2011 International Conference on Alternative Energy in Developing Countries and Emerging Economies
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energy. It is assumed in this study that renewable
energy will increase at 1% per annum to the year
2050. The aim of this scenario is to explore if the
country can diversify its energy sources in the
long-term. While the energy import dependency
in this scenario is expected to be low due to the
availability of domestic renewable sources, the
public acceptance is also likely to be low due to
the high cost of advanced renewable
technologies.
They further analyzed the outcomes of each
scenario by developing a framework that can capture
security of energy supply and energy resource
diversity of Thailand energy system. A linear
optimization approach (Model for Energy Supply
System
Renewables
and
Their
General
Environmental Impacts: MESSAGE model) was
employed to examine the long-term impacts of the
three scenarios. Chaivongvilan and Sharma outlined
each scenario in terms of relevant energy parameters,
energy technologies, energy efficiency, economic and
environmental constraints. They concluded the
outcomes as the following:
Analysis suggests that the primary energy needs
for Thailand are expected to increase by
approximately four times the current primary energy
levels by the year 2050. Further, the introduction to
nuclear power and renewable energy, while causing
significant changes in the electricity generation
capacity mix, is unlikely to appreciably affect the
country’s energy import dependency. In addition,
increased contribution by renewable energy is likely
to improve energy diversity, and the introduction of
nuclear power is likely to worsen it.
The recommendation provided by Chaivongvilan
and Sharma is partially in line with the energy
policies that Thai government has actually adopted.
The 15-Year Renewable Energy Development
Program 2008 – 2022 (REDP) coupled with nuclear
power development under the Power Development
Plan 2007 (PDP) will be used to help Thailand
achieve economic development, energy import
reduction, and GHG emissions reduction goals. We
will elaborate on the Thai energy policies in next
section.
Policy and regulatory environment relating to
renewable industry
As mentioned in previous sections, security of
energy supply is a key driver for Thailand’s social
and economic development. Although the country
can use cheaper types of energy to meet its economic
growth, efficient and sustainable use of energy
resources has become the cornerstone of national
energy policy. Ultimately, Thailand aims to achieve
sustainably developed economy, safe environment,
and social equality. In 2008, the government
announced the national energy roadmap, the 15-Year
REDP, targeting to increase the share of renewable
energy to 20 percent of total energy demand,
currently accounting for 8 percent of energy
portfolio. According to the REDP, 5 basic principles
include:
1.
To establish sustainable energy security.
Foremost mission is to develop strong domestic
energy resources for greater self-reliance. Available
renewable energy resources shall be utilized and
commercialized. Thailand also plans to collaborate
with neighbor countries such as Malaysia, Lao and
Burma to enter into joint-energy production
agreements. In addition, the “Adder” program (feed-
in-tariff) mechanism will be proactively applied to
promote small power producers (SPP) and very small
power producers (VSPP) from renewable energy
sources. Finally, Thailand will develop two-1,000
megawatt nuclear power plants, accounting for 5
percent of total installed electricity capacity in the
country which will begin the operation in 2020-2021.
2.
To expedite and promote renewable energy.
Thailand will promote renewable energy as “national
agenda”, particularly for bio-fuel, biogas, and bio-
mass (gasohol E10, E20, and E85), and bio-diesel.
REDP will be used as a tool to improve energy
security and reduce environmental impact. The
country will provide incentives for farmers for
community scale renewable energy projects. At the
same time, programs to support research and
development of all forms of renewable energy will be
introduced. Thailand will also utilize its natural gas
reserve for transportation sector by expanding natural
gas distribution system nationwide.
3.
To monitor and ensure optimal level of energy
price, in line with economic and investment
situations.
Through subsidy programs, government
will continue to supervise and maintain energy price
at appropriate, stable, and affordable levels.
Government will ensure that the programs operated
under market mechanism and Oil Fund levee to
ensure effective use of energy and encourage greater
investment in energy business to improve service
quality and safety. The roles of “Energy Regulatory
Commission (ERC)”, newly appointed in early 2008,
will also be strengthened. Under the Energy Industry
Act (2007), the provision of ERC’s authority is to
approve tariffs and issue licenses - meaning that the
regulation of Thailand’s energy sector will become
more rules based, transparent and predictable.
4.
To effectively use energy and promote energy
efficiency.
Relevant governmental units will create
public awareness campaigns to promote energy
saving discipline as a national culture and encourage
