Alternative Energy

An inventive spirit, not only among private entrepreneurs but also in the halls of government, is pushing Thailand’s development of alternative energy. But “alternative” might not be the best word. With fossil fuels depleting and tomorrow’s generation certain to have a robust appetite for energy, perhaps “necessary” is more appropriate. Necessary energy sources in coming years include biofuel, solar, wind, waste and water, among possible others as yet unimagined.

Industry experts are confident that Thailand’s investment in alternative energy will increase steadily with the government, industry and private citizens all showing greater concern over pollution caused by petroleum products.

From a standpoint of economic survivability, it makes good sense for Thailand to cultivate renewable energy sources. Currently, the country still relies heavily on imported oil, even though Thailand itself has 78 petroleum felds.

And the threat always exists that oil prices could go skyward. Petroleum products account for about 57% of commercial energy consumption in Thailand. Diesel and gasoline power 72% of transport.

This draws attention to the fact that Thailand also possesses a large agricultural sector, representing ample raw material for development of the ethanol and biodiesel sectors. This agri- advantage is being tapped, as output of biofuels has shot up since oil prices soared in 2004.

High petroleum costs have made biofuel development one of the most active sectors of Thailand’s alternative energy industry. Progress is being achieved with ethanol made from cassava and sugar, biodiesel from vegetable oil, gasohol, biogas, and other forms.

According to the Office of Agricultural Economics, the planted area of cassava totals nearly 4 mi lliorai and covers 19 northeastern provinces. The country also has 11 ethanol plants that rely on sugar molasses as raw material.

Thailand my be the world’s No. 1 exporter of cassava products and No. 2 for sugar, but there is still plenty of opportunity for using these crops as a renewable energy source locally. Out of the total annual harvest of nearly 30 million tons of cassava, an estimated 3.7 million tons is available as stock for ethanol production.

However, one challenge that authorities and change advocates must monitor is whether the increasing use of farmland for energy crops is having a negative effect on the national supply and price of food.

Currently, fve ethanol plants approved by the Thailand Board of Investment (BOI) are being established at a combined cost of 16.5 billion baht. These projects are located in Nakhon Ratchasima, Ubon Ratchathani, Chaiyaphum, and Kalasin.

Ethanol consumption in the country is approaching 2 million liters per day, according to the Ministry of Energy. Projections are for that to climb steadily to 9 million liters/day by 2022. Proponents of biodiesel, which is running at about 1.35 million liters/day in 2010, see that segment rising to 4.5 million liters/day over the same period.

Diesel B2 was enforced nationwide in February 2008, and B5 will follow suit in 2011 as palm-oil cultivation expands to 2.5 million rais. Consumption of gasohol, a blend of mostly ethanol with some petrol, is expected to top 12 million liters a day in coming years.

The Swine Raisers Association of Thailand is leading the way in efforts to use biogas from livestock manure fermentation as a fuel source.

Biomass is yet another part of the complex formula for success in overcoming reliance on fossil fuels. Biomass is material derived from residue such as dead trees, yard clippings, rice husks and garbage that can be burned to produce heat and generate electricity. Although this promising sector is still in its infancy, biomass will see increased attention in coming years because it is a completely renewable source of energy. More trees can be grown and waste is a constant in society. However, further breakthroughs are required in conversion technologies to make this a feasible energy source on a large scale.

Even though natural gas has been on the energy scene in Thailand since the early 1980s, it is actually a very attractive area for new development. Today only about 6% of the energy used in the nation’s vibrant commerce sector comes from natural gas. Vast potential exists, however. Of Thailand’s 50 natural gas felds, nearly 30 are not in production.

As the al ternat ive energy movement picks up speed, the reverse effect will be seen with pol lution problems as vehicle emissions and waste water from factories subside. Thailand has signed several environmental conventions and joined “green” organizations. In addition, the government’s strategic longterm plan on climate change emphasizes R&D, institutional capacity, clean technologies and public awareness.

According to figures from PTT Public Co. Ltd., Thailand’s national energy provider, as of October 2009 the country had 351 NGV (natural gas vehicle) stations and 165,800 low-polluting NGVs, including taxis, tuk-tuks, personal and corporate cars and vans, trucks, and buses. The number of servicing stations is expected to increase to 595 in 2012.

The enthusiasm to constantly look to new horizons is vital for growth in the alternative energy industry. Clean and efficient, nuclear power looms as a possibility.

The Ministry of Energy is already conducting a feasibility study on what would be Thailand’s first 2,000-megawatt nuclear power plant, with three possible sites under consideration. Public awareness programs on nuclear power are also being carried out.

Findings from the study will be reviewed by the government. Once the proposed facility gains approval, construction will cost an estimated 160 billion baht. The nuclear plant could go on-stream by 2020.

Wind power, an ancient method with Egyptian roots, also stands as a huge opportunity in Thailand. For alternative-energy proponents, an encouraging goal is the government’s target to elevate the generation of wind power to 800 megawatts by 2022. That represents an exponential increase from current capability. Yearly wind speeds in Thailand average between 4.4 and 6.4 meters per second, with the southern part of the country boasting the best conditions for wind power. That region would also beneft from new jobs coming from the construction of wind turbines and the installation of related technologies.

Solar energy in Thailand is not on an impressive scale right now, although some private companies are starting to market solar roofing and small systems for residential and even commercial use. Demand is expected to rise, however, as the need for renewable energy grows and public awareness increases. The country is a producer of solar panels but most of output is for export.

Technological innovation is also taking place in regard to the use of hydrogen as an energy carrier. The gaseous chemical element can power fuel cells and batteries. Thailand has

already enacted laws as a framework for safely generating power from hydrogen, mainly the Hydrogen Transportation Act. Hydrogen production plants are on the drawing board as related technologies and infrastructure undergo development. Testing is also being carried out in various locations across the country.

Hydropower is among the cheapest forms of energy being produced in Thailand. For many years, in fact, water has been harnessed to create power in the country, although mostly on a small scale. Much room for development remains, as hydropower at present contributes only about 5% of the nation’s energy production. To boost this fgure signifcantly and ease the burden of other energy types, the Thai government continues to engage in negotiations on hydropower plants for cities and villages.

Government support of alternative energy trial and development is wideranging in Thailand. Nearly 20 agencies and organizations are involved, and funding comes from many pockets.

Alternative energy is one of the newer industries being promoted by the BOI. Approved projects can receive tax breaks and special deductions on transportation, electricity, and water supply costs.

In 2009, the Board received 402 applications for promotion incentives from investors planning alternative energy projects. That is a robust leap from 62 the previous year. The 2009 applications represent 229.1 billion baht in investment, well above the 19.9 billion worth a year earlier. From 2006 to 2008, the BOI approved 170 renewable energy projects with a total investment value of 104 billion baht.

As a framework for success, the Thai government in 2008 laid out a mammoth 15 year alternative energy plan. Objectives of the master plan are to shape a renewable energy culture in Thailand, strengthen the country’s energy security by slashing dependence on imported oil, promote “green” communities across the nation, and support R&D of high-effciency technologies for alternative energy.

The target by 2022 is to increase alternative energy’s share of national energy consumption to a solid 20%. This is to be achieved through cleandevelopment legislation for a low-carbon society and switching to reliable sources of power. Besides achieving energy security, the plan will uplift local society by creating jobs in rural areas, generating extra income for farmers, and generally improving the quality of life for the Thai people.