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.
Wednesday, September 23, 2009
Monday, September 21, 2009
Egat warns of more blackouts
Thailand may face more frequent power blackouts next year as electricity demand rises with the economic recovery, says a senior executive of the Electricity Generating Authority of Thailand (Egat).
Sutat Patmasiriwat, Egat's deputy governor for power generation, said the country may face a risk of natural gas shortages as industrial activity rises in response to the improving economy,resulting in higher power demand.
In the past month, the country has faced shortages of natural gas, which represents 70% of total fuel use in generating power. The need to use more hydroelectric power after gas pipelines were disrupted has cost Egat about 1 billion baht.
The incidents not only caused damage to Egat but they also reflected a poor policy that placed too much reliance on natural gas, Mr Sutat.
Even though reserved power is as high as 25% of normal demand, the risks of blackouts persist since the country may face shortages of some fuels to generate power at certain times.
Egat is preparing to improve the early warning system at its power plants across the country to one day from three days.
"Although new capacity from the Nam Theun 2 hydropower plant in Laos will start operating in November, the 920-Megawatt generator can secure power output only for the northeastern region, but the western and southern regions, where we had trouble lately,still need to be managed carefully as there is no new capacity there," said Mr Sutat.
Including the capacity from Nam Theun 2, the northeastern provinces would have nearly 2,000 MW of electricity available, equal to demand.
"We have no other choices so far, if the gas supply falls short again, other than increasing hydropower output and using fuel-oil instead, which costs us more than three to five baht per kilowatt/hour (unit)," he said."In case there is not enough [to serve demand] we will need to use diesel which costs seven to eight baht per unit compared with the normal rate of two baht per unit for gasfired power plants."
Mr Sutat added that the state utility would also have a higher financial burden resulting from the government's power price subsidies that run until July next year, since the fixed rate for the fuel tariff (Ft) was based on US$40 per barrel of crude compared with the current price of $70.
"Our job will be harder next year as crude oil would likely rise above $80,"said Mr Sutat.
Egat has shouldered a burden from the government's Ft subsidy totalling 20 billion baht and it would rise to 30 billion baht until the end of subsidy programme, he said.
Sutat Patmasiriwat, Egat's deputy governor for power generation, said the country may face a risk of natural gas shortages as industrial activity rises in response to the improving economy,resulting in higher power demand.
In the past month, the country has faced shortages of natural gas, which represents 70% of total fuel use in generating power. The need to use more hydroelectric power after gas pipelines were disrupted has cost Egat about 1 billion baht.
The incidents not only caused damage to Egat but they also reflected a poor policy that placed too much reliance on natural gas, Mr Sutat.
Even though reserved power is as high as 25% of normal demand, the risks of blackouts persist since the country may face shortages of some fuels to generate power at certain times.
Egat is preparing to improve the early warning system at its power plants across the country to one day from three days.
"Although new capacity from the Nam Theun 2 hydropower plant in Laos will start operating in November, the 920-Megawatt generator can secure power output only for the northeastern region, but the western and southern regions, where we had trouble lately,still need to be managed carefully as there is no new capacity there," said Mr Sutat.
Including the capacity from Nam Theun 2, the northeastern provinces would have nearly 2,000 MW of electricity available, equal to demand.
"We have no other choices so far, if the gas supply falls short again, other than increasing hydropower output and using fuel-oil instead, which costs us more than three to five baht per kilowatt/hour (unit)," he said."In case there is not enough [to serve demand] we will need to use diesel which costs seven to eight baht per unit compared with the normal rate of two baht per unit for gasfired power plants."
Mr Sutat added that the state utility would also have a higher financial burden resulting from the government's power price subsidies that run until July next year, since the fixed rate for the fuel tariff (Ft) was based on US$40 per barrel of crude compared with the current price of $70.
"Our job will be harder next year as crude oil would likely rise above $80,"said Mr Sutat.
Egat has shouldered a burden from the government's Ft subsidy totalling 20 billion baht and it would rise to 30 billion baht until the end of subsidy programme, he said.
Wednesday, September 16, 2009
More gas supply interruptions cause headaches for Egat
Just one month after a gas pipeline leak touched off a chain of events that led to flooding in Kanchanaburi, supplies from two pipelines to power plants in the western and southern provinces were disrupted last weekend, with total damage estimated at 1 billion baht.
The Electricity Generating Authority of Thailand (Egat) was again required to respond to the shortage of natural gas to power plants due to technical errors affecting pipelines from Burma's Yetagun field and the Malaysia-Thailand Joint Development Area (JDA).
Wirach Kanchanapibul, an Egat deputy governor, said the JDA pipeline was shut down for five hours from 10 am on Saturday and again for nine hours from 2 am on Sunday. The pipeline from Yetagun was shut for seven hours to 6.30 pm on Saturday, and on Sunday from 1.40 to 10.55 am.
Egat executives declined to disclose the causes of the disruptions.
The state power utility had to step up hydropower production after a gas pipeline leak in Kanchanaburi last month,and the subsequent release of water from the Srinakarin dam led to flooding in nearby communities.
Natural gas from the JDA is the main fuel for the Chana power plant serving southern provinces, and Yetagun gas feeds the Ratchaburi plant, the country's largest, serving the western provinces.
The weekend's natural gas shortages are estimated to have caused the loss of 2,000 megawatts or almost 10% of the country's electricity demand.
Egat tackled the problem by increasing production from its Ratchaprapha plant to run at its 240 MW capacity to serve the southern provinces. It also bought 150 MW from Malaysia at two baht per kilowatt/hour higher than the normal five-baht rate.
For the western network, Egat asked the operator of the Ratchaburi plant to use fuel-oil.
There were no reports of flooding this time but the additional cost to Egat is expected to total 2.7 million baht.
Chitrapongse Kwangsuksthit, chief operating officer of PTT Plc, the sole natural gas supplier, said the problem in the JDA did not originate in the pipeline but in a drifting gas rig operated by the Malaysian oil company Petronas.
Piyasvasti Amranand, a former energy minister, said such incidents were unacceptable and measures to reduce the country's risk of blackouts are crucial.
"Thai power users should have now learned to accept the truth that if you want to use cleaner fuel, you have to pay more," he said.
Many other energy experts have warned that Thailand's dependence on gas for 70% of its power generation is dangerous in the long term.
The Electricity Generating Authority of Thailand (Egat) was again required to respond to the shortage of natural gas to power plants due to technical errors affecting pipelines from Burma's Yetagun field and the Malaysia-Thailand Joint Development Area (JDA).
Wirach Kanchanapibul, an Egat deputy governor, said the JDA pipeline was shut down for five hours from 10 am on Saturday and again for nine hours from 2 am on Sunday. The pipeline from Yetagun was shut for seven hours to 6.30 pm on Saturday, and on Sunday from 1.40 to 10.55 am.
Egat executives declined to disclose the causes of the disruptions.
The state power utility had to step up hydropower production after a gas pipeline leak in Kanchanaburi last month,and the subsequent release of water from the Srinakarin dam led to flooding in nearby communities.
Natural gas from the JDA is the main fuel for the Chana power plant serving southern provinces, and Yetagun gas feeds the Ratchaburi plant, the country's largest, serving the western provinces.
The weekend's natural gas shortages are estimated to have caused the loss of 2,000 megawatts or almost 10% of the country's electricity demand.
Egat tackled the problem by increasing production from its Ratchaprapha plant to run at its 240 MW capacity to serve the southern provinces. It also bought 150 MW from Malaysia at two baht per kilowatt/hour higher than the normal five-baht rate.
For the western network, Egat asked the operator of the Ratchaburi plant to use fuel-oil.
There were no reports of flooding this time but the additional cost to Egat is expected to total 2.7 million baht.
Chitrapongse Kwangsuksthit, chief operating officer of PTT Plc, the sole natural gas supplier, said the problem in the JDA did not originate in the pipeline but in a drifting gas rig operated by the Malaysian oil company Petronas.
Piyasvasti Amranand, a former energy minister, said such incidents were unacceptable and measures to reduce the country's risk of blackouts are crucial.
"Thai power users should have now learned to accept the truth that if you want to use cleaner fuel, you have to pay more," he said.
Many other energy experts have warned that Thailand's dependence on gas for 70% of its power generation is dangerous in the long term.
Sunday, September 13, 2009
"Natural" fuels ignite power struggle
Villagers in many parts of the country are up in arms over proposed natural gas and biomass power plants in their communities By Tunya Sukpanich
"This project must stop," said Wanna Rodpitak, a member of the Chachoengsao Provincial Administration Organisation who has led the protest against a natural gas-fueled power plant in Bang Khla district,about 60 kilometres east of Bangkok. Protests against the proposed power plant on 500 rai of land in tambons Samed Nue and Samed Tai, with a generating capacity of 1,600 megawatts, have been ongoing for almost two years.
The scene is being repeated in many provinces with planned natural gas and biomass power plants, with determined protestors in Chiang Rai, Saraburi, Ubon Ratchathani, and Prachuab Khiri Khan among other places demanding the projects be terminated and refusing any compromise. In some areas locals are blocking roads or obstructing work on construction sites.
Mr Wanna insists that such protests represent the true voice of the communities which will be most affected by the plants. His group began their protest in early 2008 soon after learning of the project in their district.
They were not included in any decision to construct a power plant in their backyard,they say, and only became aware of the project after their suspicions were aroused that something was going on, as more and more land in the area was being bought up, and later large pipes were delivered to some of the sites.
More than 20,000 locals signed a petition requesting detailed information from every agency that might be involved, including the Ministry of Energy, the Ministry of Industry,the Office of the Parliament and provincial authorities
"We tried every method to make the authorities listen to our reasons why we do not want the power plant, but nothing happened.Finally, in July last year we blocked the road for three days," said Mr Wanna.
"After negotiations, a so-called tripartite committee and a sub-committee were set up to find a solution, but they never functioned,"he continued.
The locals worry that the plant might cause air pollution, but they are most concerned about the tremendous amount of water it will need for its operation from the Bang Pakong River."We know the plant will need 60,000 cubic metres of water per day for its system. Of that, half will evaporate into the air and another 20,000 cu m will be treated and released back into the river.
"What will happen in the dry season, what will happen to farmers? We need water too,"he said.
Water is also the reason for the locals'protest in Saraburi's Nong Saeng district,where another gas-fueled power plant is in the works. They are very disappointed that the plant's environment impact assessment (EIA) was recently approved by the Office of Natural Resources and Environmental Policy and Planning (Onep).
"Both the state authorities and the company involved want to deny us the right to protect our way of living as farmers. What is really ironic is that the power plant site is in a planned agricultural preservation zone in the province," said Tee Trairattanamanee, who along with two other villagers was recently arrested for obstructing work on the construction site.
Villagers have petitioned concerned authorities in an attempt to obstruct any work on the planned construction site, and have asked various organisations to help study the rich biodiversity of the area to establish its ecological value. This site too is part of a planned agricultural zone.
"We plant rice three or four times a year.Any project with the possibility of damaging our environment and the natural resources essential to farming should not be allowed,"said Mr Tee.
BENEFITS DOUBTED
Villagers in Chiang Rai, Phayao, Ubon Ratchathani and Prachuap Khiri Khan provinces are protesting proposed power plants fueled by biomass in the form of agricultural waste.
The government believes biomass is most suitable for Thailand because it is a renewable energy source, using rice husks, bagasse, coconut wastes, wood chips, animal dung and other agricultural waste as fuel.
A study from the Department of Alternative Energy Development and Efficiency shows that each year about 13 million tonnes of bagasse, five million tonnes of rice husks,and 1.7 million tonnes of cassava roots are left as farm waste. The study says one MWhour of electricity can be produced by 14,100 tonnes of bagasse,9,800 tonnes of rice husks or 14,687 tonnes of cassava roots.
The government has been promoting biomass power plants among the private sector. At the present time,17 biomass power plants - most of which fall into the category of Very Small Power Producer (VSPP), referring to a generating capacity of not more than 10MW - using bagasse, cornstalks, woodchips, rice husk, and waste from palm trees sell electricity to the Electricity Generating Authority of Thailand (EGAT).
Most of the opposition against biomass power plants is based on the air pollution that results in burning the organic matter to create energy. As well, many locals are angry that they have been left out of the decisionmaking process.
Article 67 of the Constitution says that individuals and communities have the right to conserve, protect and to benefit from local natural resources and biodiversity, and prohibits any projects or activities which can cause serious negative impacts to the environment, natural resources and public health.The Constitution further states that if the authorities want to pursue a project with the potential to cause these negative impacts a comprehensive EIA must be conducted. This must include a public hearing process with the participation of locals and independent environmental and public health organisa-tions. Local communities can file a lawsuit against government agencies, local authorities or state enterprises if they do not follow the rules.
However, many small power plants avoid the EIA process because regulations state that plants with less than a 10MW capacity don't need to conduct an EIA. A number of power plants are proposed which will generate only 9.9MW.
Locals feel the rules are being manipulated to deny them participation in the process and they are distrustful of assurances from the government and the companies involved that environmental impacts will be minimal.They feel a thorough study is essential to ensuring the protection of their lifestyle and environment.
A planned biomass power plant which will use coconut waste as its energy source in Tap Sakae district of Prachuab Khiri Khan province has faced a strong protest from the locals,even though many will earn extra income from selling coconut waste to the plant. Initially the plan was for a 5MW capacity plant but this was changed to 9.6MW.
Locals are concerned about the possibility of air pollution, and, according to Anchulee Chumrum, of the Huay Yang conservation group, they also fear the plant might shift to other fuel sources such as coal if there is not enough coconut waste to supply it.
Villagers in Wiangchai and Wiang Chiangrung district of Chiang Rai province are protesting against a planned rice husk-fueled power plant with a capacity of 9.4MW. The company involved, Palang Gharn Sa-ad Dee 2, is in the process of preparing a suit to be filed at the Administrative Court to allow it to construct the plant as soon as possible.
A representative of Palang Gharn Sa-ad Dee 2 said the company has done everything according to the law and regulations. He said that the operation of rice husk-fueled power plants in Surin and Pichit provinces, run by other companies, has proved that they are friendly to the environment, and pointed out that promoting biomass power plants is government policy. He called on the government to take an active role in solving the widespread and ongoing protests which threaten the industry.
Protests have halted the development of even plants much smaller than the 10MW limit, such as a planned plant with a capacity of 1.8MW in Tambon Mae Na Rue of Phayao province. Last year, a proposed 9.6MW biomass power plant in Dok Kham Tai in Phayao was also called off because of strong protest from the locals.
Deunnapa Panyawong, of the Mae Na Rue conservation group, said that the tambon administration organisation (TAO) and villagers turned down the smaller project because it is located close the community,and the local school. She pointed out that without the proper system and management even a small plant can cause significant pollution.
She questioned if the company had studied the local farm production before they came up with the scheme. The plant was supposed to use rice husks and cornstalks as fuel.
"This is doubtful because there is no rice mill in the area since we don't plant much rice here," she said.
Ms Deunnapa added that many locals fear that lignite coal might be used as fuel, especially as the mines that supply the Mae Moh lignite power plant in nearby Lampang province are in the vicinity of Mae Na Rue.
Meanwhile, some plant operators are apparently concerned that the government's promotion of biomass power plants will result in a problem in fuel supply. One operator told Spectrum that with high competition from both Thai and foreign investors, farm biomass will be much more expensive.
NOT IN MY BACKYARD: The past decades of reckless energy management in Thailand have resulted in widespread suspicions and protests whenever a new power plant is proposed.
ACTIVIST: Wanna Rodpitak has led the protest against the power plant in Bang Khla district of Chachoengsao province for almost two years
OPPOSED: Left, Tee Trairattanamanee is leading the protest against the power plant in Saraburi province.
"This project must stop," said Wanna Rodpitak, a member of the Chachoengsao Provincial Administration Organisation who has led the protest against a natural gas-fueled power plant in Bang Khla district,about 60 kilometres east of Bangkok. Protests against the proposed power plant on 500 rai of land in tambons Samed Nue and Samed Tai, with a generating capacity of 1,600 megawatts, have been ongoing for almost two years.
The scene is being repeated in many provinces with planned natural gas and biomass power plants, with determined protestors in Chiang Rai, Saraburi, Ubon Ratchathani, and Prachuab Khiri Khan among other places demanding the projects be terminated and refusing any compromise. In some areas locals are blocking roads or obstructing work on construction sites.
Mr Wanna insists that such protests represent the true voice of the communities which will be most affected by the plants. His group began their protest in early 2008 soon after learning of the project in their district.
They were not included in any decision to construct a power plant in their backyard,they say, and only became aware of the project after their suspicions were aroused that something was going on, as more and more land in the area was being bought up, and later large pipes were delivered to some of the sites.
More than 20,000 locals signed a petition requesting detailed information from every agency that might be involved, including the Ministry of Energy, the Ministry of Industry,the Office of the Parliament and provincial authorities
"We tried every method to make the authorities listen to our reasons why we do not want the power plant, but nothing happened.Finally, in July last year we blocked the road for three days," said Mr Wanna.
"After negotiations, a so-called tripartite committee and a sub-committee were set up to find a solution, but they never functioned,"he continued.
The locals worry that the plant might cause air pollution, but they are most concerned about the tremendous amount of water it will need for its operation from the Bang Pakong River."We know the plant will need 60,000 cubic metres of water per day for its system. Of that, half will evaporate into the air and another 20,000 cu m will be treated and released back into the river.
"What will happen in the dry season, what will happen to farmers? We need water too,"he said.
Water is also the reason for the locals'protest in Saraburi's Nong Saeng district,where another gas-fueled power plant is in the works. They are very disappointed that the plant's environment impact assessment (EIA) was recently approved by the Office of Natural Resources and Environmental Policy and Planning (Onep).
"Both the state authorities and the company involved want to deny us the right to protect our way of living as farmers. What is really ironic is that the power plant site is in a planned agricultural preservation zone in the province," said Tee Trairattanamanee, who along with two other villagers was recently arrested for obstructing work on the construction site.
Villagers have petitioned concerned authorities in an attempt to obstruct any work on the planned construction site, and have asked various organisations to help study the rich biodiversity of the area to establish its ecological value. This site too is part of a planned agricultural zone.
"We plant rice three or four times a year.Any project with the possibility of damaging our environment and the natural resources essential to farming should not be allowed,"said Mr Tee.
BENEFITS DOUBTED
Villagers in Chiang Rai, Phayao, Ubon Ratchathani and Prachuap Khiri Khan provinces are protesting proposed power plants fueled by biomass in the form of agricultural waste.
The government believes biomass is most suitable for Thailand because it is a renewable energy source, using rice husks, bagasse, coconut wastes, wood chips, animal dung and other agricultural waste as fuel.
A study from the Department of Alternative Energy Development and Efficiency shows that each year about 13 million tonnes of bagasse, five million tonnes of rice husks,and 1.7 million tonnes of cassava roots are left as farm waste. The study says one MWhour of electricity can be produced by 14,100 tonnes of bagasse,9,800 tonnes of rice husks or 14,687 tonnes of cassava roots.
The government has been promoting biomass power plants among the private sector. At the present time,17 biomass power plants - most of which fall into the category of Very Small Power Producer (VSPP), referring to a generating capacity of not more than 10MW - using bagasse, cornstalks, woodchips, rice husk, and waste from palm trees sell electricity to the Electricity Generating Authority of Thailand (EGAT).
Most of the opposition against biomass power plants is based on the air pollution that results in burning the organic matter to create energy. As well, many locals are angry that they have been left out of the decisionmaking process.
Article 67 of the Constitution says that individuals and communities have the right to conserve, protect and to benefit from local natural resources and biodiversity, and prohibits any projects or activities which can cause serious negative impacts to the environment, natural resources and public health.The Constitution further states that if the authorities want to pursue a project with the potential to cause these negative impacts a comprehensive EIA must be conducted. This must include a public hearing process with the participation of locals and independent environmental and public health organisa-tions. Local communities can file a lawsuit against government agencies, local authorities or state enterprises if they do not follow the rules.
However, many small power plants avoid the EIA process because regulations state that plants with less than a 10MW capacity don't need to conduct an EIA. A number of power plants are proposed which will generate only 9.9MW.
Locals feel the rules are being manipulated to deny them participation in the process and they are distrustful of assurances from the government and the companies involved that environmental impacts will be minimal.They feel a thorough study is essential to ensuring the protection of their lifestyle and environment.
A planned biomass power plant which will use coconut waste as its energy source in Tap Sakae district of Prachuab Khiri Khan province has faced a strong protest from the locals,even though many will earn extra income from selling coconut waste to the plant. Initially the plan was for a 5MW capacity plant but this was changed to 9.6MW.
Locals are concerned about the possibility of air pollution, and, according to Anchulee Chumrum, of the Huay Yang conservation group, they also fear the plant might shift to other fuel sources such as coal if there is not enough coconut waste to supply it.
Villagers in Wiangchai and Wiang Chiangrung district of Chiang Rai province are protesting against a planned rice husk-fueled power plant with a capacity of 9.4MW. The company involved, Palang Gharn Sa-ad Dee 2, is in the process of preparing a suit to be filed at the Administrative Court to allow it to construct the plant as soon as possible.
A representative of Palang Gharn Sa-ad Dee 2 said the company has done everything according to the law and regulations. He said that the operation of rice husk-fueled power plants in Surin and Pichit provinces, run by other companies, has proved that they are friendly to the environment, and pointed out that promoting biomass power plants is government policy. He called on the government to take an active role in solving the widespread and ongoing protests which threaten the industry.
Protests have halted the development of even plants much smaller than the 10MW limit, such as a planned plant with a capacity of 1.8MW in Tambon Mae Na Rue of Phayao province. Last year, a proposed 9.6MW biomass power plant in Dok Kham Tai in Phayao was also called off because of strong protest from the locals.
Deunnapa Panyawong, of the Mae Na Rue conservation group, said that the tambon administration organisation (TAO) and villagers turned down the smaller project because it is located close the community,and the local school. She pointed out that without the proper system and management even a small plant can cause significant pollution.
She questioned if the company had studied the local farm production before they came up with the scheme. The plant was supposed to use rice husks and cornstalks as fuel.
"This is doubtful because there is no rice mill in the area since we don't plant much rice here," she said.
Ms Deunnapa added that many locals fear that lignite coal might be used as fuel, especially as the mines that supply the Mae Moh lignite power plant in nearby Lampang province are in the vicinity of Mae Na Rue.
Meanwhile, some plant operators are apparently concerned that the government's promotion of biomass power plants will result in a problem in fuel supply. One operator told Spectrum that with high competition from both Thai and foreign investors, farm biomass will be much more expensive.
NOT IN MY BACKYARD: The past decades of reckless energy management in Thailand have resulted in widespread suspicions and protests whenever a new power plant is proposed.
ACTIVIST: Wanna Rodpitak has led the protest against the power plant in Bang Khla district of Chachoengsao province for almost two years
OPPOSED: Left, Tee Trairattanamanee is leading the protest against the power plant in Saraburi province.
Saturday, September 12, 2009
Power producers call for deeper cut in reliance on natural gas
Energy business operators say the use of natural gas for electricity generation should be cut even lower than the 60%planned under the revised power development plan (PDP), saying the risk of dependence on gas is still too high.
Policymakers' plans to revise down natural gas use in the power sector to 60% from the current 74% are still not enough to limit the risk of blackouts in the future, said Suvit Limvattanakul,chairman of the Power Producer Industry Club of the Federation of Thai Industries.
In addition to reducing gas usage,the 15-year PDP ending in 2022 aims to maintain lignite and imported coal usage at 20-21% and increase hydropower purchases from neighbouring countries to 10% from 1%. Nuclear power would account for 5% of the total.
"They should have cut natural gas more to as low as 50% to assure our power users that serious disruptions will not happen. Power blackouts are one of the major concerns - once one happens it causes very severe damage," he said.
A gas pipeline leak in Kanchanaburi last month resulted in blackouts and also forced the Electricity Generating Authority of Thailand to lift output from a hydroelectric plant, which resulted in flooding in nearby communities.
Mr Suwit said rising gas prices were another risk for Thailand.
"You can see the prices of imported gas from Burma and liquefied natural gas from Qatar are both higher than gas from the Gulf of Thailand by 20% and 40%, respectively. We have less bargaining power than suppliers if we still depend on them too much and we are even more disadvantaged," he said.
Manoon Siriwan, an independent energy expert, agreed that fuel usage should be adjusted as Thailand's proven gas reserves are very limited, expected to serve domestic demand only for another seven years.
Power producers will need to import more natural gas unless the country discovers more reserves.
"In the long term, energy policymakers should rethink importing gas only. Coal and nuclear fuels should be taken into consideration. In doing so, fuel costs can be better balanced," said Mr Manoon.
In Malaysia, for instance, gas reserves are high but gas accounts for just 45% of power generation. The country imports high volumes of lower-priced coal while exporting gas at good prices instead.Malaysia is also studying nuclear power plants, said Mr Manoon.
Indonesia, on the other hand, is an example of a poor fuel mix. It has large crude reserves but subsidises oil for domestic consumption and became a net importer last year.
Wirash Kanchanapibul, an Egat deputy governor, admitted that Thailand's fuel usage needs to be better balanced, saying that in developed countries, different types of fuel have been used in almost equal amounts.
"We also cannot guarantee that the gas shortage that happened last month will not happen again," he said.
"To tackle the immediate crisis, we may cut power transmission in some areas to save fuel supplies for the areas where shortages exist."
Policymakers' plans to revise down natural gas use in the power sector to 60% from the current 74% are still not enough to limit the risk of blackouts in the future, said Suvit Limvattanakul,chairman of the Power Producer Industry Club of the Federation of Thai Industries.
In addition to reducing gas usage,the 15-year PDP ending in 2022 aims to maintain lignite and imported coal usage at 20-21% and increase hydropower purchases from neighbouring countries to 10% from 1%. Nuclear power would account for 5% of the total.
"They should have cut natural gas more to as low as 50% to assure our power users that serious disruptions will not happen. Power blackouts are one of the major concerns - once one happens it causes very severe damage," he said.
A gas pipeline leak in Kanchanaburi last month resulted in blackouts and also forced the Electricity Generating Authority of Thailand to lift output from a hydroelectric plant, which resulted in flooding in nearby communities.
Mr Suwit said rising gas prices were another risk for Thailand.
"You can see the prices of imported gas from Burma and liquefied natural gas from Qatar are both higher than gas from the Gulf of Thailand by 20% and 40%, respectively. We have less bargaining power than suppliers if we still depend on them too much and we are even more disadvantaged," he said.
Manoon Siriwan, an independent energy expert, agreed that fuel usage should be adjusted as Thailand's proven gas reserves are very limited, expected to serve domestic demand only for another seven years.
Power producers will need to import more natural gas unless the country discovers more reserves.
"In the long term, energy policymakers should rethink importing gas only. Coal and nuclear fuels should be taken into consideration. In doing so, fuel costs can be better balanced," said Mr Manoon.
In Malaysia, for instance, gas reserves are high but gas accounts for just 45% of power generation. The country imports high volumes of lower-priced coal while exporting gas at good prices instead.Malaysia is also studying nuclear power plants, said Mr Manoon.
Indonesia, on the other hand, is an example of a poor fuel mix. It has large crude reserves but subsidises oil for domestic consumption and became a net importer last year.
Wirash Kanchanapibul, an Egat deputy governor, admitted that Thailand's fuel usage needs to be better balanced, saying that in developed countries, different types of fuel have been used in almost equal amounts.
"We also cannot guarantee that the gas shortage that happened last month will not happen again," he said.
"To tackle the immediate crisis, we may cut power transmission in some areas to save fuel supplies for the areas where shortages exist."
Wednesday, September 9, 2009
Germans seek Thai CDM partners
EnBW, the third-largest German energy utility, is searching for Thai partners to jointly develop a dozen clean development mechanism (CDM) projects in Thailand, its first such foray overseas.
Each 10-megawatt biomass power plant would cost 12.5 million (about 600 million baht), and EnBW will invest both equity and project financing if required.
"Thailand is among the world's top potential locations for CDM projects because you have a lot of supplies of biomass, as well as a stable business environment," said Boris Dossmann,who is in charge of EnBW CDM projects in Southeast Asia.
The German utility, which has installed generating capacity of 15,000 MW, will buy all credits from CDM projects for its own consumption, which amounts to 2.5 million certified emission reduction (CERs) per year.
CDM is a concept that allows developing countries such as Thailand to sell carbon credits to industrialised nations that have emission reduction obligations under the Kyoto Protocol.
Thailand is among the 10 focus countries of EnBW's climate programme alongside Vietnam, South Africa, Zambia, Kenya, Uganda and others in Central and South America, with planned equity investment of $700 million.
EnBW is among six German firms at a three-day business matchmaking seminar organised by the German-Thai Chamber of Commerce from yesterday.
In a presentation at the forum, EnBW is looking for Thai partners who can supply biomass of at least 10,000 tonnes per month, or large amounts of waste water from starch, ethanol, palm oil or food and beverage production.
The first CDM project of EnBW in Thailand is expected to be set up within this year, said Mr Dossmann.
Kurujit Nakornthap, director-general of the Department of Mineral Fuels at the Energy Ministry, said Thailand was interested in and looking forward to producing biogas from biomass such as rice straw, palm leaves, bagasse or animal feed, common raw materials for the fuel.
But despite the abundant supply of biomass, Thailand still faces some obstacles to developing renewable energy, including in vast, open agricultural areas.
"In some areas where there is an abundant supply of biomass, the increasing number of renewable energy power plants, especially those using biomass, has intensified competition for the supply. This has driven up the prices of fuel crops to unreasonable levels," said Mr Kurujit.
Also, finding the right balance between the increasingly conflicting demands for using land for energy crops and for food crops is a challenge.
"The idea of developing renewable energy is not to switch the use of land from food crops to energy crops, but to find unused or wasted area to plant energy crops and leave the original foodcrop areas unharmed," he added.
Mr Kurujit said biomass would have a significant share in Thailand's energy consumption in 2022 when the use of renewable energy sources is targeted to rise to 20% from only 6% at present.
Each 10-megawatt biomass power plant would cost 12.5 million (about 600 million baht), and EnBW will invest both equity and project financing if required.
"Thailand is among the world's top potential locations for CDM projects because you have a lot of supplies of biomass, as well as a stable business environment," said Boris Dossmann,who is in charge of EnBW CDM projects in Southeast Asia.
The German utility, which has installed generating capacity of 15,000 MW, will buy all credits from CDM projects for its own consumption, which amounts to 2.5 million certified emission reduction (CERs) per year.
CDM is a concept that allows developing countries such as Thailand to sell carbon credits to industrialised nations that have emission reduction obligations under the Kyoto Protocol.
Thailand is among the 10 focus countries of EnBW's climate programme alongside Vietnam, South Africa, Zambia, Kenya, Uganda and others in Central and South America, with planned equity investment of $700 million.
EnBW is among six German firms at a three-day business matchmaking seminar organised by the German-Thai Chamber of Commerce from yesterday.
In a presentation at the forum, EnBW is looking for Thai partners who can supply biomass of at least 10,000 tonnes per month, or large amounts of waste water from starch, ethanol, palm oil or food and beverage production.
The first CDM project of EnBW in Thailand is expected to be set up within this year, said Mr Dossmann.
Kurujit Nakornthap, director-general of the Department of Mineral Fuels at the Energy Ministry, said Thailand was interested in and looking forward to producing biogas from biomass such as rice straw, palm leaves, bagasse or animal feed, common raw materials for the fuel.
But despite the abundant supply of biomass, Thailand still faces some obstacles to developing renewable energy, including in vast, open agricultural areas.
"In some areas where there is an abundant supply of biomass, the increasing number of renewable energy power plants, especially those using biomass, has intensified competition for the supply. This has driven up the prices of fuel crops to unreasonable levels," said Mr Kurujit.
Also, finding the right balance between the increasingly conflicting demands for using land for energy crops and for food crops is a challenge.
"The idea of developing renewable energy is not to switch the use of land from food crops to energy crops, but to find unused or wasted area to plant energy crops and leave the original foodcrop areas unharmed," he added.
Mr Kurujit said biomass would have a significant share in Thailand's energy consumption in 2022 when the use of renewable energy sources is targeted to rise to 20% from only 6% at present.
Tuesday, September 8, 2009
Glow Energy price hits 3-month high
Glow Energy, a local power producer controlled by Paris-based Suez, gained its most in more than three months in Bangkok trading on speculation a plan to increase capacity would boost profit.
The stock jumped 5.6 per cent to close at Bt33 on the Stock Exchange of Thailand (SET), its steepest climb since May 19.
The benchmark SET Index gained 2.1 per cent.
Glow Energy may raise as much as Bt17 billion over the next two years to fund expansion. The funds, to come from bank loans and the sale of bonds, will help the Bangkok-based company increase its power-generation capacity 67 per cent, said CEO Esa Heiskanen.
Glow has a very strong outlook, with its clear strategy to expand its power production with new power plants, Songklod Wongchai, an analyst at Finansia Syrus Securities, which has a "buy" recom-mendation on the stock, said by telephone yesterday.
"Higher production of domestic manufacturers will also boost sales of its power and steam," he said.
Glow's Heiskanen was not immediately available for comment, because he was in a meeting, said a person who answered his office phone.
Thailand's economy, the second biggest in Southeast Asia, may grow as much as 3 per cent next year, rebounding from a contraction this year, the government said on August 24.
The stock jumped 5.6 per cent to close at Bt33 on the Stock Exchange of Thailand (SET), its steepest climb since May 19.
The benchmark SET Index gained 2.1 per cent.
Glow Energy may raise as much as Bt17 billion over the next two years to fund expansion. The funds, to come from bank loans and the sale of bonds, will help the Bangkok-based company increase its power-generation capacity 67 per cent, said CEO Esa Heiskanen.
Glow has a very strong outlook, with its clear strategy to expand its power production with new power plants, Songklod Wongchai, an analyst at Finansia Syrus Securities, which has a "buy" recom-mendation on the stock, said by telephone yesterday.
"Higher production of domestic manufacturers will also boost sales of its power and steam," he said.
Glow's Heiskanen was not immediately available for comment, because he was in a meeting, said a person who answered his office phone.
Thailand's economy, the second biggest in Southeast Asia, may grow as much as 3 per cent next year, rebounding from a contraction this year, the government said on August 24.
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