As of 16 Sept 2009

Thailand in the 2010’s

Thailand’s Renewable Energy and its Energy Future : Opportunities & Challenges

I. Thailand’s Energy Overview: National Energy Policy

II. Thailand’s Renewable Energy Policy: Impacts on Climate Change

III. 15-Year Renewable Energy Development Plan (REDP)

ailand 2008 - 2022

IV. T n

iofuels, Biogas, Biomass) .2 Thailand Hydrogen Economy Development Direction

IV.3 Future Clean Coal Technology for Thailand r Development

5) Summary: Opportunity, Challenge & Way Forward.

FINAL DRAFT

: RE Roadmap for Th

haila d’s Energy Future

IV.1 Advance Generations of Bio-energy (BIV

IV.4 Thailand’s Future Nuclear Powe

FINAL DRAFT

Thailand in the 2010’s

Thailand’s Renewable Energy and its Energy Future & Challenges f Energy

_______________________________________________________

: Opportunities Ministry o

Thailand, 2009

I. Thailand’s Energy Overview: National Energy Policy

Energy is a prime mover of economic growth, and this is definitely true. While maintaeconomic growth to cherish our prosperity, we need to pay more attention to efficienenergy resources with due consideration on the environmental sustainability. The Government is now implementing its policy in various areas in parallel with adcountry’s urgent problems so as to achieve sustainable development of the countryenergy matters are concerned, the following will be underlined: Energy Sufficiency Sconsistent with His Majesty the King Bhumibol Adulyadej’s Sufficiency Economy

ining sound t use of our Royal Thai

dressing the . As far as ociety to be Philosophy ; building of elopment of d promotion countries in

p cooperation with our neighbouring countries in energy and other sectors. The Royal Thai Government considers it a foremost mission to lead Thailand through the current global economic crisis towards sustainable growth to narrow social disparity and ensure a better quality of life of Thai people. In the energy sector, the Government will undertake its actions based on the five basic guiding principles:

which focuses on the principle of “morality-led knowledge;” food and energy securitya knowledge-based and creative society; poverty alleviation and income disparity; devgood governance, rural development and decentralization of administrative powers; anof Thailand’s role on the international arena to enhance economic linkages with otherthe region to peacefully develo

2

First: to establish sustainable energy security. The Government has a strong policydomestic energy resources for greater self-reliance in order to increase energy stabsufficiently meet the demand by expediting the exploration and production of energy both domestic and international levels. A target has been set to increase domestiproduction to 250,000 barrels per day by 2011, while the current level is at 225,000 bThe supply of natural gas from the Malaysia – Thailand Joint Development Area (JDA)accelerated to help meet this goal. The electricity production from renewable enencouraged, particularly from small and very small-scale power projects, as well as the of “Adder” and other incentive measures. The nuclear energy w

to develop ility and to resources at c crude oil pd in 2009. will also be ergy is also introduction

ill also be an option of about 1,000

has elevated

MW in the energy roadmap toward 2020 and another 1,000 MW in 2021. Second: to expedite and promote alternative energy. The Royal Thai Government alternative energy as a national agenda by encouraging the production and use of alternparticularly bio-fuel, biogas and bio-mass, for example, gasohol (E10, E20 and E85(B5) and municipal solid waste, through our current 15-Year Renewable Energy Develo(REDP) 2008-2022 to enhance energy security while reducing environmental impact. Wpromote community-scale alternative energy by encouraging the production and use oenergy at community level with appropriate incentives for the benefit of farmers,

ative energy, ), bio-diesel pment Plan

e strongly f renewable as well as

gy. expanding

r economic y prices at

ich supports

The roles of

created the all sectors -- s aiming to y providing et incentive

he peak period. Four Main energy saving initiatives have l funds, Tax lop and set elopment of will reduce

vironment. y generated

nsumption processes, especially from oil refineries and power plants, and in the transportation sector. The Government also takes into account the importance of Climate Change issue and supports the Clean Development Mechanism (CDM) projects to reduce social and environmental impact and reduce greenhouse gas emission while promoting appropriate technology innovations with moderate costs and being environmentally friendly to help tackle global warming problems in the long term. Intention is made to bring about a reduction of CO2 emission at least 1 million tons per year.

rigorously and continuously promote research and development of all forms of renewable enerMeanwhile, we also encourage the use of natural gas in the transportation sector bynatural gas distribution system nationwide. Third: to monitor energy prices and ensure appropriate levels, in line with wideand investment situation. The Government has supervised and maintained energappropriate, stable and affordable levels by setting appropriate fuel price structure whthe development of energy crops that reflect true production costs. We attempt to manage energy prices through the market mechanism and Oil Fund levee to ensure effective use of energy and encourage greater investment in energy business to improve service quality and safety. the newly established Energy Regulatory Commission (ERC) will also be strengthened.

Fourth: to effectively save energy and promote energy efficiency. Thailand hasenergy saving discipline as a national culture and encouraged energy conservation in household, industrial, services & commerce and transportation -- through campaignbuild up energy-saving conscience. We also keep promoting efficient use of energy bincentives to attract the private sector to opt for energy-saving appliances. We also smeasures to reduce electricity use during tbeen launched to raise awareness i.e, Revolving Fund for EE/RE, ESCO venture capitaincentives for energy saving and DSM Bidding. Furthermore, we research, devestandards for electrical appliances and energy conservation building; encourage the devmass public transportation and railway system to promote effective energy use whichthe country’s investment in energy procurement.

Fifth: to support energy development while simultaneously protecting the enThailand has a strong policy to protect the environment from impact of energy industrby both energy production and co

3

Thailand’s Ministers of Energy

“We need to develop energy resources for greater self-reliance in order to increase energand to sufficiently meet the demand at both domestic and international level..”

y stability

Vejjajiva e Minister Dec 2008

AbhisitPrim

These five energy policies outline the main mission of the Ministry of Energy to devote its efforts aintaining the fairness

m of ensuring the well-being of the Thai people, onomic crisis

ge

Climate change is already occurring in the region. Thailand is likely to experience intensified precipitation during the wet season and longer dry season periods. The rainfall patterns during the last 25 years have been seen an increasing in both magnitude and frequency, leading to either floods or droughts. The Thai government has spent up to THB 13 billion to relieve the people who suffer from such natural disaster in the last 10 years. Consequently, this would mainly affect the rural poor through floods, landslides, river bank erosion, and reduced food security as well as

to creating energy security, supporting alternative energy development and mand stability of energy prices. With the ultimate aithe Ministry has thereby defined its primary objectives to help alleviate the current ecand raise Thailand’s energy self-reliance.

II. Thailand’s Renewable Energy Policy: Impacts on Climate Chan

1. Mr. Pongthep Thepkanjana 3. Mr. Viset Jupiban 2. Mr. Prommin Lertsuridej,M.D.

4. Dr.Piyasvasti Amranand 6. Mr.Wannarat Channukul,M(Current Minister)

.D. 5. Lt. Gen. Poonpirom Liptapanlop

4

impacts on natural habitats and ecosystems which threaten biodiversity. These wouldimplications on social and environmental

have direct issues.

g the last 20 sions in the issions and opment and ontribute to y, in a drive s likely that catastrophic

imate change. It will put strong pressure to reduce drastically the carbon duce on the

program to renewable ation of the lementation he target of ergy saving

industrial and transportation sectors. These policies will promote energy security of the kingdom by reducing energy imports and increasing energy resources, building competitive energy market for sustainable econo eenhouse gases in the long run.

ues to push to relief utilization

l (Gasohol, (NGV), in

ient use of efforts in io-fuel and E85), bio-

residue and ion of the evelopment arget by the unity-scale

energy by encouraging the production and use of renewable energy at community level with provision of the government incentive for the benefit of the villagers. We also rigorously promote R&D of

all forms of renewable energy, as well as encourage the use of natural gas in the transportation sector by expanding natural gas distribution system nationwide.

Thailand has demonstrated its regional leadership in the South East Asia region durinyears in energy and environment. Though having relatively low levels of GHG emislast decades, now Thailand has increasingly experienced higher levels of GHG emexpects an even stronger increase in the future due to its continued economic develpopulation increase, among others 1 . As a result, Thailand should, therefore, cmitigate the impact of climate change as a member country of the world communittowards a decrease in GHG emissions resulting from activities in various sectors. It ithe main threat that will face fossil energy in the future is the development of evidences on the clemissions. Even emerging countries will not escape penalization of the goods they proexport market if they are not carbon free. To deal with the above issues, the Ministry of Energy has launched an ambitious increase investments in renewable energy e.g. wind, solar, biomass and other cleanenergy sources. The Ministry has also set in motion the plans to speed up the prepar15-Year Renewable Energy Development Plan (REDP) 2008-2022 as well as the imppursuant to the Energy Conservation Program, Phase 3 (2005-2011), under which tenergy saving has been adjusted from 10.8% to 20% by focusing mainly on enpromotion in the

mic growth, and help reducing the emission of gr

At present, the Ministry of Energy continits Renewable Energy Policies forwardsecurity effects, towards the promotion onof alternative energy such as Bio-fueBiodiesel) and Natural Gas for Vehicles parallel with campaigns urging for efficenergy. Currently, we has pushed allencouraging the production and use of bbio-mass such as gasohol (E10, E20 anddiesel (B5), solid waste, agricultural energy crops through the implementatmentioned 15-Year Renewable Energy DPlan (REDP), aiming to achieve the 20% tyear 2022. We have promoted commalternative

1 GHG emissions reduction potential: Thailand GHG emissions from the consumption and flaring of fossil fuels accounted for 1% of World’s GHG emissions; ranking 22nd in the World’s top GHG emitters. Thailand is the second largest contributor to fossil fuel GHG emissions in ASEAN after Indonesia.

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Thailand 15-year renewable energy plan 2008-2022 on Ethanol and Biodiesels

Ethanol consumption targets

Million litres/day ‘08 ‘09 ‘10 ‘11 ‘12 ‘13 ‘14 ‘15 ‘16 ‘17 ‘18 ‘19 ‘20 ‘21 ‘22

Ethanol demand 1.24 1.34 2.11 2.96 3.5 4.0 4.7 5.4 6.2 7.1 8.3 8.5 8.8 9.0 8.1

Biodiesel consumption targets

Million litres/day ‘08 ‘09 ‘10 ‘11 ‘12 ‘13 ‘14 ‘15 ‘16 ‘17 ‘18 ‘19 ‘20 ‘21 ‘22 B100 demand 1.35 1.35 1.35 3.02 3.14 3.31 3.42 3.53 3.64 3.75 3.87 4.01 4.15 4.32 4.50

Right now we are speeding up the development of a clear and feasible action plan toimplement the 15-Year Renewable Energy Development Plan. We will proceed full with the promotion of ethanol and biodiesel to be the “energy for Thai people.” ThThailand to be energy self-reliant. In addition, ethanol and biodiesel are renewable eenergy crops; therefore, biofuel promotion will help increase the prices of agriculturwhile reducing oil import and hence saving foreign currency of the country. Moreoverprices are not expensive and these biofuels are clean energy, contributing to the renvironmental impacts and global warming problems. Particularly, E85 will be aenergy option for Thai people amidst oil price hikes. The Ministry will carefully balance between the use of agricultural products for energy production and that for fooWith respect to the positive impact on ‘carbon footprint’ of Thailand as a whole, believed that with broad-based policy measures, the renewable fuel for road transport wthe high impact solutions. The land use management has

concretely steam ahead is will help nergy from al products , their retail eduction of n important evaluate the d production. it is firmly ill be one of

been investigated and it can be ensured that energy crop will not encroach on virgin forest reserves. As a matter of fact, the utilization of idle and marginal lands for perennial energ sink which will open up an array of opportunities to h ons and the livelihoods of rural people in the semi-arid o

es (NGV), eded up

as covered increase in f “running rce service

ations” through improvement of the of NGV leration of ease in the

number of NGV transportation tank-trucks and investment in the construction of main pipelines.

In addition, the Ministry has given high priority in promoting power generation using such renewable energy as Solar, Wind and Biomass. Consideration will be made to introduce more

y crops will actually act as a green carbon elp improve both the environmental conditir problematic soil areas.

With regard to natural gas for vehiclthe implementation will be speaccording to the action plan which hthe preparation to accommodate thedemand, to reduce the problems oout of gas,” “long queue” and “scastmanagement and administrationservice stations, including accemother station construction, incr

E20 e availabl

390,000 FFV 1,070,000 FFV vehicles

Gasohol E10 sales vehicles nationwide

E85 1,000 FFV vehicles available

B2 sales mandate; B5 as an alternative fuel

B10 available as an alternative choice B5 sales mandate

6

incentive measures, besides the existing “Adder” measure, in order to induce greater inpower generation using all potential types of renewable

vestment in energy.

dder for wer sor and capacity Table 1: A RE po production ted by type

Fuel Types / Size Adder (Baht/kwh)

Extra Adder1(Baht/kWh)

Extr a Adder2 Period (Baht/kWh) (Years)

1. Biomass Capacity ≤ 1 MW 0.50 1.00 1.00 7 Capacity > 1 MW 0.30 1.00 1.0 7 0

2. Biogas Capacity ≤ 1 MW 0.50 1.00 1.00 7 Capacity > 1 MW 0.30 1.00 1.0 7 0

3. MSW AD / Land Fill Gas 2.50 1.00 1.0 7 0

Thermal Process 3.50 1.00 1.0 7 0 4. Wind Energy

Capacity ≤ 50 kW 4.50 1.50 1.5 10 0 Capacity > 50 kW 3.50 1.50 1.5 10 0

5. Mini Hydro Cap 1.00 7 acity 50 kW - < 200 kW 0.80 1.00

Capacity < 50 kW 1.50 1.00 1.00 7 6. Solar PV 8.00 1.50 1.50 10

Notes 1 = Electricity from Renewable Energy for diesel oil replacing 2 = For 3 Southern Provinces

Source: EPPO

As mentioned earlier, the Ministry has also strongly promoted community-scale alternaPromotion will be made on the development of prototype energy villages, emph

tive energy. asizing the

s regard, the be applied

the country is an urgent

t of renewable energy sources to meet the demand. We need to work out t novative renewable energy technologies, that is, to shift from laboratory work to full-scale commercial production, as well as to promote technology development and manufacturing of enewable energy techn

and 2008 – 2022 Energy is one of the factors that drive national economy. For this reason, to achieve the sustainable economic development, it is unavoidable for Thailand to build up the energy security in parallel. Therefore, to strengthen the national energy security, the renewable energy (RE) development is one of the most important directions to achieve that goal. There are many important factors to push forward Thailand energy development.

application of traditional cultures and way of living of the villagers as the basis for energy management within individual villages so that they could become self-reliant. In thiprinciples of Sufficiency Economy Philosophy of His Majesty the King will alsoconcurrently.

Rising trends in the deployment, development and promotion of renewable energy inand in the region is crucial. In order to avoid the growing supply-demand gap, there need to accelerate the developmen

o explore ways to encourage more investments in in

transfer and beef up local skills in the ologies. r

III. 15-Year Renewable Energy Development Plan (REDP)

: RE Roadmap for Thail

7

Map Showing Arable Areas in T ah iland

gy sources assumption 11 is equal equal to 3

final energy 00 ktoe in

l of 97,300 show that, uction from resent level to develop he growing ered is the om the RE

an be counted as the high al country,

ilitate the energy production the form of rgy such as

importation mercial energy importation is 60.8

er each year re, without

cent. In that

ut that the rease in the

s. It is necessary for every country to put forth the counter measure to reduce the GHG emission in timely manner to satisfy the global trend and avoid the trade barrier in the future. Fo required to come up with the measures and dire e. The RE promotion and development is one of reduction, which is the important cause of the glob

d factors, global and -20 years.

costs, and the price of oil will still greatly fluctuate. For this reason, the Ministry of Energy had developed the Renewable Energy Development Plan (REDP) to deal with such problem. The objectives of REDP are made as follows.

Firstly, it is necessary to procure enersufficiently for the domestic demand. The of the final energy demand from 2009 to 20to 2 percent, and from 2012 to 2022 is percent. These assumptions will make the demand in 2011 equal to 70,300 ktoe, 81,52016, and the demand will reach the levektoe in 2022. However, various studiesbetween 2009 and 2022, the energy proddomestic sources will not deviate from the psignificantly. For that reason, it is necessarydomestic RE resources to catch up with tdemand. Next thing that has to be considrichness of the domestic RE resources. Frpotential studies, Thailand cRE potential country. As an agriculturThailand is full of agricultural products.

At the same time, agricultural products processing industry can fac

from the industrial by-products. These by-products can be processed into energy in biomass, biogas, biodiesel and ethanol. Thailand also has the potential for natural enesolar energy with the average solar radiation intensity of about 18.2 MJ/m2/day. Another factor to be considered is the energy security. Thailand depends on energyby large amount. From 1988 to 2008, the average primary compercent of the primary commercial energy demand, and this proportion becoming largbecause the domestic energy production can not catch up the demand growth. Therefoserious RE development, Thailand energy importation dependency will rise to 70 percase, the energy and economic stability will face serious negative impact. Lastly, the International Energy Agency (IEA) global energy trend study found opresent greenhouse gas (GHG) emission trend will cause the global temperature to inclong term at the average of 6 degree Celsiu

r national sustainable development, Thailand isctions to deal with the global warming issusuch direction to implement the GHG emissional warming.

By considering all the already mentioneoil will still be the main source of thedomestic energy in the next 15However, the procurable amount, production

8

To install the RE as the national main energy in the place of oil

stry To research, develop, and promote the high-efficiency RE technology

Diagram 1: Target and Roadmap of REDP (2008-2022)

To increase the national energy security To promote the holistic green local energy usage To support the domestic RE technological production indu

7.6%

TargetExisti

5,608 MWng 1,750 MW

Adder 3,858 MW-Small Hydro/Wi-Biomass/Bioga-Hydrogen

nd/Solars/MSw/

Target 7,433 ktoeExisting 3,007 Ktoe

2011

15.6%

2.4%

EthanolTarget 9.0 ML/dayExisting 1.24 y

Biodiesel5 y.56 ML/day

Hydrogen Target 0.1 ML/kg

ML/da

Target 4. ML/daExisting 14.1%

Power

Thermal

Biofuels

2022

20.3%

2008

6.4%

CDM

NGVTarget 690 mmscfd

(6,090 ktoe)Existing 108.1 mmscfd

6.2%

19.1%

2016

Total RE output 19,800 ktoe/yrReduce Import 461,800 mil.Baht/yr

Reduce GHG by 42 mil ton/yr

09As of February 20

New REDP Targets (2008-2022)

Ince

ntiv

e M

easu

res ESCO Venture

Capital

BOI

Adder cost

R&D

inal energy short term

proven RE generation, s to develop Table 1).

support the ourage new rengthening

ount of 15,579 ktoe or 19.1 percent of the total energy consumption (Table 1).

The long term is emphasized on the promotion of economically viable new RE technology including the further implementation of the green city and local energy, and to promote Thailand as the ASEAN biofuels and RE technology export hub. The goal is to develop the RE at the amount of 19,799 ktoe or 20.3 percent of the total energy consumption (Table 2).

The 15-Year REDP with a share of renewable energy mixed to be 20% of the fdemand in the year 2022 (as shown in Diagram 1) is divided in to three phases: thefrom 2008 to 2011, the mid-term from 2012 to 2016, and the long term from 2017 to 2022. The scopes and goals of the REDP have been identified. The short term is focusing ontechnologies promotion and the high-potential RE resources such as biofuels, powerand thermal energy from biomass and biogas with full financial support. The goal ithe RE at the amount of 10,961 ktoe or 15.6 percent of the total energy consumption (

The mid-term is concentrated on the efforts to promote the RE technology industry, tonew RE technology prototype development to make it economically sound, and to enctechnologies in the biofuels production, the green city model development, and the stof the local energy production. The goal is to develop the RE at the am

9

Table 2: 15-Years REDP Goals Type of Energy Potential existing 2008 - 2011 2012 - 2016 2017 - 2022

Electricity MW MW MW ktoe MW ktoe MW ktoe Solar 6 500 56 50,000 32 55 95 11Wind Energy 1,60 5 800 89 0 1 115 13 37 42Hydro Power 700 1 324 85 56 165 43 28 73Biomass 4,400 1,610 2,800 3 0 ,700 1,933 1,46 3,22 1,682 3Biogas 90 46 60 120 54 1 27 90 40Municipal Solid Waste 40 0 160 96 0 5 78 35 13 58Hydrogen 0 0 0 4 1 0 Total 1,750 3,273 1,587 4,191 1,907 5,608 2,313 Thermal ktoe ktoe ktoe ktoe ktoe Solar Thermal 154 1 5 18 38 Biomass 7,40 ,781 3,660 5,000 6,760 0 2 Biogas 0 0 600 600 224 47 54 Municipal Solid Waste 35 1 15 24 Total 3,007 4,150 5,582 7,433 Biofuel m lt/d m lt/d m lt/d ktoe m lt/d ktoe m lt/d ktoe Ethanol .00 5 0 9.00 2,447 3 1.24 3.00 80 6.2 1,686Biodiesel . 0 4 4.50 1,415 4 20 1.56 3.00 95 3.6 1,145

Hydrogen 0 0 0 0.1

kg/d 124 0 mill Total 5 4 3.50 3,986 6.00 1,75 9.8 2,831 1Total Energy Consumption 66,248 70,300 81,500 97,300 Total Energy from R E (ktoe) ,237 7,492 10,319 13,709 4 Renewable Energy Ratio 6.4% 10.6% 12.7% 14.1% NGV (mmscfd - ktoe) 108.1 393.0 3,469 596 5,260 690 6,090 Total Energy from RE + NGV (ktoe) 10,961 15,579 19,799 Alternative Energy Raio 15.6% 19.1% 20.3%

In the implementation of the 15-Years REDP, the total investment of both public and private sectors is estimated to be amount to 488,257 million baht with the 382,240 million baht from the private sector, 52,968 million baht from publicenterprise details in the and 2

Tab : In men an un EDP teg

budget, and 53,049 million baht from state .2 below. s. See the Table 2.1

le 2.1 vest t Pl der R by ca ories

Shor t - termInvestment (million THB) 2009 2010 2011

Medium - term (20

Long – term Total

12 –2 0 16) (2022-2017)

Solar 1,045 695 695 4 9 63,320 ,726 56,15

Wind 28 20 ,800 4,900 1 0 55,930 8,200 29,75

Biom 4 0 153,4655,510 30,64 ass 21,925 20,340 35,050

6,750 9,000 27,975 Biogas 3,600 4,125 4,500

Municipal Solid Waste 1,350 6,600 4,000 7,800 4,500 24,250

15,400 13,860 38,500 Ethanol 770 8503, 4,620

4,340 1,440 18,800 Biodiesel 3,500 3,500 6,020 32,470 41,910 59,785

Total 134,165 102,726 145,349 382,240

10

Table 2.2 : Investment Plan under REDP by sectors

th, Thailand ent can not

tor will play a major role in the implementation of this plan. By reducing the oil importation and increasing the RE usage proportion, Thailand would be able to achieve the national energy security, and help the rest of the world in the effort to combat the now-widely-recognized c

IV. Thailand’

IV.1 Advance Generations of Bio-energy (B

rity through g access to

ergy and ur future

tial. While c growth, attention rgy taking

vironmental and clean

e, the 15-Years Ethanol- Biodiesel Plan has considered various factors both

domestically such as materials, lands, demand-supply, price, and environment – and internationally such as the debatable usage of food plants as materials for energy production and the GHGs from petroleum consumption in the Kyoto protocol. All the stakeholders such as raw material producers, ethanol and biodiesel producers, oil and gas producers, automobile industries

(1) Private Se tor Inc vestment Value hort M L Total S Term id Term ong Term

(mil baht 2009 2 201 201 2022 3 Phases ) 010 2011 2-2016 7- 32,470 41,91 1 0 59,785 02,726 145,349

Total 1 134,16 102,7 6 14 349 382,240 5 2 5,(2) Gove Spendinrment g 2,269 2,964 4,111 27, 124 16,500

Total 2 9,3 2 16 52,968 43 7,124 ,500 (3) State Ent prise In nt er vestme

8,752 1,962 1 1,827 5,460 25,048 Total 3 12,541 15,460 25,048 53,049 Total 156,049 145,310 186,897 488,257

In conclusion, in order to facilitate sustainable development and economic growmust combine forces from all sectors to put the REDP into effect. The governmaccomplish this task alone. The private sec

limate change issue.

s Energy Future

iofuels, Biogas, Biomass)

Strengthening energy secugreater effort in increasinfurther utilize renewable enother alternative energy as oenergy choices is essenmaintaining sound economiThailand needs to pay moreto efficient use of future eneinto account the ensustainability, i.e. green technology. For instanc

11

including consumers, are taken into the account to receive the highest benefit with oproblems and fairness from this

nly minimal plan.

capacity is es can push security can of cassava o-products n footprint s the R&D

e long-term ased fuels, s emission

fossil fuels. ethanol (i.e. ting oxygen genetically (e.g. Bio-

as to Liquid), ETBE, DME (Di-methyl Ether), and lastly, move away and finally

uction and ty biodiesel,

biogas, biomass electricity and PV-solar units have been installed in the past decades. Some of such community is a classic showcase that ‘small can be beautiful and competitive’. In this regards, the small farm holders and SME energy producers can be part of the development process of the country and can in fact energize the revival of rural community developments into

the new modes of knowledge bio-based economy.

velopment

d to move evelop the

ay by 2017 wing years e target for istic sectors

Thailand has begun to develop the production process to turn the hydrogen energy into various RE fuels including the direct burning process and fuel-cell technology. The purpose of this is to increase the energy security, enhance the technological development potential, and to encourage the joint-ventured.

In the promotion of the ethanol and biodiesel consumption, the available materialevaluated; the farming process is developed to have higher productivity. Both measurthe market without negative impact on the availability of food supply. In fact food even be enhanced as Thailand has always been exporting carbohydrates in the formstarch at marginal values while importing protein feeds for its aquaculture industry. Cof ethanol and biodiesel can directly replace those imports, making both the carbobetter due to the reduction of logistics emissions. Moreover, this plan also encourageon non-food material such as cellulose and seaweed for the future ethanol and biodiesel production on a long term basis. On the way forward, besides short- and middle term ethanol and biodiesel plan, thalternative energy especially for transportation will be focused on natural gas-bbiomass alcohols, and electric/hydrogen vehicle. These will help reducing the GHGlevel, enhancing the environmental friendliness, and greatly reducing the need of Thailand has strongly supported the R&D on the alternative fuels such as biogas, cellulosic ethanol – biological and gasified), algal biodiesel, green gasoline (i.e. extracfrom sugar to produce hydrocarbon), biobutanol, advanced generation biofuels (frommodified organisms) as well as BTL (Biomass to Liquid), E-diesel, hydrogenationHydrogenated Diesel – BHD), GTL (Gthe Hydrogen Economy. It was forecasted that in the next 20 years, automobile will from fossil fuels to biofuels, to hybrid system (fuel/electric), to electric/plug-in carwill become the fuel cell technology vehicle. Thailand has always promoted the ‘small and distributed’ mode of energy prodconsumption at the rural community levels where several hundred units of communi

IV.2 Thailand Hydrogen Economy DeDirection Thailand has been prepared for the global trentoward the hydrogen economy and seriously dhydrogen energy utilization. REDP has dictated that Thailand will use this type of energy at least 100,000 kg/dand gradually increase the amount in the folloespecially in the transport and logistic sectors. Thhydrogen energy consumption in transport and logcan be seen in the Table 1 of Section 3.

12

Therefore, Thailand has established the action plan to tackle with the hydrogen enerpush the country toward hydrogen economy in transportation logistic and powersectors. The action plan contai ph ses as

gy issue and generation

follows.

s Hydrogen x reduction, n reduction

ent to build up the public confidence in hydrogen energy including technology transfer and demonstration.

Necessary r example – reasonable he installed

ced to be in accordance with hydrogen

n the technologies and infrastructure. With the growing market both domestically and internationally, this will be the time for close economic monitoring to further the increasing opportunity in the hydrogen market

t ommitment from various countries.

for Thailand crease fastest ext 20 mand the eady

plants argely dicate

security. Despite growing environmental controls, more coal power projects are moving forward, with increasing preference to use clean coal technologies. We need a collective action in the country to strengthen cooperative partnerships in the promotion and utilization of coal and clean coal technologies among government, private sector and NGOs.

ns three a

Preparation Phase (present – 2017) Thailand has to enact the related laws to facilitate the hydrogen economy such aTransportation Act, regulations, a safety regime, other supporting measures such as tasubsidies for hydrogen production plants especially ones with the GHGs emissiopotential like the REs, and encouraging the HRD and PR managem

Hydrogen Economy Starting Phase (2017 - 2024)

This is a market testing phase and introducing related technologies to the public.infrastructures also have to be tested to build up capacity and to enhance efficiency, fofleet testing in various locations throughout the country with the emphasis oninvestment. Nevertheless, at the end of this phase, the investments to increase tcapacity in hydrogen production lines have to be enhaneconomy development to move toward Thailand as one of a leader in the commercial hydrogen energy sector. 2nd Phase of the Hydrogen Economy (2024 onwards)

After the starting phase, the public should have enough confidence i

and o prepare for the fully hydrogen economy c IV.3 Future Clean Coal Technology Coal use worldwide is projected to insignificantly and is expected to be the growing primary energy source in the nyears primarily due to the increasing defor fuel for electricity generation and inindustrial sector. At present, there are alrsubstantial capacities of coal-fired power in the region and coal resources remain luntapped. In Thailand, its energy plans inthe rapid growth of coal utilization for power generation and this presents itself an opportunity to promote and increase cleaner coal use and clean coal technology (CCTs) that could bring in benefits towards national energy

13

For the sake of national energy securthe long term, Thailand strongly encouthe use of clean coal technologiespromotes collaborative image-buildingcoal and CCTs in the light of environmental concerns. We need to proCCTs by conducting studies, among oon upgraded brown coal, coal liquefaand integrated coal gasification and looking into the potential of carbon capture and storage (CCS) technology as well as encouraging private sector investment a

ity in rages and for

global mote thers, ction

important.

velopment

ou al image aligned with public understanding is

ar Power Development

er007-icity om 28

021. and, ices ate

0-megawatt

nd (EGAT), irst units of

and and is lag and its

Modern nuclear plants are now safe and secure and request high quality standards. Human factor is often the weak point in the use of advanced technologies. Education is very important, but the training is a key issue to develop specific behaviour that can make the difference between industrial culture and safety culture which is required by nuclear operation. Before the country has its own nuclear facilities, it is very important to develop close relationship with foreign entities with nuclear experiences where the future local staffs can learn from practices. Thailand

nd participation. While enhancing environmental planning and assessment of coal projects, harmonizing emission standards and minimum efficiency requirements for coal-fired power plants is also To support future CCTs, it is essential to establish coal laboratory and standards, destrategy and action towards harmonization of local practices to encourage coal utilization, res rces and facilities. Moreover, building of a co

also a key success factor. IV.4 Thailand’s Future Nucle

According to PowDevelopment Plan (PDP) 22021, the total installed electrcapacity will increase fr28,530 MW in 2007 to 52,0MW by the end of plan in 2Such growing electricity demfluctuation of fossil fuel prand concerns over climchange, all turn out in a favor of nuclear power. Every 1 kilowatt-

hour of electricity produced in Thailand emitted CO2 by 0.5 kilogram. Therefore, the use of nuclear power will also assist in achieving our climate change goal in the future.

For Thailand’s nuclear facility and future development under the PDP, two 1,00

nuclear power plants, about 5% of total installed electricity capacity in the country, are expected to start operations during 2020-2021. The Electricity Generating Authority of Thailathe state-own company will be responsible as the owner and operator of these fnuclear power. Nevertheless, nuclear which combines capacity of production on demnot emitting greenhouse gas, still has burdens on capital intensiveness, long timesensitiveness to the public opinion.

14

has joined the party to nuclear non- proliferation and peaceful uses of nuclear energy intend to develop uranium enrichment and reprocessing of nuclear spent fuel in tnuclear power program. Thailand is also preparing to participate in the rele

and will not he national vant IAEA

g leadership rstood from . As nuclear will of the e basis, but ence of the

. Currently, Thailand is exploring the issues pertaining to civilian uses of nuclear energy and nuclear energy safe education & training and information sharing.

s

conventions which are necessary for the nuclear power program. The development of a nuclear power program is a long term process. It needs a stronfrom the governments. The sensitive decisions in such program can be very well undethe cost structure of the nuclear electricity. Last but not least is the public acceptancenecessitates a time-consuming approach, it is not possible to develop it against thepeople who need good understanding of the reasons supporting it. Education is onefficient and transparent use of nuclear energy is also the way to gain real confidpublic

ty as well as capacity building,

Table 3 : Nuclear Sup-CommitteeIn April 2007: the National Energy Policy Council (NEPC) appointed the Nuclear Power Infrastructure Preparation Committee (NPIPC) with 6 Sub-committees 1. Legal and Regulatory Systems and International Protocols 2. Nuclear Safety and Environmental Protection 3. Industrial and Commerce Infrastructure 4. Human Resources Development and Technology Transfer 5. Public Information, Participation and Acceptance 6. Nuclear Power Utility Planning Work

Thailand needs to develop our nuclear energy in accordance with the relevant iagreements and standards, particularly, under the framework of the International AtoAgency (

nternational mic Energy

e institutions which are already in ram 2), the cabinet will make a decision and a final approval on the construction of the 1st 1,000 MW nuclear power plant based on the results of the feasibility study and information on infrastructure, utility, and public acceptance.

Diagram 2: Roadmap of Thailand’s Future Nuclear Development

IAEA) and other international and regional nuclear cooperativ existence. For Thailand by t e year 2011 (as shown in Diagh

48

NPI: Nuclear Power Infrastructure NPIEP: NPI Establishment Plan NPPDO: Nuclear Power Program

De

(17 November 2007)

velopment Office NPP: Nuclear Power Plant NRB: Nuclear Regulatory Body 1st Milestone 2nd Milestone 3rd Milestone

Phase 0.1:nary Prelimi

Phase

- NPIPC & 7 Sub-committees appointed

- Issues & Milestones considered

- NPIEP prepared

Phase 2: Progementa

ram Impl tionPhase

- implement NPIEP with Milestones

- full NRB established - legislation &

international protocols enacted

- suitable sites for bid selected

- technology/qualified suppliers selected

- prepare to call bids

Phase 4Phase 1:ject

Phase 3:structiCon on Phase

- NPIEP fully implemented

- bidding process completed

- design & engineering

- manufacturing

- construction & installation

- test runs & inspection

- NPP commissioning license

Pre-proActivity Phase

- approve NPIEP - set up NPPDO - infrastructure work

started - survey of potential

sites - feasibility study

completed - public information &

participation

:Op ation Phase

- co ercial operation

- O&M

- planning for expansion

- industrial and technology development plan

GO NUCLEAR

Commissioning 1st

NPPFinancial Commitments

Knowledgeable Commitment

To prepare for policy decision

Nuclear power option included in PDP2007

MS 3: Start OperationMS 2 : Call for BidsMS 1: Policy DecisionMS 0.2MS 0.1

er

mm

NPIEP Milestones for Nuclear Power Program Implementation

1 year 3 years 3 years 6 years

2020 2014 2011 2008 2007

15

V. Summary: Opportunities, Challe ges & Way Fn orward.

lay a major needs, co-

evelopment, ro emission e essential, y efficiency d supplies,

deployment e economic Renewable omplement ble energy

15-Year pm (REDP) d responsive plans and

energy .

ds – with us prove to

llenge. For Thailand, which has demonstrated a rapid economic growth and a high need r one, rising able energy

challenge is hange. With

dominance of fossil fuels, we are also poised to become one of the big contributors to of climate ly that we adaptation

environment fuel should

land to real action that should be undertaken now. The stable upward trend in demand e sources of sources as a owever, will s to spur its

es which put the country at the forefront of bioenergy developments for both power and heat generations, liquid transportation fuels and biogas from wastes and co-products from agro-industry. Apart from policy commitments, Thailand has mobilized its scientific & research institutions, its armed forces and its private sectors to actively and collectively adopting the new ‘bioenergy concept’ which originated from His Majesty King Bhumibol Adulyadej’s initiatives as demonstrated in the Royal Chitralada projects. It can be said that the ‘energy self reliance’ is part of the ‘Sufficiency Principles.

Though fossil fuels still continue to prole in Thailand and global energy operation, including joint research& ddeployment and transfer of low and zetechnologies for their cleaner use will bparticularly on the enhancement of energand diversification of energy sources anparticularly renewable energy. Sensible of renewable energy will accelerate thand social development of the country. energy is seen as the right candidate to cfossil fuel in order to support sustainadevelopment. According to Thailand’s Renewable Energy Develo ent Plan 2008–2022, clear policies anprogrammes for renewable commercialization have been addressed Meeting the country’s energy nee

unprecedented increases in oil and gas imports, coal use and GHG emissions – will thbe a cha

of energy supply, the challenge to ensure a secure supply is an overriding concern. Fodemand has led the country to scout and compete among other countries for availresources. And as worldwide energy demand soars, so does GHG emissions. For Thailand, the more serious as the country is both a contributor and victim of the effects of climate cprojected global warming in the future. Thailand needs to seriously look at a risk on the impactchange with improved ability and capacity to cope with its effects. Moreover, it is likemay be confronted with additional costs associated with climate change mitigation and in the future. One of the way forward is to meet demand while preventing irreversible damage to i.e. Open to All Options for Thailand’s Energy Mix. Indeed, increased use of fossil move Thaimakes it critical for Thailand to have its arms wide open to all available and possiblenergy to keep its growth momentum. Diversification of energy resources and supply high policy agenda should be pursued. For example, abundance of renewable energy, hplace the country on a better footing for additional sources given the right conditiondevelopment. In particular, Thailand has put in place multi-faceted policy packag

16

17

f renewable stands firm ter effort in

s our future ment of various sectors and partners in the

country will definitely make Thailand rise above the challenges.

********************************

Author

s Dr. Mayurapan Sujakulnukit - H2 Economy Ministry of Energy 17 Rama 1 Rd., Kasatsuk Bridge,Rongmuang, Patumwan,Bangkok 10330 THAILAND Tel. +662 223 3344 Ext. 2309/2357 Fax. +662 224 8563 Web: www.energy.go.th

Now that Thailand has recently adopted policies setting specific targets for a share oenergy mixed to be 20% of the country final energy demand in the year 2022, Thailandto cooperate with other dialogue partners to strengthen our energy security through greaincreasing access to further utilize renewable energy and other alternative energy aenergy choices. Thus, greater involvement and engage

Energy The Ministry of 25 August 2009 Editor-in-Chief:

tr Dr. Twarath SutabuEditors: Dr. Weerawat Chantanakome – LeadMs. Doungporn Inpradit Mr. Sanphat Suwannathat Mr. Waranon Jansiri Ms. Kamolchanok Rujiwattanapong Contributing Writers: Dr. Samai Jai-in - Biofuel