As of 16 Sept 2009 FINAL DRAFT Thailand in the 2010s

Thailands Renewable Energy and its Energy Future : Opportunities & Challenges
I. Thailands Energy Overview: National Energy Policy

II. Thailands Renewable Energy Policy: Impacts on Climate Change

III. 15-Year Renewable Energy Development Plan (REDP) : RE Roadmap for Thailand 2008 - 2022

IV. Thailands Energy Future IV.1 IV.2 IV.3 IV.4 Advance Generations of Bio-energy (Biofuels, Biogas, Biomass) Thailand Hydrogen Economy Development Direction Future Clean Coal Technology for Thailand Thailands Future Nuclear Power Development

5) Summary: Opportunity, Challenge & Way Forward.

FINAL DRAFT Thailand in the 2010s Thailands Renewable Energy and its Energy Future : Opportunities & Challenges Ministry of Energy Thailand, 2009 _______________________________________________________

I. Thailands Energy Overview: National Energy Policy Energy is a prime mover of economic growth, and this is definitely true. While maintaining sound economic growth to cherish our prosperity, we need to pay more attention to efficient use of our energy resources with due consideration on the environmental sustainability. The Royal Thai Government is now implementing its policy in various areas in parallel with addressing the countrys urgent problems so as to achieve sustainable development of the country. As far as energy matters are concerned, the following will be underlined: Energy Sufficiency Society to be consistent with His Majesty the King Bhumibol Adulyadejs Sufficiency Economy Philosophy which focuses on the principle of morality-led knowledge; food and energy security; building of a knowledge-based and creative society; poverty alleviation and income disparity; development of good governance, rural development and decentralization of administrative powers; and promotion of Thailands role on the international arena to enhance economic linkages with other countries in the region to peacefully develop 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:

First: to establish sustainable energy security. The Government has a strong policy to develop domestic energy resources for greater self-reliance in order to increase energy stability and to sufficiently meet the demand by expediting the exploration and production of energy resources at both domestic and international levels. A target has been set to increase domestic crude oil production to 250,000 barrels per day by 2011, while the current level is at 225,000 bpd in 2009. The supply of natural gas from the Malaysia Thailand Joint Development Area (JDA) will also be accelerated to help meet this goal. The electricity production from renewable energy is also encouraged, particularly from small and very small-scale power projects, as well as the introduction of Adder and other incentive measures. The nuclear energy will also be an option of about 1,000 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 has elevated alternative energy as a national agenda by encouraging the production and use of alternative energy, particularly bio-fuel, biogas and bio-mass, for example, gasohol (E10, E20 and E85), bio-diesel (B5) and municipal solid waste, through our current 15-Year Renewable Energy Development Plan (REDP) 2008-2022 to enhance energy security while reducing environmental impact. We strongly promote community-scale alternative energy by encouraging the production and use of renewable energy at community level with appropriate incentives for the benefit of farmers, as well as rigorously and continuously promote research and development of all forms of renewable energy. Meanwhile, we also encourage the use of natural gas in the transportation sector by expanding natural gas distribution system nationwide. Third: to monitor energy prices and ensure appropriate levels, in line with wider economic and investment situation. The Government has supervised and maintained energy prices at appropriate, stable and affordable levels by setting appropriate fuel price structure which supports the 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 roles of the newly established Energy Regulatory Commission (ERC) will also be strengthened. Fourth: to effectively save energy and promote energy efficiency. Thailand has created the energy saving discipline as a national culture and encouraged energy conservation in all sectors -household, industrial, services & commerce and transportation -- through campaigns aiming to build up energy-saving conscience. We also keep promoting efficient use of energy by providing incentives to attract the private sector to opt for energy-saving appliances. We also set incentive measures to reduce electricity use during the peak period. Four Main energy saving initiatives have been launched to raise awareness i.e, Revolving Fund for EE/RE, ESCO venture capital funds, Tax incentives for energy saving and DSM Bidding. Furthermore, we research, develop and set standards for electrical appliances and energy conservation building; encourage the development of mass public transportation and railway system to promote effective energy use which will reduce the countrys investment in energy procurement. Fifth: to support energy development while simultaneously protecting the environment. Thailand has a strong policy to protect the environment from impact of energy industry generated by both energy production and consumption 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.

We need to develop energy resources for greater self-reliance in order to increase energy stability and to sufficiently meet the demand at both domestic and international level.. Abhisit Vejjajiva Prime Minister Dec 2008

Thailands Ministers of Energy

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

4. Dr.Piyasvasti Amranand

5. Lt. Gen. Poonpirom Liptapanlop

6. Mr.Wannarat Channukul,M.D. (Current Minister)

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

to creating energy security, supporting alternative energy development and maintaining the fairness and stability of energy prices. With the ultimate aim of ensuring the well-being of the Thai people, the Ministry has thereby defined its primary objectives to help alleviate the current economic crisis and raise Thailands energy self-reliance. II. Thailands Renewable Energy Policy: Impacts on Climate Change

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
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impacts on natural habitats and ecosystems which threaten biodiversity. These would have direct implications on social and environmental issues. Thailand has demonstrated its regional leadership in the South East Asia region during the last 20 years in energy and environment. Though having relatively low levels of GHG emissions in the last decades, now Thailand has increasingly experienced higher levels of GHG emissions and expects an even stronger increase in1 the future due to its continued economic development and population increase, among others . As a result, Thailand should, therefore, contribute to mitigate the impact of climate change as a member country of the world community, in a drive towards a decrease in GHG emissions resulting from activities in various sectors. It is likely that the main threat that will face fossil energy in the future is the development of catastrophic evidences on the climate change. It will put strong pressure to reduce drastically the carbon emissions. Even emerging countries will not escape penalization of the goods they produce on the export market if they are not carbon free. To deal with the above issues, the Ministry of Energy has launched an ambitious program to increase investments in renewable energy e.g. wind, solar, biomass and other clean renewable energy sources. The Ministry has also set in motion the plans to speed up the preparation of the 15-Year Renewable Energy Development Plan (REDP) 2008-2022 as well as the implementation pursuant to the Energy Conservation Program, Phase 3 (2005-2011), under which the target of energy saving has been adjusted from 10.8% to 20% by focusing mainly on energy saving promotion in the 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 economic growth, and help reducing the emission of greenhouse gases in the long run. At present, the Ministry of Energy continues to push its Renewable Energy Policies forward to relief security effects, towards the promotion on utilization of alternative energy such as Bio-fuel (Gasohol, Biodiesel) and Natural Gas for Vehicles (NGV), in parallel with campaigns urging for efficient use of energy. Currently, we has pushed all efforts in encouraging the production and use of bio-fuel and bio-mass such as gasohol (E10, E20 and E85), biodiesel (B5), solid waste, agricultural residue and energy crops through the implementation of the mentioned 15-Year Renewable Energy Development Plan (REDP), aiming to achieve the 20% target by the year 2022. We have promoted community-scale alternative 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.

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

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

Ethanol consumption targets Million litres/day Ethanol demand E20 available E85 available Million litres/day B100 demand
08 09 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22

1.24

1.34

2.11

2.96

3.5

4.0

4.7

5.4

6.2

7.1

8.1

8.3

8.5

8.8

9.0

Gasohol E10 sales nationwide 1,000 FFV vehicles

390,000 FFV vehicles

1,070,000 FFV vehicles

Biodiesel consumption targets

10 11 12 13 14 15 16 17 18 19 20 21 22

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

B2 sales mandate; B5 as an alternative fuel

B5 sales mandate

B10 available as an alternative choice

implement the 15-Year Renewable Energy Development Plan. We will proceed full steam ahead with the promotion of ethanol and biodiesel to be the energy for Thai people. This will help Thailand to be energy self-reliant. In addition, ethanol and biodiesel are renewable energy from energy crops; therefore, biofuel promotion will help increase the prices of agricultural products while reducing oil import and hence saving foreign currency of the country. Moreover, their retail prices are not expensive and these biofuels are clean energy, contributing to the reduction of environmental impacts and global warming problems. Particularly, E85 will be an important energy option for Thai people amidst oil price hikes. The Ministry will carefully evaluate the balance between the use of agricultural products for energy production and that for food production. With respect to the positive impact on carbon footprint of Thailand as a whole, it is firmly believed that with broad-based policy measures, the renewable fuel for road transport will be one of the high impact solutions. The land use management has 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 energy crops will actually act as a green carbon sink which will open up an array of opportunities to help improve both the environmental conditions and the livelihoods of rural people in the semi-arid or problematic soil areas. With regard to natural gas for vehicles (NGV), the implementation will be speeded up according to the action plan which has covered the preparation to accommodate the increase in demand, to reduce the problems of running out of gas, long queue and scarce service stations through improvement of the management and administration of NGV service stations, including acceleration of mother station construction, increase 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
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Right now we are speeding up the development of a clear and feasible action plan to concretely

incentive measures, besides the existing Adder measure, in order to induce greater investment in power generation using all potential types of renewable energy.
Table 1: Adder for RE power production sorted by type and capacity
Fuel Types / Size Adder (Baht/kwh) Extra Adder1 (Baht/kWh) Extra Adder2 (Baht/kWh) 1.00 1.00 1.00 1.00 1.00 1.00 1.50 1.50 1.00 1.00 1.50 Period (Years) 7 7 7 7 7 7 10 10 7 7 10

1. Biomass Capacity 1 MW 0.50 1.00 Capacity > 1 MW 0.30 1.00 2. Biogas Capacity 1 MW 0.50 1.00 Capacity > 1 MW 0.30 1.00 3. MSW AD / Land Fill Gas 2.50 1.00 Thermal Process 3.50 1.00 4. Wind Energy Capacity 50 kW 4.50 1.50 Capacity > 50 kW 3.50 1.50 5. Mini Hydro Capacity 50 kW - < 200 kW 0.80 1.00 Capacity < 50 kW 1.50 1.00 8.00 1.50 6. Solar PV 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 alternative energy.

Promotion will be made on the development of prototype energy villages, emphasizing the 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 this regard, the principles of Sufficiency Economy Philosophy of His Majesty the King will also be applied concurrently.

and in the region is crucial. In order to avoid the growing supply-demand gap, there is an urgent need to accelerate the development of renewable energy sources to meet the demand. We need to work out to explore ways to encourage more investments in innovative renewable energy technologies, that is, to shift from laboratory work to full-scale commercial production, as well as to promote technology transfer and beef up local skills in the development and manufacturing of renewable energy technologies. III. 15-Year Renewable Energy Development Plan (REDP) : RE Roadmap for Thailand 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.

Rising trends in the deployment, development and promotion of renewable energy in the country

Map Showing Arable Areas in Thailand Firstly, it is necessary to procure energy sources sufficiently for the domestic demand. The assumption of the final energy demand from 2009 to 2011 is equal to 2 percent, and from 2012 to 2022 is equal to 3 percent. These assumptions will make the final energy demand in 2011 equal to 70,300 ktoe, 81,500 ktoe in 2016, and the demand will reach the level of 97,300 ktoe in 2022. However, various studies show that, between 2009 and 2022, the energy production from domestic sources will not deviate from the present level significantly. For that reason, it is necessary to develop domestic RE resources to catch up with the growing demand. Next thing that has to be considered is the richness of the domestic RE resources. From the RE potential studies, Thailand can be counted as the high RE potential country. As an agricultural country, Thailand is full of agricultural products. At the same time, agricultural products processing industry can facilitate the energy production from the industrial by-products. These by-products can be processed into energy in the form of biomass, biogas, biodiesel and ethanol. Thailand also has the potential for natural energy such as solar 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 energy importation by large amount. From 1988 to 2008, the average primary commercial energy importation is 60.8 percent of the primary commercial energy demand, and this proportion becoming larger each year because the domestic energy production can not catch up the demand growth. Therefore, without serious RE development, Thailand energy importation dependency will rise to 70 percent. In that case, the energy and economic stability will face serious negative impact. Lastly, the International Energy Agency (IEA) global energy trend study found out that the present greenhouse gas (GHG) emission trend will cause the global temperature to increase in the long term at the average of 6 degree Celsius. 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. For national sustainable development, Thailand is required to come up with the measures and directions to deal with the global warming issue. The RE promotion and development is one of such direction to implement the GHG emission reduction, which is the important cause of the global warming.

By considering all the already mentioned factors,

oil will still be the main source of the global and domestic energy in the next 15-20 years. However, the procurable amount, production 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.

To install the RE as the national main energy in the place of oil To increase the national energy security To promote the holistic green local energy usage To support the domestic RE technological production industry To research, develop, and promote the high-efficiency RE technology Diagram 1: Target and Roadmap of REDP (2008-2022)
New REDP Targets (2008-2022)
es su r
ESCO Venture Capital BOI
2.4%

ea

CDM

Target 5,608 MW Existing 1,750 MW

Adder 3,858 MW -Small Hydro/Wind/Solar -Biomass/Biogas/MSw/ -Hydrogen

In ce n

Power

tiv
R&D

Adder cost

7.6% 6.4% 15.6% 19.1%

Target 7,433 ktoe Existing 3,007 Ktoe

Thermal

20.3%
Ethanol Target 9.0 Existing 1.24 Biodiesel Target 4.5 Existing 1.56 Hydrogen Target 0.1 ML/day ML/day ML/day ML/day ML/kg

Biofuels

Total RE output 19,800 ktoe/yr Reduce Import 461,800 mil.Baht/yr Reduce GHG by 42 mil ton/yr

4.1%

6.2%

2008

2011

2016

2022

Target 690 mmscfd (6,090 ktoe) Existing 108.1 mmscfd

NGV

As of February 2009

The 15-Year REDP with a share of renewable energy mixed to be 20% of the final energy
demand in the year 2022 (as shown in Diagram 1) is divided in to three phases: the short term from 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 on proven RE technologies promotion and the high-potential RE resources such as biofuels, power generation, and thermal energy from biomass and biogas with full financial support. The goal is to develop the RE at the amount of 10,961 ktoe or 15.6 percent of the total energy consumption (Table 1).

The mid-term is concentrated on the efforts to promote the RE technology industry, to support the new RE technology prototype development to make it economically sound, and to encourage new technologies in the biofuels production, the green city model development, and the strengthening of the local energy production. The goal is to develop the RE at the amount 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).

Table 2: 15-Years REDP Goals

Type of Energy Electricity Solar Wind Energy Hydro Power Biomass Biogas Municipal Solid Waste Hydrogen Total Thermal Solar Thermal Biomass Biogas Municipal Solid Waste Total Biofuel Ethanol Biodiesel Potential MW 50,000 1,600 700 4,400 190 400 existing MW 32 1 56 1,610 46 5 1,750 ktoe 1 2,781 224 1 3,007 m lt/d 1.24 1.56 2008 - 2011 MW ktoe 6 55 13 115 43 165 1,463 2,800 27 60 35 78 0 0 1,587 3,273 ktoe 5 3,660 470 15 4,150 m lt/d ktoe 805 3.00 950 3.00 0 6.00 66,248 4,237 6.4% 108.1 0 1,755 70,300 7,492 10.6% 3,469 10,961 15.6% 2012 - 2016 MW ktoe 11 95 42 375 73 281 1,682 3,220 40 90 58 130 0 0 1,907 4,191 ktoe 18 5,000 540 24 5,582 m lt/d ktoe 1,686 6.20 1,145 3.64 0 9.84 0 2,831 81,500 10,319 12.7% 5,260 15,579 19.1% 2017 - 2022 MW ktoe 56 500 89 800 85 324 1,933 3,700 54 120 96 160 1 4 2,313 5,608 ktoe 38 6,760 600 35 7,433 m lt/d ktoe 2,447 9.00 1,415 4.50 0.1 mill kg/d 124 3,986 13.50 97,300 13,709 14.1% 690 6,090 19,799 20.3%

ktoe 154 7,400 600

m lt/d 3.00 4.20

Hydrogen Total Total Energy Consumption Total Energy from R E (ktoe) Renewable Energy Ratio NGV (mmscfd - ktoe) Total Energy from RE + NGV (ktoe) Alternative Energy Raio

393.0

596

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 public budget, and 53,049 million baht from state enterprises. See the details in the Table 2.1 and 2.2 below. Table 2.1 : Investment Plan under REDP by categories
Investment (million THB) Solar Wind Biomass Biogas Municipal Solid Waste Ethanol Biodiesel Total 2009 1,045 280 21,925 3,600 1,350 770 3,500 32,470 Short - term 2010 695 2,800 20,340 4,125 6,600 3,850 3,500 41,910 134,165 Medium - term Long term 2011 (20 1220 16) (2022-2017) 695 4,726 56,159 4,900 18,200 29,750 35,050 45,510 30,640 4,500 6,750 9,000 4,000 7,800 4,500 4,620 15,400 13,860 6,020 4,340 1,440 59,785 102,726 145,349 Total 63,320 55,930 153,465 27,975 24,250 38,500 18,800 382,240

In the implementation of the 15-Years REDP, the total investment of both public and private

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Table 2.2 : Investment Plan under REDP by sectors

(1) Private Sector Investment Value Short Term Mid Term Long Term Total (mil baht) 2009 2010 2011 2012-2016 2017-2022 3 Phases 32,470 41,910 59,785 102,726 145,349 134,165 102,726 145,349 382,240 Total 1 (2) Goverment Spending 2,269 2,964 4,111 27,124 16,500 9,343 27,124 16,500 52,968 Total 2 (3) State Enterprise Investment 8,752 1,962 1,827 15,460 25,048 12,541 15,460 25,048 53,049 Total 3 156,049 145,310 186,897 488,257 Total

In conclusion, in order to facilitate sustainable development and economic growth, Thailand must combine forces from all sectors to put the REDP into effect. The government can not accomplish this task alone. The private sector 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 climate change issue.
IV. Thailands Energy Future IV.1 Advance Generations of Bio-energy (Biofuels, Biogas, Biomass)

greater effort in increasing access to further utilize renewable energy and other alternative energy as our future energy choices is essential. While maintaining sound economic growth, Thailand needs to pay more attention to efficient use of future energy taking into account the environmental sustainability, i.e. green and clean technology. For instance, the 15Years 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
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Strengthening energy security through

including consumers, are taken into the account to receive the highest benefit with only minimal problems and fairness from this plan. In the promotion of the ethanol and biodiesel consumption, the available material capacity is evaluated; the farming process is developed to have higher productivity. Both measures can push the market without negative impact on the availability of food supply. In fact food security can even be enhanced as Thailand has always been exporting carbohydrates in the form of cassava starch at marginal values while importing protein feeds for its aquaculture industry. Co-products of ethanol and biodiesel can directly replace those imports, making both the carbon footprint better due to the reduction of logistics emissions. Moreover, this plan also encourages the R&D on non-food material such as cellulose and seaweed for the future ethanol and biodiesel production on a long term basis. alternative energy especially for transportation will be focused on natural gas-based fuels, biomass alcohols, and electric/hydrogen vehicle. These will help reducing the GHGs emission level, enhancing the environmental friendliness, and greatly reducing the need of fossil fuels. Thailand has strongly supported the R&D on the alternative fuels such as biogas, ethanol (i.e. cellulosic ethanol biological and gasified), algal biodiesel, green gasoline (i.e. extracting oxygen from sugar to produce hydrocarbon), biobutanol, advanced generation biofuels (from genetically modified organisms) as well as BTL (Biomass to Liquid), E-diesel, hydrogenation (e.g. BioHydrogenated Diesel BHD), GTL (Gas to Liquid), ETBE, DME (Di-methyl Ether), and lastly, the Hydrogen Economy. It was forecasted that in the next 20 years, automobile will move away from fossil fuels to biofuels, to hybrid system (fuel/electric), to electric/plug-in car and finally will become the fuel cell technology vehicle. consumption at the rural community levels where several hundred units of community 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. IV.2 Thailand Hydrogen Economy Development Direction

On the way forward, besides short- and middle term ethanol and biodiesel plan, the long-term

Thailand has always promoted the small and distributed mode of energy production and

Thailand has been prepared for the global trend to move

toward the hydrogen economy and seriously develop the hydrogen energy utilization. REDP has dictated that Thailand will use this type of energy at least 100,000 kg/day by 2017 and gradually increase the amount in the following years especially in the transport and logistic sectors. The target for hydrogen energy consumption in transport and logistic sectors can be seen in the Table 1 of Section 3.

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.

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Therefore, Thailand has established the action plan to tackle with the hydrogen energy issue and push the country toward hydrogen economy in transportation logistic and power generation sectors. The action plan contains three phases as follows. Preparation Phase (present 2017) Thailand has to enact the related laws to facilitate the hydrogen economy such as Hydrogen Transportation Act, regulations, a safety regime, other supporting measures such as tax reduction, subsidies for hydrogen production plants especially ones with the GHGs emission reduction potential like the REs, and encouraging the HRD and PR management to build up the public confidence in hydrogen energy including technology transfer and demonstration. Hydrogen Economy Starting Phase (2017 - 2024) This is a market testing phase and introducing related technologies to the public. Necessary infrastructures also have to be tested to build up capacity and to enhance efficiency, for example fleet testing in various locations throughout the country with the emphasis on reasonable investment. Nevertheless, at the end of this phase, the investments to increase the installed capacity in hydrogen production lines have to be enhanced to be in accordance with hydrogen economy 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 in 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 and to prepare for the fully hydrogen economy commitment from various countries. IV.3 Future Clean Coal Technology for Thailand Coal use worldwide is projected to increase significantly and is expected to be the fastest growing primary energy source in the next 20 years primarily due to the increasing demand for fuel for electricity generation and in the industrial sector. At present, there are already substantial capacities of coal-fired power plants in the region and coal resources remain largely untapped. In Thailand, its energy plans indicate the 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 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.

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the long term, Thailand strongly encourages the use of clean coal technologies and promotes collaborative image-building for coal and CCTs in the light of global environmental concerns. We need to promote CCTs by conducting studies, among others, on upgraded brown coal, coal liquefaction and integrated coal gasification and looking into the potential of carbon capture and storage (CCS) technology as well as encouraging private sector investment and participation. While enhancing environmental planning and assessment of coal projects, harmonizing emission standards and minimum efficiency requirements for coal-fired power plants is also important. strategy and action towards harmonization of local practices to encourage coal utilization, resources and facilities. Moreover, building of a coal image aligned with public understanding is also a key success factor. IV.4 Thailands Future Nuclear Power Development

For the sake of national energy security in

To support future CCTs, it is essential to establish coal laboratory and standards, development

According

to Power Development Plan (PDP) 20072021, the total installed electricity capacity will increase from 28,530 MW in 2007 to 52,028 MW by the end of plan in 2021. Such growing electricity demand, fluctuation of fossil fuel prices and concerns over climate change, all turn out in a favor of nuclear power. Every 1 kilowatthour 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 Thailands nuclear facility and future development under the PDP, two 1,000-megawatt 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 Thailand (EGAT), the state-own company will be responsible as the owner and operator of these first units of nuclear power. Nevertheless, nuclear which combines capacity of production on demand and is not emitting greenhouse gas, still has burdens on capital intensiveness, long time lag and its sensitiveness to the public opinion.

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
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has joined the party to nuclear non- proliferation and peaceful uses of nuclear energy and will not intend to develop uranium enrichment and reprocessing of nuclear spent fuel in the national nuclear power program. Thailand is also preparing to participate in the relevant IAEA conventions which are necessary for the nuclear power program. The development of a nuclear power program is a long term process. It needs a strong leadership from the governments. The sensitive decisions in such program can be very well understood from the cost structure of the nuclear electricity. Last but not least is the public acceptance. As nuclear necessitates a time-consuming approach, it is not possible to develop it against the will of the people who need good understanding of the reasons supporting it. Education is one basis, but efficient and transparent use of nuclear energy is also the way to gain real confidence of the public. Currently, Thailand is exploring the issues pertaining to civilian uses of nuclear energy and nuclear energy safety as well as capacity building, education & training and information sharing.
In 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

Table 3 : Nuclear Sup-Committees

Thailand needs to develop our nuclear energy in accordance with the relevant international agreements and standards, particularly, under the framework of the International Atomic Energy Agency (IAEA) and other international and regional nuclear cooperative institutions which are already in existence. For Thailand by the year 2011 (as shownst in Diagram 2), the cabinet will make a decision and a final approval on the construction of the 1 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 Thailands Future Nuclear Development
(17 November 2007)

NPIEP Milestones for Nuclear Power Program Implementation

NPI: Nuclear Power Infrastructure NPIEP: NPI Establishment Plan NPPDO: Nuclear Power Program Development Office NPP: Nuclear Power Plant NRB: Nuclear Regulatory Body

1st Milestone

2nd Milestone

3rd Milestone

MS 0.1

MS 0.2

MS 1: Policy Decision

MS 2 : Call for Bids

MS 3: Start Operation

Nuclear power option included in PDP2007

To prepare for policy decision

Knowledgeable Commitment

Financial Commitments

Commissioning 1st NPP

Phase 0.1: Preliminary Phase

- NPIPC & 7 Subcommittees appointed - Issues & Milestones considered - NPIEP prepared

GO NUCLEAR

Phase 3: Construction Phase

- NPIEP fully implemented - bidding process completed - design & engineering - manufacturing - construction & installation - test runs & inspection - NPP commissioning license

Phase 4: Operation Phase

- commercial operation - O&M - planning for expansion - industrial and technology development plan

Phase 1: Pre-project Activity Phase

- approve NPIEP - set up NPPDO - infrastructure work started - survey of potential sites - feasibility study completed - public information & participation

Phase 2: Program Implementation Phase

- implement NPIEP with Milestones - full NRB established - legislation & international protocols enacted - suitable sites for bid selected - technology/qualified suppliers selected - prepare to call bids

1 year

3 years

3 years

6 years

2007

2008

2011

2014

2020

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V. Summary: Opportunities, Challenges & Way Forward.

Though fossil fuels still continue to play a major

role in Thailand and global energy needs, cooperation, including joint research& development, deployment and transfer of low and zero emission technologies for their cleaner use will be essential, particularly on the enhancement of energy efficiency and diversification of energy sources and supplies, particularly renewable energy. Sensible deployment of renewable energy will accelerate the economic and social development of the country. Renewable energy is seen as the right candidate to complement fossil fuel in order to support sustainable energy development. According to Thailands 15-Year Renewable Energy Development Plan (REDP) 20082022, clear policies and responsive plans and energy programmes for renewable commercialization have been addressed.

Meeting the countrys energy needs with unprecedented increases in oil and gas imports, coal use and GHG emissions will thus prove to be a challenge. For Thailand, which has demonstrated a rapid economic growth and a high need of energy supply, the challenge to ensure a secure supply is an overriding concern. For one, rising demand has led the country to scout and compete among other countries for available energy resources. And as worldwide energy demand soars, so does GHG emissions. For Thailand, the challenge is more serious as the country is both a contributor and victim of the effects of climate change. With projected dominance of fossil fuels, we are also poised to become one of the big contributors to global warming in the future. Thailand needs to seriously look at a risk on the impact of climate change with improved ability and capacity to cope with its effects. Moreover, it is likely that we may be confronted with additional costs associated with climate change mitigation and adaptation in the future. i.e. Open to All Options for Thailands Energy Mix. Indeed, increased use of fossil fuel should move Thailand to real action that should be undertaken now. The stable upward trend in demand makes it critical for Thailand to have its arms wide open to all available and possible sources of energy to keep its growth momentum. Diversification of energy resources and supply sources as a high policy agenda should be pursued. For example, abundance of renewable energy, however, will place the country on a better footing for additional sources given the right conditions to spur its development. 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 Adulyadejs initiatives as demonstrated in the Royal Chitralada projects. It can be said that the energy self reliance is part of the Sufficiency Principles.

One of the way forward is to meet demand while preventing irreversible damage to environment

In particular, Thailand has put in place multi-faceted policy packages which put the country at the

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energy mixed to be 20% of the country final energy demand in the year 2022, Thailand stands firm to cooperate with other dialogue partners to strengthen our energy security through greater effort in increasing access to further utilize renewable energy and other alternative energy as our future energy choices. Thus, greater involvement and engagement of various sectors and partners in the country will definitely make Thailand rise above the challenges.

Now that Thailand has recently adopted policies setting specific targets for a share of renewable

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The Ministry of Energy 25 August 2009

Editor-in-Chief: Dr. Twarath Sutabutr Editors: Dr. Weerawat Chantanakome Lead Author Ms. Doungporn Inpradit Mr. Sanphat Suwannathat Mr. Waranon Jansiri Ms. Kamolchanok Rujiwattanapong Contributing Writers: Dr. Samai Jai-in - Biofuels 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

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