logo
Power plan to be completed by year-end

Power plan to be completed by year-end

Bangkok Post02-07-2025
The oft-delayed power development plan (PDP) is expected to be completed within this year following a revision, said Prasert Sinsukprasert, energy permanent secretary.
Authorities need to revise key electricity generation issues in the PDP due to objections raised by energy analysts, though it sailed through a public hearing last year.
The government finished drafting the PDP, which is scheduled for implementation from 2024 to 2037, in May 2024, but the National Energy Policy Council (NEPC) has yet to provide final approval.
Energy analysts have requested adjustments to the PDP, which need to be considered before it is forwarded to the NEPC, chaired by the prime minister.
Experts want the government to determine an appropriate target for carbon dioxide emission reductions, as the new PDP promotes greater use of renewable energy, said Mr Prasert. They also want a more realistic projection of Thailand's electricity demand in the long term, he said.
Mr Prasert's comments were made as he presided over the 2025 Asia Sustainable Energy Week, which highlights energy technologies and solutions that promote clean energy. The three-day event got underway on Wednesday.
Under the PDP, total electricity generation in Thailand is expected to stand at 60,208 megawatts by the end of the plan, comprising 34,851MW from renewable power, 6,300MW from combined cycle power plants, which use gas and steam turbines to generate electricity, 600MW from thermal power plants or small modular nuclear reactors, 3,500MW from electricity imports and 2,000MW from other forms of energy.
The remaining 12,957MW would come from two types of energy storage technologies -- 10,485MW from battery energy storage systems and 2,472MW supplied by a pumped storage hydropower system.
Areeporn Asawinpongphan, a research fellow on energy policy at Thailand Development Research Institute, said earlier this version of the PDP could lead to overinvestment in new power plant development, though power demand may not increase considerably between 2024 and 2037.
This uptick in investment would raise electricity prices, driving up the cost of living for people, she said.
Another factor that caused a delay to the PDP enforcement involves what should be an appropriate renewable energy proportion set by the Energy Ministry.
The state's push for the second-phase renewable scheme with capacity of 3.6 gigawatts has been put back, following a dispute on criteria that gives a larger quota of renewable energy development to firms that failed to win renewables projects in an auction under the first phase of the scheme.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Fresh hope for clean energy targets
Fresh hope for clean energy targets

Bangkok Post

time4 hours ago

  • Bangkok Post

Fresh hope for clean energy targets

The new deadline for implementation of the much-delayed power development plan (PDP) offers a blueprint for Thailand to align with its clean energy goals. Prasert Sinsukprasert, energy permanent secretary, expects the PDP to take effect from 2025 to 2037, with enforcement starting by the end of this year following a major revision required by energy analysts. Thailand expected to start using the new PDP last year, but maintained the 2018 version, which stalled plans to raise renewable energy development. Under the new PDP, the country aims to have renewable energy comprise 51% of total fuel use by 2037, up from the 22% target in the preceding PDP. At the end of 2023, Thailand's renewable energy proportion tallied 20%. The renewable energy target and a reasonable projection of electricity demand over the next 12 years were among the issues discussed during the PDP revision. The Explainer looks into the debate and the impact for Thailand if changes to the PDP are not quickly finalised and forwarded to the National Energy Policy Council for approval. Is a 51% contribution from renewable energy adequate? Energy analysts want the government to increase the proportion of renewable energy to support plans to cut carbon dioxide emissions. The PDP does promote greater use of renewable power, but the proportion is too low, raising doubts over whether it will help Thailand achieve its net-zero target, said Naruechon Dhumrongpiyawut, chief executive of Gunkul Engineering, an integrated clean energy developer. Former premier Prayut Chan-o-cha announced in 2021 at the 26th UN Climate Change Conference that Thailand would be more aggressive in addressing climate change, striving to reach carbon neutrality, a balance between carbon dioxide emissions and absorption, by 2050 and a net-zero target, which is a balance between greenhouse gas emissions and absorption, by 2065. Some other nations in Southeast Asia set 2050 as their target for net-zero, meaning Thailand could be slower to curb greenhouse gases in the region. Areeporn Asawinpongphan, a research fellow at Thailand Development Research Institute, suggested the government increase renewable energy development by using more solar power. Authorities are not prioritising solar energy and battery technology, though their prices have begun to decline, she said. "We would like the government to specify clearly in the PDP an electricity generation target from solar energy," said Ms Areeporn. Rooftop solar panels can help businesses and households save on electricity bills, which can become expensive if oil and gas prices fluctuate in the global market. Thailand increasingly depends on costly imported liquefied natural gas for power generation as the cheaper domestic gas supply is dwindling. As solar power generation costs are not expensive, the government should take this opportunity to invest more in the development of this type of renewable energy, as well as an energy storage system to ensure a steady supply of electricity, she said. Natural gas comprises 60% of the fuels used for Thailand's power generation and will likely continue to be a crucial fuel for electricity supply, said Kurujit Nakornthap, executive director of the Petroleum and Energy Institute of Thailand. "We want to go green, but efforts must be done at a measured pace," he said. Natural gas is expected to be a key fuel for the world over the next 30-40 years as countries transition to clean energy, said Mr Kurujit. The government is aware of calls by energy analysts for more renewable energy promotion and is considering an appropriate target for carbon dioxide emission reductions, said Mr Prasert, the energy permanent secretary. Should Thailand's power demand projection be changed? The estimation of power demand in the 2024 PDP follows the same miscalculation of the nation's long-term electricity consumption that has been made over the past 28 years, said Ms Areeporn. The PDP expects power demand in Thailand to increase to 112,391 megawatts by 2037, up from 51,000MW in 2024. "If the projection is not changed, electricity users will shoulder unnecessary costs caused by the construction of new power plants," she said. The additional costs, widely known as an availability payment (AP), commits the government to pay for electricity throughout an entire period under power purchase agreements made with companies, though the actual usage may be less during that time frame. The AP benefits electricity suppliers but increases the power tariff, which is used to calculate electricity bills. Are there negative impacts if Thailand does not finalise the PDP? Delays in implementing the PDP can affect the country's attempts to draw foreign investment, said Ms Naruechon. If the PDP is not approved, Thailand cannot enforce the National Energy Plan, designated to take effect between 2024 and 2037 and serve as a roadmap for a low-carbon society. The PDP is among five long-term energy management plans in the National Energy Plan. The others are the oil plan, the gas plan, the alternative energy plan and the energy efficiency plan. The postponement of the National Energy Plan is an obstacle for Thailand, which needs to attract foreign investors who demand clean energy to operate their businesses, said Ms Naruechon. Though Thailand may develop attractive investment incentives for foreign companies, they are unlikely to quickly expand their businesses here if the promotion of renewable energy supply is unclear, she said.

Bangchak uncertain on petroleum plans
Bangchak uncertain on petroleum plans

Bangkok Post

time2 days ago

  • Bangkok Post

Bangchak uncertain on petroleum plans

SET-listed Bangchak Corporation has yet to decide whether to re-enter the petroleum business in Asia, though it is collaborating with Chevron Offshore (Thailand) to explore for oil and gas in a potential area in the Gulf of Thailand. Bangchak recently signed a cooperation agreement with the US-based firm to be a co-venturer in Block G2/65, which covers an area of 15,030 square kilometres in the Gulf of Thailand. Chevron was awarded a licence to explore and produce petroleum under a production-sharing contract signed with the Department of Mineral Fuels on May 30, 2023. The move could pave the way for Bangchak to increase investment in the Asian petroleum business, according to industry observers, but it remains unclear whether the company will push ahead with similar projects in the region. Bangchak declined to comment on regional expansion. "We are reviewing the annual operation strategy of Bangchak Group," said a Bangchak executive who requested anonymity. "Many factors will be considered before we announce our new strategic plan." Bangchak entered the Asian upstream petroleum industry in 2014 by acquiring a majority of shares in Nido Petroleum, which operated Matinloc and Nido oilfields in the Philippines. Bangchak later decided to exit the investment in 2018. In the same year, Bangchak shifted its interest to northern Europe to invest in Okea ASA, a Norway-based oil and gas drilling company, which operates a petroleum production facility at Draugen in the Norwegian Sea. Bangchak owns a 45.5% share in Okea ASA. In 2019, the Matinloc and Nido oilfields ceased production after four decades of operations, according to media reports. In 2025, Bangchak's wholly-owned BCPR partnered with Chevron to explore Block G2/65, one of three areas believed to be new petroleum sources in Thailand. The Department of Mineral Fuels awarded another two licences for Block G1/65 and G3/65, spanning 20,133 sq km, to PTT Exploration and Production Plc in Round 24 bidding in 2022. BCPR meets the criteria to be a co-venturer, said Prasert Sinsukprasert, permanent secretary at the Energy Ministry. Under the collaboration, Chevron has transferred 30% of its rights and obligations to BCPR but will still serve as the operator of the project. "This partnership aims to enhance the potential for petroleum resource exploration in G2/65, thereby contributing to the country's long-term energy security," said Mr Chaiwat.

Clean energy dearth dents foreign interest
Clean energy dearth dents foreign interest

Bangkok Post

time3 days ago

  • Bangkok Post

Clean energy dearth dents foreign interest

Ongoing political instability may slow Thai economic growth, but a larger hindrance is in the energy sector, as Thailand risks losing 1 trillion baht in foreign investment opportunities if the government does not step up efforts to facilitate renewable power usage, according to Thailand Development Research Institute (TDRI). Many foreign companies, especially those in data centre and cloud service businesses, are waiting for authorities to allow peer-to-peer power trade, eager to know how clean electricity will be bought and sold under a new law. Companies are still prohibited from buying renewable power directly from producers, but foreign investors want the government to adjust this outdated regulation. The current rule requires them to buy electricity through state electricity agencies such as the Electricity Generating Authority of Thailand. Many of these foreign companies increasingly depend on greater use of clean power. "Slow progress in new clean energy management can deprive Thailand of the ability to attract foreign investment and maintain the country's economic development," said Areeporn Asawinpongphan, a research fellow on energy policy at TDRI. Many industries are located in the Eastern Economic Corridor, but this economic zone envisioned as the country's high-tech industrial hub cannot ensure sufficient renewable power supply, she said. In June 2024, the National Energy Policy Council approved a pilot direct power purchase agreement (PPA) project, enabling companies to buy renewable electricity directly from producers, following a request from foreign data centre developers. The Energy Regulatory Commission and the Energy Policy and Planning Office already conducted a feasibility study on this project, aimed to have companies sell and buy 2,000 megawatts of clean power under direct PPAs, but the project has progressed at a snail's pace. This is an obstacle for companies that need renewable power for their operations to avoid the impact of the European Union's Carbon Border Adjustment Mechanism, which imposes a fee on imports of products using carbon-intensive manufacturing into the EU. Ms Areeporn said insufficient efforts to prepare for the shift towards clean energy can also affect many workers in industries that emit large amount of greenhouse gases. Green jobs promoting eco-friendly energy and manufacturing must be generated for workers who need to change careers, she said.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store