September 2010
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 fields, nearly 30 are not in production. As the alternative energy movement picks up speed, the reverse effect will be seen with pollution 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 long-term 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 benefit 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.
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September 2010 Continued from P. 5
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 figure significantly 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 wide-ranging 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-efficiency 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 clean-development 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.
Survey Shows Japanese Investors Confident as Business Recovers Japanese companies investing in Thailand are expressing a very positive outlook more than a year after the global economic crisis. This is according to results of a business sentiment survey by the Japanese Chamber of Commerce, Bangkok (JCC), with upbeat responses given in virtually every category.
Japanese Capital Investment Plan 2010 (Manufacturing Sector)
In its Spring 2010 poll of Japanese corporations in Thailand, the JCC’s Economic Survey Team found that business Note: The figures above show aggregation of corporations who responded in the year 2009 and 2010 sentiment rose generally in Source: Survey of Business Sentiment on Japanese Corporations in Thailand for the Spring, H1/2010 by JCC, Bangkok the second half of 2009 and picked up more steam in the first half of 2010. Of 375 companies responding, 74% noted increased confidence during January-June 2010, up 3 points from the previous six months. That follows what was a huge jump in positive sentiment from 15% in H1 2009 to 71% in H2 2009.
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Although growth since early 2009 has been substantial, the percentage of companies reporting that business will improve in the second half of 2010 decreases to 59%. Many respondents simply anticipate business holding at current levels in the coming