Energy consumption to be restructured for national need

[webfact]

Energy consumption to be restructured for national need
By Digital Content



BANGKOK, Oct 22 -- After chairing a National Energy Policy and Planning Committee meeting at Government House today, Prime Minister Prayut Chan-o-cha said the government will promote the energy production from garbage and energy crops to reduce the amount of imported gas and oil.

The government will try to convince the public to welcome biomass and garbage-produced energy, he said.

Construction of more waste-to-energy plants will be a government goal.

The price of liquefied petroleum gas (LPG) would gradually rise to reflect global prices and protect market mechanisms, he said.

Longer-term subsidies damage the country, he said, explaining why the government is moving toward more responsible energy-use.

Kurujit Nakornthap, deputy permanent secretary for energy, said Thailand imported energy at more than Bt1 trillion annually and that imported crude and natural gas accounted for 85 per cent and 15 per cent respectively of total demand in the country.

In addition, nearly 70 per cent of Thailand's electricity generation depended on natural gas, and the proportion is rising even as deposits are dropping, he said, expressing concern.

To avoid an energy crisis, the Department of Mineral Fuels is inviting applications for petroleum exploration and production concessions on 29 blocks inland and in the Gulf of Thailand, Mr Kurujit said. (MCOT online news)


-- TNA 2014-10-22

[Pib]

...the government will promote the energy production from garbage and energy crops to reduce the amount of imported gas and oil.

Or said another way energy prices will probably rise.

[rickirs]

And yet the Cabinet just approved as part of its 2015 plans to develop transport the purchase of 489 buses to be fueled by expensive natural gas in the first quarter of 2015. The government cabinet seems like 30 chefs in a kitchen with each trying to cook up their own dish of programs without any coordination by the "master chef" to assure consistency of policy.

[Tep]

Lack of certainty in fuel supply for biomass power generation (rice husk etc) killed private investment in these small power plants. Until someone works out a way to address fuel supply using municipal waste, then there will be little private investment in these types of plants also. Only a few municipalities have a functional solid waste management system that can predictably and consistently supply a power generator.

Phuket incinerates its garbage using power hungry industrial incinerators. Krabi just signed a contract to ship its garbage to other regions of Thailand. Most Provincial Administation Organisations are trying to find investment for landfills and not addressing the systems involved in solid waste management. I saw a feasibility study for a proposed waste to energy facility under one PAO nearby Bangkok and everything was sensibly analysed except where the fuel would come from as the municipalities in that PAO had no garbage collection system.

Thailand has few indigenous energy sources. Bio mass and municipal waste make a lot of sense but it is not so easy. Rice farmers selling husk to power plants quickly realised that short term contracts facilitate regular price increases for their previously worthless material. Power plants can't operate that way.

[Tep]

And yet the Cabinet just approved as part of its 2015 plans to develop transport the purchase of 489 buses to be fueled by expensive natural gas in the first quarter of 2015. The government cabinet seems like 30 chefs in a kitchen with each trying to cook up their own dish of programs without any coordination by the "master chef" to assure consistency of policy.

Gas is more 'clean' or environmentally friendly that other petroleum products like gasoline or diesel. The issue is the use of gas for power production. Around 70% of power is produced by gas. The gas supply is 80% from the Gulf and 20% from Myanmar. Gulf gas will deplete in around 10 years (predictions vary) and Myanmar is making noises about using gas for domestic purposes and maybe not renewing or expanding the sale of gas to PTT (all Myanmar gas is used in Ratchaburi Power Plant - this is where the pipeline from Myanmar goes). So the only alternative is LNG, which at the moment comes from Quatar through expensive long terms contracts linked to oil prices. Only around 2 - 4% of Thailand's gas for power production comes from LNG but this will likely increase as indigenous sources deplete. There is more valued added in using gas in the petrochem industry and transport than power production. The new Power Development Plan will probably call for new coal plants and increased purchase from neighbouring countries in an effort to reduce reliance on gas a and in recognition of the expected cancellation of the plan for nuclear.

Fuel diversity is a critical issue for Thailand. My view is that Thailand should integrate closer with its neighbours for regional power trade. This is difficult institutionally and politically so will take a long time. Current approaches by policy makers to power planning is to secure long term contracts for one way power or fuel supply flows.