Renewable sources needed to shape Thailand's future green energy economy

 

 

 

 

 

 

Currently, renewable energy generation accounts for only 15 percent of Thailand’s total energy generation (the rest comes from natural gas and coal). That’s left Thailand vulnerable to fluctuations in energy prices from international suppliers for many years. 

 

The “green energy economy” model is based on using renewable  energy as a supplemental (or even in the long term, a primary) source of energy while sustaining environmental conditions. Thailand has high potential with renewable and alternative energy sources including wind power, solar power, hydroelectric power, biofuel and nuclear power. Except for nuclear power, current technologies for all these sources are already well-established here. Costs, finding suitable sites, and long-term government support are the main factors affecting the rate of investment. To be commercially viable, for example, both wind and solar power require large areas with optimal wind speed or light intensity and connections to the national power grid.

 

Thailand’s target is to have 800 megawatts of  installed capacity of wind power but right now it has only 5 mw. (One mw can supply the simultaneous, 1-hour needs of about 500 houses with an average demand of 2 kw per house.) Government subsidies for wind power development have spurred private sector investment. Two wind farm projects are under construction in Nakorn Ratchasima province in the northeast and will be operational by the end of this year with a combined capacity of 200 mw.

 

Thailand also is very well suited for solar farm development. The country has long peak sun hours and low land costs in many suitable areas. As of early 2011, Thailand had almost 60 mw of solar power installed capacity; its target is 500 mw by 2020. To encourage investments by private companies, the government provides much higher subsidies for solar power generation than it does for wind power. It costs much more to invest in solar energy than it does to invest in conventional sources. Advancements in technology will undoubtedly lower costs. That and the high government subsidies should  spur future solar investment in Thailand.  

 

Hydroelectric power also has high potential here. Thailand has extensive experience with hydroelectric dams. Dams owned and operated by the Electricity Generating Authority of Thailand represented almost 14 percent of the country’s total hydroelectric energy generating capacity in 2010. A large hydroelectric dam also can be used for irrigation control and flood management. The country’s largest multipurpose hydroelectric dam, the Bhumibol Dam, is a very cost-effective generator, according to a 2006 EGAT study. The study identified more than 100 sites in Thailand with potential for hydroelectric power. As in many other countries, a key issue with  hydroelectric power in Thailand  is opposition by the people, especially those living along the project sites. Thus, future development may be limited to small-scale projects that are the most economical and environmentally friendly. 

 

With a combination of mature technology and huge agricultural stocks, Thailand also has strong potential in biofuel (which are converted from the material of living organisms). In Thailand, ethanol is produced from sugar molasses and tapioca. Current production is far short of the government target, but production is trending upward this year with five new plants expected to be added to the existing 19 plants. Last year, production was estimated at 1.45 million liters per day, about 40 percent of the target for 2012–2016. The future shift to  second-generation feedstock, which has dramatically higher yields, will reduce the pressure to use food stocks  for biofuel production.

 

Thailand has been making plans to develop nuclear power since 1966. Plans are for the first nuclear power plant to start operating in 2020 and the second plant in 2021. The two plants are expected to  together provide about 5 percent of the country’s total power generation in 2021. As in other countries, the key issues here are the development of the technology, safety, and public acceptance. Thus, nuclear power is more suitable as a longer-term energy source.

 

In Thailand, the government is the sole buyer of electricity.  Thus it is important for the government to consistently support the development of alternative energy sources. Under the government’s Alternatives Energy Development Plan, renewable energy is to constitute 20 percent of total energy consumption by 2022. In addition, the government wants to make Thailand the ASEAN region’s hub for biofuel and for renewable energy technology. To achieve this, the government will have to promote research and development in technologies and provide financial and regulatory incentives for private investment. The critical questions are which of the renewable energy technologies should receive priority, and how to promote them in a cost-effective manner. 

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Chanathip Pharino is an assistant professor at the Faculty of Engineering, Chulalongkorn University,  Bangkok.  Pongsak Hoontrakul is a senior research fellow at Sasin Graduate Institute of Business Administration, Chulalongkorn University. This article reflects their personal opinions, not those of Sasin or Chulalongkorn University.