Energy

Energy 

- Focus on diversified power source for long-term stability 

The 2015-2036 Alternative Energy and Development Plan (AEDP) proposed by Dr. Twarath Sutabutr, the Director General of the Energy Policy and Planning Office (EPPO), is still consistent with the framework, but becoming more concise in terms of investment and focusing on the following plans: 

1) Power Development Plan 2015 (PDP2015) - This plan focuses on minimizing risk of energy insecurity by reducing usage of gas-fired energy and increase energy generation from coal, renewable sources, and power import. 

2) Alternative Energy and Development Plan 2015 (AEDP2015) - This plan comprises purchasing 46 MW biomass power from the Southern border provinces and 600 MW solar power from government organization in 2015, and then buying 500 MW local biomass and biogas power and 150 MW energy from waste. 

- Alternative energy for short term, coal IPP for long term 

Thailand would be focusing on Independent Power Project (IPP), especially coal-fired plants, and alternative energy from now on. If there is a coal-fired power plant bid, the following companies have the highest chance of winning: GLOW and HEMRAJ (using GHECO-One location) and ECGO and BANPU (using BLCP location), and IRPC. Conclusions about two alternative energy projects would be made within 2015: 1) For the biomass power projects in the three Southern border provinces, TPCH is most likely to win. 2) The government solar power project would benefit the following potential solar power generators: GUNKUL , SUPER, IFEC, TSE, SPCG, AKR, PPP, IEC, EPCO, CHOW, UAC, PSTC, SIAM, and SOLAR.  

- Top Picks: GUNKUL, TPCH, EGCO 

Our recommendation for the energy sector is NEUTRAL. Thailand's energy plans focuses on IPP. It would take time for the new round of IPP bid to take place; EGCO(FV@B184) is most likely to win. There may be short-term (one or two months) positive sentiment for alternative energy generators. The sector's top picks are GUNKUL(FV@B31) and 

TPCH(FV@B22).