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Towards a sustainable energy future—exploring current barriers and potential solutions in Thailand

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Abstract

Renewable energy is considered an indispensable basis of sustainable energy systems as electricity generation from renewable sources results in low emissions of greenhouse gases compared to fossil fuel based electricity and contributes to sustainable development. However, effective strategies and conducive institutional settings are needed for advancement of such clean electricity systems. Although Thailand, as a nation, has a huge potential for renewable energy utilization, its total amount of electricity generation from renewables is relatively small and could be enlarged substantially. Lack of policy mechanisms, institutional development and financing exist as major barriers for Thailand in this regard. Investigation of the nation’s current energy strategy implementation shows that relevant energy and development policies are at different stages of implementation and institutional settings are continuously evolving. This paper argues that further significant efforts could be made towards advancement of renewable electricity and thus achievement of energy sustainability in Thailand. Resource planning, effective policy and institutions, focussed planning for energy sustainability and implementation of the Clean Development Mechanism (CDM) under the Kyoto Protocol could facilitate further advancement of renewables for the nation.

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Notes

  1. Renewable energy systems interchangeably refer to renewable and sustainable energy systems in this paper unless mentioned otherwise. They are also referred to as socio-technical systems. Renewable energy includes wind, small hydropower, biomass, biogas and solar etc. Biomass is categorized as renewable energy.

  2. Additional benefits include: income generation; improved livelihood, communication and often facilitation of basic needs.

  3. For example, wind power and solar assisted systems are socio-technical systems, where policy instruments are required to motivate support and accelerate learning processes (i.e. learning-by-doing; learning-by-using; learning-by-interacting).

  4. CDM is a flexible mechanism under the Kyoto Protocol (Article 12). The Kyoto Protocol entered into force on February 16, 2005 after nearly eight years of negotiations. CDM gives industrialized nations the opportunity to finance greenhouse gas mitigation projects in developing nations with the aim of contributing to sustainable development while also helping industrialized nations meet their greenhouse gas emission reduction commitments (UNFCCC 1998).

  5. Face-to-face meetings were limited to only two CDM project developers since preference was given to such projects that had received a Letter of Approval (LoA) from the Designated National Authority (DNA) of Thailand for CDM and were at an operational phase. During the first quarter of 2007, only seven projects had received LoA from the Thai DNA.

  6. This is due to fact that Internet based resources usually do not provide all the required information/data. Also data from such resources can raise issues of authenticity. Moreover, accessing information/data from off-site can be very time consuming and often unsuccessful. Field research was carried during the first quarters of 2006 and 2007.

  7. DANIDA (Danish International Development Agency) – PRET (Potential Renewable Energy Technologies) refers to a bilateral project carried out between Danish Ministry of Foreign Affairs and Department of Alternative Energy Development and Efficiency (DEDE) of Ministry of Energy (MoE).

  8. Energy intensity – units of energy per unit of GDP; carbon intensity – unit emissions of carbon dioxide per unit of GDP.

  9. Renewable energy use in the transportation sector via biofuels is only addressed briefly in this research paper when it is relevant to other areas of renewables implementation.

  10. As a result, Thailand has started developing hydropower projects in neighbouring nations such as in Lao PDR and Myanmar (Yu 2003). This raises concerns that high environmental and social costs due to hydropower development will result in these nations.

  11. Advanced gasification systems with efficient control of emissions could reduce the higher air pollutant emissions.

  12. The Renewable Energy Development Program focuses on five areas including: promotion of the use of biofuels, especially gasohol and biodiesel as transportation fuels; promotion of renewable energy utilization for electricity generation; promotion of renewable energy utilization for heat generation; policy study and research and development on renewables potential in Thailand; and human resources development in the field of renewables (Pichalai 2007).

  13. The Phase 1 (1995 – 1999) and Phase 2 (2000 – 2004) of the ENCON Program have been implemented. Overall reduction of 883 MW of energy demand by replacing of 5447 GWh of electricity and 430 litres of crude oil accounted for a saving of over US$22.2 million per year (Pichalai 2007).

  14. Although electricity generation from biomass is not competitive with other fossil fuel generated electricity due to its high capital cost (Santisirisonboon et al., 2001), biomass has been set as a prime target for renewable electricity among the different renewable energy sources for electricity generation.

  15. Gasohol is a biofuel product also referred to as E-10, which is the mixture of ethanol and octane 91 at a ratio of 1 to 9.

  16. Other raw material include coconut oi, used cooking oil, various oil plants, etc.

  17. The first seven prompt start projects were approved by the Cabinet Resolution on 30 January 2007, followed by eight project activities on 28 August 2007 (Cooper 2007). The additional 13 projects were approved under the New Thailand Greenhouse Gas Management Organization (TGO) as of 10 March 2008. Among the 28 project activities, nine projects will produce electricity from biomass combustion, sixteen projects will generate electricity from biogas. See details in Annex 1.

  18. DNA of any nation is the focal point for UNFCCC communication regarding climate change and greenhouse gas emissions. A Letter of Approval (LoA) is issued for a project activity that comply all CDM requirements by the DNA. The LoA is an essential document when a project activity seeks registration by the CDM Executive Board and witnessed during validation by the Designated Operational Entity (DOE). CDM project cycle consist stages of validation, registration, monitoring, verification, certification and issuance of CERs according to CDM methodologies and procedures.

  19. This is the only National Communication from Thailand to UNFCCC. In this study, the emissions of CO2 from burning of biomass are discounted from the total amount of CO2 emissions (total emission 127 Mt after discounted emissions from biomass) from the energy sector, following IPCC guidelines for national GHG inventories.

  20. also known as the Renewable Obligation in the UK.

  21. By guaranteeing a fixed price based on the learning curve associated with a particular technology, the Feed-in-tariff (FIT) can support various technologies at varying stages of development. All eligible projects are guaranteed grid access and a certain price for the electricity under FIT scheme.

  22. Combining obligations for consumers to use green electricity with certification of green production - advantages of such systems include: competition and cost effectiveness.

  23. However, moves to privatize EGAT were dramatically cancelled in March 2006 due to a court decision where the Judge deemed the sale to be entangled in conflict of interest which potentially could create an unfair monopoly for the new owners (Mulugetta et al. 2007).

  24. Industry reform, deregulation, liberalization and restructuring have all been used to describe the general process of electricity generation and retailing. Here, the authors prefer the term restructuring to ‘reform’.

  25. The current situation is that the EGAT as a state enterprise is responsible for electricity generation, transmission and distribution of electricity.

  26. As a result of the Royal Decree on Thailand Greenhouse Gas Management Organization (Public Organization) Establishment B. E 2550 (2007).

  27. The ENCON Fund was created by imposing a levy at a rate of Bath0.04/litre (US$0.00105/litre) as a one-off in 1998 on sale of petroleum products, e.g. gasoline, diesel, kerosene and fuel oil (Pichalai 2007). Additional sources for this fund include surcharges on power consumption, government subsidies and remittances from members of the private sector in the nation and investors from abroad, and the interest accruing to the ENCON Fund (Sajjakulnuki et al. 2002).

  28. Here baselines refer to GHG emission baseline scenarios.

  29. Acid rain is due to excessive sulphuric and nitrogenous gases emissions from human-induced sources.

  30. Costs borne by the governments, including direct subsidies, tax concessions, indirect energy industry subsidies (e.g. the cost of fuel supply security) and support of research and development costs, are not externalities (Owen, 2006). They do, however, distort markets in a similar way to negative externalities, leading to increased consumption and hence increased environmental degradation.

  31. Plant load factor is defined as the ratio of actual plant operating time to the total hours of an year.

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Acknowledgements

Sk Noim Uddin gratefully acknowledges the Centre for Energy Environment Resources Development in Thailand for its assistance with facilitation of his field research administration, and provision of information for his research visits to South East Asian nations. The authors also gratefully acknowledge Mrs Prasertsuk Chamornmarn, Dr Natarika V. Cooper and Dr Benchamaporn Wattanatongchai of Thailand’s Office of Natural Resources and Environment Policy and Planning for their kind assistance in provision of useful information for this paper. Sk Noim Uddin acknowledges Dr Saichit Chawana of Sirindhorn International Institute of Technology, Ms Jariya Jarurak of World Wildlife Fund Thailand and Ms Wasana Ngakaew of Hewlett Packard Thailand Ltd. for their kind support and assistance during his research visits in 2006 and 2007. He further acknowledges Mr. Sirisak Tatong of Mitr Phol Group and Mr. Natee Sithiprasasana of A.T. Biopower for their kind assistance in provision of useful information on CDM project development during his research visit in 2007. The authors also acknowledge Dr Chaiwat Muncharoen and Dr Twarath Sutabutr of Ministry of Energy, Mr. Rangsan Sarochawikasit of Department of Alternative Energy Development and Energy Efficiency (DEDE), Mr. Wichet Phothiwisutwathee and Mr. Khan Ram-Indra of Environmental Resource Management Thailand, Mr. Nguyen Khac Tiep of United Nations Industrial Development Organization, Ms Sophie Punte of United Nations Environment Program, and Ms Kelly Hayden of United Nations Economic and Social Commission for Asia and the Pacific for provision of useful information for this research during Sk Noim Uddin’s research visit to Thailand in 2006. Authors gratefully acknowledge review comments from anonymous reviewers’ on an earlier draft of the paper. Financial support from Macquarie University has allowed the project to go ahead. The usual disclaimer applies.

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Authors and Affiliations

  1. Graduate School of the Environment, Macquarie University, Sydney, NSW, 2109, Australia

    Sk Noim Uddin & Ros Taplin

  2. Department of Geography, Hong Kong Baptist University, Kowloon, Hong Kong

    Xiaojiang Yu

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Appendices

Appendix 1

Table 4 CDM project activities in Thailand
Full size table

Appendix 2

Current organizational structure of Thailand’s energy sector management

Source: Adapted from Pichalai (2005)

NEPC: the National Energy Policy Council (NEPC) was established under the 1992 Energy Development and Promotion Act, under the Cabinet of the Government of Thailand (Pichalai 2005). The NEPC is responsible for formulation and overseeing of energy policies and plans.

EPPO: the Energy Policy and Planning Office (EPPO) was established to function as a secretariat of the NEPC.

EPC: To enhance efficient management, the Energy Policy Committee (EPC) was established to assist work with the NEPC (Pichalai 2005).

ENCON Fund Committee: The Energy Conservation Promotion Fund Committee was established to assist the NEPC with the Energy Conservation Promotion Fund (ENCON Fund)

MOE: The Ministry of Energy (MOE) as a sole agency responsible for energy activities was established and empowered under Sections 5 and 26 of the 2002 State Agency Organization Act (Sitdhiwej 2005).

Renewable energy institutions, EPPO and Department of Alternative Energy Development (DEDE), are the sole government agencies responsible for renewables in Thailand’s energy sector. Renewable Energy Centres (RECs) under the DEDE demonstrate and promote renewables in local communities. The Electricity Generating Authority of Thailand (EGAT) is responsible for decentralized electricity generation from renewables. Other players include independent power producers (IPP); small power producers (SPP) and very small power producers (VSPP).

Appendix 3

CDM organizational structure in Thailand

Source: Adapted from Cooper (2007).

MONRE: The Ministry of Natural Resources and Environment (MONRE) acts as the Designated National Authority (DNA) to the UNFCCC and is responsible for approval of greenhouse gas emission reduction projects including renewable energy projects under the CDM of the Kyoto Protocol.

ONEP: The Office of Natural Resources and Environment Policy and Planning (ONEP) acts as the DNA secretariat. ONEP acted as the national focal point for the UNFCCC and coordinates CDM activities in Thailand until beginning of 2007. However, due to constraints in the institutional framework and the approval procedures for CDM, ONEP proposed establishment of a new institution for climate change and CDM as the CDM Institution in Thailand. Realizing the challenges of climate change issues and in particular management of CDM issues, the Thai Cabinet agreed to proceed the ‘Royal Decree on Thailand Greenhouse gas Management Organization (Public Organization) Establishment B.E. 2550 (2007) and the ‘Order of the Prime Minister on Climate Change B.E. 2550 (2007) (Cooper 2007).

The National Committee on Climate Change: The National Committee on Climate Change Policy was established under the Order of the Prime Minister on Climate Change B.E. 2550 (2007) issued in June 2007 and is chaired by the Thai Prime Minister. This comprises relevant Ministries and experts are responsible for overall climate change issues.

Climate Change Coordinating Office: the Climate Change Coordinating Office under the ONEP serves as a secretariat to the National Committee on Climate Change Policy.

TGO: The newly established Thailand Greenhouse Gas Management Organization (TGO) under the Royal Decree on Thailand Greenhouse Gas Management Organization (Public Organization) Establishment B.E. 2550 (2007), serves as a secretariat for the DNA. TGO reviews greenhouse gases mitigation projects including CDM and provides associated services.

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Uddin, S.N., Taplin, R. & Yu, X. Towards a sustainable energy future—exploring current barriers and potential solutions in Thailand. Environ Dev Sustain 12, 63–87 (2010). https://doi.org/10.1007/s10668-008-9180-1

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