Ministry unveils energy plan for fiscal 2015
Play
Bidding, PDP, price reform top agenda
The Energy Ministry has disclosed its plans for fiscal year 2015, including expedition of the 21st petroleum-concession bidding round, preparing the new Power Development Plan (PDP) by year-end, and another round of energy-price restructuring to reflect actual costs.
Energy Minister Naronchai Akrasanee yesterday disclosed which policies would be implemented in the new fiscal year, which began on Wednesday, to the Energy Ministry’s high-ranking officials on the 12th anniversary of the ministry’s establishment.
To ensure energy-supply stability, the ministry will expedite the holding of the 21st petroleum-concession bidding round to the end of this year, including the management of concession plots due to expire in the period, as well as negotiations with neighbouring countries, especially Myanmar and Cambodia, over the boosting of cooperation in energy matters.
Prime Minister General Prayut Chan-o-cha is scheduled to visit Myanmar next Thursday to discuss and facilitate future cooperation with the country in electricity generation, and in oil refining via Thailand’s leading energy firm, PTT.
As to cooperation with Cambodia, an energy working committee will be set up by the Thai and Cambodian energy ministries to negotiate on how to proceed with the development of offshore petroleum fields in an area disputed by the two countries.
The new PDP, meanwhile, will call for a higher proportion of coal-driven power plants due to the relatively lower production costs and today’s clean coal-power plant technology, which is more friendly to the environment.
The Electricity Generating Authority of Thailand’s power plant in Krabi province could commence operations next year, during the current government’s one-year term.
The Energy Policy and Planning Committee will meet on October 22 to consider energy-price restructuring – covering oil, liquefied petroleum gas (LPG) and natural gas for vehicles (NGV) – to reflect actual costs.
Government support for alternative energy will also be made clearer this year, while consideration will be given to the purchase of electricity only at locations with definite power-transmission lines, in order to better manage alternative-energy increases later.
Energy Ministry permanent secretary Areepong Bhoocha-Oom said the vital plans for the new fiscal year were in line with the government’s policies, and the ministry had allocated operating budgets totalling Bt1.976 billion for these purposes.
As for a petroleum concession due to expire in 2022, a consulting firm will be brought in to appraise the assets of the concession, which should be completed by June next year, and finalised by October.
The signing of memoranda of understanding for the purchase of electricity from Myanmar and Cambodia should take place next March, he said.
The Alternative Energy Development Plan is set to be completed by the end of this year, with the emphasis on promoting power plants driven by recycled garbage.
Any impeding laws/regulations will be revised, including expediting of the targeted 2,000-megawatt electricity purchase from the country’s solar-farm projects.
Conservation
Energy-conservation plans will also be completed by year-end and implemented in 2015, while energy-price restructuring will better reflect the actual costs of LPG, NGV and diesel, whose prices will rise during this fiscal year, said Areepong.
The Energy Ministry will consider lowering the target pertaining to the raising of LPG (cooking gas) prices, for which the previous study suggested the hiking of LPG price to Bt24.82 per kilogram to reflect actual the gas-separation factory cost.
However, global LPG prices have declined sharply from U$800-$900 (Bt26,015-Bt29,270) in early 2014 to $747 per tonne today. Hence, the raising of the LPG price for both the transportation and households sector may be to no more than Bt24.82 per kilo, in accordance with the set target.
As for increasing excise duty on diesel, with petrol excise being cut at the same rate, the Energy Ministry will proceed with this matter after the Oil Fund moves into positive territory, which is likely to be early next year, he added.
