Thailand's Ambitious Renewable-Energy Sector Attracts China

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CHINA BUSINESS WEEKLY

Kingdom's ambitious renewable-energy sector attracts China

Bangkok Bank

Special for The Nation

The recent announcement that China's Suntech Power Holdings, the world's largest solar-energy company, is considering investing in a solar-cell assembly plant in Thailand is welcome news and hopefully a sign of more good things to come.

Thailand, over the best part of the past decade, has successfully established itself as Southeast Asia's largest renewable-energy market, offering strong incentives to attract investment in all forms of renewables, from biomass to solar energy. As China's demand for renewable energy keeps growing, Thailand has a real opportunity to do more business of this kind with Chinese firms.

While Suntech is waiting to see exactly what the new government's energy policies will be before making a final decision, its proposed US$20 million (Bt600 million) investment could see Thailand emerge as the company's largest market in Asia-Pacific, claiming pole position from Australia.

Thailand's ambitious goal is for renewables to contribute 20 per cent of total energy supply by 2020. To achieve this, Board of Investment incentives and a diverse range of tariffs and benefits have been used to drive local financing initiatives for clean-tech projects. Meanwhile, the high level of local technical expertise and an established legislative framework for the renewable sector have added to Thailand's allure for both investors and technologists.

Most of the renewable projects in Thailand have focused on waste-to-energy conversion, predominantly biomass and biogas projects. A great deal of innovation has developed around the cassava and palm-oil industries, which have not only managed to recapture energy produced in their various production processes and feed it back into the supply chain, but have also started selling off excess energy to the national grid.

Meanwhile, momentum for solar and wind projects is gathering pace thanks to adjustments in incentives to make investments in these technologies more attractive. Solar and wind tend to be more costly than biomass and biogas, but supply a more consistent form of energy.

Experts anticipate that wind and solar projects will soon start "emerging from the shadows"; grid-connected projects have doubled over the past year or so. However, a substantial increase in international investment will be required if Thailand is to achieve its 20-per-cent target and join the big league of large-scale renewable power producers.

That's what makes the growing interest from Chinese green-energy firms so pleasing, as witnessed by Suntech's proposed investment.

In the meantime, let's hope that Thailand's clean-tech sector can continue to demonstrate the high levels of expertise and innovation that have seen the Kingdom emerge as Southeast Asia's green-energy hub. Proving to Suntech and other Chinese companies that Thai firms are not only committed to producing renewable energy, but also to developing renewable cooperation, may be the additional incentive that attracts future investment in the local industry.

For more columns in this series please see www.bangkokbank.com

-- The Nation 2011-11-07

[rotary]

Gosh anything to do with China messing with your Economy is a bad thing.

[Thai at Heart]

Sorry, but I couldn't help but notice no mention of hydroelectric.

[givenall]

Sorry, but I couldn't help but notice no mention of hydroelectric.

Don’t forget burning garbage from flood should provide plentyof electricity

[Xonax]

Sorry, but I couldn't help but notice no mention of hydroelectric.

Sorry, but hydroelectric is on standby, untill they can make a decision, exactly what the dam´s should be used for after the flood.

If the government should decide to change the use of the dam´s to flood protection, there will not be as much water for farming and hydroelectric. Oh well - Maybe next year everything will be forgotten, which means business as usual.

[Thai at Heart]

Sorry, but I couldn't help but notice no mention of hydroelectric.

Don’t forget burning garbage from flood should provide plentyof electricity

I checked google and this story first broke in September. I hope they weren't thinking of investing in one of the estates in Ayuttaya.

[impulse]

Getting ready for the day the USA and Europe slap anti-dumping tariffs on solar cells from China. Now they can stamp 'em "Made in Thailand" and get them in under the radar. I suspect the "assembly plant" will consist of some folks putting the complete Chinese made units into their shipping boxes. The other $18 million will go into various pockets to look the other way.

Edited November 7, 2011 by impulse

[soundman]

offering strong incentives to attract investment in all forms of renewables, from biomass to solar energy.

If anybody has any information on what incentives are being handed out for solar energy, I would like to know.

Last time I checked, there were none at all, and solar energy products were the most expensive in Thailand compared to other countries.

[ARGUSEYE]

"Solar and wind tend to be more costly than biomass and biogas, but supply a more consistent form of energy.'"

Again... Utter rubbish! It's the other way around of course!

Who at the NATION signs responsible for releasing nonsense like that??

[jsflynn603]

Gosh anything to do with China messing with your Economy is a bad thing.

I can understand the sentiment, but for years now China has "partnered" heavily with foreign countries, and usually on beneficent terms.

Thailand will benefit enormously by increased trade with China and Thailand has good rapport with Thailand over the past many years.

Consider Taiwan, who for many decades considered themselves the "real China." China is amazingly adamant that Taiwan must be re-united with China and not too long ago the fruition of that concept seemed only doable with weaponry. But China has invested heavily with Taiwan and over the years things have changed to an amazing level. Taiwanese have invested heavily within China and both countries have literally shelved the concept of re-uniting the two. China is now one of the leading tourist destinations for Taiwanese.

Consider Hong Kong, everyone thought that the Chinese would change things to a great extent, even to the point of shutting down elevators (which had been considered unnecessary in China. Yet when the British lease ended China let Hong Kong do its thing, to the great benefit of both countries.

Yet on a certain level you are right. The entirety of Africa is slowly being, in an odd sense, colonized. But it is not as one might think. The Chinese have amazing ability to accept things as they are and then working with the powers that be to form partnership. The reason is simple--China is an extremely resource poor country. But few notice that if you were to take a dozen African countries and graph both the new Chinese residents, and the new Chinese economic factors (shops, factories, etc.) you would be surprised to see an enormous movement into Africa. In a way it seems similar to the Muslim movement into Belgium--immigration has now turned much of Belgium to where the Muslim population is the majority.

China is two-faced. One face is the meek face, and the other face intensely arrogant. It makes sense if you study Chinese culture. China was steamrolled by America in the 1800's, yet the Chinese remember that they "ruled the Universe."

For instance, China believes that all the ocean around the Republic of Philippines is theirs. I hope that they partner with PI rather than eventually become aggressive. But Thailand is a buffer, and the Chinese will always attempt to maintain friendly relations to it, with a win/win relationship.

Just my thoughts....

[scotto]

I was thinking hydro would be good in thailand too

i do not no why?

[hellodolly]

Gosh anything to do with China messing with your Economy is a bad thing.

I can understand the sentiment, but for years now China has "partnered" heavily with foreign countries, and usually on beneficent terms.

Thailand will benefit enormously by increased trade with China and Thailand has good rapport with Thailand over the past many years.

Consider Taiwan, who for many decades considered themselves the "real China." China is amazingly adamant that Taiwan must be re-united with China and not too long ago the fruition of that concept seemed only doable with weaponry. But China has invested heavily with Taiwan and over the years things have changed to an amazing level. Taiwanese have invested heavily within China and both countries have literally shelved the concept of re-uniting the two. China is now one of the leading tourist destinations for Taiwanese.

Consider Hong Kong, everyone thought that the Chinese would change things to a great extent, even to the point of shutting down elevators (which had been considered unnecessary in China. Yet when the British lease ended China let Hong Kong do its thing, to the great benefit of both countries.

Yet on a certain level you are right. The entirety of Africa is slowly being, in an odd sense, colonized. But it is not as one might think. The Chinese have amazing ability to accept things as they are and then working with the powers that be to form partnership. The reason is simple--China is an extremely resource poor country. But few notice that if you were to take a dozen African countries and graph both the new Chinese residents, and the new Chinese economic factors (shops, factories, etc.) you would be surprised to see an enormous movement into Africa. In a way it seems similar to the Muslim movement into Belgium--immigration has now turned much of Belgium to where the Muslim population is the majority.

China is two-faced. One face is the meek face, and the other face intensely arrogant. It makes sense if you study Chinese culture. China was steamrolled by America in the 1800's, yet the Chinese remember that they "ruled the Universe."

For instance, China believes that all the ocean around the Republic of Philippines is theirs. I hope that they partner with PI rather than eventually become aggressive. But Thailand is a buffer, and the Chinese will always attempt to maintain friendly relations to it, with a win/win relationship.

Just my thoughts....

A lot of good points made here. China is not the big bad boy people would have us believe. Yes they do have their faults but they are improving. Today China is spending more money on renewable energy than any other country in the world.

How ever as good as your post was are you sure about the following.

"Thailand will benefit enormously by increased trade with China and Thailand has good rapport with Thailand over the past many years."

LOL

[maidu]

Just because China invests in a solar tech here in Thailand, doesn't necessarily translate to cheaper PV panels for those of us residing here.

Thai energy experts don't yet know this, but passive solar and concentrated solar will prove to be a better use of the sun's rays than PV panels, although PV is good. I'm referreing to fields of mirrors, (and other configurations of mirrors and fresnel lenses) are excellent ways to concentrate solar and get the most 'bang for the buck' in terms of power and heat generation (air and water).

offering strong incentives to attract investment in all forms of renewables, from biomass to solar energy.

If anybody has any information on what incentives are being handed out for solar energy, I would like to know.

Last time I checked, there were none at all, and solar energy products were the most expensive in Thailand compared to other countries.

I agree. As with many other things (anything electronic, clothes, cars, etc) solar items are waaaaaay overpriced here in Thailand. If you don't think clothes in Thailand are overpriced, then you may not be acquainted with thrift stores and yard sales - both of which are unknown entities in Thailand. I'm in need of new threads, and it's almost worthwhile for me to get a r-t ticket to the US just to take advantage of the great prices available on almost-new items at thrift stores and yard sales there. I might also buy some PV panels there, strap them face inwards, and tote them back to Thailand as luggage.

Edited November 7, 2011 by maidu