Thailand’s government has reconfirmed its commitment to gas in its new Power Development Plan (PDP), which sets a target for gas to generate 53% of the country’s power in 2037. This is an increase from 30-40% in the previous PDP published in 2015, and indicates the country will become increasingly reliant on imported gas, as domestic production declines. Consequently, the Electricity Generating Authority Thailand (EGAT) has turned its back on coal-fired power plants in southern Thailand.
EGAT would instead focus more on power plants that burn natural gas, with Surat Thani named as the site for construction of two such facilities. Each of these would generate 700 megawatts of electricity into the national grid system, the first in 2027 and the second by 2029.
The just-released draft 2018 Power Development Plan (PDP) calls for the government to invite the private sector to invest in a 1,000-megawatt “independent power producer” (IPP) project that would start generating electricity in 2034.
Energy experts believe southern Thailand should have at least one major coal-fired power plant so that there is diversity among fuels used for generating electricity, which would favourably affect prices and help guarantee power security.
(Sources: Interfax; The Nation)
Gulf Energy Development Co., LTD (GED) and Mitsui & Co. Ltd, who jointly own the project for Thailand's largest proposed combined cycle gas turbine (CCGT) have awarded Pöyry, a Finnish consulting and engineering firm, with a technical advisory services assignment. The 2,500 MW project, consisting of four generating units with each having 625 MW generating capacity, will be located in Sriracha District, Chonburi Province, Thailand.
Pöyry acts as Lenders Technical Advisor in the project, including technical due diligence, construction monitoring and operation monitoring. The commercial operation date (COD) for the first unit is projected to be in March 2021, with the second to fourth units expected to reach COD in October 2021, March 2022, and October 2022, respectively.
The new power plant is expected to be the cleanest and most efficient CCGT plant in Thailand. The power plant will comply with the environmental and social standards and the International Finance Corporation (IFC) - Performance Standard, reducing its environmental and social impact beyond the Thai National Standard requirements. It will also help to ensure reliable and cost-effective power within the country, and support Thailand's goal to develop the special economic zone in the same region - the Eastern Economic Corridor.
(Source: Pöyry, Press Resease)
The auction for the Erawan and Bongkot petroleum fields in September 2018 saw 3 companies competing; Chevron Thailand Holdings Ltd, PTT Exploration and Production Plc (PTTEP) and PTTEP Energy Development.
Chevron Thailand Holdings Ltd is bidding in partnership with Mitsui Oil Exploration Co Ltd, while state-owned PTTEP (PTT Exploration and Production) Energy Development Co Ltd with M2 G2 (Thailand) Ltd. PTTEP will bid just on Bongkot, while for the Erawan gas block they will partner with Mubadala Petroleum (Thailand) Ltd, which also operates an oil and gas field in the Gulf of Thailand.
The Bongkot and Erawan gas fields are considered vital indigenous sources of Thailand’s energy supply, with a combined natural gas production accounting for 60% of the country’s total output. The National Energy Policy Committee launched the auction for Erawan and Bongkot petroleum fields on the instructions of the Department of Mineral Fuels under the Ministry of Energy. With the current licenses for the field due to expire in 2022 and 2023, the Ministry of Energy on April 24 invited interested parties to apply for the auction.
In the screening process, 65% weightage will be accorded to the gas price to the state, while profit-sharing will have 25% weight, along with a 5% weight each for bonus or special payment to the government and local staff employment.
The winning bidders are expected to have a combined capital expenditures and working capital of THB 1.2 trillion (USD 36 billion) over the next 20 years, bringing in THB 800 billion (USD 24 billion) in revenue to the state.
(Source: The Nation; Bangkok Post)
State-owned power utility, Electricity Generating Authority of Thailand (EGAT), has issued a Request for Expression of Interest for importing 800,000-1.5 million mt/year of LNG for four to eight years starting March 2019. This move signals the opening up of the country's gas markets, which have been controlled by state-run oil and gas company PTT. EGAT, which is Thailand's largest power producer, will import the gas at PTT's Map Ta Phut LNG receiving terminal.
EGAT has invited LNG producers and businesses in the international market to submit a Request for Expression of Interest (REOI), along with information of their readiness to supply LNG in order for EGAT to select and register before entering the bidding process. EGAT will choose the producer or business with experience, financial stability, and readiness to supply LNG in both quantity and quality. EGAT’s LNG price must not exceed the lowest LNG price of Thailand’s current long-term supply contract. This is in line with the resolution of the National Energy Policy Committee to promote competition in the LNG business on July 31, 2017, and for EGAT to become a new LNG importer of Thailand.
The power producer, which has an installed generation capacity of over 15 GW as of March 2018, will use the imported gas to feed its gas-fired power plants including 1,220 MW of capacity at South Bangkok, 710 MW at Bang Pakong and 750 MW at Wang Noi. EGAT expects a significant portion of its gas demand to be met through direct LNG imports instead of having to rely on PTT.
(Sources: S&P Global Platts; Electricity Generating Authority of Thailand)
The Metropolitan Electricity Authority (MEA) celebrated its 60th anniversary on 1 August 2018 moving forward with the implementation of its Smart Metro project focusing on transforming the Greater Bangkok area into a wireless metropolitan area. The initiative incorporates advanced technologies and the latest innovations into its future electricity system development plans.
MEA Governor Chaiyong Puapongsakorn revealed: “So far, the MEA has successfully replaced overhead power lines with underground power cables along a total of 45.6 kilometers, with another 169 kilometers of replacement work currently in-progress. Additionally, throughout the remainder of 2018 the MEA plans to extend the project’s coverage to other sites and avenues.
The MEA has also developed new service innovations incorporating advanced technology to better serve all consumers requesting electricity installation through the MEA Smart Life application as well as the website MEASY, through both of which consumers can request electricity installation from anywhere without having to visit an MEA district office. Moreover, consumers will be informed immediately of all related costs and how to settle electricity bills conveniently using a range of payment channels, and monitor the status of each request all the way through to completion. MEA has also developed an aplication, called MEA EV, to inform users of electric vehicles of the location of charging stations, and enable them to reserve a charging point.
(Sources: Bangkok Post; The Nation)
Basic Energy Corp (BEC) has signed deals for the purchase of 15% stakes in two Thailand based engineering, procurement and construction firms which are involved in the construction of a 220-megawatt solar plant in Myanmar. The agreement marks the company's foray into solar energy projects abroad.
Basic Energy Corporation is a publicly listed holding company in the Philippines, with business interests in various fields of renewable energy and alternative fuels, and oil and gas exploration and development.
In a statement, Basic Energy said it signed an agreement with Meta Corp. Public Co. Ltd. covering the purchase of shares in Vintage EPC Company Ltd. and VTE International Construction Co. Ltd.
VEPC and VINTER are the EPC supplier and the EPC construction service contractor, respectively, for a 220-megawatt solar power plant located in Minbu District in Magway Region, Myanmar.
The project will be completed in four phases of 50 MWs for Phases 1, 2 and 3 and 70 MWs for Phase 4. Phase 1 is targeted for completion by the first quarter of 2019. The subsequent phases shall be pursued after completion of earlier phases, to achieve full completion of the four phases on or before 2022.
BEC said it has been exploring opportunities in various fields of renewable energy in the Philippines and in Asia in line with its goal to be a major renewable energy and power company.
(Source: Steel Guru)
Gulf Energy Development Plc (Gulf Energy), which today is Thailand’s third largest power producer, is planning to invest around USD 3.7 billion over the next six years in order to to double its generating capacity by 2024.
The company’s chief business development and strategy officer revealed that Gulf Energy is targeting annual revenue growth of 13.2 percent as it expands generating capacity from 5,283 megawatts (MW) currently to 11,126 MW by 2024.
The company, aims for revenue growth of 120 percent in 2018, and expects that revenue contribution from overseas to reach 30 percent within 5-6 years.
In November 2017, Gulf Energy raised USD 733 million through initial public offering (IPO). It was the country’s biggest corporate IPO in more than ten years.
BCPG Public Company Limited (BCPG), the renewable energy business of Thai petroleum company, the Bangchak Corporation, aims to expand its business overseas to Australia, South Korea, Japan as well as ASEAN, through mergers and acquisitions (M&A) with renewable energy firms.
The company has plans to boost its renewable power generation capacity during 2018 by 100 megawatts, from the current 600 MW. Projects expected to initiate operations in 2018 include a 12 MW solar farm in Thailand , two solar power farms in Japan with 24 MW each, a 14 MW wind farm in the Philippines and a 158 MW geothermal power plant in Indonesia.
In its home market of Thailand, BCPG is collaborating with leading property developer, Sansiri Plc, and Australian company, Power Ledger, for deploying renewable energy assets for commercial and residential units of Sansiri’s real estate development project in Bangkok and providing a blockchain-based peer-to-peer (P2P) energy trading and energy management platform, the first in South East Asia. Power Ledger's P2P energy trading application allows businesses, such as utilities, to host trading on the Platform, enabling the sale of surplus renewable energy generated at residential and commercial developments. The platform is involved in ongoing or completed trials and projects in Australia, New Zealand, Japan, India and the US.
The first phase of the BCPG project includes installations at Habito Mall (approximately 55 kW), Bangkok Prep International School (230 kW) and Park Court Condominium of MK Property (180 kW). Rooftop solar panels have been installed at Habito Mall, and electricity sales are expected in June. BCPG is currently installing solar panels on the other buildings, and after completion of the installation, Power Ledger will deploy its P2P platform.
BCPG intends to spend around 10 billion baht (USD 312 million) for renewable energy and blockchain related projects. Of this around 7 billion baht will go towards providing smart energy infrastructure at Smart Park in the Eastern Economic Corridor (EEC) at Map Ta Phut, Rayong. BCPG signed a Memorandum of Understanding (MOU) with the Industrial Estate Authority of Thailand (IEAT) for the project in February 2018. Using the Power Ledger energy-trading platform, building managers in the project will be able to trade renewable energy from solar panels installed on each building with autonomous financial settlement enabled through the use of a secure banking interface.
(Source: BCPG, Bangkok Post, Power Ledger)
Sino-Thai Engineering and Construction Public Company Ltd. (STECON) has awarded Pöyry with the engineering services assignment for Chana 20.6 MW net biomass power plant project in Chana District, Songkla, Thailand. The owner of the project is Chana Green Company Limited, a private power producer company and subsidiary of Gulf Development Company Limited. STECON has been selected as the EPC contractor for the project, which uses rubber wood as fuel.
Pöyry's assignment covers complete contractor's engineering services for the project, including process and plant engineering, plant layout design, civil and structural design, mechanical and piping design, control and instrumentation design, electrical design, and procurement and tendering services. The overall schedule for the project is 24 months and is expected to have a March 2020 Commercial Operation Date.
This biomass power plant is being implemented under Thailand's Small Power Producer (SPP) scheme, whereby 20.6 MW are sold to the Electricity Generating Authority of Thailand (EGAT). The project has received notice to proceed in early March 2018.
(Sources: Pöyry; Reuters)
Schneider Electric of France has praised Thailand’s 4.0 initiative as a key driver of the transformation process. Thailand 4.0 is an economic model that aims to create a value-based economy that is driven by innovation, technology and creativity.
According to Schneider Electric, it’s now just the beginning of a global digital transformation journey for most customers and Thailand has also enjoyed a relatively strong growth of its industrial and manufacturing sector, driven by export demand especially for food and beverages, automobiles, and petrochemicals. The country’s demand for automation and optimization projects is expected to increase due to the wider adoption of more smart factories using Internet-connected machines and devices.
Schneider Electric reviewed that Thailand, Vietnam, Indonesia and Singapore are among major markets for Schneider Electric in Southeast Asia. Based on its Eco-struxure platform, Schneider focuses on the optimization and automation of energy systems, industrial and manufacturing sectors, buildings and infrastructure systems. The Eco-struxure platform is designed to connect machines and devices in energy plants, factories, data centers, buildings and infrastructure systems, among others, to boost operational efficiency for cost-saving and higher productivity.
For example, end-to-end connection of machines and other Internet-of-Things (IoT) devices in the industrial and manufacturing sectors will enable automation and optimization of entire processes which are a critical goal of the government’s Thailand 4.0 initiative aimed at boosting the country’s international competitiveness. The demand for smart power grids, building automation, more reliable power system for data centers is projected to rise due to the Thailand 4.0 initiative.
For the energy sector, many countries have turned to solar, wind and other renewable sources to tackle environmental challenges while decentralizing their energy production as evidenced by a rising power generation capacity that uses rooftop solar panels and other systems.
For buildings, the recovery of Thailand’s real estate sector is expected to lead to more investment in the new generation of smart buildings with energy-saving, interactive and mobile control features which can be enabled by the Eco-struxure platform for buildings.
For tourism infrastructure, it is another major market given that there are more than 30 million foreign tourist arrivals annually, so airport and other infrastructure maintenance are necessary. Numerous hotels and other tourist facilities can also benefit from automation and optimization to save energy and increase productivity as well as comfort and reliability.
In general, an automation and optimization project may cost up to USD 20 to USD 30 million with the investment break-even point within a few years’ period due to energy and other savings as well as higher productivity. In fact, the energy savings are generally up to 50 per cent, while operational efficiency also rises due to less or zero down-time facilitated by predictive analytic in machine and device maintenance.
Among Schneider’s major customers in Thailand are Supernap, which has just opened a THB 10 billion (USD 306.2 million) state-of-the-art data center in Chonburi province, and East Water, a major supplier of water for industries on the Eastern Seaboard.
(Source: Schneider Electric; The Nation)
BMW Thailand, together with Thai conglomerate Central Group, real estate company AP (Thailand) PCL and GLT Green, are pioneering the ChargeNow project in the country. The project is a commercial charging network for plug-in hybrid electric vehicles and electronic vehicles of any brand and model. In the first phase, up to 50 charging locations at Central and AP properties in Thailand will be set up for users.
The partnership among the companies will make public charging stations more easily accessible in the country, and also aims to expand public charging stations to cover the whole country. ChargeNow currently has more than 65,000 public charging outlets for electric and plug-in hybrid vehicles in 27 countries around the world.
(Sources: The Nation; ChargeNow)
China-based photovoltaic (PV) products provider Jolywood (Taizhou) Solar Technology Co Ltd has signed an agreement with Thailand’s IMI Industries Co Ltd under which the IMI Group will distribute Jolywood’s double-glass bifacial PV modules to the Thai solar market. Jolywood and IMI Group are targeting a total sales goal of 100 MW modules for the Thai market, and 200 MW for the broader South East Asian region.
The deal marks the entry of Jolywood in the South East Asia where solar PV is growing due to feed-in tariff schemes. Thailand is the largest producer of solar energy in the region due to strong government support. The country’s solar capacity has increased from 1,299 MW in 2014 to over 2,800 MW in 2016 and the country is targeting to expand and install 6,000 MW by 2036. Thailand is also becoming a regional model for other South East Asian nations that are beginning to increase their solar programs.
(Sources: The Nation; PV Magazine; Asian Power)
Philippines-based Basic Energy has announced that it is investing in two of Thailand-based Vintage Engineering's (VTE) subsidiaries, which are involved in South East Asia’s largest solar power project in Myanmar. As part of Basic Energy's plans to expand its portfolio of renewable energy projects in the Philippines and abroad, it is looking to take up a 12.5% stake in both Vintage EPC Co. Ltd. and Vintage International Construction Co. (Vinter). Both Vintage EPC and Vinter, in partnership with GEP (Myanmar) Co. Ltd., are working on the engineering, procurement and construction of a 220-megawatt solar plant at the Minbu District in Myanmar.
The Thai government’s 2015-2036 Power Development Plan aims to increase solar energy production in the country to 6,000 MW, and boost the share of renewable energy from 12% to 30% of final energy consumption by 2036. Thailand is fast becoming a regional role model for South East Asian nations that are starting to scale up their solar programs. The country's experience with large solar farms and its favorable renewables policies has made it a hub for PV testing services and a source for information. This experience is also proving helpful for some Thai companies as they venture into the Myanmar market, where the capacity for growth in the solar energy market is expected to be enormous.
(Sources: BusinessInquirer; Reuters)
Submissions for Thailand’s first 300MW hybrid PPA scheme, which promotes the use of energy storage to supplement renewable energy generation, closed on 20 October 2017. Earlier in the year, the hybrid scheme was introduced by Thailand’s Ministry of Energy and the Energy Regulatory Commission (ERC), which outlined details of the related 20-year power purchase agreements (PPAs). The regulator has been attempting to encourage the development of energy storage batteries, and the PPA requirement of having a fixed output during the day allows an opportunity for renewable energy developers to add energy storage capabilities.
According to Watson Farley & Williams, an international law firm, Thailand’s previous renewable energy PPAs were “nonfirm” and accommodated the delivery of electricity below the installed capacity of the power plant. Nevertheless, the new hybrid PPAs will be “firm” in order to reduce the variation in intermittent energy sources, and will require a continuous baseline level of production not previously seen in stand-alone solar or wind farms.
Watson Farley & Williams explained further that the “firm” element of the PPAs requires the power producer to deliver between 98% and 102% of the PPA capacity during peak periods, which in Thailand is the daytime period between 9am and 10pm on weekdays. The PPA then limits power output at other times to 66.3% of the PPA capacity.
The size of the projects must be between 10-50MW. It has been recommended that the 65% baseline requirements could be achieved through biomass, biogas and refuse-derived fuel, while solar, wind and small hydro combined with storage batteries could bring generation up to 100% during the peak daytime periods.
The scheme comes with a feed-in tariff (FiT) for renewables of THB 3.66/kWh (USD 0.111), which is split between a FiT for the fixed tariff component of THB 1.81/kWh and a FiT for the variable tariff component of THB 1.85/kWh.
(Sources: PV Tech; Watson Farley & Williams)
Sebigas UAC (a joint venture between between the Italian company Sebigas S.p.A., a sub-holding of the Maccaferri Industrial Group, and UAC Global Public Company Limited, a Thai listed company), has been awarded for the construction of a 1MWe biogas plant in Udon, northeast of Thailand, by Ruangsiriwan Green Energy. Ruangsiriwan Co. Ltd, located in Bangkok, is active in the construction of power plants from renewable energy sources, and owns wind and solar power plants. For the construction of its first biogas plant the company decided to award Sebigas UAC, in recognition of the company's long-term experience in the anaerobic digestion technology and its many local references.
Sebigas UAC will supply a 1 MWe biogas plant fed with tapioca pulp and Napier grass, both coming from the surrounding industries and cultivations. The plant will be equipped with two metallic digesters and one lagoon as final tank, together with pretank and cogenerator. Unlike most of the existing biogas plants, the digesters of the plant will have two different volumes. Considering the specific mix of substrates and thanks to the experience acquired in these years, Sebigas UAC developed this dedicated solution to emphasise the two stages anaerobic digestion process applied to Sebigas technology. This news solution allows a greater stability and reliability of the plant and also guarantees a higher profitability to the client.
The plant will work with about 100 ton/day of substrates, producing electric energy that Ruangsiriwan will then sell to the national grid. Moreover, the final digestate will be sold as fertilizer to the surrounding farms.
(Source: Maccaferri Industrial Group)
There are an increasing number of households and businesses in Thailand that are looking to generate their own electricity by installing solar power. This demand is being driven by a new business model from renewable energy companies offering practical solar rooftop deals. However, the government has yet to confirm when it will begin buying solar power generated from private buildings and households.
Some companies with their own buildings have already started installing solar panels on their rooftops to save electricity bills. Over the past years, the cost to purchase and install solar panels has reduced by 50% from THB 400,000 – THB 500,000 (USD 12,000 – USD 15,000) per household.
There are two SET-listed energy firms, SPCG and Banpu Infinergy (BPI), that offer the new purchasing model to help residents afford their own solar rooftops, allowing several payment types including hire-purchase. It has also been claimed by some companies that solar rooftops can reduce the residents’ power bills by 10%, which they can then use to pay for the solar panel installations.
Solar power generation in Thailand has reached 2,990MW, 2,860MW of which is from solar farms and the remaining 130MW is from solar rooftop installations at households and businesses.
According to the estimates from SPCG, the sales of solar panels are expected to increase by 150%, generating THB 1 billion (USD 29.9 million) per year up from THB 400 million (USD 11.98 million) in 2016.
(Source: Bangkok Post)
Danish turbine manufacturer Vestas has strengthened its position in the Thai market by finalizing the sale of 60 of its V136-3.0 MW turbines in Asia. The low-wind turbines will be the first of their kind in Asia Pacific, with a hub height of 157 meters. The order includes the supply and installation of the turbines as well as a 15-year service contract, and their SCADA system for data-driven monitoring and preventative maintenance. Turbine deliveries is expected to start in 2017, with commissioning in mid-2018. When fully operational, the project will take Vestas’ total installed capacity in Thailand to more than 300 MW.
Meanwhile, Siemens Gamesa has set a new record in Asia by installing this year the tallest wind turbines on the continent. The turbines are equipped with 153-metre tall towers, and with the 56-metre blades, they reach a total height of 210 metres. The project, which is owned by Thai engineering company Gunkul and being built by developer PowerChina ZhongNan, has a total capacity of 67.5 MW; i.e. 33 units of the G114-2.0 and G114-2.1 MW models. Siemens Gamesa has already installed these 33 turbines in the Sarahnlom wind farm in the Nakhon Ratchasima province in central Thailand, while commissioning is scheduled for this year. The company will also be in charge of the plant's operation and maintenance for the next 10 years.
(Sources: Vestas; Siemens Gamesa)
To push for development in renewable energy projects in Southeast Asia, the Asian Development Bank (ADB) has acquired 123 million shares in the initial public offering (IPO) of one of Thailand’s largest private energy companies, B.Grimm Power Public Co. The IPO has begun trading on the Stock Exchange of Thailand (SET) in July. ADB’s USD 57.7 million worth of shares is planned to be used on B. Grimm’s local 114 MW solar projects and 16 MW wind power projects and other renewable energy projects in the South East Asia region.
Aside from the IPO share, ADB is also considering backing the company’s other expansion projects by providing a corporate loan facility to support its renewable gas and renewable power projects in the South East Asian region. B. Grimm currently operates 12 natural gas-powered plants, 15 solar power plants. The company is aiming to raise its renewable energy generation capacity to 30% from the current 10%.
(Sources: UPI; Deal Street Asia)
Thailand’s energy policy makers set a goal to go even greener, raising the country’s target for renewable energy to 40% of all energy sources by 2036, an increase of 15% from the previous target, in the most recent revision to the Alternative Energy Development Plan, while also pledging to cut greenhouse gas emissions by 25%, an increase of 5%. Thailand’s government had previously committed to sourcing 25% of the nation’s energy from renewables by 2036. The Kingdom is already the leader in solar and wind power in South East Asia, although their contributions to Thailand’s overall energy supply are still relatively small. Policymakers will soon begin studying what sources of renewable energy would provide the best mix for the country’s needs.
(Sources: Royal Thai Embassy)
Thailand-based electricity distribution transformers manufacturer, QTC Energy has diversified its business into solar farm business by acquiring 15% in Green Earth Power for THB 267 million or USD 7.7 million. Green Earth Power’s current project is a 220-megawatt solar farm in Myanmar and it is scheduled to begin commercial operations in the first quarter of 2018. Myanmar’s Electric Power Enterprise has granted Green Earth Power a build-operate-transfer contract with a power purchase agreement for 30 years.
(Sources: Deal Street Asia, Thailand Business News, Renewables Now)
Chonburi Clean Energy (CCE), a joint venture company involving Glow Energy Plc, SUEZ and WHA Utilities and Power Plc, has signed a Power Purchase Agreement (PPA) with the Provincial Electricity Authority (PEA) for the 8.63 MW industrial-waste-to-energy power plant, to be located in the Hemaraj Chonburi Industrial Estate, Chonburi Province.
The agreement consists of contracted capacity of 6.90 MW with a contractual term of 20 years. The project is currently in the process of Environmental Impact Assessment (EIA), which is expected to be completed and approved by related authorities by October 2017. After the approval, the construction will commence which is estimated to take 24-26 months and the commercial operation date (COD) is scheduled in December 2019. Total investment on the project is estimated to be around THB 1.5 billion (USD 43.92 million).
(Sources: Thailand Business Supplement, The Nation)
An agreement has been signed by Thailand and China to cooperate in the peaceful use of nuclear energy. In addition to the agreement, there were discussions regarding bilateral cooperation on nuclear power, power networking, power trading and other areas of potential cooperation. In the recent years, the two countries had cooperated in nuclear energy, which includes China providing training for hundreds of Thai nuclear professionals and technical personnel.
A Power Development Plan for 2007-2021 had been approved by Thailand’s National Energy Policy Council, involving the construction of 4000 MWe of nuclear generating capacity that will start up in 2020-21. There is also another approved Power Development Plan 2010-30, in which five 1000 MWe units are expected to start up over 2020-28.
(Sources: World Nuclear News, Nuclear Street)
Thailand is considered the leader in promoting solar power among the South East Asian countries in large utility-scale application with the aid of government subsidies. A further shift towards solar power means that Thailand can be in an advantageous position to take on this trend of renewable energy and become a center for solar PV technology in this region.
Under its Power Development Plan (PDP2015), the Thai government has outlined a plan to almost double the power generation capacity in the next 20 years, making the power sector one of the most attractive investment segments in the country.
At present, gas-fired power generation accounts for approximately 70% of the electricity mix. Nonetheless, there is an increasing concern of the impacts of using fossil fuels on energy security and the environment. As a result, the country’s goal is to reduce gas-fired power generation to 40% by 2036 according to its PDP 2015. To help achieve this, solar PV is a good alternative due to its environmental and energy security benefits. It is also a tool to decentralize electricity generation and attract new investors in this sector.
(Sources: The Nation, Thai Visa)
An order of 52.5 MW of wind turbines has been made to Gamesa, a Spanish renewable energy company by Thailand-based Gunkul Engineering Pcl for the Mittraphap wind project in the province of Nakhon Ratchasima.
Gamesa has made an announcement that this is the first order for its new G126-2.625 MW turbine designed for low wind speed conditions. It will be supplying 20 units of this new model, while PowerChina Zhongnan Engineering Corp will be responsible for building the Mittraphap wind farm.
The deliveries are arranged to start in the 3rd quarter of this year and it is expected to be completed in the 1st quarter of 2018. Gamesa will operate and maintain the wind farm for a duration of 10 years.
(Sources: Renewables Now, REVE)
BCPG, a unit of Bangchack Petroleum announced its intention to purchase 40% stake in PetroWind Energy from CAIF III, a wind power company from the Philippines. PetroWind owns a 36MW wind farm and is developing a 14MW project in Nabas, Western Visayas Island.
BCPG has solar investments in Thailand Japan and it is aiming to expand its renewable energy throughout Asia. This deal was made through the acquisition of interests in CapAsia ASEAN Wind Holdings Cooperatief and is expected to close within the 1st quarter of 2017.
(Sources: Renews, The Nation)
Thailand's energy policy committee has approved a proposal for state-owned PTT Pcl to buy liquefied natural gas (LNG) from Petroliam Nasional Bhd (Petronas) over a 15-year period. PTT agreed to buy 1 million tons of LNG from Petronas in 2017 and 2018. From 2019 onwards the company will be buying 1.2 million tons of LNG per year from Petronas.
The long-term contract should contribute 60-70% of LNG imports. The rest would be purchased on the spot market. PTT, which is Thailand's sole gas supplier, has already signed a 20-year contract to buy two million tonnes of LNG a year from Qatar that came into effect in 2015. PTT recently won approval to sign long-term contracts with Royal Dutch Shell and BP to buy one million tonnes LNG each per year.
Thailand uses natural gas for nearly 70% of its power generation. The country has become increasingly reliant on LNG imports as its own domestic gas fields are being depleted.
(Sources: The Nation, Reuters)
Thailand’s Energy Regulatory Commission (ERC) announced bids for development and operation of renewable power projects in 2017 with total generating capacity of 1,000 MW.
The projects that are up for bidding include solar, biogass, biomass and waste-to-energy. This will consequently boost renewables investments up to THB 60 billion (USD 1.76 billion), which is an increase of 30.4% from THB 46 billion (USD 1.35 billion) in 2016.
All renewable power sold to the government will rely on the feed-in tariff system recently mandated by the ERC. 519 MW solar farms will be the first, following by biomass projects at 400MW capacity and waste-to-power projects at 63MW.
(Sources: Asian Power, SE Asia Energy News)
The new solar development plans for 2017 will present several opportunities for foreign investors to partake, announced the Thai Energy Policy and Planning Office (EPPO).
Beginning with successful years in 2014 and 2015, with 470MW and 722MW of solar installed respectively, Thailand faced some delays and uncertainties in 2016. It is, therefore, forecasted that 2017 will be Thailand’s “second solar gold rush”. According to the report from Bangkok-based law firm Pugnatorius, there are 7 key opportunities for foreign investors to participate.
(Sources: PVTECH, Pugnatorius)
The EPPO, Thai Energy Policy and Planning Office, has announced new solar development plans for 2017, creating new opportunities for foreign investors. The report from Bangkok-based law firm Pugnatorius, ‘Thailand Solar Outlook 2017’, forecasts that 2017 will be Thailand’s "second solar gold rush". Thailand added 470MW of solar in 2014, followed by 722MW in 2015, but it has already installed 732MW in the first nine months of this year, according to the latest data from the Energy Regulatory Commission (ERC).
Pugnatorius said it is unlikely that 2017 will see a significant cut of current incentives for low carbon technologies, such as fiscal benefits and data support on renewable development progress. For example, these include the provision of solar and wind data maps and a one-stop-service centre at the Department of Alternative Energy Development and Efficiency (DEDE).
(Sources: Solar & Off-Grid Renewables Southeast Asia, Market Research Thailand)
The Philippines-based Basic Energy Corporation has agreed to partner with a Thailand-based company for the “exploration, development and production of renewable energy sources in the Philippines and abroad.” The memorandum of agreement (MOA) was signed with Vintage Engineering Public Company Limited (VTE).
The equity investment amounts to PHP 139.41 million (USD 4.14 million) which covers 435,658,699 shares of Basic Energy’s unissued capital stock. Under the deal, VTE will subscribe to 9% of Basic Energy’s outstanding capital stock when it completes due diligence audits, and may raise its equity to 25%. VTE also has the right to invest in Basic Energy’s projects.
The Thai firm is an engineering, procurement and construction (EPC) contractor and an operations and management (O&M) operator. It also operates coal, mine and raw materials supply business with projects pending in Indonesia, Japan, Myanmar and the Philippines.
Basic Energy has investments in renewable energy with 5 geothermal service contracts in the country, and recently partnered with a solar developer, nv vogt Singapore Ptd. Ltd., for a potential solar project in one of their properties. In addition, it is involved in oil and gas exploration and development. It has partnered with Trans-Asia Oil and Energy Development Corp. for drilling of an exploratory well.
(Sources: Power Philippines, Business World Online)