.
       The protestors called for the mining license granted to the Electricity Generating Authority of Thailand to be revoked.
       They later agreed to open two lanes of the road to traffic but maintained their rally.
       District chief Sermsak Seesant said he had ordered an initial probe into the granting of the licence to find out why it had was approved despite a public referendum against it - which would make the approval a breach of environmental laws.
       He said the Interior and Energy Ministries had been informed of the dispute over the mining licence matter and would order the operation to stop if the approval broke the law.
       Protest leader Saengjan Moolsow said all 1,654 households in the Huay Khing village that she heads were affected by dust fumes, loud noise and annoying vibration generated by the mine operation.
       She said the protest would continue until the mine was shut down or Egat made a statement to clarify why the licence to re-start mining was granted.

GROUP SEEKS INVESTIGATION OF EGAT'S LAO PRICING

2009-08-18T20:03:00.000-07:00

       A consumer interest group has aked a Senate committee and the counter-corruption agency to probe the power-purchase memorandum of understanding between the Hongsa lignit-fired power-plant project in Laos and the Electricity Generating Authority of Thailand.
       It said the price Egat would pay to the project for electricity was too high, and asked the state agency to give an official public explanation as to why.
       Sutthi Achasai of the People's Network in the East said the group had last week submitted requests to Rotsana Tositrakul,chairman of the Senate corruption investigation committee, and the National Anti-Corruption Commission to look into the matter.
       The group asked both agencies to focus on the fact that Egat had adjusted the price for the electricity it would procure from the Hongsa coal-fired plant to Bt2.275 per unit, from Bt2.05.At Bt2.275,the Hongsa project will generate revenue about Bt58 billion throughout its 25-year concession.
       The group said the price was too high, when compared with Bt2.10 per unit that Gheco-One's coal-fired plant in Map Ta Phut had agreed for sales to Egat.
       Rawi Corsiri,chief operating officer of Banpu, one of the project developers, said the project was unlikely to change the price from Bt 2.275 per unit.
       He added that the price adjustment was in line with a hike in construction costs. Despite the price adjustment, the project will not make a higher return on investment,which remains at 10 per cent.
       The US$3.7-billion (Bt126 billion)Hongsa plant can produce 1.65 gigawatts. Banpu and Ratchaburi Electricity Generating Holding each owns 40 per cent of the project, while the Lao government holds 20 per cent.

Transformer sales to push TRT growth to 26%

2009-08-18T20:02:00.000-07:00

       The MAI-listed power transformer specialist Tirathai Plc (TRT) expects revenue to increase by 26% this year to 2.6 billion baht, though growth next year is difficult to forecast because of uncertainty about the economic revival and the progress of private and public investment projects.
       CEO Samphan Vongphan said the company's revenue in the first half was 1.28 billion baht, up 36.4% from the same period last year, with net profit rising 109.6% to 138.47 million baht.
       For the second quarter, TRT reported a net profit of 49.77 million baht, a 32.7%increase. Its gross profit margin rose four percentage points to 26.8%.
       Mr Samphan said results were being helped this year by sales of big power transformers and diversification into regional customers.
       However, he said, it was difficult to forecast growth for next year due to economic uncertainty, but at least the company would maintain sales growth similar to this year.
       Normally, he said, the power transformer market grow at 3% above GDP growth.
       The company expects to maintain a gross profit margin at 20-25%.
       Tirathai has a backlog of projects worth 2.74 billion baht, of which 2.44 billion will be realised this year and the rest next year.
       Government and private projects as well as exports remain as its major revenue sources. Sales from each sector make up about 33%.
       Last month, TRT received orders from the Electricity Generating Authority of Thailand for the biggest auto transformers in the country, at 300 MVA 230/121-11 kV.
       The two transformers are worth 200 million baht, with revenue to be realised in the next quarter.
       The company plans to bid for a power project worth around 2 billion baht in the next four months, and has a 50%chance of winning, he said.
       TRT shares closed yesterday on the Market for Alternative Investment at 5.85 baht, down 15 satang, in trade worth 6.75 million baht.

Egat to run plants on bunker oil

2009-08-18T20:00:00.000-07:00

       The Electricity Generating Authority of Thailand will have to run three power plants on bunker oil after gas transmission from the Arthit Field was halted.
       Deputy governor Wirat Kanjanapibul yesterday said in a statement that the field's shutdown had blocked the daily supply of 338 million cubic feet of natural gas to Egat.
       Egat plans to resume the gas-fired generators in the Chachoengsao's Bang Pakong district, southern Bangkok and Ratchaburi province tomorrow if the stoppage is fixed by yesterday as expected by PTT.
       The disruption followed a similar accident with gas transmission from the Bongkot and Yadana fields in Burma last week. To avoid a blackout in western Thailand due to the stoppage, Egat decided to release water from the Srinakarin Dam in Kanchanaburi province to generate power, which resulted in flooding.
       The Cabinet acknowledged the technical problems and was informed that eight villages in Muang district had been affected by flooding, along with three resorts, some raft operations and farming areas.
       Energy Minister Wannarat Charnnukul said a committee would be up set to investigate the sudden release of water from Srinakarin Dam.
       Deputy permanent secretary Norkun Sitthiphong will chair the committee, which will have seven days to summarise the facts and submit a report. "The committee will find out why the water had to be released and whether the decision was appropriate. It must also come up with preventive measures," he said.
       He quashed reports that the floods were caused by earthquakes.
       Seventy per cent of fuel for power generation is natural gas.
       While the joint development area was closed for annual maintenance from August 9 until today, Egat's Krabi power plant has operated with bunker oil, while its Chana plant has been suspended.

BANPU TO FOCUS ON CORE BUSINESS

2009-08-17T23:30:00.000-07:00

       Banpu, the country's leading energy firm, expects to conclude its four-year strategic plan next month, resulting in a strengthening of its core businesses by acquiring power plants and coal mines in Indonesia, Australia and China.
       The revised plan will cover the period from 2010 to 2013.
       Chief executive officer Chanin Vongkusolkit said yesterday that as a result of the global economic crisis, many multinational firms had shifted their focus to core businesses. Some of them have been forced to sell all or some of their investments in this region.
       "This is an opportunity for Banpu to acquire power plants and coal mines in the region in order to strengthen its existing power and coal-mining business," he said.
       Like other firms, Banpu has revised its strategic plan since the outbreak of the world economic crisis by focusing on its core competency rather than diversifying into other businesses.
       "We expect our revised business plan will be in line with the economic recovery," said Chanin.
       Banpu yesterday revealed a second-half net profit of Bt8.78 billion, up 101 per cent from the same period last year.
       The power business generated Bt6.47 billion and the remainder came from coal-mining.
       The company posted Bt26.56 billion in sales revenue, up 34.75 per cent from Bt19.71 billion in the same period last year.
       "The reason for posting a doubling of net profit in the first half is having booked selling prices, which were higher than those in the same period last year," said Chanin.
       In addition, he said the revenue-sharing of coal business in China was favourable, as coal prices there were still at a high level.
       Chanin said that in the first half of this year Banpu had delivered 8.6 million tonnes of coal to Indonesia. Its target for the full year is 20.5 million tonnes.
       "However, the company expects its results in this year's second half will not be as good as the first half because of lower coal prices," he said.
       He added that the earnings contribution from its subsidiary BLCP's power plant in the second half would be lower than in the first period, as it would have to stop operations for maintenance.

EGAT SEEKS PRIORITY FOR NATIONAL POWER PLAN

2009-08-17T23:28:00.000-07:00

       The Electricity Generating Authority of Thailand has urged the Energy Ministry to promote the national power development plan as a national priority.
       Egat deputy governor Somboon Arayasakul said yesterday that if the 2009-2024 PDP, which is still under development by the Energy Policy and Planning Office (EPPO), is put on the national agenda, not only the ministry, but people in all social sectors would gain the chance to help shape it.
       "All interested parties should be provided with the opportunity to participate and debate until they can arrive at a conclusion on which type of power plants should be set up in the future. The conclusion should also be added in the PDP," he said.
       This would prevent possible conflicts between Egat and local communities and involved sectors in the future when Egat has to build more power plants under the PDP, he said.
       The hiring of the Energy for Environment Foundation by EPPO to study future power demand, which is part of the PDP, is an encouraging move, he said.
       This opens the way for the NGO sector, represented by the foundation, to have a role in making up the plan.
       EPPO director Veerapol Jirapraditkul said the foundation and the NIDA Business School, which were hired by EPPO to study the GDP growth trend during the next 15 years, were expected to finish their studies this year.

POWER TO THE PEOPLE

2009-08-17T23:23:00.000-07:00

       Mae Ya Noi is a small Karen hill tribe village about 80km south of Chiang Mai province. To get there, you wind your way to Doi Inthanon National Park, then veer left onto a dirt road. Through soaked rice paddies and dense cornfields, it takes another hour to arrive, crossing narrow pot-holed tracks made muddy by the monsoonal rain - a time when the village is cut off from outside if the rain comes down too fiercely.
       Mae Ya Noi is not on the map, so it is not surprising that this village never had electricity.
       Yet its remote location did not spare this village from change.
       Ten months ago, a 23kW microhydropower plant was built in this village.Constructed by utilising the laws of gravity and the plentiful water supply, it now provides 100 households across three villages with the ability to do what most in Thailand take for granted - turn on a light whenever they want.
       Monsit Anurakrimtarn, the village leader,believes it is just the start of things to come.
       "With electricity, we can do so many things. For the first time, the temple and village school can function at night as well as during the day. Already we have started classes for older villagers who come after working in the fields. I think the electricity will widen everyone's perspective, teaching them about a world outside Mae Ya Noi."
       Mae Ya Noi is not alone. Its very small power plant - producing less than 1MW of electricity - is one of more than 180 very small power plants - fuelled by clean energy like biomass, biogas, wind, and solar, and hydro like this one - dotting the landscape in villages and towns across Thailand. That number is expected to double in the next two years. This explosion of renewable-energy alternatives did not happen by accident. It had its genesis in a forward-thinking decision taken eight years ago.
       In 2001, the UNDP Thailand joined forces with the Global Environment Facility and the Energy for Environment Foundation to tackle climate change by promoting the use of renewable energy.
       The aimwas to show that Thailand could lessen its dependence on foreign oil and in the process substantially reduce its carbon emissions.
       "When the project started, banks were not familiar with the renewable-energy industry. Now that we have shown how successful it can be, banks are actively searching out power plants to invest in,"said Piyasvasti Amranand, chairman of the advisory board of the Energy and Environment Foundation (E for E) and a former energy minister.
       With the backing of the Thai government,which provided financial incentives to make the renewable-energy industry more competitive, the project has been a success.
       By 2008,1,252MW of renewable-energy capacity - enough to supply households in Bangkok, Nonthaburi and Samut Prakan provinces - was operational throughout Thailand. This is an almost-fourfold increase from 1999, and the equivalent of 21% of the power provided by the Metropolitan Electricity Authority (MEA).
       It's estimated that renewable-energy plants in Thailand have already reduced greenhouse gas emissions by 5 million tonnes annually. This is the same as taking every one of Thailand's 1.5 million cars off the road for a year.
       Mr Piyasvasti believes it's just the beginning."With the existing technology,Thailand should be able to produce about 8,000MW worth of renewable power by 2020. If technology advances and we make greater use of wind and solar power, this figure could be much, much higher."
       The small-scale local approach, epitomised by Mae Ya Noi, is having results. In eight years, Thailand has gone from being a renewable-power backwater to a leader in the region.
       The Biomass Clearing House - a onestop shop set up by the project to share the latest renewable-energy information - has been so successful that it is pumping more investment into the sector, including wind, solar and hydro projects, through a new Green Energy Mechanism (GEM). It does this by bringing together Thailand's top companies that view investment in renewable energy as not just a savvy business decision, but also a way to showcase their social responsibilities. Like a diner in a restaurant, an investor is now presented with a menu of renewable-energy options.They can choose to put their money into whatever project fits their investment needs.
       This is how the people of Mae Ya Noi came to have continuous electricity.Investors in the Green Energy Mechanism provided the capital for the hydropower plant's construction, the Department for Alternative Energy built it, and the local community maintains it and gains the benefit.
       To an elderly Mae Ya Noi villager, it's a decision that has had profound effects.
       "I'm very happy with the electricity. I can now read when I want and cook when I want. I don't want my life to change too much, but electricity is great."
       Adam Sims is a communication officer at the United Nations Development Programme (UNDP). The article was written on a field trip taken last month.
       How are you helping to reduce your carbon footprint?Share your eco-friendly activities or comment or disapproval by emailing outlook@bangkokpost.co.th.Write "Earth Alert" on the Subject line.
       "'With electricity, we can do so many things'