2
INTERVIEW
Exclusive Interview
with Twarath
Sutabutr, Sc.D.
Private Sector Responds To
Alternative Energy Development Plan
Twarath Sutabutr, Sc.D.
Deputy Director General
Department of Alternative Energy Development and Efficiency
Ministry of Energy
Domestic investment is more than
two hundred billion baht
Thailand is the first country in ASEAN since 2008 to have
announced a long-term goal for alternative energy. The latest
modification of this master plan or Alternative Energy
Development Plan (AEDP) has increased the utilization target of
alternative energy in the country to 25% by the year 2021. There
are two major work streams.
1. Renewable energy for electricity generation
The target point is 9,200 megawatts which accounts for about
11% of the entire country’s electricity demand (base on
GWh-basis). The target is for power generated from domestic
renewable resources, and excludes imported power and power
from large hydro electric plants.
2. Biofuels
The use of ethanol in place of gasoline is planned to reach 45%
by 2021. For Gasoil or Diesel, there’s support to use biodiesel
that requires high-level technology such as Hydrogenated
Vegetable (HVO). Biomass to liquid (BTL technology) will use
agri-waste such as woodchip and rice straw to initiate the
chemical reaction process. When all procedures are completed
the result will be a bio-liquid that has all the benefits of Diesel fuel.
Over the past year, the Royal Thai government has promoted an
investment policy to encourage investment in local alternative
energy projects in order to attract both Thai and foreign investors
in the agricultural sector which plays a major role in the Thai
economy. The main policy is as follows:
- Set zoning areas encourage management to grow alternative
energy plants such as Palm Oil, or Nepier grass that help provide
additional sources of alternative energy and make agricultural
products more stable.
- Support for investment in alternative energy from the private
sector such as BOI tax privileges for RE projects, and duty-free
import of major machinery. The “Feed-in-Tariff program” (now
available for Napier grass biogas project only) allows for
electricity generated by alternative energy sources to be at the
prevailing price.
- Use of financial tools, such as “ESCO” Venture Capital Fund that
the public sector can participate in and which helps develop
confidence in energy projects.
There are more than 500 alternative energy projects such as
these that have been developed in Thailand over the past few
years. The domestic investment has not been less than two
hundred billion baht. Moreover, when the ASEAN Economic
Community (AEC) opens, Thailand will benefit from the
advantage it has gained from working with alternative energy
projects. This will be an excellent time for investors to take
advantage of this experience and prepare for the bright future that
alternative energy will usher in.