Overview on Energy Security and its Strategy in Thailand

Overview on Energy Security Overview on Energy Security and its Strategy in Thailandand its Strategy in Thailand

• National Energy Policy

• Thailand’s Energy Situation

• Strategies to Enhance Energy Security Efficient Supply Management

Natural Gas/ Oil/ Power Diversification of Energy Types & Supply

Sources Fuel Diversification in Power Generation

Promotion of Renewable Energy & Energy Conservation

Energy Efficiency Improvement Consideration on Nuclear Power

OverviewOverview

1. Intensify Energy Development for Greater Self-reliance expediting more investment in E&P of energy within the country, in JDAs and from neighboring countries.

2. Set the Policy on Alternative Energy as a National Agenda by encouraging production and use of alternative energy, particularly biofuels and biomass, to enhance energy security; encouraging production & use of RE at the community level; expediting greater use of NG in the transportation sector; and promoting R&D of all forms of RE.

3. Supervise & Maintain Energy Prices at appropriate, stable & affordable levels by setting appropriate price structure; managing prices through market mechanism and Oil Fund; and encouraging competition and investment in energy business.

4. Promote Serious and Continuous Energy Conservation and Efficiency

in the household, industrial, service & transportation sectors.

5. Promote Energy Production & Consumption concurrently with Environmental Conservation giving importance to tackling of global warming by promoting CDM projects.

National Energy PolicyNational Energy Policy

Final Commercial Energy Consumption

2.6

11,833

1,013

6,825

4,361

31,471

55,503

2008Growth Rate (% )

2009(Jan-Jul)200720062005

4.5

-28.9

15.8

24.5

2.2

4.4

2007

1.6

-1.7

21.8

18.4

-3.3

1.8

2008

4.5

-32.1

19.4

7.1

-2.5

0.0

2006

-4.2

-9.4

-6.4

15.9

-0.7

-1.1

2009(Jan-Jul)

-6.0(Jan-Jun)

4.85.04.5GDP (% )

6,74011,64911,14510,664Electricity

6001,0301,4492,135Lignite

3,8325,6054,8394,054Coal

2,9093,6832,9592,763Natural Gas

18,66132,53431,82332,621Oil

32,74254,50152,21552,237Consumption

Unit: ktoe

Expenditure on Final Energy Consumption Unit: Billion Baht

1,445.6

97.1

19.0

28.9

385.1

915.5

2006

869.8

60.0

16.8

25.1

244.9

523.1

2009

1,036.6

61.4

17.3

29.4

232.8

695.7

2008

Jan-Jul

1,673.1

104.0

30.9

53.9

394.5

1,089.7

2008

-16.111.04.31,507.1Total

-2.21.95.1102.1Renewable Energy

-3.030.224.923.8Lignite/ Coal

-14.653.421.635.1Natural Gas

5.21.01.5390.7Electricity

-24.814.14.4955.4Petroleum Products

2009Jan-Jul20082007

Growth Rate (% )

2007Energy Type

Thailand’s Consumption and its Expenditure on Final EnergyThailand’s Consumption and its Expenditure on Final Energy

Value of Energy ImportUnit: Billion Baht

880.1

7.4

29.7

78.9

48.3

715.8

2007

736.7

2.6

20.5

45.7

22.4

645.5

2008

1,158.8

4.5

36.5

88.4

26.7

1,002.7

2008

-45.031.7-4.5405.4921.2786.0Total

-30.5-38.8-10.61.88.37.1Electricity

2.622.956.921.018.915.4Coal

9.912.11.450.277.862.8Natural Gas

-55.8-44.6-22.59.962.455.7Petroleum Products

-50.140.1-5.0322.4753.8644.9Crude Oil

2009Jan-Jul

200820072009

Growth Rate (% )Jan – Jul20062005EnergyType

In 2008:

Value of imported energy : total import = 19.5%

Value of imported energy : GDP = 13%

Import/Consumption = 58%

Value of Energy ImportValue of Energy ImportValue of Energy ImportValue of Energy Import

Installed Generating Capacity

by source of supply

Share of Power Generation

by Fuel Type

Power Generation Power Generation (status @ May 2009)(status @ May 2009)

EGAT, 13,615 MW (48%)

IPP 12,151 MW (43%)

Import & Exchange 640 MW (2%)

SPP 2,073 MW (7%)

Total: 28,482 MW

Oil,0.1%

Natural Gas,

70%

Hydro,6%

Coal & Lignite,

21%

Import & Others, 3%

ThailandThailand’’s Strategies to Enhance Energy Securitys Strategies to Enhance Energy Security

• Efficient supply management of conventional fuel

– Natural Gas Supply Management

– Oil Supply Management

– Power Supply Management

• to diversify energy types and supply sources

– Fuel diversification in power generation

• Promotion of Alternative/Renewable Energy

• Energy efficiency improvement

• Consideration on Nuclear Energy

Natural Gas Supply ManagementNatural Gas Supply Management

Natural Gas Demand

– In Thailand, NG utilization is promoted, particularly in power generation and transport sectors, to replace petroleum products such as fuel oil, diesel and gasoline.

– Since the world oil prices have increased during recent years, more industries have switched to use NG instead of oil.

– Based on PDP 2007, NG demand during 2007-2011 is projected to increase by an average of 6% per year for power generation.

– If included industry and transport demand, NG demand will grow at an average of 10% per year.

Natural Gas Supply ManagementNatural Gas Supply Management

Natural Gas Supply

– Total supply of NG (Jul 2009) was 3,670 million cubic feet per day (MMSCFD), 1.6% increase from the same period in 2008. 2,944 MMSCFD (80%) produced in Thailand. 727 MMSCFD (20%) imported from Myanmar .

– It is expected that NG production will increase 5400to about , MM SCFDin2 0 1 2 andabout7 ,4 4 0 MMSCFDin2 0 2 1 .

– Support PTTEP to be the arm of the government in petroleum resource development, particularly at the international level.

– Encourage Thai energy operators to joint venture in energy projects overseas.

Oil Supply ManagementOil Supply Management

• Oil demand is projected to increase at an average growth rate of 2.83% during 2007-2021.

• Oil remains to be the major fuel of the country in spite of promotion of energy conservation and greater use of NG.

• Oil remains the major fuel in the transport sector.

Type200

6

200

7

201

1

20

16

20

21

CAGR %

20

07

2007

-112012

-16-2017

21

-2007

21

LPG* 5,074 5,812 7,348 9,68812,473

14.5 7.9 5.68 5.2 6.26

Gasoline** 7,125 7,337 8,157 9,43810,929

1.7 2.54 5.68 5.20 2.83

Jet & Kerosene

4,538 4,950 4,577 5,796 7,337 9.1 0.42 4.84 4.84 3.37

Diesel** 18,371 18,710 19,63023,027

27,315

1.8 1.40 3.24 3.48 2.71

Fuel Oil 5,851 4,222 3,341 3,266 4,063-27.9

-8.88 0.10 4.48 -1.43

Total 41,050 41,030 43,05251,215

62,117

0.0 1.00 3.56 3.94 2.83

Projection of Oil Demand up to 2021Projection of Oil Demand up to 2021 Unit: M. Litres

* Excluding demand in petrochemicals** Replacement by NGV already deducted

Use of Refining Capacity

Refinery Refining Cap. (KBD)

Refinery

Intake (KBD)*

% of Refining Cap. Use

Thai Oil 270 272 101

Bangchak 120 90 75

ESSO 160 144 90

IRPC (former TPI)

215 135 63

PTT Aromatics & Refining(former RRC)

145 140 97

SPRC 145 155 107

RPC 17 10 59

Total 1,072 946 88

* Data of Jan-Jun 2009

270

120

160

215

145

14517

Thailand Refining Capacity Total 1,072 KBD (@ Jun 09)

PTTAR

SPRC RPC

Thai Oil

Bangchak

IRPC

ESSO

• Total domestic refining capacity is sufficient to serve demand in long term.


At present, about 80% of crude oil import is from the Middle East. As Thailand does not have much potential for new crude oil resources, to meet the increasing demand in the future, we have to:

Expand full trading activities with global network, by:Building purchasing power by alliance among buyers Increase supply sources/markets

Accelerate alternative energy development, e.g. NG and biofuels, to reduce oil consumption.

Encourage Thai operators to invest or joint venture in energy project development overseas, e.g. Oman, Iran.


Power Supply ManagementPower Supply Management

Review the Power Development Plan (PDP) every 6 months to be in

line with the changing demand situation Maintain the reserve margin to be no less than 15% Diversify fuel types in power generation:

Give importance to SPPs and VSPPs using renewable energy as fuel

Study the feasibility of nuclear power generation. Promote Clean Coal Technology for coal-fired power generation

International cooperation in power development projects: Power purchase from LPDR, Myanmar, China,

Cambodia and Malaysia

http://images.google.co.th/imgres?imgurl=http://www.harrogate.gov.uk/images/wind%2520turbine.jpg&imgrefurl=http://www.harrogate.gov.uk/harrogate-1261&h=600&w=400&sz=145&hl=th&start=27&um=1&tbnid=afTlI4fAhiOONM:&tbnh=135&tbnw=90&prev=/images%3Fq%3Dwind%2Bturbine%26start%3D20%26ndsp%3D20%26svnum%3D10%26um%3D1%26hl%3Dth%26sa%3DN

http://www.carterjonas.co.uk/images/news/biomass%20140x170.jpg

Status of Power Generation from Renewable Energy and Potential & Target in 2011Status of Power Generation from Renewable Energy and Potential & Target in 2011

Fuel Diversification in Power GenerationFuel Diversification in Power Generation

Existing 5 MW Target 78 MWPotential 400 MW

Existing 1 MWTarget Target 115 MWPotential 1,600 MW

Existing 46 MWTarget Target 60 MWPotential 190 MW

Existing 32 MWTargetTarget 55 MWPotential 50,000 MW

Existing 1,610 MWTarget Target 2,800 MWPotential 4,400 MW

Existing 56 MWTarget Target 165 MWPotential 700 MW

BiomassBiomass WindWind

BiogasBiogas

HydroHydro

Solar PVSolar PV MSWMSW

(Data as at Jan2009)

- Wind farm in southernThailand

- Sugarcane industry, etc.- Biomass power plants- Community power plants

Biogas from livestock farms and agro, palm industry

- Mini Hydro and Micro Hydro

- Bangkok 9,000 tons/day- Municipality 6,300 tons/day- Industry 1,000 tons/day

- Urban areas- Solar homes- His Majesty’s projects- 0.1% of installation areas

- Currently, Thailand’s power generation depends heavily on natural gas as fuel.

- Efforts are being made to boost greater use of renewable energy as fuel.

Share of Power Generation by Fuel Type (@ May 2009) Oil,0.1%

Natural Gas,

70%

Hydro,6%Coal &

Lignite, 21%

Import & Others,

3%

7.6%

Target 5,608 MWExisting 1,750 MW

Adder 3,858 MW-Small Hydro/ Wind/ Solar-Biomass/ Biogas/ MSw/-Hydrogen

Target 7,433 ktoeExisting 3,007 Ktoe

2011

15.6%

2.4%

EthanolTarget 9.0 Mil. lites/ DayExisting 1.24 Mil. lites/ Day

BiodieselTarget 4.5 Mil. lites/ DayExisting 1.56 Mil. lites/ Day

HydrogenTarget 0.1 Mil. Kilograms

4.1%

Power

Thermal

Biofuels

2022

20.3%

2008

6.4%

CDM

NGVTarget 690 mmscfd

(6,090 ktoe)Existing 108.1 mmscfd

6.2%

19.1%

2016

Total RE output 19,800 ktoe/ yrReduce Import 461,800 mil.Baht/ yr

Reduce GHG by 42 mil ton/ yr

Ince

ntiv

e M

easu

res

R&D

Adder cost

ESCO VentureCapital

BOI

7.6%




2011

15.6%

2.4%




4.1%

Power

Thermal

Biofuels

2022

20.3%

2008

6.4%

CDM



6.2%

19.1%

2016



7.6%




2011

15.6%

2.4%




4.1%

Power

Thermal

Biofuels

2022

20.3%

2008

6.4%

CDM



6.2%

19.1%

2016



Ince

ntiv

e M

easu

res

R&D

Adder cost

ESCO VentureCapital

BOI

Renewable Energy Development PlanRenewable Energy Development Plan

Promotion of Energy Efficiency ImprovementPromotion of Energy Efficiency Improvement

• Promote power & cool-water generation using Distributed-Generation (DG) system in large department stores

• Promote Energy Services Company (ESCO) business

• Provide revolving funds/tax incentives/investment promotion via BOI privileges

Air

Natural Gas 10 MMSCFD

Feed

Exhaust GasVent to ATM

ElectricityTotal of 50 MW

supply to the Airport

12,500 RTCooling Water

Supply to the Airport

2x 63 Ton/HrBoiler (HRSG)

2 x 20 MWGenerators

1 x 15 MWGenerator

2 x Gas TurbineEngines

WaterCondenser

Drum

Separator Drum

Liquid LiBr + Vapour H2O

Liquid Libr Conc.6x 2,500RTAbsorption

Chiller(SAC)

Low pressureEvaporateChamber

AbsorptionChamber

CombustionChamber

CoolingTower

Steam TurbineEngine

5-7 degree C Building Supply Cooling Water

12-15 degree C Building Return Cooling Water

Chiller Cooling Water

Liquid H2O Vapour H2O

Processed Steam(Waste Heat)

Flue Gas

Supplementary FiringNatural Gas/Diesel

and Fresh Air

Natural GasH2O LiquidH2O VapourFlue GasLibr Conc.Libr+H2O VapourDieselFresh AirCooling Waterfor Building

District Cooling System Power Plant Process Flow Diagram District Cooling System Power PlantDistrict Cooling System Power Plant Process Flow Diagram

Air

Natural Gas 10 MMSCFD

Feed

Exhaust GasVent to ATM

ElectricityTotal of 50 MW

supply to the Airport

12,500 RTCooling Water

Supply to the Airport

2x 63 Ton/HrBoiler (HRSG)

2 x 20 MWGenerators

1 x 15 MWGenerator

2 x Gas TurbineEngines

WaterCondenser

Drum

Separator Drum

Liquid LiBr + Vapour H2O

Liquid Libr Conc.6x 2,500RTAbsorption

Chiller(SAC)

Low pressureEvaporateChamber

AbsorptionChamber

CombustionChamber

CoolingTower

Steam TurbineEngine

5-7 degree C Building Supply Cooling Water

12-15 degree C Building Return Cooling Water

Chiller Cooling Water

Liquid H2O Vapour H2O

Processed Steam(Waste Heat)

Flue Gas

Supplementary FiringNatural Gas/Diesel

and Fresh Air

Natural GasH2O LiquidH2O VapourFlue GasLibr Conc.Libr+H2O VapourDieselFresh AirCooling Waterfor Building

District Cooling System Power Plant Process Flow Diagram District Cooling System Power PlantDistrict Cooling System Power Plant Process Flow Diagram

• Logistic System• Improve & expand public

transport systems/promote rail & waterway transport modes

• Promote energy-saving vehicles

Set Energy Saving Target at 10.8% in 2011

• Public Awareness Campaigns on energy saving

• Speed up energy efficiency labeling• Establish Minimum Energy Performance Standards

(MEPS): air-conditioners, refrigerators, ballast, fluorescent lamps and compact fluorescent lamps

• Building code & building materialstandards

“Unified Thai Power to Reduce Energy Use”

1. Energy Security At present, Thailand uses natural gas from the Gulf of Thailand and

import from Myanmar for power generation, accounting for a share of almost 70%. However, the R/P of domestic natural gas reserves is rather low (~ 30 years), which is considered a high risk in terms of energy supply.

2. Concern over Global Warming and Climate ChangeFor an NPP, no GHG emission from the power generation process.

3. Energy Price Stability & Competitiveness in the Long RunNuclear power is a fuel option for large-scale power generation, with low generation cost that can be competitive with other types of power plants.

Consideration on Nuclear Power: Consideration on Nuclear Power:

NPI: Nuclear Power Infrastructure NPIEP: NPI Establishment Plan NPPDO: Nuclear Power Program

Development Office NPP: Nuclear Power Plant NRB: Nuclear Regulatory Body 1st Milestone 2nd Milestone 3rd Milestone

Phase 0.1:Preliminary Phase

- NPIPC & 7 Sub-committees appointed

- Issues & Milestones considered

- NPIEP prepared

Phase 1:Pre-project Activity Phase

- approve NPIEP - set up NPPDO - infrastructure work

started - survey of potential

sites - feasibility study

completed - public information &

participation

Phase 2: Program ImplementationPhase

- implement NPIEP with Milestones

- full NRB established - legislation &

international protocols enacted

- suitable sites for bid selected

- technology/qualified suppliers selected

- prepare to call bids

Phase 3:Construction Phase

- NPIEP fully implemented

- bidding process completed

- design & engineering

- manufacturing

- construction & installation

- test runs & inspection

- NPP commissioning license

Phase 4:Operation Phase

- commercial operation

- O&M

- planning for expansion

- industrial and technology development plan

GO NUCLEAR

Commissioning 1st

NPPFinancial Commitments

Knowledgeable Commitment

To prepare for policy decision

Nuclear power option included in PDP2007

MS 3: Start OperationMS 2 : Call for BidsMS 1: Policy DecisionMS 0.2MS 0.1

Commissioning 1st

NPPFinancial Commitments

Knowledgeable Commitment

To prepare for policy decision

Nuclear power option included in PDP2007

MS 3: Start OperationMS 2 : Call for BidsMS 1: Policy DecisionMS 0.2MS 0.1

1 year 3 years 3 years 6 years

2020 2014 2011 2008 2007

NPIEP Milestones for Nuclear Power Program ImplementationNPIEP Milestones for Nuclear Power Program Implementation

4. Revise of the obstructive legislation.

Challenges and Success Factors Challenges and Success Factors

1. Subject RE as a “National Agenda”.

5. Fully allocate the budget for research, development, demonstration, dissemination and public relation of RE.

3. Government provides infrastructure for the RE expansion.

2. Government continuously and strongly support RE, especially, Incentive of BOI, ESCO Fund, Revolving Fund and adder cost.

6. Accessibility of RE data, e.g. Potential and raw material management.

7. RE technology standards.

Documents

Overview on Energy Security and its Strategy in Thailand