Without proper energy plan, power bill could double in seven years

[Lite Beer]

Without proper energy plan, power bill could double in seven years
Pichaya Changsorn
The Nation

BANGKOK: -- Official stresses procurement, conservation; warns of widening demand/supply gap of LNG

Electricity tariffs could double to Bt8 per kilowatt-hour in the next seven years, in the worst-case scenario that the country fails to achieve its energy procurement and conservation targets, says a top energy official.

Kurujit Nakornthap, director-general of the Mineral Fuels Department of the Energy Ministry, told a public forum yesterday that under that scenario, Thailand would have to increase its imports of liquefied natural gas (LNG) from 5 per cent at present to 50 per cent of total gas supply within seven years.

"What is worrying is that this gap [between the supply and demand of natural gas] will start [to get large] within just four years, while any planning efforts will take time. The worry is that if we can't reduce energy consumption as planned, this gap will increase, and we will have to import LNG at higher prices or see nobody selling to us," he said.

The forum in Bangkok was part of a series of public hearings intended to receive feedback on a national energy master plan.

Kurujit said his projection was based on an assumption that the price of imported LNG would be twice the current price of locally produced natural gas, which was about US$8 per million British thermal units at the end of last year. The prices of LNG that PTT imported from Qatar last year were between $15 and $16 per million BTU, said Kurujit, who was appointed to PTT's board of directors on July 1.

Speaking to reporters on the sidelines of the conference, he said Thailand's domestic natural-gas reserves would fall to a crisis level in seven to 15 years, a worrying trend considering that gas currently fuels 70 per cent of the country's electricity generation.

To fill the growing energy-supply shortfall, Kurujit said the ministry was preparing to propose several measures to the incoming Cabinet. These would include launching the 21st round of bidding for petroleum exploration and development concessions throughout the country; determining the fate of the Erawan, Bongkot and other petroleum fields in the Gulf of Thailand at least five years before their concessions currently held by Chevron and PTT Exploration and Production expire in 2022-2023; and negotiating a joint development agreement to explore petroleum resources in the overlapping area between Thailand and Cambodia in the gulf.

"And the fourth option … we hope that the energy conservation plan will succeed," he said.

Kurujit said the petroleum fields whose concessions will expire between mid-2022 and early 2023 were the "backbones" or the "arteries" of the country that required substantial investments to maintain their current production rates. So if the concessions are allowed to expire without proper planning, the concessionaires might not continue to drill 500 new wells every year just to keep the current gas production from falling, as they have been doing so far.

Energy permanent secretary Areepong Bhoocha-oom said the National Energy Policy Council recently agreed to put conservation on top of the country's energy-policy agenda, and it had ordered a nationwide shift to LED (light-emitting diode) lighting to help save nearly 2,000 megawatts of electricity annually.

Areepong said the second-most-important item on the agenda concerned rebalancing the country's fuel-supply options to reduce its dependence on natural gas from 65 per cent at present to about 20-30 per cent, substituting it with clean coal and renewable energy.

He said the ministry would submit a 20-year energy master plan to the new Cabinet in October, after completing public hearings in Khon Kaen and Surat Thani next month. About 500 people who took part in the first public hearing held in Bangkok yesterday. They were presented with four main energy plans: a national power development plan (PDP), a renewable-energy development plan, an energy conservation plan, and an energy procurement plan.

Source: http://www.nationmultimedia.com/business/Without-proper-energy-plan-power-bill-could-double-30242089.html

-- The Nation 2014-08-30

[EricBerg]

There's no mention of sustainable energy sources. In some European countries solar and wind energy are big business now. Windmillparks in the sea and more and more homes pushing electricity from solar panels on the roofs of homes into the net and even make some money with it while having a zero electricity bill. Thailand sure has much sun to exploit.

Edited August 30, 2014 by EricBerg

[Robby nz]

There's no mention of sustainable energy sources. In some European countries solar and wind energy are big business now. Windmillparks in the sea and more and more homes pushing electricity from solar panels on the roofs of homes into the net and even make some money with it while having a zero electricity bill. Thailand sure has much sun to exploit.

"Areepong said the second-most-important item on the agenda concerned rebalancing the country's fuel-supply options to reduce its dependence on natural gas from 65 per cent at present to about 20-30 per cent, substituting it with clean coal and renewable energy."

Is that not the same thing ?

[Chang_paarp]

That is a 10% increase every year, while not good for Thainess, it is probably a commercial reality.

[MESmith]

If they want to cut down on consumption, adjust aircon settings in govt offices, banks etc. Far too cold.

[ezzra]

Fear mongering, requests for more budgets and just a lip service are mostly behind these

proclamations, Thais don't make plans for 7 years ahead, they mostly wait to cross the bridge

when they get to it...and if it's true, Thailand have so many possibilities to explore how to be

energy self reliant right here...

[John_Betong]

Maybe television exposure to explain correct use of thermostats

[h90]

There's no mention of sustainable energy sources. In some European countries solar and wind energy are big business now. Windmillparks in the sea and more and more homes pushing electricity from solar panels on the roofs of homes into the net and even make some money with it while having a zero electricity bill. Thailand sure has much sun to exploit.

While solar in Europe brings the energy exactly at that time when no one needs it, in Thailand it would be much better.

When all airconditions run full speed during the day, the solar cells brings the most electric.

[JohnnyJazz]

A renovation is due in our house and I was talking to the contractor explaining him that the house is "leaking" by every door and windows making it difficult to maintain a proper temperature during the hottest month of the year. That wouldn't be even legal in some European country. He replied that in Thailand nobody cares as electricity is so cheap, people just turn up the air cond. So maybe a dramatic increase of the price of energy, at least for domestic consumption, wouldn't be such a bad thing.

[Lupatria]

There's no mention of sustainable energy sources. In some European countries solar and wind energy are big business now. Windmillparks in the sea and more and more homes pushing electricity from solar panels on the roofs of homes into the net and even make some money with it while having a zero electricity bill. Thailand sure has much sun to exploit.

Yesterday’s news:

MYANMAR will soon welcome the first-ever solar energy project, through the investment of about US $480 million – the biggest investments by a US company in the country since the easing of sanctions. When completed in 2016, the project is expected to account for 10–12 per cent of the country’s power generation.

They must have good reasons not to offer this to Thailand…

[Dellboy218]

There's no mention of sustainable energy sources. In some European countries solar and wind energy are big business now. Windmillparks in the sea and more and more homes pushing electricity from solar panels on the roofs of homes into the net and even make some money with it while having a zero electricity bill. Thailand sure has much sun to exploit.

A lot of windmills in the UK earn most of their money switched off under EU subsidies. None (?) of them earn their money actually producing electricity. Take away the subsidies and see how many are left. Solar cells are still not economically viable as costs stand in this country although as they improve and electricity prices increase that gap is slowly closing. If they were really serious of course they would reduce or remove all taxes for such items. Solar power station technology is improving all the time and is something perhaps they could look at. In the mean time what they can do is improve efficiency. Thai houses are not going to suddenly change to being energy efficient regarding retaining heat although modern paints can go a long way to help. Banning the old fashioned fluorescent light wire wound ballast and reducing the costs/taxes of energy efficient lighting to encourage people to change would help to more than halve the lighting bill for the whole country.

[Alan653]

He mentioned "clean coal"? There is no such thing as "clean coal". Coal causes more pollution than other fuels.

[belg]

sun sun sun sun sun ... shines 12 hours a day

what to do with all this free energy

any one ?

[IAMHERE]

There's no mention of sustainable energy sources. In some European countries solar and wind energy are big business now. Windmillparks in the sea and more and more homes pushing electricity from solar panels on the roofs of homes into the net and even make some money with it while having a zero electricity bill. Thailand sure has much sun to exploit.

"Areepong said the second-most-important item on the agenda concerned rebalancing the country's fuel-supply options to reduce its dependence on natural gas from 65 per cent at present to about 20-30 per cent, substituting it with clean coal and renewable energy."

Is that not the same thing ?

Does Thailand have coal ? I'd think it should. I also thin Thailand should take back the lower portion of Myanmar before they make friends with China. There is more than enough gas/oil out there in the Andaman sea that rightfully belongs to Thailand, not Burma. Those UK brigands stole it but it is still Siam.

[spidermike007]

There's no mention of sustainable energy sources. In some European countries solar and wind energy are big business now. Windmillparks in the sea and more and more homes pushing electricity from solar panels on the roofs of homes into the net and even make some money with it while having a zero electricity bill. Thailand sure has much sun to exploit.

But, you are referring to creative minds, that have the possession of facilities like vision, foresight, conscience, intelligence, a sense of the greater good, the ability to think outside the box, and the ability to ponder the future. That is relatively rare here. And there is little sense of the need for green energy, or the consequences of life without it. The level of environmental awareness here is shockingly low. The sense of urgency to do something about current problems is shockingly absent. The good men and women required to create initiatives like this, and to implement them are shockingly absent. Thailand is in an exceptionally good position to take advantage of solar, and wind projects. Yet, how many of them do you see at an institutional level? Imagine the level of solar energy the buildings in Bangkok could be collecting?

[winstonc]

There's no mention of sustainable energy sources. In some European countries solar and wind energy are big business now. Windmillparks in the sea and more and more homes pushing electricity from solar panels on the roofs of homes into the net and even make some money with it while having a zero electricity bill. Thailand sure has much sun to exploit.

Yesterday’s news:

MYANMAR will soon welcome the first-ever solar energy project, through the investment of about US $480 million – the biggest investments by a US company in the country since the easing of sanctions. When completed in 2016, the project is expected to account for 10–12 per cent of the country’s power generation.

They must have good reasons not to offer this to Thailand…

i bet they were offered this,but who owns ptt shares...a few people care not about the masses.again its lack of information/education..or just not interesting to read about/

[sanuk711]

"Thais don't make plans for 7 years ahead, they mostly wait to cross the bridge when they get to it.----ezzra"

.

Your right ezzra... there just not as erudite or far thinking as our Bankers / economist / politicians in the west........

Edited August 30, 2014 by sanuk711

[corb]

I live in Uthai Thani and I see solarfields so big at several places only producing elecricity, that they have te be commercially interesting.

I am interested myself to get some in due time, both for the environment and financially.

Germany is leading in Europe, what kind of sun do they have overthere compared to Thailand !

Let the sun shine !

Cor

[worgeordie]

My electric bill went up 10% from same period last year

and the year before,nothing extra added,so at this rate

a doubling in prices maybe conservative.

regards Worgeordie

[recycler]

It always amazes me how little awareness there is here for energy saving and the use of solar energy in both domestic and professional environments.

It's very difficult to get solar systems on your roof that supply back to the grid.

I've been trying to convince colleagues for years to use solar heat to dry materials, not interested, we have gas...

[Chris Lawrence]

The fourth option sounds like prayers?

[trainman34014]

A renovation is due in our house and I was talking to the contractor explaining him that the house is "leaking" by every door and windows making it difficult to maintain a proper temperature during the hottest month of the year. That wouldn't be even legal in some European country. He replied that in Thailand nobody cares as electricity is so cheap, people just turn up the air cond. So maybe a dramatic increase of the price of energy, at least for domestic consumption, wouldn't be such a bad thing.

I'm sure all the people who live around my way in homes built from a few cheap concrete blocks with a corrugated tin roof will really think it's a great idea !

[BlackJack]

dont complain about the electricity bills

invest in the electricity companies to offset the monthly bills

same as banks and their fees

invest in the banks

offset the fees

[dogleg]

Nobody has or needs aircon in my local area, so houses are not designed to retain heat.

Just all you damn farangs using up too much cheap Thai electricity!

[marcusd]

Clean coal. I hear the term all the time. Total RUBBISH!!No such thing. I live in Chiang Mai. Why not tap the thermal power of the earth???

[whiteman]

dont complain about the electricity bills

invest in the electricity companies to offset the monthly bills

same as banks and their fees

invest in the banks

offset the fees

Demco on the Thailand Set is a very big wind power supplier invest in this to pay your increased power bills I did and still do.

[JacChang]

<script type='text/javascript'>window.mod_pagespeed_start = Number(new Date());</script>

dont complain about the electricity bills

invest in the electricity companies to offset the monthly bills

same as banks and their fees

invest in the banks

offset the fees

+1

Exactly my thoughts while I was reading this thread hahaha.

A smile across my face as I foresee increase revenue. I've never complained, quite the opposite, overfill with joy when I see news such as these. Increase prices of so and so, high demand, low supply. Love it.

[biplanebluey]

Fear mongering, requests for more budgets and just a lip service are mostly behind these

proclamations, Thais don't make plans for 7 years ahead, they mostly wait to cross the bridge

when they get to it...and if it's true, Thailand have so many possibilities to explore how to be

energy self reliant right here...

Yes the fear mongering started with the original heading"power bill will double" without any reference to the seven years !!!!!!!!!!!!!!!!!!!!!

[SOTIRIOS]

...it would then be time for a big exodus.....

...if all foreigners and their businesses left.....it would send 'the land of smiles' back 100 years........

[robertson468]

I read in the UK Press a week or so ago that a spray on solar system is being developed and should be available commercially quite soon and at much lower costs than the current panels (when you can get them) are. I think we all need to watch out for this interesting innovation coming on to the market and then perhaps for relatively low costs, we could all become self sufficient for electricity - maybe time to buy that electric car too!!