Thailand Continues with Small Power-Producer Program, Looks Toward First Nuclear Plant

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Researched by Industrial Info Resources (Sugar Land, Texas)--Thailand is planning to develop more than $1.8 billion in renewable energy projects to be commissioned in the near future, and it is investing $6 billion in its first nuclear power plant. The Thai government is also creating a power development plan for 2010-30. More investments in renewable and clean energy will decrease dependence on natural gas imports for use in power plants. Thailand will be able to fire natural gas-dependent power plants with domestic goods.

Despite the rise in natural gas production, Thailand spends billions on natural gas every year and has considered increasing imports to meet its domestic energy needs. Though Thailand has ratified the Kyoto Protocol, its status of "developing country" excludes it from complying with efforts to reduce CO2 emissions. Nevertheless, Thailand is feeling the weight of increasing energy demands, the pinch of declining fossil fuel availability, and the push for cleaner energy.

Japan has become a key figure in Thailand's development in recent years, giving Thailand the opportunity to become one of the top-10 automobile-exporting nations with many expansions at Thai factories producing Toyota, Isuzu and Nissan. In 2007, Japan and Thailand signed the Economic Partnership Agreement to nurture free trade between the two nations during the next 10 years. Japan also has helped restructure Thailand's electric power sector. Gulf JP Company Limited (Bangkok, Thailand), a joint venture between Electric Power Development Company Limited (TYO:9513) (Tokyo, Japan) and GJP Holding Company Limited (Bangkok), was established in 2007 to provide Thailand with cleaner energy derived from natural gas-fired power plants. Gulf JP aims to cater to public and private consumers to become the largest electricity provider in Thailand.

Gulf JP, along with Toyo Engineering Corporation (TYO:6330) (Narashino, Japan) and Mitsui and Company Thailand Limited (Bangkok), is preparing to begin construction on a new power plant on its small power producer (SPP) project list. The SPP program was developed in Thailand in 1992 and has been designed to help promote energy efficiency. Provincial SPP Chachoengsao Cogeneration Company Limited (CCCL) (Chachoengsao, Thailand) will be directed in the development, construction and operation of a 108-megawatt (MW), natural gas-fired cogeneration plant, which is scheduled for commissioning in early 2013. CCCL intends to supply 20 to 30 MW to the regional grid, while selling the remainder to the Electricity Generating Authority of Thailand (EGAT). Under the SPP program, small producers are entitled to sell off up to 90 MW of electricity to EGAT under a power purchase guarantee.

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