Thailand's Electrical Energy Strategy Flashcards
Basics of Thailand’s electricity generation
If we go by the 2016 report from the International Energy Agency:
- 92% of Thailand’s electricity is derived from fossil fuel burning
- 71% is natural gas, 20% coal, 1% oil
Only 8% of energy comes from Thai renewables
- 3% large hydroelectricity (HEP)
- 4% biofuels and biomass
- 1% solar and wind
Which company is electricity mainly provided by in Thailand?
EGAT (Electricity Generating Authority of Thailand)
Overview of Thailand’s supply and demand
- Between 1990 and 2015, Thailand’s electrical energy generation quadrupled, from 40,000GWh to 160,000GWh
- During the same period, Thailand’s GDP per capita rose from 1500 dollars to roughly 6000 dollars (quadrupled)
- Thailand’s demand for energy has risen because population increased
- Endowment has changed as resources were used up so change in endowment
Why did Thailand’s energy supply quadruple?
Thailand had a rapidly expanding economy which increased demand as it developed into a MIC - rapid economic development (primary based economy to secondary and tertiary economy)
Factors affecting Thailand’s energy demand
- Manufacturing, the most energy intensive sector, makes up 34% of the Thai economy.
- This share has risen, which drives rising demand alongside reliance on inefficient industrial plans - rapid economic development
- Growth in demand from residential households is slower in comparison, but demand has still increased
- Thailand’s population has also grown from 56 million to 68 million from 1990 to 2013 - population growth
- Global financial crisis + floods → results in fluctuations in energy demand
What has the trend in demand in the consumption of energy been?
- Year-on-year increase, driven by continued industrial and financial growth (additional 2.6% demand 2013 > 2014)
- Demand is far greater than the domestic supply (approx. 60% of non-renewable energy resources are imported).
Why has Thailand prioritised relatively cheap fossil fuels over other sources?
- Historically, moderate reserves of oil in the Gulf of Thailand
- Large domestic reserves of natural gas that can be exploited
- Oil and gas relatively easy to import as neighbouring countries have reserves (Malaysia - oil, Myanmar - natural gas)
- Huge demand for energy in the economy, so the fastest way is to use fossil fuels, rather than to invest in renewable energy
- Energy policies in Thailand have worked in supplying energy
Has the mix of fossil fuels that Thailand uses changed? If so, why is this?
- Thailand has depleted its endowed oil resources
- Shifted from mostly oil to coal and natural gas
- Domestic natural gas field in Erawan first on-line in 1981- since then been very reliable
- All but two of Thailand’s oil fields are in decline, and production has plateaued
- Gas is seen as ‘cleaner’ than oil as well
Comment on the balance of domestic and imported energy sources. Is this positive or negative, and why?
- Large imbalance between domestic supply and imports;
- Imports are a constant drain on revenue in order to keep the power-supply on stream, also means Thailand is vulnerable to fluctuations in the price of gas and oil worldwide
How has the political situation affected energy supply in Thailand?
- Political unrest has stalled previous government incentives to attract energy companies to invest in upstream (future) energy projects.
- This has led to a reliance on existing infrastructure and imports
- Energy companies are uneager to invest in Thailand, due to political unrest, and not sure if they can make up for their investment
What does the new Power Development Plan aim to do, and how will this achieved?
- Ensure energy security by reducing use, including a RE target of 25% of total energy consumption by 2021 through a varied mix of renewable technologies.
- Solar energy holds by far the greatest potential energy in Thailand
- Government organised renewable energy incentive programs to ensuring that these technologies are cost competitive with more conventional power plants
Economic Strengths of Thailand’s energy strategy
- Thailand’s energy strategy has allowed the demand of Thailand’s rapidly expanding economy to be met and has allowed rapid economic development to take place
- -> Thailand’s GDP per capita has quadrupled
- So far, Thailand’s available capacity has always exceeded its rate of power consumption
- -> Thailand has one of the highest electrification rates in Southeast Asia (100% in 2012, 80% in 1990)
Social Strengths of Thailand’s energy strategy
- 100% electrification, therefore a huge rise in the quality of life for its population
- Electricity goes hand in hand with reduced infant mortality rates and higher life expectancy
- -> HDI has increased from 0.58 in 1990 to 0.73 in 2013
- -> Life expectancy has increased from 70 to 74 from 1990-2013
Environmental Strengths of Thailand’s energy strategy
- Thai Government gives incentives to small power producers (SPPs) and very small power producers (VSSP) in terms of favourable buyback rates.
- These incentives are targeted to SPPs who produce electricity using renewable energy technologies, especially, those based on biomass/biofuels and solar electricity
- EGAT buys the electricity and ‘adds’ the power to its system. This is therefore called an ‘add-in’ programme
- Therefore, there are a large number of small, renewable energy schemes across Thailand
Economic Weaknesses of Thailand’s energy strategy
- Demand is greater than the domestic supply of energy in Thailand. So, Thailand must import gas and coal. This is a constant drain on government revenue. Future energy insecurity.
- Because of political instability, Thailand has not been able to attract significant foreign investment to upgrade its power plants, therefore infrastructure is generally old and inefficient
- Because of the lack of diversity in the energy mix and the reliance on fossil fuels, Thailand’s energy security suffers. It is at the mercy of global variations in the price of energy resources
