Bangkok, Thailand, August 29, 2006 – Thailand can look forward to more affordable and clean energy as it moves ahead with putting plans into action that will strengthen national competitiveness and improve the well-being of the population, according to participants at a workshop held in Bangkok yesterday. “Access to adequate, modern and affordable energy services is an important component of a better quality of life,” said Mr. Arkhom Termpittayapaisith, Deputy Secretary General of the National Economic and Social Development Board (NEDSB), opening the meeting.“To reach the ultimate goal of less poverty and more welfare in the country, a national and multi-level cooperation is needed to overcome energy problems.” The workshop brought together 70 energy specialists from government bodies, the private sector and research institutes – including 10 from Asia, Europe and North Americas. Looking at ‘Future Energy Scenarios towards Sustainable Energy Policies and Practice in Thailand’, the meeting focused on national and international experiences with renewable energy and energy efficiency. This will help boost the country’s strategic planning in the field of energy, an area the National Economic and Social Development Board (NESDB) is currently developing. “The World Bank is grateful that we can participate in this process by giving access to international experience and expertise,” emphasized Mr. Ian Porter, Country Director, World Bank of Bangkok. The World Bank, through its Asia Sustainable and Alternative Energy programme (ASTAE), co-sponsored the meeting. A low-carbon future Referring to the new set of challenges which Thailand is facing, along with many other oil-importing countries, Mr. Porter pointed to recent rapid rises in oil prices and predicted changes in climate – requiring action to move away from fuels that emit carbon dioxide and other pollutants into the atmosphere, causing the greenhouse gas effect. “If countries are to improve energy access for all their people, and meet soaring demand, whilst trying to follow a ‘low carbon path’,” he said, “they will need substantial investment over the next decade – a total of US$ 150 billion each year. Public funding alone will not be sufficient for this investment. The countries concerned will need also to reform their energy sectors to make them more attractive to private sector investors.” Building on achievements, involving private sector With a goal of meeting 8% of all its energy needs by 2011 from renewable energies, multiplying their share several-fold from the 2005 level of less than 1%, Thailand will invest heavily in solar energy, hydropower and biofuels (fuels from plants, which can replace diesel, mixed with petrol or used on their own). Their use will be promoted in industry and transport, which each account for more than one-third of the nation’s energy bill. More efficient uses of energy and energy conservation will be actively promoted, building upon some achievements in helping households (which use more than 20% of the country’s energy) and businesses to save energy – and cut down their energy bills. During the workshop, experts from abroad stressed the growing role of private finance, alongside public investment. The growth of private companies in power generation, and their influential role in helping businesses and consumers use energy more efficiently, demonstrates the need for banks and other financial institutions to be more involved, especially in terms of investments. Representatives from the banking sector also stated that further studies are required to explore how banks - given national and international guidelines regarding prudential regulations in the banking sector - can expand their portfolios in the energy sector. First and foremost, a business proposition Speakers and representatives present at the event also reiterated the fact that energy is a business, including with renewables and energy efficiency. This further emphasizes the need for more incentives and information for bankers to see ‘bankable’ projects – in turn, requiring clearer and enforceable regulations, and sound data and statistics. The use of feed-in laws, which regulate the tariff paid for energy delivered to the national grid by local producers, or of energy portfolios which dictate how much of the local energy mix should be from renewables, are two of the many options studied in detail. Least-cost options Most of the representatives at the workshop highlighted that renewable energies have recently become the least-cost option, replacing fossil fuels. However, this is not true in all cases, given that sometimes there is little wind to ‘fuel’ wind turbines, or little rainfall to feed reservoirs for hydropower. Increases in prices of feedstocks - such as sugar - will mean that crops are better sold on the food markets than as the basis for biofuels, thus removing their recent popularity in the energy sectors. These issues can, with proper research, be anticipated and accounted for. A series of options were discussed during the workshop. Sharp awareness of market fluctuations will also be an essential asset for energy investors and planners. The only way out Those who attended the workshop agreed to further discuss and look into the issues covered, as well as identify the appropriate next steps to translate policy into wider action. “We shall need more systematic data collection and analysis,” said Mr. Termpittayapaisith in his closing remarks, “more knowledge creation and more participation from the private sector, financial institutions and government in the energy sector.” Very clear policies, based on long-term perspectives and not only short-term responses, will be needed, he suggested, given that energy is a resource which powers other sectors. All in all, he concluded, “renewable energy and energy efficiency is, in Thailand, probably the only way out.” |
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