prospects for coal and clean coal technologies in thailand

50
Prospects for coal and clean coal technologies in Thailand John Kessels CCC/165 March 2010 Copyright © IEA Clean Coal Centre ISBN 978-92-9029-485-6 Abstract This report examines the prospects for coal and clean coal technologies in Thailand. The report also covers the current energy situation in Thailand and the structure of the electricity sector. The status of existing coal reserves is examined and asks why the future coal demand is likely to be met by importing coal. A discussion on the generation capacity in Thailand examines the current and future prospects for coal-fired power generation. The role of the government in the coal sector is discussed and the power development plan being implemented to meet increasing energy demand. Environmental issues related to coal are a major issue in Thailand particularly because of earlier problems with SO 2 emissions at the Mae Moh power station, although these were solved. In particular, the legacy of the Mae Moh power station SO 2 problem and how that was solved with the use of flue gas desulphurisation. There is also an examination of international organisations such as the ADB, APEC, WB, ASEAN, IEA and USAID role in clean coal technologies and how this could be improved. The economy is heavily reliant on natural gas with 70% of the power generating sector using gas. The government recognises the need to diversify the energy sector especially with only 12 years of proven domestic gas reserves remaining. There is around 2 Gt of coal reserves mostly lignite, high in sulphur and located in northern Thailand. It is estimated that currently 1 Gt of those reserves could be used economically. Coal production in 2008 was between 18–19 Mt with an additional 17–18 Mt of imports. In the future it is likely that all new coal-fired power stations will burn imported low sulphur coal with imports projected to rise to 48 Mt by 2021. A challenge facing Thailand is to develop and deploy clean coal technologies. This has begun with the first supercritical coal-fired power station being built and due to be operational by 2011. A key conclusion of this report is that the establishment of a central organisation in the public or private sector is needed. This could act as a focal point to undertake and promote clean coal technology research, education and deployment with domestic and international organisations as well as strengthen the sustainable use of coal in Thailand.

Upload: others

Post on 17-Mar-2022

4 views

Category:

Documents


0 download

TRANSCRIPT

Prospects for coal and clean coaltechnologies in Thailand

John Kessels

CCC/165

March 2010

Copyright © IEA Clean Coal Centre

ISBN 978-92-9029-485-6

Abstract

This report examines the prospects for coal and clean coal technologies in Thailand. The report also covers the current energysituation in Thailand and the structure of the electricity sector. The status of existing coal reserves is examined and asks why thefuture coal demand is likely to be met by importing coal. A discussion on the generation capacity in Thailand examines the currentand future prospects for coal-fired power generation. The role of the government in the coal sector is discussed and the powerdevelopment plan being implemented to meet increasing energy demand. Environmental issues related to coal are a major issue inThailand particularly because of earlier problems with SO2 emissions at the Mae Moh power station, although these were solved.In particular, the legacy of the Mae Moh power station SO2 problem and how that was solved with the use of flue gasdesulphurisation. There is also an examination of international organisations such as the ADB, APEC, WB, ASEAN, IEA andUSAID role in clean coal technologies and how this could be improved. The economy is heavily reliant on natural gas with 70%of the power generating sector using gas. The government recognises the need to diversify the energy sector especially with only12 years of proven domestic gas reserves remaining. There is around 2 Gt of coal reserves mostly lignite, high in sulphur andlocated in northern Thailand. It is estimated that currently 1 Gt of those reserves could be used economically. Coal production in2008 was between 18–19 Mt with an additional 17–18 Mt of imports. In the future it is likely that all new coal-fired power stationswill burn imported low sulphur coal with imports projected to rise to 48 Mt by 2021. A challenge facing Thailand is to developand deploy clean coal technologies. This has begun with the first supercritical coal-fired power station being built and due to beoperational by 2011. A key conclusion of this report is that the establishment of a central organisation in the public or privatesector is needed. This could act as a focal point to undertake and promote clean coal technology research, education anddeployment with domestic and international organisations as well as strengthen the sustainable use of coal in Thailand.

Acknowledgements

The author would like to thank experts from power generation companies, government departments, research institutes anduniversities who made time to meet and answer questions about the Thailand energy sector. In particular, the author would like tothank:

Akaraphong Dayananda BanpuChatphol Meesri BanpuNalin Kraikachornkitti BanpuGary Harris BLCP, RayongSuwat Kamolthanat Mitrphol PlcBundhit Energy Research Institute, Chulalongkorn UniversityPinyo Meechumna Energy Research Institute, Chulalongkorn UniversitySurapun Wongopasi Energy Research Institute, Chulalongkorn UniversityBundit Fungtammasan Joint Graduate School of Energy and the EnvironmentBoonrod Sajjakulnukit Department of Alternative Energy Development and EfficiencyPradeep J Tharakan USAID ECO-Asia Clean Development and Climate ProgramOrestes Anastasia USAIDSamerjai Suksumek Energy Policy and Planning OfficeThanwadee Deetae Electricity Generation Authority of ThailandThana Boonyasirikul Electricity Generation Authority of ThailandWichai Anantanasakul Electricity Generation Authority of ThailandVachraras Pasuksuwan World BankChutima Lowattanakarn World BankTassanai Kriatisountorn Norton RosePiroon Wacharamontri Norton RosePhil Napier-Moore Mott MacDonaldNapoleon M Lusica WorleyParsons Group Inc

2 IEA CLEAN COAL CENTRE

ABCSE Australian Business Council for Sustainable EnergyADB Asia Development BankAFOC Asean forum on coalAPEC Asia Pacific Economic CooperationASEAN Association of Southeast Asian nations (formed 1967)ASEM Asia Europe meetingbcm billion m3

BLCP Banpu Limited and China Light and Power CaO calcium oxideCCS carbon capture and storageCCT clean coal technologyCDF community development fundCDM clean development mechanismCEM continuous emissions monitoringCER certified emission reduction (for CDM)CFBC circulating fluidised bed combustion systemCO2 carbon dioxideDEDE Department of Alternative Energy Development and EfficiencyDEDP Department of Energy Development and PromotionDMC developing member countriesDNA designated national authorityECON energy conservation promotion fundEEDA Energy Efficiency Development Association EGAT Electricity Generation Authority of ThailandEGCO Electricity Generating Public CompanyENGO environmental non-governmental organisationsEPPO Energy Policy and Planning OfficeERC Energy Regulatory CommissionERI Energy Research InstituteESI Electricity Supply IndustryESP electrostatic precipitatorFACOS furnace analysing cleaning optimistation systemFBC fluidised bed combustionFGD flue gas desulphurisation (for SO2 removal)Gt gigatonneGEF global environment facilityGDP gross domestic productGW gigawattIAEA International Atomic Energy Agency IEA International Energy AgencyIPP independent power producerIPR intellectual property rightsJGSEE Joint Graduate School of Energy and EnvironmentKMUTT King Mongkut’s University of Technology ThonburiLE life extensionLNG liquefied natural gas MEA Metropolitan Electricity Authority MOE Ministry of EnergyMONRE Ministry of Natural Resources and Environment MSW Municipal solid wasteMtCO2 million tonnes of CO2

MtCO2-e million tonnes of CO2 equivalentMW megawattNEB National Energy Policy BoardsNEPC National Energy Policy Council NOx nitrogen oxidesNPS National Power Supply Company ONRC Ongkharak Nuclear Research Center

3Prospects for coal and clean coal technologies in Thailand

Acronyms and abbreviations

PAD People’s Alliance for DemocracyPC pulverised coalPCD Pollution Control DepartmentPDP power development planPEA Provincial Electricity AuthorityPFBC pulverised fluidised bed combustionPPA Power Purchase AgreementPPP People’s Power PartyPTT Petroleum Authority of Thailand PTTEP Petroleum Authority of Thailand Exploration and Production CompanyPV photovoltaicRATCH Ratchaburi Electricity Generating Holding Company REDP renewable energy development plan RPS renewable portfolio standardsSCR selective catalytic reductionSEC Siam Energy CompanySO2 sulphur dioxideSPP small power producersSSEB Southern States Energy BoardtCO2 tonnes of CO2

tCO2-e tonnes of CO2 equivalentTLFS Thailand load forecast sub-committee TSP total suspended particulateTTM Trans Thailand MalaysiaUNFCCC United Nations Framework Convention on Climate ChangeUSAID United States Agency for International DevelopmentVSPP very small power producersWB World BankWHO World Heath OrganisationWTG wind turbine generators

4

Acronyms and abbreviations

IEA CLEAN COAL CENTRE

Acronyms and abbreviations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

Contents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71.1 Key coal facts for Thailand . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71.2 Political and economic situation in Thailand . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71.3 Planning for the future . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

2 Energy situation in Thailand. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 102.1 History of electricity sector . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

2.1.1 Deregulation of the electricity sector . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 102.2 Thai energy industry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

2.2.1 Energy regulatory commission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 132.3 Thai coal industry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

2.3.1 Lignite production . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 142.4 Oil. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 142.5 Natural gas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 142.6 LNG . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 152.7 Renewable energy sources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

2.7.1 Biomass. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 172.7.2 Solar photovoltaic power programme. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 172.7.3 Geothermal energy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 172.7.4 Wind . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 172.7.5 Energy efficiency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

2.8 Comments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

3 Meeting the demand for coal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 203.1 Coal quality . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

3.1.1 Coal geology. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 213.1.2 Further coal exploration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

3.2 Coal transport and movement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 223.3 Coal consumption and demand . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 233.4 Coal imports and exports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 233.5 Non-power coal markets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

3.5.1 Cement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 233.5.2 Steel and iron . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 243.5.3 Domestic coal use . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

3.6 Comments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

4 Power generation sector . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 254.1 Background of power generation sector . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

4.1.1 Electricity tariffs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 254.2 Power generation capacity in Thailand . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

4.2.1 Electricity requirements and shortages. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 254.2.2 Renovation and modernisation (R&M) and life extension (LE) activities . . . . 28

4.3 Coal-fired power stations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 284.3.1 Electricity Generation Authority of Thailand (EGAT). . . . . . . . . . . . . . . . . . . . 284.3.2 BLCP Power (Banpu Limited and China Light & Power). . . . . . . . . . . . . . . . . 294.3.3 National Power Supply Company (NPS) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 294.3.4 Glow Energy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30

4.4 Gas-fired power plants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 304.5 Naphtha and oil-fired power plants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 314.6 Hydroelectric plants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 314.7 Wind power . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 314.8 Small power producers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 314.9 Renewable energy plans. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 324.10 Nuclear power . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32

5Prospects for coal and clean coal technologies in Thailand

Contents

4.11 Cross-border power trade . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 324.11.1 Laos. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 324.11.2 Cambodia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 324.11.3 Myanmar. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 324.11.4 Malaysia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33

4.12 Comments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33

5 Environmental issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 345.1 Environmental control measures adopted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34

5.1.1 Particulates and other pollutants. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 355.1.2 Utilisation of residues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 355.1.3 SO2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 365.1.4 NOx. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36

5.2 Carbon emissions and CCS activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 365.3 International collaborative activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37

5.3.1 United States Agency for Development (USAID) . . . . . . . . . . . . . . . . . . . . . . . 375.3.2 Southern States Energy Board (SSEB). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 375.3.3 Asian Development Bank (ADB). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 385.3.4 Asia Pacific Energy Co-operation (APEC) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 385.3.5 ASEAN forum on coal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 385.3.6 IEA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38

5.4 Comments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39

6 Clean coal activities in Thailand . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 406.1 Clean coal technology deployment in Thailand . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40

6.1.1 Carbon capture and storage (CCS) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 406.1.2 Supercritical PCC power plants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 416.1.3 Fluidised bed combustion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 416.1.4 Coal gasification and IGCC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 416.1.5 Coal-to-liquids . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 426.1.6 Underground coal gasification . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 426.1.7 Coal bed methane . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42

6.2 Coal and clean coal related R&D in Thailand. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 426.2.1 Universities and institutes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42

6.3 Comments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42

7 Conclusions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44

8 References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47

6

Contents

IEA CLEAN COAL CENTRE

1.1 Key coal facts for Thailand

Total coal production (2008 estimate): 18–19 MtTotal coal demand (2008 estimate): 32–36 MtImports (2008 estimate): 17–18 MtProven reserves (2008 estimate): 2000 Mt

This new report is part of a series examining coal in theASEAN countries. The analysis draws on the publishedliterature about the use of coal in Thailand as well as a seriesof meetings with several of the companies involved in thedevelopment of coal within Thailand. This included meetingswith experts from the Thailand power sector and governmentinstitutions involved in the regulation of the coal sector. Thereport discusses the past, the present and future prospects forthe use of coal and clean coal technologies within the powersector as well as discussing other major coal users, primarilythe cement sector.

1.2 Political and economic situationin Thailand

Thailand has a land area of 513,115 km2 and is bordered byMyanmar, Laos, Cambodia and Malaysia. The population isaround 65.5 million living in 76 provinces Figure 1 is a mapof Thailand (CIA, 2008). The political structure in Thailand isa constitutional monarchy with King Bhumibol, the head ofstate. Since December 2008, the Democrat Party has been inpower. The government is headed by Prime Minister AbhisitVejjajiva. There is still ongoing political unrest in Thailandwith supporters of ousted Prime Minister Thaksin Shinawatraprotesting over his removal from office in a military coup in2006.

After the Asian financial crisis in 1997, Thailand underwenta coup followed by elections which have resulted in politicalunrest. The 2008–09 Thai political crisis is an ongoingconflict between the People’s Alliance for Democracy(PAD) and the People’s Power Party (PPP). As a result,Standard & Poor’s has lowered Thailand’s domesticcurrency rating from A to A– blaming the country’sworsening political crisis which it said was a threat to itsfinancial stability. There have been ongoing protests whichhave resulted in some unrest.

Thailand is still one of East Asia’s best performingeconomies, averaging more than 6%/y real gross domesticproduct (GDP) growth in 2002-04, mainly through exportsand tourism. The Thai economy is export-dependent, withexports of goods and services accounting for over 70% ofGDP in 2007. The overall economic growth fell sharply –averaging 4.9% from 2005 to 2007 and 3.6% in 2008. Thekey economic driver is exports where the growth fromJanuary 2005 to November 2008 averaged 17.5%/y (CIA,2008). The economic crisis in 2008 and global recession arelikely to affect the economy and decrease energy demand forthe foreseeable future. This is evident in a revised power

7Prospects for coal and clean coal technologies in Thailand

development plan (PDP) from 2007 which has reduced thenumber of power stations to be built (EGAT, 2009a,b).

The economy is reliant on natural gas for approximately 70%of its electricity. There are only 13 years of proven gasreserves in the Gulf of Thailand with the possibility of afurther 12 years if existing probable and possible gas reservesare proven. About a third of the gas supply is imported fromMyanmar and Malaysia. Depending on the quantity of provencoal reserves recoverable, there are up to approximately

1 Introduction

Myanmar

Cambodia

China

Vietnam

Laos

Vietnam

Indonesia

Malaysia

Chiang Mai

UdonThani

Phitsanulok

Nakhon Sawan

Khon Kaen

UbonRatchathaniNakhon

Ratchasima

Si RachaLaem Chabang

Sattahip

SuratThani

Phuket

SongkhiaHat Yai

Pattani

Gulf ofThailand

SouthChinaSeaStrait of

Malacca

Bangkok

Khorat Plateau

Figure 1 Map of Thailand (CIA, 2008)

75 years of reserves. Due to the heavy reliance on gas anddwindling reserves, the government is examining its optionsfor diversifying the energy supply sector with nuclear power,increasing renewables, energy efficiency and increasing use ofcoal.

In December 2008, the installed generating capacity ofThailand was 29 GW. The Electricity Generation Authority ofThailand (EGAT) power plants make up 15 GW, or 50%, ofthe country’s total generation capacity. The private powersector is made up of independent power producers (IPP),38%, and small power producers (SPP), 10%, under powerpurchase agreements (PPA). Approximately 0.6 GW, or 2%of power was imported from Laos and Malaysia, respectively(EGAT, 2009a,b).

Thailand’s rapid energy growth has resulted in severalinfrastructure challenges. The energy mix for electricitygeneration in 2008, shown in Figure 2 is made up of 70%natural gas, 12.6% lignite, 8.2% imported coal, 4.7%hydropower, 1.0% bunker oil, 0.02% diesel oil, 1.4%renewable energy, and 1.9% from imported electricity(Sajjakulnukit, 2009).

8

Introduction

IEA CLEAN COAL CENTRE

1.3 Planning for the future

Thailand is facing several challenges in the next decade. Therevised power development plan (PDP) 2007 states that thetotal national grid power capacity will increase from29,140 MW in 2008 to 52,000 MW by 2021. This will mean30,390 MW of new capacity with 7500 MW to be retired.There are several public and private sector institutions that areresponsible for the planning and implementation to meet thesetargets. This has a direct impact on the development of coalresources and clean coal technologies.

The Energy Policy and Planning Office (EPPO) departmentwithin the Ministry of Energy, defines the energy policy ofThailand with the National Energy Policy Committee makingthe final decisions. A major new development was theestablishment of the Energy Regulatory Commission (ERC)in 2009. This regulatory body now has the final approval andsets conditions for all new PPAs, but cannot review existingPPAs. In the past EGAT set the conditions of PPAs. Table 1outlines the proven, probable and possible energy reservesfrom fossil fuel which, at current usage rates, would see gasrun out in 25 years if probable and possible reserves areconfirmed.

A major challenge facing energy planners is the heavyreliance on natural gas power generation, ensuring long-termenergy security with declining gas supplies from the Gulf ofThailand. The heavy reliance on natural gas for powergeneration and increasing environmental concerns from thegeneral public and environmental non-governmentalorganisations (ENGOs) on the use of coal will require robustand proactive planning. Recently therefore, the ThaiGovernment has begun to explore a strategy of energysecurity diversification and has increased consultation withthe public over major energy projects. The long-term energystrategy involves development of alternative and indigenousenergy resources, such as coal, renewables and the use ofnuclear power.

Increasingly, coal is likely to play a major role in the futureenergy mix of Thailand. The energy sector over the lastdecade has undergone a period of restructuring andprivatisation. This was encouraged by international financialinstitutions and has resulted in some major changes. However,due to public opposition the deregulation of the electricity

renewable energy 1.4%imported coal 8.2%

natural gas 70%

dieseloil 0.2%

bunkeroil 1%

lignite 12.6%

imported energy 1.9%hydropower 4.7%

Figure 2 Thailand power generation types(EGAT, 2009)

Table 1 Fossil fuel energy reserves (EPPO, 2009)

Energy typeReserves* Production,

2008

Available for use

P1 P1+P2 P1+P2+P3 P1 P1+P2 P1+P2+P3

Petroleum crude oil, Mbbl 183 605 781 53 3 11 15

Condensate, Mbbl 271 608 742 31 9 20 24

Natural gas, billion m3 339 693 909 28 12 24 32

Lignite, Mt 2,059 2,059 2,059 18 113 113 113

* P1 = proved reserves, P2 = probable reserves, P3 = possible reserves

sector, which was approved by the Thai Government in 2000,was abandoned. In the case of coal, planners also have to dealwith the legacy of the Mae Moh power station and the acidrain problems which resulted in the opposition of manyenvironmental groups to the use of coal. This opposition isstill ongoing even with the solving of the Mae Moh powerstation sulphur dioxide (SO2) problem with the introductionof flue gas desulphurisation (FGD) on all existing and newbuild coal-fired power plants.

In 2007, the Ministry of Energy and EGAT published thelatest Power Development Plan (PDP) to provide a frameworkfor long-term power development (2007-21). The 2007 PDPwas revised in 2009 to reflect the economic downturn thatcould result in delays in investments in new power projects.The PDP outlines an aim to increase coal-fired capacitybetween 2011 and 2021 from 7000 to 11,900 MW. Thailandhas large reserves of lignite, mostly in the north withestimated reserves of 2059 Mt. The 2007 PDP projectsnuclear power plants with a total generating capacity of4000 MW by 2021 (EGAT, 2009a,b).

The 2007 PDP also outlines proposals to increase andimprove several elements of the energy sector includingsecurity of electricity supply, diversification of energy sourcesand improving electricity imports from neighbouringcountries. The 2007 revised PDP still proposes somesignificant developments for the future power sector with newcoal-fired power, however, there has been a reduction of theplanned 4 GW to 2 GW of nuclear power by 2021. The aim isthat this diversification away from gas will contribute toelectricity price stability over the long term as well increaseenergy security, and reduce the reliance on oil imports and gas(EGAT, 2009a,b).

The Department of Alternative Energy Development andEfficiency, (DEDE) is responsible for energy conservationand new energies. The major energy companies include thePetroleum Authority of Thailand (PTT) with the State as themajority shareholder (52%). PTT undertakes gas and oilexploration and production through a subsidiary that also hasshares in the five refining companies in Thailand. EGAT issolely responsible for the transmission and foreign trade ofelectricity. Two other companies, the Metropolitan ElectricityAuthority (MEA) and the Provincial Electricity Authority(PEA) manage the distribution of electricity.

A key issue in Thailand revolves around public perceptionand environmental issues concerning coal. There is also a lackof co-ordination and support into the research anddevelopment of clean coal technologies domestically andfrom international organisations. The current status of cleancoal technologies and their possible role in the future is alsoexamined. First, however, the energy situation in Thailand isevaluated.

9

Introduction

Prospects for coal and clean coal technologies in Thailand

In Thailand just over 90% of electricity is generated bythermal power. Thailand has approximately 2 Gt of provencoal reserves of which 1.4 Gt is recoverable. This includesboth lignite and subbituminous coal. The lignite has a highsulphur content which has environmental impacts; thus in thefuture it is likely that many of the new proposed power plantswill import higher grade subbituminous coal from Indonesia,Australia and elsewhere. There are limited reserves of gas andoil with three years of proven oil reserves and 12 years fornatural gas. However, probable and possible reserves couldextend the use of oil by up to 15 years and for gas up to25 years. Power generation is currently 70% reliant on gaswith the government aiming through the 2007 revised PDPand other policies to diversify the energy supply mix andbecome less dependent on imported energy, as well aspreserving existing gas reserves (Mulugetta and others, 2007).Table 2 shows the projects planned by EGAT, the privatesector, and the expected power projects and power purchasedfrom neighbouring countries.

Thailand is facing major challenges in order to maintain itselectricity supply. The role of the private sector andneighbouring countries in supplying power is set to increaseover the next decade. Between 1986 and 1997, the electricitydemand in Thailand grew on average 13%/y. After the Asianeconomic crisis the demand dropped to 5%/y until 2006. TheThailand Load Forecast Sub-Committee (TLFS) estimatesthat up to 2021 the demand will grow by 5.7%/y. This growthwill double the current electricity demand (Nakawiro andothers, 2008). Figure 3 indicates the projected quantity of fueltypes up to 2021 based on the revised 2007 PDP.

Apart from renewable energy (even with energydiversification) Thailand will still be vulnerable to energydisruptions especially with natural gas. The country will stillbe dependent on imported fuels, such as imported coal and inthe future uranium and gas for liquefied natural gas (LNG).However, the sources of the coal, LNG and uranium areperceived as more secure in terms of technical and politicalrisk. There are also other issues the government must address,and in the case of coal there are environmental concerns. Inthe case of renewable energy the plan is to increase use fromthe current 6% to 12% by 2022. The government also faces achallenge in developing nuclear power with a goal of 2 GWeby 2021. In order to achieve this the government has severalinstitutions to plan for future energy needs and to encouragethe diversification of energy supply.

2.1 History of electricity sector

In 1884, electricity was introduced to Thailand with thepurchase of two electric generators from Britain to electrifyan army building. Bangkok was the first civilian area tobenefit from electrification and gradually it was introducedinto the provinces. In 1960, the Provincial ElectricityAuthority (PEA) was established to provide powerdistribution to all parts of the country except metropolitan

10 IEA CLEAN COAL CENTRE

areas. The Metropolitan Electricity Authority (MEA) wasestablished in 1958 to supply and manage power tometropolitan areas, primarily Bangkok. Until 1950 there wereover 200 public, private or small co-operative utilities(Wattana and others, 2008).

Between 1950 and 1980 the World Bank played a major rolein developing the Thai electricity sector. There were a numberof five-year development plans that resulted in several majorlarge scale dams and power plants being built. EGAT wasformed due to the World Bank made a condition for loans thatthe Thai Government create an autonomous independentpower agency. The Thai electricity sector was verticallyintegrated with EGAT responsible for generation andtransmission for the entire country. MEA had theresponsibility for distribution and retail in Bangkok,Samutprakarn and Nonthaburi, and the PEA was responsiblefor the provinces and other cities (Wattana and others, 2008).

2.1.1 Deregulation of the electricitysector

In the 1970s and into the 1980s there was rapid economicexpansion; to meet the electricity demand the utilitiesborrowed heavily but the electricity tariff was lower than thecost of generation. Coupled with the oil price shock andrecommendations from the World Bank, the government didattempt to deregulate in the 1980s but due to opposition bythe utilities, labour unions and academia they decided not toproceed. The government revisited deregulation in 1992 duemainly to outside influences from international donors such asthe World Bank. New lending criteria included theestablishment of market-based regulatory systems,deregulation of the electricity sector and promoting privateinvestment. It is likely that the World Bank will continue toplay a role in the shape and function of the electricity marketin Thailand.

In the last 30 years, the Thai economy and energyconsumption have increased rapidly. Due to limitedindigenous energy resources, there is increasing reliance onimporting fuels, such as gas, oil and coal. To encourageenergy diversification and energy security the government in1992 decided to develop policies aimed at deregulation of theelectricity sector. The goals behind deregulation were toincrease the role of the private sector, satisfy the growingenergy demand, attract private sector investment, reducepublic debt, promote competition, increase efficiency, providewider choice for consumers and free up public resources(ABCSE, 2005). The government policy of increasingprivatisation of the energy-related industries has had mixedsuccess with EGAT still owned by the government andretaining a monopoly on the generation and transmissionsector. Table 3 shows the electricity reforms since 1992 inThailand.

EGAT, the largest generator, was formed in 1968 by merging

2 Energy situation in Thailand

11

Energy situation in Thailand

Prospects for coal and clean coal technologies in Thailand

Table 2 Power construction plan, 2009-21 (Sajjakulnukit, 2009)

Year Project to construct by EGAT Project to construct by private sector Purchasing neighbouring countries

Name of project MW Name of projectLarge,MW

Small,MW

Name of project MW

Total installed capacity at end of 2008 10,018 2079

Producing increase

2009

Pranakorn (South) No 3 710 SPP - Renewable energy 27 Num Thern 2 920

Bangpakong No 5 710

Hydropower (small) 6

2010Pranakorn (North) No1 670 SPP - Cogeneration 90

Hydropower (small) 35

2011 Hydropower (small) 38Gec-Co 1 660 Num Nguem 2 597

SPP - Renewable Energy 250

2012SPP - Renewable Energy 65 Thern Hin Boon (to enlarge) 220

SPP - Cogeneration 924

2013

SEC – No 1-2 1600

National Power SupplyNo 1-2SPP - Cogeneration 270

540

2014

Jana No 2 800National Power SupplyNo 3-4

Wang Noi No 4 800Power Generation SupplyNo 1-2

270

SPP - Cogeneration 1600 90

2015 450

2016 Coal EGAT No 1-2 1400New Power Plan(Khanom district)

800 450

2017Coal EGAT No 3-4 1400

450Power Plan in South EGAT 800

2018

Pranakorn (South) No 4-5 1600

450Pranakorn (North) No 2 800

Bangpakong No 6 800

2019Bangpakong No 7 800

500New Power Plan EGAT No 1 800

2020Nuclear Power EGAT No 1 1000 New Power Plan IPP

(2 x 800)

1600500

Nuclear Power EGAT 800

2021Nuclear Power EGAT No 2 1000

500New Power Plant(South) EGAT

800

New Power Plan 2009-21 15769 7600 1986 5037

Total System Producing to end2021 (to offset old Power Plan)

26027 17059 3266 5677

all existing power utilities. As part of the privatisation policyEGAT created the Electricity Generating Public Company(EGCO) with EGAT retaining a 25% ownership. EGCO andother electricity producers, such as IPPs must sell their

12

Energy situation in Thailand

IEA CLEAN COAL CENTRE

electricity to EGAT through negotiated power purchaseagreements (PPAs). The PPAs normally have a duration of25 years. EGAT was to become a public company in 2003 andlisted on the stock exchange. However, due to political and

Figure 3 Thailand power plan 2009-12 (Sajjakulnukit, 2009)

02009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

320

280

240

200

160

120

80

40

nuclear

diesel oil

renewable energy

imported energy

bunker oil

TWh

imported coal

lignite

natural gas

hydropower

5%2%

10%

15%

6%

60%

2%

3%3%

10%

16%

5%

61%

2%

2%

9%

17%

7%

63%

2%

2%9%

18%

7%

62%

2%

2%

8%

199%

7%

61%

3%

2%7%

15%

8%

65%

3%

2%7%

11%

8%

69%

3%

3%6%

11%

9%

68%

3%

3%6%

10%

9%

69%

3%

3%7%

10%

10%

67%

3%

2%6%

9%

11%

69%

4%

2%5%8%

11%

70%

4%

2%4%8%

11%

73%

4%

Table 3 A brief chronology of ESI reform events in Thailand (Wattana and others, 2008)

Reform Events Year

Electricity law amendmentEstablishment of Electricity Generating Public Co Ltd (EGCO)

1992

Privatised EGCO-subsidiary company of EGAT 1994

IPP law 1996

EGAT privatisation plan (Master Plan) 1998

Approval of the principle of establishment of an independent regulator 1999

Establishment of Ratchaburi Electricity Generating Co Ltd (RATCH)Approval of Price-based power pool modelApproval of draft Energy Industry Act

2000

Proposal for New Electricity Supply Agreement (NESA) model by EPPOProposal for Partial liberalisation, Cost-based power pool, Transitional model to net pool and Electricity Relation

Committee (ERC) model by EGAT2002

Abandonment of Price-based power poolApproval of Enhanced single buyer (ESB) model

2003

Postponement of privatisation 2004

Establishment of Electricity Regulatory Board 2005

Resignation of regulatory committees in Electricity Regulatory Board 2006

Enactment of the Energy Industry Act B.E. 2550 2007

Establishment of Energy Regulatory Board 2008

public opposition the privatisation plans were cancelled by theSupreme Administrative Court in 2006 (Chirarattananon andNirukkanaporn, 2006).

A major obstacle to investment in Thailand is the low fixedelectricity tariff set by EGAT. The price of electricity ismainly driven by the public sector with EGAT purchasingelectricity from IPPs, SPPs and then selling on the electricityto some direct customers and the remainder to MEA and PEAfor distribution to end-users.

EGAT promotes and subsidises several programmes forenergy efficiency and renewable energy technologies.However, the structure of the electricity tariff for IPPsoperating large fossil fuel power stations is low, which candiscourage the use of clean coal technologies such assupercritical pulverised coal combustion and carbon captureand storage, due to their additional costs. However, there aresome companies willing to build coal-fired power stationswith Gheco One currently building the first supercriticalcoal-fired power station in Rayong.

Many companies are investigating the option of buildingpower stations in neighbouring countries and transmitting theelectricity back to Thailand. One obstacle is the low fixedtariff with some banks reluctant to fund supercritical coalplants, preferring instead to fund subcritical as it is seen to bemore reliable. The fixed tariff electricity price does make iteconomically risky to build more expensive supercriticalpower plants unless there is some form of additional subsidyor a company is willing to take the risk in meeting theperformance guarantees required by banks.

Banpu generates power as an IPP and entered into a 50:50joint venture with CLP Power to build a 1400 MW subcriticalcoal-fired power station at Rayong. The power station wascompleted in 2007 and has a 25-year PPA with EGAT. Thetotal cost of the project has been estimated at US$1.3 billion,and US$1.1 billion has been received in debt financing from aconsortium of financing institutions. The plant uses importedcoal from Indonesia and Australia.

The strict air quality regulations and standards also result ingas being the preferred choice for power rather than coal. Thisreliance on gas is contrary to government policy to diversifyenergy sources. Without increasing coal-fired generation ornuclear it is likely in the future that blackouts could occur ifthere is any major ongoing disruption of gas supplies fromMyanmar, the Gulf of Thailand or Malaysia.

2.2 Thai energy industry

Thailand has limited indigenous fuel resources. Thegovernment has followed a path of deregulation as it is seenas a policy that would encourage the more efficient andeconomic use of existing resources. This has resulted in thecreation of several energy companies with many in partial orentire government ownership. The structure of the Thaienergy industry is largely driven by government-ownedcompanies with ownership in private companies. Six keyenergy companies in Thailand with government interest are:

13

Energy situation in Thailand

Prospects for coal and clean coal technologies in Thailand

� Electricity Generating Authority of Thailand (EGAT);� Metropolitan Electricity Authority (MEA);� Provincial Electricity Authority (PEA);� Petroleum Authority of Thailand (PTT Public Co Ltd);� PTT Exploration and Production Co Ltd (PTTEP);� Bangchak Petroleum Public Co Ltd (Bangchak).

The government also has shares in the following companies:� Thai Oil Co: PTT holds 49%;� Electricity Generating Public Co Ltd (EGCO): EGAT

holds 25.8%;� Fuel Pipeline Transportation Co Ltd (FPT): PTT,

Bangchak, Thai Airways International Public Co Ltd andAirports Authority of Thailand hold 44%;

� Thai Petroleum Pipeline Co Ltd (THAPPLINE): PTTholds 30.6%;

� Thai LNG Power Co Ltd (TLPC): PTT holds 40%;� Esso (Thailand) Public Co: The Ministry of Finance

holds 12.5%;� Rayong Refinery Co (RRC): PTT holds 36%;� Bangkok Aviation Fuel Services Co Ltd (BAFS): PTT,

Thai Airways and Airports Authority of Thailand hold49%.

There are also several private companies operating in theenergy sector using or planning to use coal and they includeBLCP Power, National Power Supply and Glow Energy.

2.2.1 Energy regulatory commission

In 2007 the Thai Government enacted an Energy Act whichestablished an Energy Regulatory Commission (ERC). This isan independent agency with seven members responsible forregulating and monitoring power and gas sectors to ensure thereliability and security of power and gas supplies. TheCommission is responsible for reviewing a national powerdevelopment plan and submitting recommendations to theCabinet. The ERC also regulates and approves gastransportation and electricity tariffs including the automatictariff adjustment mechanism. Other functions of the ERC areto issue licences; regulate the energy sector in a fair andtransparent manner; ensure the delivery of quality and reliableenergy services; and protect the rights and interests of energyconsumers, local communities and general public(Wongopasi, 2009). The ERC is still in a transitional stageand it is too early to report on any major changes as to howthis organisation will impact on the power sector(Dayananda, 2009).

2.3 Thai coal industry

The coal mining industry in Thailand is dominated by two keyplayers with the majority of domestic coal mined by theEGAT lignite mine at Amphoe Mae Moh in Lampang. Thismine produces around 16 Mt/y. Banpu is the next largest coalproducer and distributor in Thailand. The company has acombined production capacity of 3.3 Mt/y producing lignitecoals, which are suitable for use as a base load fuel fordomestic cement producers as well as general industries.Production facilities are located in Lamphun, Lampang, and

Payao Provinces in the north of Thailand. Banpu miningoperations in Thailand have been closed since the end of 2008upon depletion of their coal reserves. Additionally, there iscoal production from several small mines in the north withcombined production capacity of 2 Mt/y. However, thesemines have very small reserves and a short mine life (Banpu,2009).

Thailand has a subbituminous and lignite coal reserve ofaround 2000 Mt. The measured or proven reserve is 2059 Mt.There are different views on how long the reserve will lastwith BP estimating a reserve to production ratio of up to75 years (BP, 2009). However, the Ministry of Energyestimates 113 years (EPPO, 2009). The coal deposits intertiary basins are mostly located in northern Thailand withsmaller deposits in central, southern and northeastern regions.The lignite has a high sulphur content.

2.3.1 Lignite production

Thailand is a significant producer of lignite, which is usedmostly for power generation. Table 4 details mine productionand how much coal is imported to make up any shortfall.

Total national lignite production is around 20 Mt/y. with anadditional 5–6 Mt/y of bituminous coal and some coke forindustrial use imported. The largest power station is the2625 MW lignite-fired Mae Moh plant generating around13% of Thailand’s electric power production. Mae Moh isalso one of the largest point sources of atmospheric pollutionin Southeast Asia.

Following depletion of Banpu’s mines in Thailand thecompany acquired several coal mines in Indonesia with acombined capacity to produce 20.5 Mt/y in 2009 and with areserve base of 599.88 Mt and resources of 2140.62 Mt(Banpu, 2009).

2.4 Oil

Thailand is an oil importing country and the oil pricevolatility has affected its economy in recent years. In 2008there was around 0.5 thousand million barrels of proven oil

14

Energy situation in Thailand

IEA CLEAN COAL CENTRE

reserves, a reserves to production ratio of 3.9 years. Thailandproduced an average of 325 thousand barrels of crude oil perday in 2008 and consumed 797 thousand barrels a day (BP,2009). Due to Thailand’s demand for oil and the limiteddomestic oil production there is a reliance on imports to makeup the shortfall. Thailand is the second largest net oil importerin Southeast Asia. The rate of imports is likely to increaseunless new oil reserves are discovered. The proven oilreserves are located in the Gulf of Thailand (Bongkot, Arthit,Pailin, Erawan) and the Malaysia-Thailand Joint DevelopmentArea.

Thailand has four oil refineries with a combined capacity of703,100 bbl/d. The three main refineries are Shell Co ofThailand Ltd (275,000 bbl/d) located in Rayong Thai Oil CoLtd (192,850 bbl/d) and Esso Standard Thailand Ltd (173,500bbl/d), both located in Sriracha.

2.5 Natural gas

Thailand discovered major reserves of natural gas in the Gulfof Thailand during the 1970s. The Bongkot, is the largestfield, is operated by PTTEP who are also actively exploringfor further gas reserves. According to the CIA Factbook,Thailand had proven natural gas reserves of 331.2 billioncubic metres (bcm) in 2008. In 2007, there was natural gasproduction of around 25 bcm with consumption of 35.3 bcm.To make up the shortfall there was around 9.8 bcm imported(CIA Factbook, 2008).

Since 1981 natural gas has been used for electricityproduction and industrial factories. The discovery of naturalgas has allowed Thailand to reduce imports of coal and fueloil, which cost the country major sums of money especiallywith oil price fluctuations in the global market. The discoveryand the use of natural gas in the Gulf of Thailand marked anew era for Thailand, providing large secure domestic energysources. However, with increasing demand on natural gasreserves it is estimated that at the current usage rate there isenough for only 13 years (330 billion m3). At the Asia EuropeMeeting (ASEM) in Brussels it was reported that in 2007,71% of the gas used was from the offshore fields in the Gulfof Thailand, and 27% was imported from Myanmar from theYetagun and Yadana gas fields in the Andaman Sea via a

Table 4 Lignite and coal supply (Mt) (Energy Policy and Planning Office, 2009; Banpu, 2009)

2001 2002 2003 2004 2005 2006 2007 20082009(10 months)

Mae Moh (EGAT) 15 15 16 17 17 16 16 16 13

Banpu 2.6 3 2 2 3 2 1 0.70 0.20

Lanna* 1 1 0.5 0.5 – – – – –

Domestic supply 20 20 19 20 21 19 18 18 15

Coal Import 5 5 7 8 9 11 14 16 14

Total supply 25 25 26 28 30 30 32 34 29

* Lanna ceased mining in June 2005

670 km pipeline. Thailand also produces 2% of gas fromonshore fields (ASEM, 2009).

To address the issue of depleting gas supplies, in 1999 theThai Government signed a contract for Myanmar to supplygas for 30 years from its offshore Yadana gas field. In 2004,gas also began to be supplied from Malaysia to SouthernThailand. Figure 4 shows the current gas network inThailand.

2.6 LNG

Thailand is currently building a liquefied natural gas (LNG)regasification facility at Map Ta Phut (220 km southeast ofBangkok). The project is being developed by PTT LNGCompany Ltd (PTTLNG), a subsidiary of PTT Thai NationalPetro Chemical Company. The facility is being constructednear to the Map Ta Phut industrial complex where a numberof industries are setting up plants that may require natural gasfeedstock. Thailand also announced in May 2009 that thegovernment is to invest in the construction of a LNGreceiving terminal with an initial capacity of 5 Mt/y. The

15

Energy situation in Thailand

Prospects for coal and clean coal technologies in Thailand

terminal is expected to be completed by 2011. There is anagreement in place with Qatargas to purchase 1 Mt/y of LNGfrom 2011(Harris, 2009).

2.7 Renewable energy sources

According to the Asian Development Bank (ADB), Thailanddeveloped an Alternative Energy Development Plan thatfocuses on heat and power generation from renewable energysources, including biofuels (ADB, 2009a). The plan aims toincrease the share of renewable energy from the current 6–8%by 2011; this includes a target for biomass of 2800 MW by2011. Table 5 lists the targets for renewable and alternativefuels. The plan includes the current nine ethanol plants whichhave a production capacity of 1.25 million litres per day. Thisnumber is set to increase rapidly with the governmentapproving the construction of an additional 45 ethanol plants(20 sugar mills and 25 cassava mills) with a total capacity of12 million litres per day.

According to some bioenergy experts the target of 2800 MWfrom biomass in Thailand is very challenging and possibly not

Songkhia

Gulf ofThailand

Bangkok

Yadana

Yetagun

Nam Phong

Tha Luang

Wang Noi

Kaeng Khoi

Bang PakangRatchaburi

south power plant

RayongLaem ChabangIndustrial estate

Thap Sakae

Offshore compressor

Benchamas

Tantawan

Platong

Erawan riser platformErawan central platformERP 2

Pailin

Bongkot

JDA

Surat Thani

Khanom

Krabi

Sadao

natural gas demand location

natural gas fields

existing pipeline

parallel pipeline (existing pipeline)

Yadana pipeline (existing pipeline)

master plan - future pipeline

trans-Thailand-Malaysia pipeline

Figure 4 Natural gas pipeline network (Cogen, 2002)

achievable under current conditions. Even with favourableconditions a maximum of only 1000 MW maybe achievable.This is due to the price of oil being under 100 US$/bbl as wellas other factors. According to the Managing Director of aThailand Bioenergy Company which operates two biomasspower plants at Dan Chang and Phu Khieo a target of500 MW is more accurate and achievable. The reasons behindthe lower target are resource constraints, transport costs,loading and unloading costs as well as a low electricity tariffprice. He suggests that even if the price of oil was to riseabove 100 US$/bbl, resource constraints such as land to plantcrops and transport costs, would limit output to 1000 MW(Kamolthanat, 2009).

The plan or roadmap outlines several initiatives to accomplishthe 8% target by 2011. This includes research anddevelopment, renewable portfolio standards (RPS) and feed-intariff laws. The renewable energy sources will includebiomass, municipal solid wastes, hydro, wind, biogas andphotovoltaic (Kamolthanat, 2009).

In 2000, hydro-power plants had a total installed capacity ofabout 2936 MWe. There are estimates that Thailand has ahydro-power potential of about 10,000 MWe with feasibilitystudies completed on several hydropower projects for thegeneration up to 1500 MWe. Several of the projects areunlikely to proceed due to potential environmental andpolitical impacts with deforestation and resettlement ofpeople from the lands required for reservoirs.

There is also large hydropower potential on Thailand’sborders with two major rivers, the Mekong and Salween.However, deforestation and resettlement of people wouldagain be issues needed to be resolved before any dams couldproceed. A report by the Mekong River Commissionpublished in 2003 estimated that of the total potential of30,000 MW for feasible hydropower projects in the lowerMekong Basin, approximately 13,000 MW are on the

16

Energy situation in Thailand

IEA CLEAN COAL CENTRE

Mekong’s mainstream, with a further 13,000 MW possible onthe tributaries in Laos in locations possible to send powerback to Thailand (Mekong River Commission, 2003).Figure 5 identifies several of the planned dams in Cambodiaand Laos that could be developed in the future to generatepower for Thailand.

Table 5 Targets for renewable energy and alternative fuels in Thailand (ADB, 2009a)

Power Generation Process Heat Alternative Fuels

MW Ktoe Ktoe million litres/day Ktoe

Targets in 2011 3276 1047 4035 5.4 1606

Solar 45 4 5 n/a n/a

Wind 115 13 n/a n/a n/a

Hydropower 156 17 n/a n/a n/a

Biomass 2800 941 3660 n/a n/a

Municipal solid waste 100 45 n/a n/a n/a

Biogas 60 27 370 n/a

Ethanol n/a n/a n/a 2.4 653

Biodiesel n/a n/a n/a 3.0 953

Existing in 2006 1621 530 2424 0.5

n/a – not available

Googgjoqiao

ManwanXiaowan

Dachaoshan

NuozhaduJinghong Gananba

Mansong

Pak Beng Luang Prabang

Sayabouly

Pak Lay

Sanakham

Sangthong Pakcham

Ban KoumLat Sua

Don SahongStung Treng

Sambon

Vietnam

Thailand

China

Cambodia

dam - operational

dam - under construction

dam - planned

Figure 5 Mekong River potential hydropowerdevelopments (Mekong River commission,2003)

2.7.1 Biomass

The potential for biomass in Thailand has been estimated tobe 3000 MW (Guillermo and others, 2003). The four majoragricultural industries that use biomass as fuel forcogeneration in Thailand are the sugar, rice, palm oil, andwood industries. About 60 Mt/y of wood and agriculturalresidues from bagasse, palm oil residues and rice husks areproduced (Amatayakul and Greacon, 2002). 20 Mt of biomassis used primarily for heat and power requirements by industrywith just over a million tonnes used by rural households.Cogeneration capacity in the agricultural industries totals700 MWe (Srisovanna, 2004).

Thailand has a large biomass energy potential. However, it islimited as previously discussed by the price of oil being under100 US$/bbl, land and resource limitations, low tariffs andhigh transport and handling costs. According to Kamolthanat(2009), a company can produce 10 MWe/y with1600 hectares, however only if the land is available andwithin close proximity to the plant.

There is also the controversial issue of palm oil plantationsand deforestation. The palm oil industry in Thailand began in1968, over 50 years after Indonesia and Malaysia. Since 1975the palm oil industry has grown rapidly in Thailand to0.29 million hectares in 2004 mostly in the southernprovinces of Krabi, Chumphon, Trang, Surat Thani and Satun.The oil yield per hectare in Thailand is 20% lower whencompared to Malaysia, the biggest producer and exporter inthe world of palm oil. This is due to several factors includingthe lower average oil yield of Thai palm fruit as well asdifferent weather and soil conditions (Chavalparit, 2006).

Biomass energy is used in the household sector and insmall-scale industries. The role of biomass is limited in powerdevelopment, but opportunities exist for improving its share inthe electricity sector. There are several circulating fluidisedbed boilers (CFB) burning domestic and imported coals andcofiring with biomass. The Thai Government over the last fewyears has been laying the groundwork to develop morefavourable policy mechanisms to promote not only biomass,but also other renewable energy. These policies and powerpurchase programmes include the energy conservationpromotion fund (ECON) which was established in 1995 tosupport renewable energy and energy conservation projects.The fund gets its revenue from a tax on domestically soldpetroleum.

Another programme is the small power producers (SPP)programme which provides PPAs for clean energytechnologies and power generation with EGAT. This began in1992 and has added over 4000 MW of generating capacity tothe grid and also includes fossil-fuel based cogenerationsystems. The goals of the SPP programme are:� promote the use of indigenous by-product energy sources

and renewable energy for electricity generation;� reduce the cost of government investment in electricity

generation and distribution;� promote more efficient use of primary energy;� encourage participation by the SPP in electricity

generation (Amatayakul and Greacen, 2002).

17

Energy situation in Thailand

Prospects for coal and clean coal technologies in Thailand

There are still a number of policy, technical, financial,institutional and information barriers to overcome before therecan be a greater uptake of biomass as an energy source. One ofthe goals of the Thai Government is to replace 20% of fuelconsumption with biofuels and natural gas by 2012 (ADB,2009). This is a challenging goal and is highly unlikely to bemet even with ongoing government and private sector support.

2.7.2 Solar photovoltaic powerprogramme

Thailand’s location is favourable for solar power. Accordingto Amatayakul and Greacen (2002), a solar map produced bythe Department of Energy Development and Promotion(DEDP) in 1999 indicated most areas of Thailand received themaximum energy from sunlight in April and May, rangingfrom 20 to 24 MJ m2/d.

In Thailand, approximately 80% of photovoltaic (PV)modules installed are funded by the public sector or withoverseas assistance. There are several PV companies inThailand that together manufacture PV modules of around25 MW/y. The PV modules are mainly used fortelecommunications, water pumps, battery charging stations,village electrification, education, health care, navigation andaudio visual aids as well as some domestic lighting.

2.7.3 Geothermal energy

There are several sites in northern Thailand that couldgenerate geothermal energy. However, none of the sites couldgenerate geothermal energy at a commercial scale.

2.7.4 Wind

There is some potential for wind energy in Thailand. Thecentral and western regions of Thailand have the bestpotential. There have been several studies assessing thepotential of wind energy in Thailand, beginning in 1975 withdata collected by the Thai Meteorological Department. Laterin 1981 a database for average wind velocity in Thailand at10 m height was developed by EGAT and King Mongkut’sUniversity of Technology Thonburi (KMUTT). In 2001, theDepartment of Alternative Energy Development andEfficiency (DEDE) using the IDRISI program developed awind map of wind frequency, velocity and power at 10, 30and 50 m heights (Major and others, 2008). The World Bankalso carried out a study. One problem that has arisen is theinconsistency of the results making it difficult for wind farmdevelopers to make informed decisions on where, or if, tobuild. Table 6 illustrates the land resource according to windspeed.

There are several constraints to the development of windenergy in Thailand. These include:� no grid connection in rural areas;� lack of finance;� need for accurate wind data to identify wind sites;� no manufacturing or distribution capacity;

� problems with existing wind turbines reliability whichaffects consumer confidence (ABCSE, 2005).

New studies by JGSEE and EGAT and site surveys by DEDEat greater heights (up to 90 m) are emerging which indicatehigher wind resource potential in specific areas, including thenortheast. Offshore wind farm potential was previouslythought to be limited but recent wind modelling results arepromising, particularly when wind turbines are installed at agreater hub height (Fungtammasan, 2009).

There are currently no commercial-scale wind farmsoperating in Thailand. However, there is a 60 MW wind farmproject being built in the Phetchabun province, in northernThailand. This will consist of 30 x 2 MW turbines andconstruction is under way with commercial operationexpected to begin in 2011. Sustainable Energy is the majorityshareholder in the company with the Ratchaburi ElectricityGenerating Holding Company (RATCH) holding a 30% stake.The power that is generated will be sold to EGAT under a25-year PPA (Platts, 2009a,b). Ratch is the largest IPP inThailand and operates 3645 MW or 12% of the nationalinstalled capacity with all the plant located in the Ratchaburiprovince (Platts, 2009a,b). EGAT is also building an 18 MWwind farm.

2.7.5 Energy efficiency

Thailand has introduced several financial incentives forpromoting improvements in energy efficiency. Theseincentives include a subsidy programme for energy efficiencyinvestments, based on concessionary loans and tax incentives.The government also promotes energy efficiency-relatedinformation services through publications includinghandbooks, e-learning programs in energy conservationthrough the internet, energy clinics, and energy displaycentres. The Thailand Greenhouse Gas ManagementOrganization initiated ‘ecolabelling’ which gives carbonlabels to industrial products (ADB, 2009a,b,c,d).

The Energy Efficiency Development Association (EEDA) wasestablished in 2001 to expand markets for energy efficiencyproducts and services in Thailand. EEDA is involved in arange of issues and activities, including:� improving existing energy policies and programmes; � developing and supporting new energy policies and

programmes; � building expertise and capacity within the energy

efficiency industry; � enhancing energy efficiency industry credibility;

18

Energy situation in Thailand

IEA CLEAN COAL CENTRE

� improving access to project funding; � raising consumer awareness;� facilitating networking.

The Association’s main objectives are to promote energyconservation and efficiency policies, government-sponsoredprogrammes and technologies to create job opportunities aswell as rapid economic expansion and environmentaldevelopment for Thailand. EGAT also operates a demand-sidemanagement programme with a standards and labellingscheme (Fungtammasan, 2009).

2.8 Comments

Thailand potentially faces future major energy security risk,with a 90% reliance on fossil fuel to generate power.Recognising the vulnerability of Thailand to energy importsthe government is embarking on a policy of energydiversification. Historically, the energy sector in Thailand hasbeen in public ownership. Limited deregulation has occurred,but EGAT (a state-owned company) still holds a monopoly ontransmission and is the biggest generator in Thailand. Therehave been some attempts to deregulate with partial success.The private sector is also driven by PPAs negotiated byEGAT, the sole buyer.

The domestic coal reserves with their high sulphur contentmake the construction of new lignite-fired power stationsunlikely, even with state-of-the-art SO2 controls. The legacyof Mae Moh’s environmental problems and ongoing publicopposition would be difficult obstacles to resolve. This willmean that it is likely all new coal-fired power stations willimport their coal. BLCP does this already and Glow Energyalso intends to import coal along with EGAT in the future. Areliance on natural gas for 70% of electricity with only12 years of proven reserves remaining further raises the issueof long-term energy security. The recently revised 2007 PDPoutlines a strategy to increase renewables, use nuclear power,and also coal, up to 2021.

The energy situation in Thailand is increasingly becomingmore vulnerable to political and technical disruption. TheThai Government measures to diversify electricity supplyinclude energy efficiency programmes, renewable energyprojects, LNG, nuclear and several proposed coal-fired powerstations. There is also investment in power stations inneighbouring countries with a plan of up to 5 GW beingsupplied to the Thai power network. In the case of coal it isdifficult for companies to build coal-fired plants because of alow return on investment, and in some cases public opposition

Table 6 Wind resources in Thailand (Cabrera and Lefevre, 2002)

Characteristics Poor (<6 m/s) Fair (6–7 m/s) Good (7–8 m/s) Very Good (8–9 m/s)

Land area, km2 470,000 37,000 748 13

Total land area, % 93 7 0.2 0.003

Potential, MW – 150,000 2990 52

to the siting of a plant near their community. A recent tenderto IPPs resulted in several coal-fired power plants beingapproved, including a 700 MW supercritical one. However,whether they all proceed is debatable.

There is no single silver bullet energy supply technology thatwill solve the future energy demand in Thailand; it willrequire a portfolio of different energy supply technologies.Biomass is projected to supply 3 GW but could be limited dueto it being seasonal, the cost of loading, unloading andtransport. Wind has limited potential with few viable sites forcommercial operation. The construction of the LNG plant inRayong and proposed 2 GW of nuclear power will allcontribute to the energy mix.

19

Energy situation in Thailand

Prospects for coal and clean coal technologies in Thailand

Thailand has approximately 2000 Mt of lignite reserves withapproximately 1000 Mt currently economically recoverable.There are also some minor reserves of anthracite. Due to thelow quality of the lignite reserves it is highly likely that newcoal-fired power stations will meet their demand for coal fromimports (EGAT, 2009a,b). According to EGAT, the totalmineable reserve at Mae Moh is approximately 890 Mt, ofwhich 300 Mt has been mined. In terms of thereserve-to-production ratio the remaining reserve will last forup to 40 years at the current production of 16–17 Mt/y.

There is already evidence of the future trend of importing coalwith BLCP obtaining all their coal fuel from imports andGlow Energy planning to do the same. In the event that thetargets outlined in the PDP are achieved it is likely that coalimports will play an increasingly important role. EGAT alsohas plans to import coal for new coal-fired power plants and isinvestigating entering into long-term contracts with coalsuppliers with a focus on Indonesia and Australia. EGAT isalso considering investment into potential coal resources.

In 2006, 30.4 Mt of coal was consumed, 19.3 Mt byelectricity and 11.1 Mt by industry. Between 2014 and 20162800 MW of new coal-fired plant is expected to be built.Since 2006 the rate of coal consumed has increased and atotal of 34.6 Mt was used in 2008. 18.7 Mt of domestic coalwas produced and consumed and around 16 Mt of coal wasimported. By 2021 this is expected to rise (Suksumek, 2007).

EGAT consumes the most coal from its Mae Moh mine usingaround 16 Mt/y to generate power – 18.4 Mt was used by theindustrial sector (mostly by the cement, pulp and paper and

20 IEA CLEAN COAL CENTRE

petrochemical sectors). The cement sector used the most coalin industry with 7.2 Mt. This is followed by 5.5 Mt with IPPand SPP. The remaining industries use 5.7 Mt (Banpu, 2009).Table 7 illustrates the growing demand and future outlook forcoal up to 2021.

The rationale behind greater coal use is to increase energysecurity and to reduce the reliance on natural gas whichsupplies around 70% of power in Thailand compared withcoal’s 20%. The Thai Government wants to increase energysecurity through diversification of energy sources as well asminimise generation costs and to stabilise power tariffs. Inorder to achieve these goals coal imports will increase with themain buyers after 2011 being EGAT, IPPs and the cementindustry with the main buyer likely to be Siam EnergyCompany Ltd (SEC) (Suksumek, 2007). In Thailand, 81% ofcoal consumption is used in power generation and 14% is usedin the cement industry. Table 8 shows the historicalconsumption of coal in different sectors.

EGAT and other companies have been involved in coalproduction from several regions (or basins) throughoutThailand. These basins are Li, Mae Than, Mae Chaem, MaeLamao, Bo Luang, and Na Duang. The first three are the mainproductive basins. In 2005, EGAT’s Mae Moh mine had anoutput of 16.6 Mt with nearly all of it burnt at its 2625 MWpower plant. Mae Moh mine is the largest open pit lignitemine in Thailand.

In the future EGAT’s new coal-fired power stations areexpected to use imported coal which will begin in 2015, with1.88 Mt coal from Australia or Indonesia. Officials are also

3 Meeting the demand for coal

Table 7 Coal demand and future outlook (kt) (Suksumek, 2007)

2006 2007 2011 2016 2021

Supply Domestic 18,867 19,746 17,525 16,183 15,722

Imported 11,472 15,229 20,643 33,209 39,654

Total supply 30,339 34,975 38,168 49,392 55, 376

Domestic demand Power 19,304 22,821 22,775 28,751 27,805

Cement Cement 7,724 8,508 10,142 13,615 18,233

Others Others 3,310 3,646 5,251 7,026 9,338

Total demand 30,339 34,975 38,168 49,392 55, 376

Table 8 Coal and lignite consumption (Mt) (Suksumek, 2007)

2001 2002 2003 2004 2005 20062007(Jan-Jul)

Power generation 18 17 17 19 19 19 12

Manufacturing 7 8 9 9 11 11 6

Total 25 25 26 28 30 30 18

21

Meeting the demand for coal

Prospects for coal and clean coal technologies in Thailand

Burma

China

Vietnam

Laos

Vietnam

Indonesia

Malaysia

Chiang Mai

Nakhon Ratchasima

Suphan Buri

Surat Thani

Songkhia

Gulf ofThailand

SouthChinaSea

Strait ofMalacca

Bangkok

Khorat Plateau

Tak

Prachub Khirikhan

Nakhon Si Thammarat

Yala

Chiang Muan

Mae TeepMae Moh

Mae ThanLi

Bo Luang

Mae Chaern

Mae Tuen

Mae Lamao

Na DuangNa Klang

Nong ya Plong

Krabi

Kantang active coal mine

suspended coal mine

Figure 6 Current active and suspended coalmines (Sajjakulnukit, 2009)

Moh valley where the Mae Moh power station and mine arelocated is surrounded by limestone outcrops and within thevalley farmers use the land for pineapple growing and othersmall cropping. The Mae Moh lignite basin is approximately32 km2 in area, with coal reserves of around 1 Gt.

Large-scale commercial mining began in 1978 and around16–18 Mt/y is consumed by the power station. Due to thenature of opencast mining there is disturbance and areas areneeded for disposal of the overburden and mining ponds.EGAT has ongoing projects for land reclamation andrehabilitation (EGAT, 2009a,b). Figure 6 indicates the currentactive and suspended coal mines in Thailand where there arecoal reserves with Table 9 showing actual coal reserves.

3.1 Coal quality

Domestic coal reserves in Thailand are made up of mostlylow quality lignite and subbituminous coals. In northernThailand there are basins rich in coal and oil shale deposits.There have been confirmed large deposits of oil shale in theMae Sod basin. The major lignite deposits are located in theMae Moh and Li basin (Intarapravich, 1991). According toSuksumek (2007) and Intarapravich (1991) the fixed carbonin domestic coal is in the range 26–59%, moisture content is3.31–41.51%, volatile matter 41–74% and ash 2–45% byweight. The calorific values range from 1040–5920 kcal/kgand sulphur content is 2.37–23.93%.

The coal imported into Thailand for power generation andindustrial use is of a higher quality than domestic coal. Toillustrate, the coal that the BLCP at Rayong uses isbituminous. It has a maximum content of 0.7% sulphur withan average of 0.45%. The majority of the coal is from twomines in Australia with the remainder coming from Indonesia.The BLCP plant tests and analyses the coal when loading iton the ship and on arrival at the power plant. The companyuses an independent auditor to ensure that the coal meets therequired specifications. Australian black coals are typicallyhigh in energy, low in sulphur and have low ash content whencompared with Thai coals (Harris, 2009).

3.1.1 Coal geology

Almost all the coal deposits found in Thailand are of Tertiaryage with some from the Mesozoic age in the northeast ofThailand. The Tertiary sediments are found in a series of basinswith the largest and most extensive in the Mae Moh basin innorthwest Thailand. There are other basins found nearby andalso other Tertiary coals located in small quantities east ofBangkok and in the southwest at Krabi. The seams normallyrange from 2.0 m to 12.0 m although at Mae Moh and Krabiseams up to 30.0 m are worked (Thomas, 2002).

3.1.2 Further coal exploration

EGAT has carried out further exploration and identified twomajor reserves. One is in the Songkhla province and known asthe Saba Yoi resource with reserves of around 135 Mt of

interested in diversifying where the coal is imported from:potential coal supplies from China, Russia and South Africa arebeing investigated. The future increase in Thailand’s powergeneration – with new capacity of 39,676 MW and with coalcontributing up to 13.6% – ensures a continuing demand forcoal from domestic and international sources (Reuters, 2008).

The Mae Moh mine is in the Mae Moh district of LampangProvince, which is about 26 km east of Lampang City. Thebasin floor is 320–340 m above mean sea level. The basin isan intermountain fault bound basin of a graben typecontaining Tertiary and Quaternary sediments underlain bybasement rocks. The Tertiary sediments have been named asthe Mae Moh Group (Vichaidid and others, 2008). The Mae

which 80 Mt are estimated to be recoverable. The other majorreserve is in the Chiang Mai province and known as theWeing Haeng resource with a potential reserve of around213 Mt and, at this stage, a mineable reserve of around 14 Mt(Boonyasirkul, 2009).

3.2 Coal transport and movement

Coal transportation in Thailand does not use the rail network.Inland transportation is carried out by trucks. Overseastransportation is by barges or larger vessels. It is expected inthe future that most coal-fired power stations will either bebuilt near the source or near the coastline such as the case

22

Meeting the demand for coal

IEA CLEAN COAL CENTRE

with BLCP at Rayong. The overseas transportation of coal ismostly carried out by barges or Handysize ships to cementworks and power plants. The reason smaller vessels are usedis because the cost can be up to a third higher using largervessels, such as Panamax (PDP Australia Pty Ltd & Meyrickand Associates, 2005). The coal is transported either byCapesize shipments or split into two Panamax shipments of75,000 t. There is an yearly limit of 10 Panamax shipmentswith each taking up to four days to unload.

Transport of lignite from the north for power generation andcement plants is problematic and limited to road transport.Larger movements of hard bituminous coal up to and inexcess of 5 Mt/y from overseas is transported by large bulk

Table 9 Coal reserves in Thailand (Mt) (Sajjakulnukit, 2009)

Basin nameLocation Reserve

Coal rank Age ConcessionDistrict Province Produced Remaining

Northern region

Na Hong Mae Chaem Chiang Mai 2.487 n/asubbituminous tobituminous

Tertiary Private company

Bo Luang Hot Chiang Mai 1.378 n/asubbituminous tobituminous

Tertiary Private company

Mae Teep Ngao Lampang 0.885 10.115lignite tobituminous

Tertiary Private company

Mae Than Sop Prap Lampang 15.451 20.398lignite tobituminous

Tertiary Private company

Mae Moh Mae Moh Lampang 178.862 1,226.748lignite tosubbituminous

Tertiary EGAT

Li Li Lamphun 34.315 1.037lignite tobituminous

Tertiary Private company

Chiang Muan Chiang Muan Phayo 1.872 n/alignite tobituminous

Tertiary Private company

Mae Tuen Mae Ramat Tak 0.320 0.900lignite tobituminous

Tertiary Private company

Mae Lamao Mae Sot Tak 1.053 0.576lignite tobituminous

Tertiary Private company

Central region

Nong ya Plong Nong ya Plong Phetchaburi 1.091 0.630lignite tobituminous

Tertiary Private company

Southern region

Krabi Muang Krabi 7.961 112.038lignite tosubbituminous

Tertiary EGAT

Kantang Kantang Trang 0.010 n/a lignite Tertiary Private company

Northeastern region

Na Duang Na Duang Loei 0.154 n/a anthracite pre-Tertiary suspended

Na Klang Na Klang Udon Thani 0.006 n/a anthracite pre-Tertiary suspended

Total 245.836 1,372.048

vessels. There appears to be a move away from high cost largebulk vessels to lower cost tugs or barges. According to areport by ASEAN in 2005 the average rate for delivery byPanamax has risen from 6 US$/t to 15 US$/t compared toUS$9–10 for barge delivery (ASEAN, 2005).

Mae Moh is a minemouth plant and maintains a stockpilecapacity of 270,000 t which provides enough for 5–7 days.BLCP has a total storage capacity of up to 715,000 t sufficientfor 60-days of continuous electricity generation. The minimumstock level maintained is 350,000 t designed for emergenciesand which would last for 30 days. The coal for the BLCP plantis transferred from the Panamax or Capesize vessels to a semi-closed and closed conveyor belt system to transport the coal tothe power plant. Water is sprayed on to the coal to prevent coaldust from spreading to the water or surrounding air atunloading hoppers. The water used in this process is collectedand treated for reuse.

3.3 Coal consumption and demand

The primary commercial energy consumption in Thailandincreased between 2001 and 2006 in parallel with theeconomic growth of the economy. Oil and natural gas werethe main energy sources with hard coal and lignite togetherincreasing from 15% in 2001 to 16% in 2006. In the last fewyears coal consumption has increased with the operation ofnew coal-fired power plants and continued use of the olderones. The newest coal-fired power station at Rayong usesaround 3.5 Mt of imported coal. The PDP outlines plans forEGAT and IPP to build new coal-fired power stations usingimported coal. In discussions with officials from EGAT, anyfuture coal-fired power plant will aim to have clean coaltechnology to increase operating efficiency and also reduceenvironmental impacts. It is expected that the future proposedcoal-fired power plants will be located close to the coast andthat a total of 10 x 700 MW plants could be built, all of whichwould use imported coal (Nakawiro and others, 2008).

23

Meeting the demand for coal

Prospects for coal and clean coal technologies in Thailand

Figure 7 shows the consumption of coal in the manufacturingsector.

3.4 Coal imports and exports

Electricity Generating Authority of Thailand (EGAT) plans toimport 1.88 Mt of coal in 2015, which would account for2.3% of the fuel that Thailand is expected to use in power thatyear. The source of that coal is likely to be Australia andIndonesia. Other IPPs are also importing coal such as theBLCP Power station which uses around 3.6 Mt of coal peryear along with Glow Energy which will also use importedcoal. No commercial quantities of coal are exported fromThailand. Figure 8 shows the quantity of coal imported byIPPs, SPPs and industry between 1996 and 2008 with an everincreasing upward trend.

3.5 Non-power coal markets

There are several non-power coal markets in Thailand. SiamCement PCL is the largest industrial company in Thailand andalso one of the largest Southeast Asian producers of cement.There are also several other major industries that usesignificant quantities of coal, as well as the power generationsector in Thailand. The use of coal in these sectors is reviewedin the following sections.

3.5.1 Cement

The cement industry is energy intensive, with estimates of theenergy consumed producing cement costing 20–30% of thetotal cost. The energy consumption will differ between factoriesand is dependent on the type of technological process used, forexample it can be wet, semi-wet, dry or a semi-dry process.

Many cement industries in ASEAN countries using olderequipment are less efficient than in industrialised countries.However, many of these cement factories are being replacedwith more modern and efficient plants. In Thailand, many ofthe cement factories use fuel oil (Chang and others, 2003).

Siam Cement is the largest cement producer in Southeast Asiaand was established in Thailand in 1913. The company has anproduction capacity of around 23.2 Mt/y of grey cement,140 kt of white cement as well as 340 kt/y of tile adhesive anddry mortar (Lohsomboon, 2003). According to the ThaiFellowship of Cement Manufacturers, the cement industry’sproduction capacity was 54 Mt/y in 2003. In 2003 domesticdemand increased by 4% to 23 Mt. In later years Thai demandfor cement has grown due mainly to private consumption. In2003, exports of cement were 13.8 Mt (Bangkok Post, 2004).In 2006, cement production increased by 4.1% to 39.4 Mt andclinker production increased by 4.9% to 40.8 Mt. However,with the economic slowdown in 2008 the overall domesticcement industry had a combined capacity of 56 Mt whiledemand totalled 24 Mt a decline of 6% from the previous year(Siam Cement, 2008). The majority of cement produced inThailand is Portland cement although small quantities ofwhite, masonry and oil well cement are produced.

cement 73.7%

paper & paper pulp 16.3%

food processing 1%

tobacco curing 0.1%

lime 1.5%others 7.4%

Figure 7 Share of coal consumption in themanufacturing sector (Suksumek, 2007)

3.5.2 Steel and iron

In Thailand, the two types of furnace used in large-scaleproduction are the electric induction furnace and the electricarc furnace. There is a great demand for high quality steel inThailand. According to the Iron and Steel Institute ofThailand in 2007, the consumption of steel within Thailandwas 12.5 Mt, of which 4.5 Mt was imported high-quality steelproducts, mainly from Japan and Korea (Thailand InvestmentReview, 2007). However, since recording a high in 2005 of14.1 Mt of steel consumption there has been a downwardtrend with a drop to 13.4 Mt in 2006 and a further drop in2007 to around 12.6 Mt (Steel and Metallurgy, 2009). Theglobal recession is likely to further push down steelconsumption in Thailand and elsewhere.

3.5.3 Domestic coal use

There is little domestic or residential use of coal in Thailand.

3.6 Comments

Thailand has reserves of 2000 Mt of low quality lignites witha little subbituminous and anthracite. Approximately, 1000 Mtis recoverable with estimates of up to 100 years of use. Therehas been some further investigation of coal reserves witharound 100 Mt of recoverable reserves identified, mostly inthe north of Thailand.

In 2006, 30.4 Mt of coal was consumed with nearly two thirdsof that by the electricity sector. By 2021 projections indicatethat the quantity of coal consumed could rise to 55 Mt with28.3 Mt being used for electricity and the remainder by

24

Meeting the demand for coal

IEA CLEAN COAL CENTRE

industry. Due to stringent air quality standards and the highsulphur content of domestic lignites there is unlikely to be alarge increase in lignite-fired power stations. All the plans forIPP and EGAT new coal-fired power stations indicate theywill use imported coals. To increase energy security anddiversification there are plans to source coal from differentcountries. In discussions with officials not only Indonesia andAustralia will be targeted but also China, Russia and SouthAfrica so that the risk of disruption is minimised.

There is no transport of coal by rail or any plans to establishsuch a mode of transport in the future. The major user ofdomestic coal is EGAT which operates a minemouth powerstation at Mae Moh. Coal imported by sea is for powerstations and some cement plants. Road transport also suppliessmaller industrial size companies.

Projections indicate that coal imports will rise if several of theproposed new coal-fired power stations are built. Imports ofcoal are currently around 16 Mt although this could rise to40 Mt by 2021. The current sources of the majority ofimported coal are Australia and Indonesia. This is due notonly to power stations sourcing imported coal but also anincreased demand from industry. The cement industry usesaround 8.5 Mt, although this could increase to 18 Mt by 2021.EGAT also plans to enter the coal import market by 2015 withan order of around 2 Mt.

2

0

4

6

8

10

12

14

16

18

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Mt

total

IPP

SPP

industry

Figure 8 Imported coal 1996-2008 (Sajjakulnukit, 2009)

This chapter describes the background and development of theThailand power generation sector. There is also an overviewgiven of the different types of generation with a focus on coaland the companies operating coal-fired power plants.

4.1 Background of powergeneration sector

The power generation sector is dominated by EGAT which in2008 generated around 50% of the country’s electricity.EGAT currently owns and operates power plants at 38 sites,including four thermal power plants, five combined cyclepower plants, 21 hydropower plants, three gas turbine powerplants, four renewable energy power plants and a diesel powerplant (EGAT, 2009a,b). EGAT contracts PPAs between otherpower producers and also from neighbouring countries. ThePEA also signs contracts with VSPPs (<10 MW).

The history of EGAT dates back to 1969 when three stateenterprises were merged to form EGAT. The three enterpriseswere the Yanhee Electricity Authority, Lignite Authority andthe Northeast Electricity Authority. In the 1990s, majorchanges occurred in Thailand’s energy sector. Thailand beganto consider privatising a large share of its state-owned entities,including the energy sector. In 1992, the governmentestablished the National Energy Policy Council (NEPC). TheNEPC then amended the EGAT Act of 1968 to take awayEGAT’s monopoly on power generation and to allow forprivate production and sale of electricity. The NEPC alsocreated a framework to provide and allow for contribution ofelectricity from Independent Power Producers and SmallPower Producers.

As a result of the amendment and introduction of IPPs andSPPs, EGAT created an IPP in 1992 called the ElectricityGenerating Public Company Ltd (EGCO). EGCO generatedpower and sold it to EGAT. Further developments resultedwhen in 1994, EGAT obtained partial independence from thegovernment and was for the first time able to sell electricity,purchase fuel, and purchase electricity from IPPs and othercountries. According to Woo (2005) the rationale behind theintroduction of IPP and later SPP programmes by the ThaiGovernment were threefold:� attract private capital to meet demand growth in power

generation; � encourage introduction of new technology;� catalyse a more efficient, better managed and more

competitive electricity market.

EGAT began buying electricity from IPPs in 1999 and SPPsin 1995-96. A key issue for an IPP in Thailand is that EGAT isthe sole buyer of electricity. Historically, EGAT decided onthe contract conditions for PPAs. This has now changed withthe (ERC) making the final decision on approving and settingPPA contracts. There is some concern about EGATs futurefinancial viability and how that could impact on IPPs. EGATis not a publicly listed company so it is difficult to measure its

25Prospects for coal and clean coal technologies in Thailand

financial viability, although it is backed by the ThaiGovernment.

4.1.1 Electricity tariffs

Thailand’s electricity tariff is made up of three parts: the basetariff, a fuel adjustment mechanism and value added tax. Thebase tariff covers the investment costs of utilities indeveloping power plants, transmission lines, distribution linesand energy costs with specific assumptions concerning fuelprices, the inflation rate and exchange rates. The existing basetariff is averaged at 2.2 baht/kWh or 7 US ¢/kWh.

4.2 Power generation capacity inThailand

In total there are more than 86 licensed generation utilitiesproviding power. This is made up of 7 IPP, 60 SPP as well as118 very small power producers (VSPP). IPP and EGATsubsidiaries generate about 30% of the electricity sold byEGAT. SPPs provide around 7.6% with 2.5% imported fromLao PDR and Malaysia (Probe International, 2005). Figure 9shows the MWe capacity built in Thailand from 1964-2005.

In 2007, the installed generating capacity of Thailand increased5% from the previous year to 28,530 MW, Thailand’sgenerating capacity was made up from EGAT of 15,793 MW(55%) with private power facilities and neighbouring countriestotalling 12,736 MW, or 44% of the country’s generatingcapacity. This consisted of 10,017 MW from domestic IPPs,2079 MW from small power producers (SPPs) under firmenergy purchase contracts, and 640 MW of power importedfrom Laos and Malaysia (EGAT, 2009a,b). Figure 10 indicatesthe new capacity currently being built in Thailand.

IPPs and SPPs have long-term PPAs with EGAT as the singlebuyer. The PPAs allocate market risk to EGAT while SPPs andIPPs manage the operating and fuel price risks. SPP contractsare between 5 and 25 years with terms and specificationsbefore 2008 set by EGAT and now set by the ERC. EGAT alsohas a monopoly on transmission of electricity in Thailand. Allelectricity is managed and transmitted by EGAT from its powerplants and other sources via high voltage transmission lines tothe distribution systems of MEA and PEA as well as to somelarge industrial customers. The power system is operated andcontrolled from a national control centre at EGAT with fourother regional control centres. Figure 11 is an overview of theThai power system. The grid is also connected to Laos andMalaysia, with around 5% of Thailand’s electricity purchasedfrom abroad (Woo, 2005).

4.2.1 Electricity requirements andshortages

EGAT published a power development plan in 2007

4 Power generation sector

(see Table 10) which shows a continuing heavy reliance onnatural gas but with some diversification to coal, nuclear andSPP with a 5 GW reliance from power imports.

With the declining supply of gas in the Gulf of Thailand andmore reliance on gas imports there is a government strategy todiversify Thailand’s energy mix by diversification of fuelsupply to include nuclear and increased renewable and coal.The current PDP proposes to double existing installedcapacity to over 30,000 MW of new capacity by 2021. Thegovernment is also aiming to increase IPP and SPP share inthe new power capacity as well as to increase the use of power

26

Power generation sector

IEA CLEAN COAL CENTRE

imports from Laos, Malaysia and Myanmar. The revised 2007PDP outlines an increase in the installed capacity to 52 GW by2021 with approximately 14.8 GW made up by IPPs (12.1GW), SPPs (2.1 GW) with the remainder made up from powerimports (Power Engineering International, 2009). Initially, thepower to be supplied by IPP will rise to 8500 MW, whileEGAT could reach 11,769 MW and around 5000 MW of powerfrom neighbouring countries. To assist in achieving these goalsin late 2007 a tender was held for IPP to provide 4400 MW ofpower. The successful bidders were:� Glow Energy is building and expect to commission a

700 MW plant in November 2011. The plant is beingbuilt by Doosan and will be the first supercritical coalplant in Thailand. Gheco One signed a 25-year PPA withEGAT. The company also signed agreements withIndonesian coal producers to supply 1 Mt/y;

� National Power Supply is building 2 x 135MW units dueto be commissioned by November 2013 and anadditional 2 x 135MW units due in March 2014;

� SEC, is expected to commence building a 1600 MW gaspower station in 2010 with power generation expected tobegin in September 2013.

In 2009 a review and update of the 2007 PDP was released.The review was undertaken by EGAT and the Ministry ofEnergy due to the changing economic circumstances broughton by the global recession. As a result, the following wasdecided for projects planned during 2009-15:

EGAT power plant projects, MW 3786.7IPP power purchase projects, MW 4400.0 SPP power purchase projects, MW 1985.5VSPP power purchase projects, MW 264.0Power purchased from neighbouring countries 2186.6

Total, GW 12.7

Projects planned between 2016 and 2021 have also beenrevised and now include:

1969 1973 1977 1982 1986 1990 1994 1998 2002 20051964

35000

30000

25000

20000

15000

10000

5000

Cap

acity

bui

ld, M

We

hydroelectric

oil

gas

coal

combustible renewables

Figure 9 MWe generation capacity 1964-2005 (Baruya, 2009)

3000

2500

2000

1500

1000

500

2007 2008 2009 2010 2011 2012

0

hydroelectric

gas

coal

Cap

acity

, MW

e

Figure 10 New capacity in Thailand, 2007-12, MWe(Baruya, 2009)

EGAT new power plants (coal), MW 4 x 700EGAT new power plants (nuclear), MW 2 x 1000VSPP power plants, MW 300Power purchased from neighbouring countries 2850

Total, GW 7.9

27

Power generation sector

Prospects for coal and clean coal technologies in Thailand

Additional new power plant is also under consideration:

EGAT,MW 4 x 800IPP, MW 2 x 800 Unidentified, MW 6 x 800

Total, GW 9.6

Table 10 Thailand Power Development Plan 2011-21 (MW) (Sajjakulnukit, 2009)

YearNew domestic capacity Additional

powerimported

Increasingshipping

Totalnationalcapacity,MW

Peakdemand,MW

Reservemargin, %

Gas Coal Nuclear SPP

2011 597 597 34037 27996 18.0

2012 1400 200 220 1820 35857 29625 17.4

2013 1400 200 963 2563 37800 31384 16.5

2014 1400 700 200 261 2561 40361 33216 17.7

2015 1400 1400 200 3000 42186 35251 16.1

Cumulative subtotalfor 2011-15

5600 2100 2041 2041 10451

2016 1400 700 200 390 2690 44127 37382 16.4

2017 2800 200 500 3500 47119 39560 15.6

2018 2800 200 510 3510 49888 41795 15.6

2019 3500 200 530 4230 52829 44082 16.5

2020 1400 2000 200 550 4050 55251 46481 16.7

2021 700 2000 100 570 3270 58321 48958 15.4

Cumulative subtotalfor 2016-21

12600 700 4000 900 3050 21250

Total 18200 2800 4000 1700 5091 31791

Generation

EGAT IPP SPPNeighbouring

country

Transmission

Distribution

MEA PEA

Figure 11 Overview of the Thai power system

These projects are all planned for between 2009 and 2021 anddepending on economic growth, could be revised again withthe next PDP.

It is likely that future coal plants will face numerous hurdles.In recent years there have been a number of protests atproposed coal-fired power plant sites. This has led to thecancellation or switch of coal to gas for some projects. In2007 the retiring governor of EGAT, Kraisiri Kranasutrastated that with electricity demand rising to1400–1600 MW/yand protests at the planned construction sites for several newpower generating plants there was a danger of blackouts.Even with the purchase of power from neighbouring countriesthere was still a likelihood of problems with energy supply inthe future (The Nation, 2007). The recession and lowerdemand for power may reduce the likelihood of this in theshort term but any technical or political problems with the gassupply to existing gas users could result in blackouts.

4.2.2 Renovation and modernisation(R&M) and life extension (LE)activities

Life extension for ageing power plants require an assessmentof the major plant components, for example the boiler. Anevaluation allows for an accurate assessment of the expectedlife of the key plant components. The assessment will thenallow the plant owner to make decisions on whether to extendthe life of the plant as well as to undertake preventivemaintenance measures to prolong the life of the plant. Arecent report by WorleyParsons for APEC outlined a bestpractice guide for upgrading and refurbishing older coal-firedpower plants in developing APEC economies. The reportidentified key benefits from an upgrade and refurbishmentwhich include increasing the reliability, longevity, efficiency,

28

Power generation sector

IEA CLEAN COAL CENTRE

environmental compliance and extending the economicusefulness of the plant (APEC, 2008a,b).

4.3 Coal-fired power stations

The use of coal to generate power is a key element in thepower development plan. There are several governmentorganisations involved in regulating existing coal-fired powerstation. They are governed by several laws and regulationsissued by the Ministry of Industry (MOI) , the Ministry ofNatural Resources and Environment (MONRE), the NationalEnergy Policy Board (NEB), the Power Plant RegulatoryBoard, EPPO, and EGAT. Proposed new coal-fired powerplants are also reviewed by the National Energy PolicyBoard, EPPO, EGAT, the Power Plant Regulatory Board,NEB, and MONRE in their long-term 15-year PowerDevelopment Plan (PDP). As a result, the permit process cantake years for approval to build a new coal-fired powerstation which was the case with BLCP. Coupled withenvironmental protests there can be long delays incommissioning a power plant. There are four key companiesat the moment involved in operating coal-fired power plantsat a large scale. They are EGAT, BLCP, NPS and in thefuture Glow Energy an IPP building the first coal-firedsupercritical station. Table 11 lists the current and proposedcoal-fired power stations in Thailand.

4.3.1 Electricity Generation Authorityof Thailand (EGAT)

EGAT is the biggest power generator in Thailand and isowned by the government. EGAT operates the largest coalpower plant in Thailand, the Mae Moh lignite thermal powerplant made up of three 75 MW units, four 150 MW units and

Table 11 Current and future coal-fired power stations (Sivavong, 2009)

Existing coal-fired power stations Contracted capacity, MW* Fuel requirement, Mt

EGAT – Mae Moh (4 x 150) + (6 x 300) 16.1

Independent Power Producer – BLCP 2 x 673.25 3.6

Subtotal 3746.5 19.7

Small Power Producer (Firm)– Glow SPP3– National Power SupplyTPT Utility

2 x 902 x 9010

0.660.660.26

Subtotal 370 1.58

Total 4,116.5 21.28

New coal-fired power station projects Contracted capacity, MW Fuel requirement, Mt

EGAT 4 x 700 10.2

Independent Power Producer 660 + 540 3.7

Total 4000 14

* As of December 2008, companies are contracted to sell power to EGAT

six 300 MW units with an installed capacity of 2625 MW.Since 1999 the 3 x 75 MW units have not been operationaland act only as a reserve in case of emergencies. Mae Moh isthe largest coal-fired power plant in Southeast Asia, located inthe mountains of Lampang province in northern Thailandwhere it generates approximately 18% of the national powerdemand.

Mae Moh has a chequered history. EGAT constructed theplant in four phases between 1978 and 1996. In the 1990sthere were serious problems with SO2 pollution resulting inrespiratory sickness in nearby villagers and pollution of theland. The first incident was in late 1992 when the SO2 emittedfrom the power plant was detected and measured at amaximum hourly concentration of 3418 µg/m3 while thestandard level was at 1300 µg/m3. As a result of this incidentEGAT installed FGD systems on all but the three 75 MWunits. However, in 1998, before all the FGD systems could beinstalled, another incident occurred due to an abrupt change inthe atmospheric conditions, when some existing FGD systemswere out of service. On 17 and 18 the maximum hourlyconcentrations of SO2 were 2308 µg/m3 and 2132 µg/m3

respectively which resulted in similar impacts to those in1992 (Suaysom and Wangwongwatana, 2003).

As a result, there were several environmental protestsresulting in FGD being made mandatory for all operatingunits and the development in legislation of stringent airquality standards. All the operating units at Mae Moh are nowequipped with ionising wet scrubbers for the collection of flyash. Lime (calcium oxide) desulphurisation was also added toremove sulphur oxides from the flue gases. By 2000 all theFGD systems had been installed resulting in SO2 emissionbeing reduced from 150 t/h to less than 7 t/h. The power planttoday is also not allowed to operate without FGD inoperation. This has resulted in a downward trend in ambientSO2 concentrations. The maximum hourly concentration ofSO2 being reduced from more than 3000 mg/m3 in 1992 toless than 500 mg/m3 at present (Suaysom andWangwongwatana, 2003). Six of the units supply fly ash tothe cement industry with the remainder of fly ash disposed ofat a disused mine.

One potential problem occurring at Mae Moh is some of theboilers have to be shut down for cleaning due to slagging. In2005, there was a loss of 11,900 MW hours due to slag fallingdown to the bottom of the boiler and extinguishing the boilerflame. The lignite is high in calcium oxide (CaO) and when theCaO reaches 23% it forms slag in the boiler. The percentage ofCaO is forecast to increase from 10% to 39% over the nextten years. This could result in Mae Moh having a majorproblem with slag. EGAT is examining its options to solve theslag problem and has already put the Furnace AnalysingCleaning Optimisation System (FACOS) in place in Units8–13. The FACOS allows the operator to decide on which areasoot blowing should be directed. This compares with theprevious system which was random and could result in damageto boiler tubes. In addition to the steam soot blower a newwater soot blower has also been installed in Unit 8, which hasreduced the slag and resulted in that boiler operating moreefficiently. However, with the lignite likely to have increasingCaO Mae Moh will have to continue to monitor and implement

29

Power generation sector

Prospects for coal and clean coal technologies in Thailand

solutions to future slagging problems (Limlertcharoenvanit,2006).

4.3.2 BLCP Power (Banpu Limited andChina Light & Power)

The BLCP power plant was commissioned in 2007. TheBLCP plant operates two conventional units of coal-firedunits with a nominal output of 2 x 717 MW using a singlereheat cycle. The main steam conditions are 17.2 MPa and538°C. The reheat conditions are 5 MPa at the sametemperature. The boiler operates at subcritical pressure, singlereheat, single drum, single furnace, balanced draft with aforced circulation type. The steam turbine is triple pressure,single reheat, condensing and a tandem compound type. Toaddress environmental concerns the plant uses low NOxburners and a seawater flue gas desulphurisation plant alongwith an electrostatic precipitator.

BLCP uses bituminous coal with a maximum of 0.7% sulphurwith a yearly average of 0.45% imported from Australia andIndonesia, while diesel oil is used as the start-up fuel. Theplant is located in the Map Ta Phut Industrial Estate which islocated in Rayong Province in the southeast of Thailand. Thepower station is on reclaimed land 3 km away from theeastern coastline of Map Ta Phut Port and is surrounded bysea, enabling the use of large coal ships. The project has a25-year power purchase agreement with EGAT (Harris,2009).

The coal arrives in either Capesize or Panamax vessels. Thereare two ship unloaders that unload at 2000 t/h with twostacker reclaimers. The coal stockyard has a capacity of715,000 t of coal sufficient for 60 days continuous electricitygeneration. The coal is consumed by each unit at 255 t/hwhich works out at 3.6 Mt/y on average. This produces360,000 t of ash per year.

Figure 12 LCP power plant at Rayong (photographcourtesy of Harris, 2009)

4.3.3 National Power Supply Company(NPS)

Thailand is also one of the few countries that operatescirculating fluidised bed combustion (CFBC) plants of whichthere are over 300 units worldwide. CFBC can burn a wide

variety of fuels including lignite, biomass wastes and high ashcoals. The CFBC project was set up under the SPP scheme tooperate two mixed-fuel power generators with a total capacityof 328 MWe, of which 180 MWe is contracted for sale toEGAT. The electricity revenue of NPS is 100% secured undertwo 25-year PPAs with EGAT, finishing in 2023. NPS islocated 140 kilometres east of Bangkok with the plant at ThaToom village in the Prachinburi province.

The contract for design and supply for two reheat boilers wasawarded to Foster Wheeler Energia Oy in 1996. The hydrostaticpressure tests for the two boilers were successfully completedin 1999 with the first coal fire taking place towards the end of1999. The boilers each produce 150 MWe burning VietnameseHongai No 8 anthracite as a main fuel, and subbituminous coalas an alternative. One of the boilers is equipped to use biomassup to 50%. The biomass consists of bark from the nearbyAdvance Agro pulp and paper mill and rice husk from localsuppliers (Hotta, 2008).

The two Foster Wheeler circulating fluidised bed 150 MW(CFB) boilers have a novel compact solids separator. They arecompact boilers and include the FW patented reheat steamby-pass system. The identical units combine to produce370 MWth. Each unit produces up to 134 kg/s of superheatedsteam at 16.2 MPa and 542°C temperature, and 122 kg/s ofreheat steam at 542°C temperature, and 122 kg/s of reheatsteam at 542°C temperature and pressure of 1.6 to 3.8 MPadepending on boiler load. The NPS Power Plant sells 60% ofits power output to EGAT under the SPP program. Theprocess steam and the remainder of the power are sold to localcustomers at an Industrial Park including a pulp and papermill (Barisic and others, 2008). National Power Supply is alsobuilding 2 x 135 MW units due to be commissioned byNovember 2013 with an additional 2 x 135 MW units due inMarch 2014.

4.3.4 Glow Energy

The Glow Energy Public Company is an independent powerproducer (IPP), and operates a coal-fired power station as wellas several gas plants under the Thai small power producerprogramme, mostly cogeneration. In 2008, it generated1708 MW of electricity which was made up of 713 MW fromIPP and 590 MW from SPP plants with the power producedsold to EGAT under long-term PPA. Glow Energy also soldup to 448 MW of power to industry under 35 year powersupply agreements (Platts, 2009a,b).

Glow Energy was successful in its bid to produce and supplyelectricity to EGAT in a IPP tender programme in 2007 usingsupercritical technology. The project is called Gheco-One andwill be Thailand’s first supercritical power plant of 700 MWcapacity and is being built at Map ta Phut, Rayong, anindustrial district 150 km southeast of Bangkok. DoosanHeavy Industries is the main constructor of the 700 MWcoal-fired plant project. All its output has been sold to EGATunder a 25-year PPA. The project has also passedenvironmental impact assessment and secured projectfinancing. The project began in 2008 and is due to becompleted at the end of 2011. It will use bituminous coal

30

Power generation sector

IEA CLEAN COAL CENTRE

from Indonesia and Australia with a low sulphur content ofbelow 1%.

Gheco-one will transfer the imported bituminous coal fromships to the stockyard using an enclosed conveyor to transportthe coal. The coal will be pulverised before being injectedinto a high efficiency boiler. The flue gas will be sent to aselective catalytic reduction (SCR) for NOx removal,electrostatic precipitator (ESP) for dust removal and flue gasdesulphurisation (FGD) for SO2 removal before emitting intothe atmosphere through a 150 m high stack. All these systemswill enable it to be the most efficient, and cleanest, coal plantin Thailand. All the coal ashes will be collected and stored ina silo where they will be transported to the cement industryfor reuse. The plant will also have installed an emissiondisplay board, showing real time emissions compared withThai air quality standards.

4.4 Gas-fired power plants

According to USAID (2007) at the end of 2006 there was18,062 GW of power generation capacity from gas, whichequates to approximately 68% of total power generationcapacity in Thailand. This compares with 21% from coal, 1%from oil, 7% from hydro and 2% from remaining renewables.EGAT operates the combined-cycle Wang Noi power stationwhich generates 2027 MW for Thailand’s central region. Theplant is in Ayuthaya, 70 km north of Bangkok. The latestgas-fired plant to be commissioned by EGAT was the BangPakong Combined Cycle 5 Project (BPCC 5) power plant.Bang Pakong Power Plant is currently the largest and mostmodern thermal power plant employing state-of-the-arttechnologies of power system and environmentalmanagement. Overall the aggregate capacity at Bang Pakongis 3680 MW, producing around 25% of Thailand’s electricity.The new BPCC 5 power plant, supplied and built by aSiemens Marubeni consortium, will have a combined cycleunit with a capacity of 700 MW. EGAT operates severalthermal power plants including:� South Bangkok Power Plant is a 2300 MW thermal and

combined cycle plant using natural gas and diesel oil;� Wang Noi Power Plant is a combined cycle plant that

uses natural gas and diesel oil with a 2000 MW capacity;� Nam Phong Power Plant Blocks 1–2 is a combined cycle

plant in the province of Khon Kaen with 710 MWcapacity and uses natural gas and diesel oil;

� Nong Chok Power Plant is in Bangkok and has a488 MW capacity and operates on diesel oil and gas;

� Sai Noi Power Plant is a gas turbine located in theNonthaburi province and uses diesel oil and has acapacity of 244 MW;

� North Bangkok Power Plant is oil fired and operates inthe Nonthaburi province with a capacity of 237 MW;

� Lan Krabue Power Plant is a gas turbine in theKamphaeng Phet province with a capacity of 134 MWand uses natural gas and diesel oil;

� Surat Thani Power Plant uses oil and is in the SuratThani province with a capacity of 25 MW;

� the Mae Hong Son Power Plant is diesel and is located inthe Mae Hong Son province with 6 MW capacity(EGAT, 2009a,b).

SEC an IPP, is also building a 1600 MW gas-fired,combined-cycle plant, located in Samet Neur sub-district, BangKhla district, Chachoengsao province. In October, 2008 SECentered into a PPA with EGAT for the long-term (25 years) saleof electrical power. The SEC facility will have four combustionturbine generators (CTG), four heat recovery steam generators,and two steam turbine generators operating in combined cyclemode. SEC is scheduled to commence construction in March2010 and to enter commercial operation with EGAT in 2013when two of the units will be commissioned.

There are also several other IPPs, including Gulf PowerGeneration that started up a 1468 MW gas-fired plant at ThapKwang in the Kaeng Khoi district of Sara Buri province in2008. This is a joint venture with Japan’s J-Power which owns49% and Mit-power (a subsidiary of Mitsui & Co) owns 1%(Platts, 2008). It is likely that further gas-fired power stationswill be built in the future.

4.5 Naphtha and oil-fired powerplants

Thailand still generates around 1–2% of its power from oil-fired power plants many of which are owned by EGAT.

4.6 Hydroelectric plants

In 2004 hydro power supplied 2922 MW or 6% of Thai totalenergy demand. According to the Australian Business Councilfor Sustainable Energy (ABCSE), Thailand’s estimatedhydropower potential is 1770 TWh/y (ABCSE, 2005). Thegovernment has made development of mini- and micro-hydroa priority, and created incentives for a planned 350 MW ofnew capacity. The Provincial Electricity Authority (PEA) isheavily involved in small hydro, operating three small plantswith 3.8 MW and planning to build five more, increasing theirtotal capacity to 18 MW.

There are several barriers preventing the uptake of smallhydro including that, under government schemes, the villagemust request the scheme. In addition, other obstacles are:� the high initial capital cost of hydro systems;� a lack of capacity in small hydro project development;� the distance between resource and load centres in some

cases;� a continuing reliance on importing expertise, materials

and equipment, which maintains high costs that in turnimpede development;

� the location of some potential hydro stations on ancestrallands of cultural minorities, which can make gainingaccess difficult.

Due to only a few systems being installed yearly the market isonly large enough for one equipment manufacturer.

The Nam Theun 2 Hydropower Project (NT2) is due to beginoperation in 2010. This plant is being constructed in Laos andwill have a capacity of 1070 MW, with 995 MW to Thailand(Du Pont, 2005). There are also several other possible projectsoutside Thailand that could contribute to Thailand’s power grid.

31

Power generation sector

Prospects for coal and clean coal technologies in Thailand

4.7 Wind power

There are no commercial wind farms in Thailand. There arecurrently two main types of application for wind energy andthat is for agricultural water pumping and electricitygeneration. According to AIT (2007) the current status ofwind power development in Thailand is primitive with totalgeneration connected to the grid of around 150 kW. However,they also state that Thailand has potential for large-scale windenergy development with a focus on the central and westernregions. One of the problems is the lack of data on the windenergy potential in Thailand. Studies by DEDE and WorkBank have produced different results. More studies todetermine Thailand’s wind potential are required (AIT, 2006).Recent studies by JGSEE and EGAT with site surveys byDEDE indicate more wind potential in specific areas(Fungtammasan, 2009).

EGAT has done some preliminary work investigating thepotential for wind power. In 1993, EGAT installed ademonstration plant at Promthep Alternative Energy Stationon Phuket island in the south of Thailand. There are two10 kW wind turbine generators (WTG) used for batterycharging. There is also a 150 kW WTG that has beenconnected to the local distribution grid of PEA since 1996.The largest wind turbine generators operating are2 x 1.25 MW and 1.5 MW (Fungtammasan, 2009).

There are also some hybrid systems with PV and dieselengines in Tarutao and Phu Kradueng national parks that havea capacity of 10 kW and 2.5 kW. The government has a policyto promote all types of renewable energy and an objective of100 MW of wind power by 2011 (AIT, 2007).

4.8 Small power producers

The Thai Government established the Small Power Producerprogramme in 1992, followed by the Independent PowerProducer programme in 1994. An IPP project is defined byEGAT as being 700 MW or higher. SPPs can sell theirelectricity either to EGAT or to industrial customers locatednext to the SPP plant, or both. This differs from IPPs whomust sell their entire output to EGAT. To date, there has beenno published literature that evaluates the performance of SPPcompared to EGAT plants or IPPs. This would be usefulinformation for policy planners. In the EGAT PDP 2004-15the additional planned capacity of 13,770 MW by 2013 hadvery little SPP generation and only 770 MW of renewableenergy projects or 3% of the planned additional capacity(Probe International, 2005).

SPP make up almost 15% of the country’s total installedgenerating capacity with all of the output sold to EGAT.EGAT defines an SPP as either a private or state enterprisethat generates electricity from non-conventional sources suchas wind, solar and mini-hydro energy or fuels such as waste,residues or biomass. SPP are also made up of generators fromconventional sources (natural gas, coal, oil) and usingcogeneration from combined cycle units capable of producingpower and steam.

4.9 Renewable energy plans

As discussed in Chapter 2 the Thai Government wants toincrease renewable energy to 8% by 2011 and then achieve22% of its total energy consumption from renewables by2022. In order to do this they have put in place a RenewableEnergy Development Plan (REDP) that will diversify sourcesof energy supply via PPA by EGAT in IPPs, SPPs andneighbouring countries. The REDP focuses on four types ofpower plants and they are wind, solar, waste and minihydropower. The main source of renewable energy inThailand is from biomass.

4.10 Nuclear power

In 1977, the Thai Research Reactor started operation: it is aTRIGA Mark III reactor and has a maximum power of 2MWth. The Ongkharak Nuclear Research Center (ONRC) inthe Nakhon Nayok province, 60 km northeast of Bangkok isalso being established. The ONRC will build a multipurpose10 MW TRIGA research reactor. This will allow the ability toproduce radioisotopes for medicine, industry and agriculture,neutron transmutation doping of silicon, and neutron capturetherapy.

The Thai Government has a clear strategy to develop nuclearpower. In the Thai power development plan for 2007 to 2021published by EGAT, there was a plan to have 2021 4 GW ofnuclear power from 2007 to 2021, increasing to 10 GW by2035 (Watcharejyothin and Shrestha, 2009). In 2008 a $33million study of nuclear power was launched; to be carriedout by the new Nuclear Power Plant Development Office.

The plan is to develop four 1000 MW class reactors at onesite with two units on line by 2020. In 2015 construction isintended to begin after a major study which will include afeasibility study, site selection, public acceptance plan and thetraining and development plan for technical skills by localpersonnel is completed. The International Atomic EnergyAgency (IAEA) is assisting in the study. To date, EGAT hasidentified four provinces with potential sites for a nuclearpower plant. The potential locations are in Chai Nat, SuratThani, Nakhon Si Thammarat and Chon Buri provinces. Thefeasibility study is due to be completed by the end of 2010,after which the government will make a decision on whetherto proceed. In May 2009 EGAT released a revised 2007 PDPreducing the share of nuclear power to 2 GW by 2020 due to alower projected demand for power.

4.11 Cross-border power trade

In the current PDP there is a goal of purchasing 5000 MW ofpower from neighbouring countries by 2021. However, thereis potential to exceed this if all the agreements betweendifferent countries are met. There are already existing andpotential power projects being explored in Laos, Myanmar,Cambodia and Malaysia that could influence the energysupply mix within Thailand. Each of the countries isexamined and a review given of what they supply to Thailand

32

Power generation sector

IEA CLEAN COAL CENTRE

currently and their future potential contributions. In addition,the Thai Government has also signed an initial agreement tobuy approximately 3000 MW of electricity from hydropowerplants in southern China starting in 2017.

4.11.1 Laos

Laos is a land-locked country with reserves of up to 554 Mtof lignite. The country also has a large amount of hydropowerpotential with estimates of up to 25 GW. However, Laos hasno developed infrastructure or railway network and currentlya low energy consumption pattern, with wood making up themajor share of total primary energy consumption(Watcharejyothin and Shrestha, 2009). There are alreadyseveral developments under way to utilise Laos energyresources in Thailand. One of these is the Hongsa Project ajoint investment with Banpu, Rathaburi Electricity GeneratingHoldings and Laos Holding State Enterprise for a 1878 MWlignite-fired thermal plant. There are also five current projectsbetween Laos and Thailand concerning hydropower dams.The Laos Government also intends to build up to 30 newdams by 2020.

The Government of Thailand has a Memorandum ofUnderstanding (MOU) with the Government of Laos toreceive � 1500 MW of power in 2010; � 7000 MW of power by 2015;� a further 3000 MW of power by 2017.

In the northeast of Thailand there are currently fivetransmission lines already supplying power from Laos, with afurther two lines under construction and four more planned.

4.11.2 Cambodia

Cambodia’s power sector was severely damaged by years ofwar and neglect with only around 200 MW of installedgenerating capacity. The majority of the power is primarilyfrom biomass. There are currently studies being undertaken tobetter measure the energy resources of Cambodia. In January2008 Ital-Thai, a large construction firm, announced it wouldbe building a $4 billion coal-fired power station in Koh Kongto generate electricity for Thailand.

4.11.3 Myanmar

Myanmar has large reserves of natural gas and already has acontract to supply gas to Thailand until 2029. There is a410-mile Thai-Myanmar natural gas pipeline, running fromMyanmar’s Yadana gas field in the Andaman Sea to a powerplant in the Ratchaburi province. There are also severalhydropower projects in Myanmar that EGAT is involved with.In 2007, work began on the 7110 MW Tar-Hsan hydropowerproject. This Myanmar-Thailand joint venture project is oneof several signed with Thai companies over the last few years.Another is the 600 MW Hutgyi on the same river, signed withEGAT. Electricity generated from the two plants will be soldmainly to Thailand.

4.11.4 Malaysia

The major energy link with Malaysia is Trans-Thailand-Malaysia (TTM) Gas Pipeline System that connects the JDAnatural-gas fields with both countries transmission systems.The TTM pipeline currently delivers natural gas to Thailandand is part of a long term strategy to establish the proposed‘Trans-ASEAN Gas Pipeline’ (TAGP) system, which aims tocreate a transnational pipeline network linking the majornatural gas producers and consumers in Southeast Asia.

All these initiatives will increase Thailand’s reliance onimported energy in the coming years. If all the projects aresuccessful then it is highly likely that the 5 GW target by2021 in the EGAT PDP will be exceeded.

4.12 Comments

A secure energy supply is a prerequisite for sustainabledevelopment, which requires a broad energy policy approach.On paper, Thailand is providing an energy mix that includesall available sources of energy, such as gas, coal andrenewables. This approach protects energy supply by reducingdependence on a few supply regions and against price rises ofindividual energy sources, such as oil and imported gas, overthe long term. The monopoly held by EGAT on transmission,and until relatively recently with power generation, makes itdifficult to have a liberal power market, especially whenEGAT is the sole purchaser of power from IPPs andneighbouring countries. The Energy Regulatory Commissionnow oversees all PPA and has the final decision on thecontract decisions.

The energy industry in Thailand, in particular the powersector, as in all countries, is characterised by large investmentrequirements for ongoing infrastructure and generation plants.Plants normally have a useful technical and economic life of aminimum 30–40 years to make optimum use of the investedcapital. New investment with such a long useful life is bestcarried out under a liberalised power market if the main costfactors are calculable in the long run and the politicalboundary conditions are considered stable. Without theseelements investment will be stalled and/or concentrated onplants offering short payback times – this appears to behappening in some cases in Thailand.

As discussed in Chapter 3, due to concerns over energysecurity the Thai Government through its state ownedsubsidiary EGAT has published a PDP or roadmap reducingthe reliance on gas. Coal, gas, nuclear and renewables willplay a bigger role in the future energy system. There are alsoplans by EGAT to increase the capacity of existinghydropower plants, as well as several other initiativesincluding installing a 100 MW steam turbine in connection toan existing gas turbine plant at Surat Thani and in the futureto purchase:� 10,444 MW from IPPs, of which 5944 MW from

seven producers have already been contracted (some ofwhich are currently under construction). Four of theseproducers will use natural gas; the others will use

33

Power generation sector

Prospects for coal and clean coal technologies in Thailand

imported coal. The additional 4500 MW is outlined ascombined cycle power plants, but has not yet beenspecified in terms of fuel;

� 3426 MW from hydropower projects in Laos and300 MW from Malaysia;

� 1535 MW from 20 firm SPPs based on natural gas(940 MW), coal (420 MW), wood (180 MW) and ricestraw (5 MW).

If the combination of using IPP, SPP and importing power isachieved as well the REDP plan, by 2022, then it is likely toresult in diversification of the energy supply sector. Coal willstill play a major role with several 700 MW power stationsproposed over the next decade. The key issue to overcome fordevelopment of these power stations will be to alleviate publicconcern and minimise opposition to construction of newplants. One way is to improve communication betweengovernment authorities, the private sector and the publicthrough improved dissemination of information on clean coaltechnologies. Otherwise the option of building coal-firedpower plants in neighbouring countries where the power istransmitted to Thailand, such as Laos and Myanmar is likelyto occur. This will again result in similar problems with gassupply and increase concerns over energy security in the longterm.

In the last few decades Thailand has undergone rapidindustrial development. As a result the energy consumed inThailand has risen sharply. According to the ADB electricitygeneration is set to grow rapidly with coal a major contributorto the energy mix. In 2000, Thailand generated 95 TWh, by2020 it is projected to be 150 TWh and by 2050 could reach316 TWh. This is also expected to triple Thailand’s CO2

emissions from 158 MtCO2 in 2000 to 512 MtCO2 in 2050(ADB, 2009a,b,c,d).

The increased combustion of fossil fuels caused increases inthe emission of SO2 and NOx, and suspended particulatematter resulting in a serious air pollution problem. Estimatesof the power sector contribution to the problem wereapproximately 60% of the SO2 and just under 20% of theNOx. The combination of NOx and SO2 can react in theatmosphere and produce acidic rain that can result in harmfuleffects on people, animals, buildings and ecosystems.

Thailand’s atmospheric pollution not only comes from thepower generation sector; there are two other majorcontributing sectors, industrial and transport. In recent yearswith industrial development and population growth thepollution levels in solid and hazardous waste, air, noise, andwater have increased. For example, fine particles inBangkok’s air exceed World Heath Organisation standards by2.5 times, and other air pollutants are also causing majorhealth impacts. Overall, it is estimated that air and waterpollution costs the country 1.6–2.6% of GDP per year. Thegovernment has responded by adopting several environmentalcontrol measures to improve air and water quality and wastedisposal (World Bank, 2004).

Increased power generation and industry development resultin more environmental impacts on air, water and land. Inparticular, in the 1990s there were two SO2 pollutionincidents resulting from the Mae Moh lignite thermal powerstation. As a result of this legacy, the Thai public andenvironmental organisations have protested over existing andproposed new coal-fired power stations. An example of thiswas the proposed Hin Krut power 1400 MW coal-fired powerplant project in Prachuap Khiri Khan that was to have beenlocated at the Kok Ta Horm village, in the Thongchaisub-district of the Prachuap Khiri Khan province. The projectwas cancelled because of local and environmental opposition.As a result, the project developers switched from coal tonatural gas and relocated the project to another province.

There were also protests during the construction of the BLCPproject at Rayong (Harris, 2009). The protests can be partlyattributed to the Mae Moh power station incidents beforeFGD installation, where excess SO2 damaged crops andcaused health problems amongst the local populace. Theintroduction of FGD resolved the issue of excess SO2 to safelevels and there have consequently been no more incidents orproblems.

The government energy policy to diversify away from natural

34 IEA CLEAN COAL CENTRE

gas and to use more coal could lead to more protests. Onemeans to address this is more public consultation,communication and education about clean coal technologies.A good example of this form of consultation process is theBLCP project at Rayong that addressed many local concerns.BLCP designed the station using technology to meetenvironmental compliance with the installation of low NOxburners for reducing oxide of nitrogen, an electrostaticprecipitator, FGD and a 200 metre chimney. The company hasan automatic continuous flue gas monitoring system at thechimney and also maintains four air quality monitoringstations in the vicinity of the power station.

Since commissioning in 2007 the station has performed belowthe environment limits set in its EIA permit. The EIA limitsare particulates 43 µg/m3 compared to the regulatory limit of120 µg/m3, SO2 at 262 ppm against the regulatory limit of320 ppm and NOx is 241 ppm against the regulatory limit of350 ppm. The company takes environmental issues seriouslywith detailed monitoring, reporting and communicating withthe surrounding community. It also operates the Kiang SaketEnergy Center based at the plant and open to students and thelocal communities which covers the topics of fuel, type ofpower plants, clean coal technology and environmental issues(Harris, 2009).

A Community Development Fund (CDF) was also establishedby the Thai Government in 2007 with the goal of funding toimprove the quality of life for local people and theenvironment near power plants. In 2008, 105 power plants in40 provinces paid into the fund. A total of 26 power plantswere owned by EGAT and the other 79 were owned by IPPs,SPPs and VSPPs. There are 69 individual funds, eachadministered by a CDF Management Committee with a totalof 1778 million baht contributed to the fund in 2008. Thefunds support a variety of community development and socialactivities near the power plants (EGAT, 2009a,b).

5.1 Environmental controlmeasures adopted

Thailand has introduced a range of policies to improve airquality. The policies aim to improve air quality but also crossover into other areas such as energy management, health andclimate change. The key goals of the Thai Government are:� to keep ambient air quality within the National Ambient

Air Quality Standard, especially for PM10, such that theyearly average should be within 0.05 mg/m3 and24 hours average of PM10 must also not exceed0.12 mg/m3;

� the level of other toxic substances in ambient air willachieve the air quality standard;

� the level of toxic air pollutants in the industrial areas andcommunity areas especially SO2 and NOx will achievethe air quality standard (Clean Air Network, 2008).

All these goals have resulted in a reduction in air pollution.

5 Environmental issues

The strong public concerns on the use of coal also resulted inthe Thai Government publishing new emission standards fornew power plants in June 2008 (see Table 12). All powerplants must also use continuous emission monitoring (CEM).These data are reported daily to the Department of IndustrialWorks and the Ministry of Natural Resources andEnvironment, which then checks the reported data.

Thailand’s emission standards are comparable to OECDcountries in terms of SO2 and NOx emissions. This isimportant with the planning of more coal-fired power stations.Mae Moh (2400 MW) was the first coal-fired power plant toinstall FGD on all its operating units. The aim of installingFGD was to reduce the SO2 emissions by 95% using the wetlime scrubbing method in each of generators 8 to 11 (eachwith an output of 300 MW). The Mae Moh power station hasnow been fitted fully with FGD for a total electrical output of2400 MW. The three oldest blocks (225 MW), which do nothave FGD, were shut down in 1999 and have not been used ascold reserves since 2003.

FGD is now installed in new build coal-fired power plantssuch as the BLCP power plant commissioned in 2007.Increasingly, it is likely that all new coal-fired power plantswill burn imported coal and deploy supercritical technologywith FGD, such as the Glow Energy Gheco One project, asupercritical plant due to be commissioned in 2011.

The Department of Alternative Energy Development andEfficiency (DEDE) at the Ministry of Energy (MOE) appearsto be solely responsible for CCT development. There areother departments within MOE that are also concerned withthe commercial aspect of coal utilisation and coal reserves.These include the Department of Mineral Fuels, Departmentof Energy Business, and Energy Policy & Planning Office(EPPO) and Department of Primary Industries and Mines.

Existing coal-fired power plants are governed by a number oflaws and regulations issued by the Ministry of Industry(MOI), the Ministry of Natural Resources and Environment(MONRE), the National Energy Policy Board (NEB), thePower Plant Regulatory Board, EPPO, and EGAT. Proposednew coal-fired power plants are reviewed by the NationalEnergy Policy Board, EPPO, EGAT, the Power PlantRegulatory Board, NEB, and MONRE in their long-term15-year Power Development Plan (PDP) (Wongopasi, 2009).

35

Environmental issues

Prospects for coal and clean coal technologies in Thailand

5.1.1 Particulates and other pollutants

There are several air pollutants in Thai cities including,sulphur dioxide (SO2), nitrogen dioxides (NO2), particulatematter (PM10, and PM2.5), carbon monoxide, ozone, volatileorganic compounds, and lead. SO2 and NO2 are majorpollutants that have negative public health, environmental andair quality impacts. In some cases there pollutants can resultin acid rain. PM results from a complex mixture of smallparticles and liquid droplets. PM includes acids (such assulphates and nitrates), metals, organic chemicals and soil ordust particles. PM10 are particulate matter less than 10 µm indiameter that can be inhaled into the nose and throat. PM2.5,are particulate matter less than 2.5 µm in diameter andbecause of their size are able to penetrate into the lungs. BothPM10 and PM2.5 result from fossil fuel combustion frompower stations and industrial processes.

According to the Clean Air Initiative for Asian Cities theaverage national levels of PM10 in Thai cities has beendecreasing since 1993. SO2 and NO2 levels are also stablewith their levels now below World Health Organization(WHO) guideline values. However, PM10 levels continue toexceed WHO guideline values. Total suspended particulate(TSM) was historically high, but the government hasimplemented measures that have resulted in a decline of TSMsince the 1990s (Clean Air Network, 2008).

As a result of increasing concerns over air quality the ThaiGovernment established the Air Quality and NoiseManagement Bureau of the Pollution Control Department(PCD) and the Ministry of Natural Resources andEnvironment. Both play an important role in air qualitymonitoring. The PCD manages 53 air quality monitoringstations, five meteorological stations and five mobile ambientair quality monitoring units (Clean Air Network, 2008). Theintroduction of these organisations has resulted in improvedair quality from emissions generated from power stations.

5.1.2 Utilisation of residues

According to Tangtermsirikul (2005), Thailand’s coal-firedpower stations produce around 3 Mt/y of fly ash.Approximately 95% of the total production of fly ash is fromthe Mae Moh plant in Lampang province, in the north ofThailand. Nearly all of the fly ash is used as a partial cementsubstitution material reducing the costs of making concreteand also improving the quality. The new BLCP and in thefuture Gheco One project will also contribute to fly ashproduction along with EGATs four proposed new coal-firedpower stations.

Thailand is a world leader in the utilisation of fly ash. Prior to1997, fly ash was perceived as a waste and costly to dispose.Since 1997, fly ash use and products have been developed andthey are now perceived as assets and used in different types ofconcrete throughout the country. This includes low heatconcrete, self-compacting, sulphate-resisting, marine androller-compacted concrete. The use of fly ash concrete has beenused in many of Thailand’s major building projects, including

Table 12 Thailand emission standards for newpower plants (National EnvironmentBoard, 2008)

Power plant type(size and fuel type)

TSP, mg/m3 SO2, ppm NOx, ppm

Coal

<50 MW 80 360 200

>50 MW 80 180 200

Oil 120 260 180

Natural gas 60 20 120

Biomass 120 60 200

Tha Dan Dam in Nakhon Nayok and the Rama VIII Bridge.This use of fly ash concrete reduces the fly ash waste of 3 Mt/yto 1.2 Mt as 1.8 Mt is used in the concrete.

5.1.3 SO2

As previously discussed, SO2 was initially a major problemwith Thailand’s coal-fired power generation. In 1992, at theMae Moh power station an air pollution incident occurredproducing SO2 concentrations that resulted in respiratoryproblems in local villages. The lignite mined from theadjacent Mae Moh coalfield has a low calorific and highsulphur content. The estimated yearly emission of SO2 isapproximately 540 kt which in 1991 was around 47% of thetotal SO2 emissions in Thailand. As a result of the 1992incident air quality standards were improved with theinstallation of environmental controls (APEC, 2008a,b).

The installation of FGD systems at the Mae Moh coal-firedpower station resulted in lower levels of SO2 in Mae Mohvalley. Consequently, with the final installation of an FGDsystem in 2000 the SO2 emissions have been reduced from150 t/h to less than 7 t/h. This in turn has resulted in themaximum hourly concentration of SO2 being reduced from>3000 µg/m3 in 1992 to <350 µg/m3 in 2002 (Clean AirNetwork, 2008).

Another measure implemented at Mae Moh to reduce SO2

emissions was modelling the dispersion of SO2 emitted fromthe Mae Moh power station under various atmosphericconditions, including fumigation, to correlate ambient groundlevel SO2 concentrations with SO2 emission rates. As a resultof this, and with the FGD removing up to 95% of the SO2

there have been no further problems at Mae Moh (Suaysomand Wangwongwatana, 2004).

All new coal-fired power stations must install FGD. Allproposed coal-fired power stations are also likely to useimported bituminous coal. BLCP imports all its coal fromIndonesia and Australia and on a per shipment basis has arange of sulphur contents within 0.27–0.70%/y with anaverage limit of 0.45%/y. This compares with Mae Mohlignite coals which have a sulphur content on average of 3%.

5.1.4 NOx

Natural sources of nitrogen oxides (NOx) are emitted fromvolcanoes and biological decay. Total NOx released fromnatural sources are estimated to range between 20 and90 Mt/y. NOx is also produced when fossil fuels are burnedwith estimates of around 24 Mt/y globally. Thailand’scontribution is approximately 1 Mt. The main source of NOxis from vehicles and the power sector and is expected to riseto 1.5 Mt by 2030 (IEA, 2009).

5.2 Carbon emissions and CCSactivities

In 1994, Thailand ratified the United Nations Framework

36

Environmental issues

IEA CLEAN COAL CENTRE

Convention on Climate Change (UNFCCC) and also ratifiedthe Kyoto Protocol in 2002. Thailand is in the process ofcompleting the second national communication on climatechange for the UNFCCC. One element under the UNFCCC isthe Clean Development Mechanism (CDM) which allows forAnnex 1 countries to undertake projects in Thailand and inreturn receive carbon credits in the form of certified emissionreductions that can be used to meet the Annex 1 countriesmitigation commitments.

Thailand is the seventh largest emitter of carbon dioxide(CO2) emissions in Asia. Electricity generation (if currentplans are implemented) will increase the use of coal.Thailand’s carbon dioxide emissions are likely to triplebetween 2000 and 2050, from 158 MtCO2 to 512 MtCO2.Building more efficient coal-fired power plants and usingCCS are two options that have large mitigation potential. Inthe case of CCS there would have to be a carbon pricesufficient to make CCS viable (ADB, 2009ba,b,c,d).

The Ministry of Natural Resources and Environment(MONRE) was established as the Designated NationalAuthority (DNA) for CDM projects in 2003. To co-ordinateCDM activities the Office of Natural Resources andEnvironmental Policy and Planning (ONEP) was created toco-ordinate the structuring and CDM operation andmanagement within Thailand. The Thai Greenhouse GasManagement Office now manages CDM and in February2009 there were 17 CDM projects approved and registered bythe CDM Executive Board, 53 awaiting approval by the ThaiDNA and 115 projects at or after the validation stage. To date,only two of the 17 projects have traded credits. Around 80projects have been estimated to generate around 5 Mt/y if theyare registered and proceed. To encourage more CDM projectsthe Thai Government is planning to establish a carbon fundthat would provide low-interest loans for CDM or co-investment in projects that could mitigate greenhouse gasemissions. The aim is that carbon credits from small projectscould be bundled together and sold on the internationalmarket (Bangkok Post, 2009).

Thailand is currently not involved in any carbon capture andstorage activities. At a recent CCS conference in Norway theMinister of Environment from Thailand, Suwit Khunkitti,stated that CCS technologies were still immature, their costhigh, and that there was still a need to first prove and thencommercialise CCS. He went on to say that Thailand wasfocusing on green investments in the supply and demand side,energy efficiency improvements, and aggressively promotingbiofuels and renewables (IISD, 2009). This strategy offocusing on green investments should also include clean coaltechnologies and in particular CCS. Thailand is a major userof domestic and imported fossil fuels, including coal which isset to play a major role in energy diversification and stabilityin Thailand.

This position could change in the future with furtherdevelopment of CCS technologies and with Thailanddiversifying its fuel supply away from gas to include coal.Studies to examine the feasibility of using depleted naturalgas fields in the Gulf of Thailand could be undertaken tomeasure potential storage sites. The ADB recently was funded

by the Australian Government to investigate the potential forCCS in Southeast Asia. To date, Thailand is not part of thegroup of countries involved in the studies at this stage.However, it may be possible to join the group and receivefunding for research into the potential for CCS, such asinvestigation of the gas fields in the Gulf of Thailand forpotential storage.

5.3 International collaborativeactivities

There are a number of organisations involved in collaborativework with Thailand on coal including the United StatesAgency for Development (USAID). However, there are fewco-ordinated programmes that share knowledge fromdifferent countries or companies – an exception is themembership by Banpu of the IEA Clean Coal Centre. Areview carried out by the USAID programme found anumber of problems with the dissemination of informationon clean coal in Southeast Asia.

APEC has also undertaken several studies on the role and useof coal. It is estimated that 90% of total primary energydemand in the 21 APEC economies is from fossil fuels.Therefore the role and use of coal is a key element in longterm energy planning. In 2008 APEC published twointeresting reports on coal with the work carried out byWorleyParsons, a USA based consultant. The reports werewritten without travel to any Asian countries. The reportswere:� Lessons learned in upgrading and refurbishing older

coal-fired power plants: A best practice guide fordeveloping APEC economies (APEC, 2008a,b);

� Best practices in environmental monitoring for coal-firedpower plants: Lessons for developing Asian APECeconomies (APEC, 2008a.b).

The ADB and WB also play a role in the promotion ofsustainable energy in Southeast Asia. However, little in theway of collaborative work, encouraging networks or researchinto clean coal technologies has been carried out in asystematic way by these two institutions.

5.3.1 United States Agency forDevelopment (USAID)

As part of a review of clean coal technologies in SoutheastAsia USAID undertook two conferences; the Asia CleanEnergy Forum in Manila, Philippines, held on 26-28 June2007, organised by the Asian Development Bank (ADB),USAID and Asia-Pacific Economic Cooperation (APEC); theInternational Conference on Cleaner Coal in Chiang Mai,Thailand, held on 19-20 July 2007, organised by theAssociation of Southeast Asian Nations (ASEAN) Forum onCoal (AFOC) and USAID. Both conferences identified anurgent need for a network for sharing information andaddressing research needs facing power companies in theregion, including Thailand.

The following key barriers and problems were identified

37

Environmental issues

Prospects for coal and clean coal technologies in Thailand

throughout the Asian region, including Thailand, althoughsome countries were further ahead in solving these issues. Alack of adequate monitoring and enforcement ofenvironmental regulations was evident with a wide variationin the environmental regulations currently in place. There wasalso a notable absence of regulations and guidelinesconcerning the efficiency of power plants and their CO2

emissions. There was a lack of pricing incentives for coalcleaning, where coal prices do not necessarily reflect coalquality. Without appropriate pricing policies where cleanercoal is able to be sold at a higher price, the coal producer orsupplier has less incentive to clean the coal.

The review found a lack of attention to power plantmaintenance and rehabilitation, and little incentive foroperators to improve the efficiency of existing plant. Withoutsufficient funding, or incentives for improving the operationand maintenance of plants, the plant system will likelydeteriorate and affect the overall system performance. Thereare also obstacles to the use of high-efficiency pulverised coaldesigns (supercritical and ultra-supercritical) with incorrectperceptions that they are costly, unproven and unsuitable foruse with some local coals; as a result subcritical plants arecontinuing to be built. This is despite the evidence ofinternational experience, which demonstrates thatsupercritical and ultra-supercritical designs are commerciallyproven and competitive, especially when coal prices are high(USAID, 2007).

5.3.2 Southern States Energy Board(SSEB)

In Thailand there is a clear need for support in deploymentand scale-up of cleaner coal technologies and practices. Therehave been attempts to accomplish this goal and an example isthe USA SSEB which has been involved in several trademissions, technical visits, workshops and other initiativespromoting clean coal technologies since 2002. One initiativewas a visit by Thai officials from the Federation of ThaiIndustries and Chulalongkorn University where SSEB hosteda tour. The tour involved visiting several clean energydemonstration projects in the western USA in May 2006. Thiswas followed up with a major clean coal and advanced energysymposium in Thailand in 2008. There have also beenongoing negotiations with EGAT and several Thai industryassociations about potential collaborative arrangements withUS firms, government agencies and institutions of higherlearning (SSEB, 2008).

The discussions included the Thai Department of AlternativeEnergy Development and Efficiency in a possible bilateralinstrument with the SSEB to promote clean coal technologiesin selected manufacturing sectors in Thailand (SSEB, 2008).The SSEB currently is negotiating a Memorandum ofAgreement with EGAT, the national power company inThailand, to conduct R&D and other capacity activities on thedeployment of clean coal technologies in future coal powerplants built in Thailand. ECO-Asia, an initiative of USAIDhas also been discussing opportunities to participate withSSEB in this collaboration.

5.3.3 Asian Development Bank (ADB)

The ADB provides loans for major projects in Thailand andwas one of several banks that provided a loan to the BLCPpower plant at Rayong. Some previous ADB investments haveinadvertently led to adverse environmental impacts, such asthe Mae Moh power station. As a result, the ADB did anevaluation of the project’s environmental and health impactswhich contributed to the plant bringing its SO2 emissions intocompliance with national standards. Since the introduction ofmandatory FGD when units are operating there have been nomore incidents as occurred twice in the 1990s.

In 2009 the ADB agreed to provide loans for a biomass powerproject, a gas-fired power project and to fund the investigationinto a climate change/energy efficiency programme. If all theprojects proceed they would total US$554 million. Thebiomass project is 120 MW using waste wood from a nearbypulp and paper industry for fuel in the Prachinburi province.The goal of the climate change/energy efficiency programmeis to increase energy efficiency and energy diversificationwith a US$100 million climate change programme loan. Afeasibility study needs to be completed where an energyoptions report and draft programme loan document areproduced, after which a decision on the loan will be made(ADB, 2009a,b,c,d). The ADB also completed a report on theeconomics of climate change in southeast Asia(ADB, 2009a,b,c,d).

The ADB published a policy paper on energy in 2009. It statesthe ADB needs to proactively support the dissemination anddeployment of new clean coal technologies. According to thepaper large capacity additions will be required to meet theelectricity needs of the region in which coal-based generationwill play an increasing role. The ADB will encouragedeveloping member countries (DMCs) such as Thailand, toadopt available cleaner coal technologies, such as fluidisedbed combustion, supercritical and ultra-supercritical boilers,and flue gas desulphurisation. In addition, as newertechnologies, such as integrated gasification combined cycleand carbon capture and storage become technically andeconomically feasible, the ADB will support their deploymentin DMCs to increase their financial viability. A key element inencouraging DMCs will be to assist DMCs in collaboratingwith developed countries on long-term technology transferagreements (ADB, 2009a,b,c,d). The ADB is also in theprocess of developing a regional technical assistanceprogramme that focuses on CCS and will include Thailand.

5.3.4 Asia Pacific Energy Co-operation(APEC)

APEC is a forum of countries in the Asia-Pacific region thatfacilitates economic growth, co -operation, trade andinvestment. It is made up of 21 members, including Thailand.APEC also has the Expert Group on Clean Fossil Energy witha role of gathering and sharing information on technical,economic and policy aspects of clean fossil energy and cleantechnologies within the APEC region. The goal is being to usethe information to encourage and facilitate cleaner energy

38

Environmental issues

IEA CLEAN COAL CENTRE

technologies within the member countries. This is evidentfrom the APEC Energy Working Group Plan which listed anumber of projects that were specific to fossil fuels:� How can environmental regulations promote clean coal

technology adoption in APEC developing economies?� Lessons learned in upgrading and refurbishing older

coal-fired power plants – A best practice guide fordeveloping APEC economies.

� Technology status and project development risks ofadvanced coal power generation technologies in APECdeveloping economies.

� Environmental monitoring for coal-fired power plants indeveloping Asian economies.

� Increasing the knowledge and awareness of carboncapture and storage capacity building in the APEC region(Phase IV).

� Reducing the trade, regulatory and financing barriers toaccelerate the uptake of clean coal technologies bydeveloping economies in the Asia-Pacific region.

� Planning and cost assessment guidelines for building newcoal-fired power plants (APEC, 2009a,b).

These reports are all relevant and useful to encourage theuptake and deployment of CCTs in the Asia-Pacific region.Improvements could be made on the dissemination andraising awareness about the outcome of the projects andstudies for governments and the private sector. Aside from anumber of workshops it was unclear how the information wascommunicated to the key players.

5.3.5 ASEAN forum on coal

The ASEAN Forum on Coal is part of Asia Centre of Energy(ACE) activities and is based in Jakarta. It is anintergovernmental organisation made up of 10 member stateswhich are Thailand, Vietnam, Brunei Darussalam, Cambodia,Indonesia, Laos, Malaysia, Myanmar, Philippines andSingapore. ACE began in 1999 and the second workprogramme ended in 2009. The Centre works on coal andclean coal technologies promotion within its programme andpart of that is the ASEAN Forum on Coal which meets once ayear to discuss activities of the members.

In the five-year plan the main goal for ASEAN was toco-operate and promote sustainable development andutilisation of coal as well as deal with environment issues inASEAN coal-related matters. This included action on thedevelopment of clean coal co-operation project proposalswith a focus on promotion of small-scale clean coaltechnology for rural electrification, greening of coal-firedpower plants in the ASEAN and coalbed methanedevelopment. In addition, a number of technical visits andtraining at CCT facilities took place, including seminars onCCTs and assistance on environmental impact assessment tosmall-scale coal projects.

5.3.6 IEA

The IEA World Energy Outlook in 2009 focused on southeastAsia with several case studies undertaken including Thailand.

The IEA Clean Coal Centre is also currently undertaking aseries of ASEAN studies examining the prospects of coal andclean coal technologies including also Vietnam, Indonesia,Malaysia and the Philippines (IEA, 2009; Baruya, 2009b).

5.4 Comments

On a domestic level Thailand is one of the leading SoutheastAsian countries in developing, implementing and monitoringair quality standards. This was a direct result of Mae Mohlignite power station SO2 emission problem in the 1990s andtransport emissions. The 2007 BLCP coal-fired power stationoperates under the Thai air quality standards in all categories.The next coal-fired power station to be built will besupercritical and will also operate below the air qualitystandards set by the government.

A major obstacle to implementing clean coal technologies isthe lack of integration between the different governmentdepartments and ministries on promoting clean coaltechnology. During the visits to academic and private sectororganisations associated with coal, the lack of adequatefunding to promote CCTs was apparent. Although universitieswere undertaking coal research it was within a limited budget.It was also unclear which government agency or departmentwas responsible for clean coal technologies.

There appears on the surface to be a wide range of activitiesbeing undertaken with CCT in Thailand. However, on closerexamination this is misleading. USAID for example havebeen heavily involved in promoting CCTs not only inThailand but throughout Asia. This is no longer the case withtheir current annual budget allocated to energy efficiency andrenewable energy.

The IEA has just completed an overview of southeast Asiaincluding Thailand, in their the 2009 World Energy Outlookand is also working on collaboration activities in Indonesia.There are several intergovernmental organisations involved inpromoting CCTs in Thailand and other ASEAN countries.The ASEAN Forum on Coal also meets once a year to updatemembers on their different activities. It would be useful forinternational organisations to attend also and to discusspotential collaborative activities and also update the memberson their work.

It appears for the most part that several unco -ordinatedactivities are happening around CCT of which there is littlesubstantive follow-up once a report, seminar or visit iscompleted. To improve collaboration and promotion of CCTthe Government of Thailand could consider the establishmentof a central CCT organisation made up of academia, privatesector, government and ENGOs as well as internationalparticipants. This would enable organisations interested inpromoting CCT or collaboration with Thai organisationsworking in this area to contact a central office. That wouldenable more effective and efficient use of resources as well asavoid duplication of initiatives. It would also be useful ifinternational organisations working on clean coaltechnologies in southeast Asia could meet yearly to present onwhat they are doing and discuss collaboration.

39

Environmental issues

Prospects for coal and clean coal technologies in Thailand

Clean coal technologies can increase the efficiency of powerstations. A 1% increase in thermal efficiency can reducegreenhouse gas emissions between 2% and 3% depending onthe coal and technology. CCTs also reduce SO2, NOx andparticulate emissions. In many developed countries there isincreasing attention and funding being provided to investigateand develop CCS which could provide large reductions inCO2 emissions from coal-fired power generation.

The implementation and development of clean coaltechnologies in Thailand will require consideration of severalfactors. First, is the lengthy timescale for deployment ofadvanced clean coal technologies which can take up to4–7 years. This will be considerably longer for CCS which atthe moment is not occurring in Thailand. Second is the rangeof barriers that clean coal technologies must successfullyovercome in Thailand to enter into widespread commercialuse. Third is the role of the Thai Government in creating anenabling policy framework to encourage the construction ofclean coal technologies by private companies and research byuniversities. There are several technical and market issues thatclean coal technologies must overcome in Thailand to enterinto widespread commercial use including: � performance;� cost;� consumer acceptance;� safety;� training;� enabling infrastructure;� incentive structures for firms (eg licensing fees,

royalties); � regulatory compliance;� environmental impacts (IPCC, 2004).

In order for clean coal activities to develop more quickly inThailand all of the above issues need to be addressed. EGATand other IPPs are to a large degree reliant on foreign expertisefor power generation boilers. BLCP was built by MitsubishiHeavy Industries and Gheco One is being built by Doosan.There is also a need to increase education and training ofpeople in the CCT field.

Historically, Thailand has experienced strong opposition bylocal communities to the construction of coal-fired powerplant – for example, the sites of two potential IPP coal-firedpower plant projects, the 1400-MW Hin Krut, and 734-MWBo Nok project located in Prachuapkhirikhun Province in2000. As a result of this opposition the plants were relocatedto another province and the plants’ feed stock switched tonatural gas. Lessons have been learnt by power stationdevelopers from past experience and a key lesson is to involveall stakeholders as early as possible in project development aswell as through the construction and operation phases. Thisstrategy has met with success with the construction andcommissioning of the BLCP coal-fired plant in 2007.

According to EGAT (2009a,b), there are five proposed IPPcoal-fired power projects, with several under construction.

40 IEA CLEAN COAL CENTRE

The status of the projects is discussed in Chapter 4. It is clearthat IPP will play a bigger role in the future. If the PDPobjectives are met then IPPs will have a total of 51% of thetotal installed capacity by 2015. To date, it is companies suchas Banpu and Glow Energy that are leading the way in the useof CCT with newer more efficient power stations.

6.1 Clean coal technologydeployment in Thailand

The Ministry of Energy in Thailand provides limited supportfor R&D into clean coal technologies. Few studies appear tobe being carried out, and most are related to operationalproblems or in meeting stringent emission standards. Thereappears to be little proactive research into the use of cleancoal technologies in Thailand. An example where researchcould have prevented major problems was the location of theMae Moh power station. The result has been a legacy ofpublic suspicion of coal and opposition to further coal-firedpower plants throughout Thailand. Two key lessons wereapplied as a result of the Mae Moh problems. Firstly, theintroduction of power station emission standards andparticularly the adoption of FGD. Secondly, betterconsultation, communication and involvement of the localcommunity. However, the technology of choice in Thailandhas been, the main gas-fired power plants.

The heavy reliance on natural gas to supply energy in Thailandhad resulted in power producers proposing and commissioningfurther coal-fired power plants to allow diversification of theenergy mix and increase energy security. The operating coalfleet in Thailand provides 3.5 GW (16%) of the total powergenerated which, prior to 2004, were all subcritical. A majorityof the coal fleet is 20 years old and it is likely that the boilerswill have to be retrofitted or replaced. This could be anopportunity to introduce clean coal technologies, such assupercritical (Bhattacharya, 2008). The vulnerability ofThailand in relying on gas was demonstrated in August 2009when technical problems occurred with both gas lines fromMyanmar and the Gulf of Thailand. As a result, EGAT had torelease water quickly to generate power in its hydropowerplants, resulting in flooding downstream and damage in lowlying areas.

6.1.1 Carbon capture and storage(CCS)

A key clean coal technology option is CCS which currently isnot high on the government’s agenda. However, with largedepleted gas fields in the Gulf of Thailand there is anopportunity to do further research into their geologicalsuitability as a potential CO2 storage site. This would fit wellwith the government policy and PDP to diversify energysupply and increase the use of imported coal to supplypossible coastal power stations.

6 Clean coal activities in Thailand

In 2009, the Asian Development Bank (ADB) announced theintroduction of a A$21.5 CCS with the Government ofAustralia through its Global Carbon Capture and StorageInstitute. This fund will support geological investigations andenvironmental studies of potential carbon dioxide storagesites, capacity building and raising community awareness.The fund covers China, India, Indonesia and Vietnam, but notcurrently Thailand. This fund, if applied also to Thailand,could assist in increasing the private sector and ThaiGovernment’s understanding of the of the CCS potential inThailand. (ADB, 2009a,b,c,d). Another option is Thailandconsidering membership of the Carbon SequestrationLeadership Forum and the Global Carbon Capture andStorage Institute in order to increase awareness and obtaininformation about the potential of using CCS in Thailand.

6.1.2 Supercritical PCC power plants

The term supercritical refers to power plants that haveoperating pressures above where normal boiling point occurs.The water changes from liquid to vapour without nucleateboiling. The supercritical point of the water occurs atpressures in excess of 22.1 megapascals (MPa). This allowssupercritical units to achieve thermal efficiencies of above45%, compared with typical sub-critical plants of 30–38%.The key features of supercritical power generation units areonce-through boilers designed to operate with pressures from22.1 MPa to 30 MPa, compared to a high of 19 MPa withsubcritical boilers. There are many new power plants beingproposed and built worldwide to perform at ‘supercritical’ and‘ultra-supercritical’ conditions of temperature and pressure.The result could be an increase in electricity generationefficiency to 40-50% and higher.

This is currently little financial incentive in Thailand forpower generators to adopt supercritical units even though theyhave higher efficiencies, consume less fuel and produce feweremissions. For example, the reduction in coal consumptionrelative to power output can result in a reduction in CO2

emissions. This is due to the higher firing temperatures andpressures resulting in higher efficiencies and as a result moreelectricity is generated for each tonne of coal consumed.However, the equipment needed to withstand the higherpressure and temperature is complex, more expensive andrequires machining of higher strength component materials.

Gheco One will be the first coal-fired supercritical powerplant to be built in Thailand. There are already existing oiland gas supercritical units in Thailand with the RatchaburiUnits 1 and 2 which have a gross output of 735 MW designedby Mitsubishi Heavy Industries with steam parameters of24.2 MPa 538/536°C (3510 psi, 1000/1050°F) (Ando andothers, 2002). EGAT is also considering the use ofsupercritical or ultra-supercritical boilers, although no finaldecision has been made.

There is a long-term economic and environmental value toThailand in encouragement of further deployment ofsupercritical power plants. The benefits of using supercriticaltechnology include:� higher thermal efficiency;

41

Clean coal activities in Thailand

Prospects for coal and clean coal technologies in Thailand

� reduction of SO2, NOx and particulate matter emissiondue to improved efficiency and combustion resulting inbetter air quality;

� costs are comparable with subcritical technology if FGDand SCR are used;

� reduced fuel costs that can represent up to two thirds ofthe total operating costs of a plant;

� reduction of CO2 emissions as less fuel is required perunit of electricity generated;

� the plant efficiencies are less affected by part loadoperation and the availability can average up to 85%;

� plant at a future date could be integrated with new orretrofitted with CCS technology (Nalbandian, 2008).

6.1.3 Fluidised bed combustion

FBC operates at a lower temperature than conventionalpulverised boilers and this reduces the amount of NOxformed. SOx can also be controlled by using limestone addedto the coal. The limestone is injected into the combustionchamber with the coal and this can result in up to 90% of thesulphur being absorbed and removed as a solid compoundwith the ashes. The use of FBC is ideal for poor quality fuelswith high moisture content and low heating value such asbiomass, municipal wastes, paper and pulp industry wastesand sludge. There are several types of FBC technologies ofwhich the most widely known is circulating fluidised bedcombustion (CFBC). There is one CFBC station operating inThailand.

In 1998 two 150 MWe compact CFB boilers went intooperation for the National Power Supply (NPS) Company,Limited, in Tha Toom, Thailand. The units fire imported coals(bituminous, anthracite) and generate power and heat tonearby industrial customers. The station operates FosterWheeler reheat cycle compact CFB boilers which include areheat steam bypass system for reheat steam temperaturecontrol.

CFBC is now a proven technology in Thailand with plans toinstall and commission 4 x 150 MW units in the next fewyears. The CFB technology can play a role in several otherareas, such as cofiring municipal solid waste (MSW) withcoal to generate power and also replace the use of importedoil. The Cogeneration Public company (COCO Phase III)began operation in 2000 with 514 MW using hybridcogeneration and multiple fuel technology. There is 210 MWof gas-fired power generation and 304 MW coal-fired powergeneration using imported bituminous coal with an averageheating value of 6000 kcal/kg and <1% sulphur content. Theplant is located near Map Ta Phut. The hybrid cogenerationprocess also has several means of controlling emissions at thesource which include the use of a CFB boiler, high qualitycoal, limestone for SO2 removal, fabric filter and a CEMS tomonitor emissions.

6.1.4 Coal gasification and IGCC

IGCC systems gasify the coal through a high temperaturereaction with oxygen, cleaning the gas produced, and burningit in a gas turbine to generate electricity. A portion of the

residual heat in the exhaust gas of the turbine is also used in aheat recovery boiler as steam which produces additionalelectricity in a steam turbine generator. IGCC systems are oneof the cleanest and efficient of developing CCT. A majoradvantage is that sulphur, nitrogen compounds, and particlesare removed before the gas is burned in the gas turbine. It isexpected that thermal efficiencies above 50% could beachieved in the future.

Scenario analysis of future electricity capacity expansion inThailand indicated that if conventional coal-fired powerstations were replaced with IGCC, the average emission perunit of electricity could be reduced by 7.54% for CO2, 8.11%for SO2 and 5.56% for NOx (Nakawiro and others, 2008).There are currently no plans by EGAT to build IGCC due tothe high cost.

6.1.5 Coal-to-liquids

There is currently no work being carried out on coal toliquids. Work is being carried out in Indonesia and Australiaon low rank coals, which may be applicable to Thailand.EGAT or the Ministry of Energy could approach thedevelopers in Australia and Indonesia to discuss the potentialfeasibility of deployment of that technology in Thailand.

6.1.6 Underground coal gasification

There is currently no work being carried out on undergroundcoal gasification in Thailand.

6.1.7 Coal bed methane

According to the Annual Report 2004 of the Department ofMineral Fuels (DMF), Ministry of Energy, during the year,DMF assessed the potential of methane in coal beds in MaeLamao Basin in Tak province, northern Thailand. Around24 coal samples were tested from the test and observationwells for methane release from coal beds. It was found thatabout 0.2 m3/t was present in the coal beds, consisting of 60%methane, 28% nitrogen, and 12% carbon dioxide. Coal-bedmethane present at Mae Lamao is roughly estimated at9.2 million m3 (Wantawin, 2006).

6.2 Coal and clean coal relatedR&D in Thailand

Limited coal research is undertaken in Thailand. There is noofficial government department established to overseepromotion and implementation of CCT. In the academic arenathere are several institutions carrying out ad hoc researchdependent on whether they get private or public sectorfunding.

6.2.1 Universities and institutes

Establishment of an official government office or department

42

Clean coal activities in Thailand

IEA CLEAN COAL CENTRE

with a focus on coal would strengthen research, education andcommunication about coal and clean coal technology researchin Thailand. The government could investigate providingmore funding for coal research. However, it would first beuseful to understand which university or institute should leador manage coal research. The Joint Graduate School ofEnergy and Environment (JGSEE) undertakes several areas ofcoal research and also has laboratory facilities for testing ofcoal. The JGSEE was established in 1998 as one of sevencentres of excellence and is an education and researchconsortium of five institutions with King Mongkut’sUniversity of Technology Thonburi the lead institution.

One of the key areas of research that JGSEE undertakes is inthe area of fuels, combustion and emission control. Oneparticular area of interest for their research is fluidised bedcombustion of lignite. Other areas of study include:� gasification of low rank coal;� co-combustion of coal and biomass;� fuel characterisation, preparation and processing,

particularly biomass residue;� innovative burner development and efficiency

improvement;� emission characterisation and control.

JGSEE is also preparing the second National Communicationon Climate Change for the UNFCCC which will becompleted in 2010. Several projects have been carried out byJGSEE including chemical analysis of lignite and boiler ashesto identify the mechanism of slag formation in a 300 MWelignite-fired power plant, as well as laboratory-scaleinvestigation of synergies during co-conversion of coal andbiomass (Fungtammasan B, 2009).

The Energy Research Institute (ERI) at ChulalongkornUniversity in Bangkok is also considering establishing adepartment to cover all aspects of coal including clean coaltechnologies and likely to be called the Centre for CoalUtilisation where they hope to initially get support from keystakeholders including the Thai coal industry and in the futurethe government (Wongopasi, 2009). A collaboration orco-ordination of activities would be useful and an efficient useof limited resources. There is also little work being carried outon carbon capture and storage although Thailand may have ahuge potential for storage in the depleting gas fields in theGulf of Thailand.

EGAT also operates a programme called the Green LearningRoom which is in 426 schools. The main objective is toinform and educate pupils about energy conservation andincrease environmental awareness, and one of the subjectscovered is coal.

6.3 Comments

Thailand’s reliance on natural gas for electricity makes itvulnerable to disruption. The author experienced this at firsthand in August 2009 with technical problems with the twomajor supplies in the Gulf of Thailand and Myanmar. As aresult, EGAT operated hydropower by releasing water whichthen caused damage downstream of the power stations. This

situation is likely to occur more often with estimated provengas reserves of 12 years from the Gulf of Thailand. Politicalunrest in Myanmar or technical problems could result insevere restrictions on electricity.

Thailand has approximately 75–100 years of lignite reservesleft. The current PDP projects an increase in the use of coal -fired power generation with many of the plants usingimported coal. An option that could be explored is buildingadditional lignite-fired power stations equipped withstate-of-the art SO2 technology. A review and technical andeconomic study is urgently needed to identify the mostsuitable and efficient type of technology. This option couldbecome economically attractive if internationally-traded coalsincrease in price. The study should be implemented as soon aspossible, to identify if this is a viable option and before theproposed new coal-fired plants using imported coal are built.The economic and environmental benefits of building moresupercritical or ultra-supercritical should be further exploredby the Ministry of Energy, EGAT and academic institutions.

Diversification of energy supply is recognised by theGovernment as vital to ensure future energy security.Therefore it would be useful for the government to invest inresearch and development of clean coal technologies and alsofor EGAT to allocate a budget solely for CCT. It is unclearhow funding is allocated for research on CCT. There is somefunding from the government and private companies, but itappears to be on an ad hoc basis responding to particularproblems. An example of this is with EGAT which hasprovided some funding to solve the problem of high calciumoxide content in lignite at Mae Moh mine which causedslagging problems in the boilers at the power station.

The Ministry of Energy is the government organisationresponsible for promoting coal research or clean coaltechnologies. Coal is grouped with other energy technologieswhich makes it difficult to have specific funding for research.There is no established clean coal research organisation oruniversity to undertake studies as funding is currentlypiecemeal. There are several universities undertaking coalresearch who are interested in establishing a specificdepartment under either one university or group ofuniversities to undertake specific coal research. In part, thegovernment appears to be reluctant to be seen to fund coalresearch. This could be a result of the legacy of Mae Moh andthe pollution problems that occurred. As a result, there iswidespread public suspicion of new coal-fired power stationsand of politicians who support clean coal.

One option that could assist the private sector, EGAT, IPPsand academia is if an independent overseas institution withthe Thai Government funded the establishment of a centralclean coal technology research centre. As discussed inChapter 5 there are many international organisations involvedin clean coal technology promotion and education. Thoseorganisations include the IEA, ADB, APEC, ASEAN, USAIDand others. However, there appears to be little co-ordinationor communication between these organisations resulting induplication. The establishment of a clean coal centre inThailand would address this problem. The centre wouldprovide a conduit and focal point to disseminate information

43

Clean coal activities in Thailand

Prospects for coal and clean coal technologies in Thailand

as well as allow international organisations a focal point toefficiently and effectively focus their resources and expertisewhen promoting CCT in Thailand.

Thailand is one of the largest energy consumers in southeastAsia and is heavily dependent on fossil fuels to sustain itseconomy. Natural gas supplies approximately 70% of itspower generation. The government is embarking on a policyof energy supply diversification for power generation toincrease energy security. A part of this diversification is toincrease the use of coal, nuclear and renewables as well asincrease end-use energy efficiency. The prospects for cleancoal technology (CCT) could be strengthened by improvingpublic perception of CCTs and the establishment of a centralCCT centre.

Energy supply diversification will help to ensure a secure andsustainable energy supply. The economic, social, security andenvironmental risks of being unprepared for future supplyconstraints could result in major power disruptions. In recentyears Thailand’s economy has grown rapidly, resulting in anincreasing demand. 90% of the energy demand is met byfossil fuels: gas makes up 70%, followed by around 20% forcoal with a few oil-fired plants. An LNG plant is also beingbuilt. There is heavy reliance on natural gas from the Gulf ofThailand which makes up around a third of the supply withproven reserves of only 12 years. Several companies areexploring the Gulf for further gas reserves.

The remainder of the natural gas supply comes fromMyanmar and Malaysia which raises concerns of energysecurity. Recent technical problems with the Myanmar andGulf of Thailand pipelines have served to highlight Thailand’svulnerability. The government is implementing policies todiversify energy supply through the Power Development Plan(PDP) prepared by EGAT and the Ministry of Energy. Thereis a risk that diversifying the energy supply with renewableenergy could result in an increased dependence on gas. Mostrenewables such as wind and biomass are seasonal. As aresult, the government may have to fund the construction ofadditional gas-fired or coal-fired power plants as reserve.

The use of coal in Thailand is controversial. This is duemainly to problems in the 1990s at the Mae Moh lignitepower station that resulted in high SO2 emissions andconsequently acid rain, health problems and damage to crops.This issue was resolved with the introduction of flue gasdesulphurisation (FGD). The government also developed andrecently implemented stringent emission standards for newcoal-fired power stations. The legacy from Mae Moh is still amajor issue with the general public and local environmentalgroups. Consequently, any proposals for new coal-fired plantgenerally attracts widespread opposition.

Thailand has around 2000 Mt of coal reserves remaining,mostly lignite, located in northern Thailand. It is estimatedthat 1400 Mt is economically recoverable. This wouldgenerate power for up to 100 years at present rates of usage.There are plans to keep Mae Moh, the largest coal-fired powerstation, operational for a further 40 years and perhaps longer.The government policy of diversification for coal is basedprimarily on using low sulphur imported coals for future

44 IEA CLEAN COAL CENTRE

coal-fired power stations. An option that needs furtherinvestigation is whether to construct more efficient lignitepower stations that use state-of-the art SO2 technology.Increasingly at Mae Moh the lignite calcium oxide level isincreasing. This results in slagging in the boilers and althoughmeasures have been taken to address the issue there could beproblems in the future.

The challenge facing Thailand and other developing countriesin the southeast Asia region is to develop and deploy CCTwith higher efficiencies. This has already started in Thailandwith the first supercritical coal-fired power station to becommissioned in 2011 by the Independent Power Producer(IPP) Glow Energy. This power station could act as a modelfor future supercritical plants to use less coal more efficiently,improve air quality, and reduce CO2 emissions. A problemthat could slow the development of supercritical plants is thatpower purchase agreements (PPA) offer a limited economicreturn for an IPP.

The most recently commissioned coal-fired power station wasthe BLCP subcritical 1400 MW station at Rayong. There wasenvironmental opposition during the construction of theBLCP power plant. The plant uses FGD technology, low NOxburners and an electrostatic precipitator as well as importinglow sulphur coal from Indonesia and Australia. Since theplant was commissioned in 2007 it has consistently beenoperating with emissions that are below the air qualitystandards set by the government. BLCP also established theKiang Saket Energy Center at the plant in Rayong to informand educate people about the power station and the use ofcoal.

A key problem and challenge in Thailand for universities andthe private sector is that research of CCTs and energy isfragmented and not well funded by the public sector. There iscurrently no central organisation in the public or private sectorthat undertakes CCT research, education or promotion. EGATthe main power generator does have a research fund, butEGAT representatives interviewed were unable to give abreakdown on how much of the fund was spent on coalresearch.

Coal use in Thailand is controversial. This results in areluctance by politicians to publically support or be associatedwith coal. The result is fragmented research funding and lackof promotion and communication of CCTs. There is alsolimited communication between the public and private sectoron the use of CCT.

The lack of communication to the public about CCT is aproblem. There are also international environmental nongovernmental organisations (ENGOs) who occasionally visitThailand and organise protests and demonstrations with localENGOs. Increasing capacity building in education and moreinformation would contribute to a better understanding on theuse of CCT. International institutions and the Governmenthave had some successes in promoting CCT. These successes

7 Conclusions

include the current construction of the first coal-firedsupercritical station and the use of FGD, low NOx burnersand electrostatic precipitators in new power plants.

EGAT’s PDP proposes an increase in the use of coal-firedpower to reduce the reliance on gas as well as 2 GWe ofnuclear power and an increase in the renewable energy shareof total final energy demand to 12% by 2022. Theinstitutional structure to provide this diversification is relianton PPA and an increasing use of IPPs. Due to a low GDP thegovernment is unable to entirely deregulate the electricitysector without increasing the risk of fuel poverty.

Another key issue in the future for Thailand is the security ofimporting electricity from outside its borders with Myanmar,Laos and Malaysia all contributing to the energy supply. InLaos alone a MOU between the Laos and Thai Governmentshas been signed proposing to supply Thailand with1500 MWe by 2010, 7000 MWe by 2015 and 3000 MWe by2017. The new coal-fired power plants being developed andbuilt in Laos are subcritical due to the coal properties andbanks being unwilling to fund supercritical power plants overperformance issues. In some cases this may be accurate, buttests of the coal’s suitability should be thoroughly undertakenbefore the use of supercritical technology is discounted.

An IAEA nuclear power study being carried out could resultin the construction of 2 GWe of nuclear capacity by 2021.This will require a large capital investment in the selectedtechnology as well as the development of a skills and trainingprogramme. The IAEA is expected to publish the study reportin 2010. If Thailand does proceed with nuclear power theremay be public and ENGO opposition, as there is with coal.Renewable energy will also play a role in the future. Thegovernment renewable energy target of 12% of total finalenergy demand by 2022 is ambitious and unlikely to beachieved unless it is heavily subsidised. This is becausebiomass is seasonal, and there are high costs of transport,loading and unloading.

Several institutions operating in southeast Asia play animportant role in contributing to the long-term energy strategyin Thailand. They include the IEA, ASEAN, ADB, WB,USAID and APEC. Their work on promoting the use of CCTis limited in Thailand. One of the problems is that eachorganisation’s work is often duplicated, fragmented and withlittle follow-up. Publication of a report with disseminationthrough workshops is the template used by mostorganisations. This haphazard strategy is unlikely to lead toany substantive co-ordinated or collaborative work inThailand or any Southeast Asian countries. A meetingbetween all the organisations working on CCT in Thailand toco-ordinate their work would be a useful exercise.

The IEA undertook a series of case studies for the SoutheastAsia region in the World Energy Outlook 2009 publication.The study identified the importance of coal in the region andthe use of CCT to reduce emissions. The ADB energy policyencourages collaboration and dissemination of CCT amongits developing member countries. APEC has written severalexcellent reports on CCT for its members and disseminatedthe information at workshops. USAID has promoted the use

45

Conclusions

Prospects for coal and clean coal technologies in Thailand

of CCT in southeast Asia with reports, workshops and aconference. However, their budget for fossil fuels work hasbeen redirected to renewable energy and energy efficiency. Inpart, it is difficult for international institutions promoting CCTto identify the correct domestic partner. A central independentclean coal technology research organisation in Thailand wouldassist in a more efficient, effective and productive use ofresources to communicate and disseminate results.

To promote CCT in Thailand effectively the establishment ofa central organisation responsible for co-ordinating policy,research, promotion and education is needed. The ThaiGovernment, with support from international institutions,could examine the option of establishing a CCT centralorganisation. The next step could be the establishment of asteering committee to identify partners and decide on abudget, projects, studies and other work needed to promotethe development and deployment of CCT in Thailand. Thesteering committee should have representation from thefunders, government, private sector, academia and ENGOsboth international and domestic. Without establishment ofsuch a steering committee it is likely that the status quo willcontinue in Thailand, with an increasing reliance on importedgas and LNG. It is also likely to increase the option ofpurchasing power from neighbouring countries.

An important option where little work has been undertaken isthe potential use of carbon capture and storage (CCS). Themajority of the proposed new coal-fired power plants arelocated in coastal areas on the Gulf of Thailand. Furtherinvestigation is needed to determine the suitability andcapacity of the gas fields for CO2 storage. The 2009announcement of a CCS Fund by the ADB to investigategeological suitability and other issues in Asia could be auseful mechanism to investigate the potential for CO2 storagein Thailand. The government should also examinemembership of the Carbon Sequestration Leadership Forumand the Global Carbon Capture and Storage Institute.

Improving and accelerating the uptake of CCT in Thailandwill require government intervention and co-ordination withappropriate policies and measures. Such intervention isimportant to provide the public and private sector with astrategic direction for energy investment decisions if carbonemissions are to be abated through the use of clean coaltechnologies. In addition, more ongoing private and publicresearch investment is essential in CCT to better understandtheir use in Thailand. The key conclusions of this report are:� Prospects for coal and CCT in Thailand are excellent if

the right policy framework is established.� Government should investigate the option of establishing

and supporting a central research and developmentorganisation for CCT. This will allow domestic andinternational organisations a focal point for collaborationand provide a conduit for informing, educating anddissemination of CCT information to coal users and thepublic.

� Diversification away from gas towards imported coalrequires a secure and stable supply of imported coal forfuture and existing power stations.

� Public perception of the use of coal is a major issue inThailand which has resulted in cancellations and

proposed power stations switching from coal to gas. � Mandatory use of FGD has resulted in SO2 levels within

government standards and better air quality at Mae Mohand elsewhere.

� International organisations promoting CCTs need tomeet and discuss co-ordination of their activities to avoidduplication and identify opportunities to work together.

� Establishment of the Energy Regulatory Commissioncould result in better power purchase agreements for theprivate sector and make the use of clean coaltechnologies more financially viable.

� Government consider joining the Carbon SequestrationLeadership Forum and Global Carbon Capture andStorage Institute to learn more about CCS as well assupport research and development into CCS.

� Commissioning of the Gheco One supercritical coal-firedpower station in 2011 could act as a catalyst for furthersupercritical plants.

46

Conclusions

IEA CLEAN COAL CENTRE

Amatayakul W, Greacon C (2002) Thailand’s experienceswith clean energy technologies: power purchase programs.In: UNDP international seminar on energy for sustainabledevelopment and regional cob1rlinfoperation, Beijing, China,25-26 July 2002. Available at: http://www.palangthai.org/en/docs/ThailandsCaseStudyJuly22.pdf 29 pp (Jul 2002)Ando K, Asada E, Yamamoto (2002) Design, construction,and commissioning of the Nos 1 and 2 units of theRatchaburi thermal power plant for EGAT of Thailand for afull turn-key contract. Mitsubishi Heavy Industries technicalreview 39, No 3, 95-100 pp (2002)ADB (2009a) Australia, ADB setup A$21.5 million carboncapture, storage fund. Asian Development Bank, Manila, ThePhilippines, 27 July, Available from: http://www.adb.org/Media/Articles/2009/12949-carbon- storage-fund/ (Jul 2009)ADB (2009b) ADB country operations business plan,Thailand 2009-2011. Available at: http://www.adb.org/Documents/CSPs/THA/2009/COBP-THA-2009.pdf AsiaDevelopment Bank, Manila, The Philippines, 27 pp(Aug 2009)ADB (2009c) The economics of climate change in SoutheastAsia: A regional review. Asia Development Bank, Manila,The Philippines, 253 pp (Apr 2009) ADB (2009d) ADB energy policy. ADB policy paper.Available at: http://www.adb.org/Documents/Policies/Energy-Policy/Energy-Policy-2009.pdf Asia Development Bank,Manila, The Philippines, 40 pp (Jun 2009)ASEAN (2005) Promoting efficient and competitive intra-ASEAN shipping services: Thailand country report. REPSFProject No. 04/001, ASEAN Secretariat, Jakarta, Indonesia,PDP Australia Pty Ltd/Meyrick and Associates, pp 27,Available at: www.aseansec.org/AADCP-REPSF-Project/Thailand.pdf (Mar 2005)Asian Energy (2009) Thailand’s Egat warns of blackouts.Asian Energy, Available at:http://asianenergy.blogspot.com/2009/09/thailands-egat-warns-of-more-blackouts.html (Sep 2009)ASEM (2009) Key economic and energy data. In: ASEMMinisterial conference on energy security, Brussels, Belgium,18 June, Available from: http://ec.europa.eu/external_relations/energy/events/asem_energy_2009/docs/thailand_en.pdf 2 pp (Jun 2009) AIT (2006) Transfer of EU knowledge and technology fordevelopment of wind energy technology in Thailand.Proceedings of a workshop, Asian Institute of Technology,available at: http://www.serd.ait.ac.th/wind/ , Asian Instituteof Technology, Bangkok, Thailand, pp 6 (Mar 2006)AIT (2007) Identification of barriers on EU-Thai tradepolicy on wind energy. Available at:http://www.serd.ait.ac.th/wind/, Asian Institute ofTechnology, Bangkok, Thailand pp 17 (Jan 2007)APEC (2009) APEC energy working group work plan: 2007-2009. Available at: http://www.ewg.apec.org/assets/documents/apecinternet/EWG35_Workplan20080407120359.pdf (2009)APEC (2008a) Lessons learned in upgrading andrefurbishing older coal-fired power plants: A best practiceguide for developing APEC economies. EWG 05/2007,

47Prospects for coal and clean coal technologies in Thailand

Singapore, Asia Pacific Economic Cooperation Secretariat,125 pp (Oct 2008)APEC (2008b) Best practices in environmental monitoringfor coal-fired power plants: Lessons for developing AsianAPEC economies. EWG 06/2007, Singapore, Asia PacificEconomic Cooperation Secretariat, 266 pp (Nov 2008)ABCSE (2005) Renewable energy in Asia: The Thailandreport. Australian Business Council for Sustainable Energy,Victoria, Australia (Aug 2005) Bangkok Post (2009) Why carbon credit trading needsgreater support. Bangkok, Thailand (Aug 2009)Banpu (2009) Banpu annual report for 2008, Bangkok,Thailand, Available from: http://www.banpu.co.th/_admin/uploadfile/AnnualReport_en141.pdf, Bangkok,Thailand pp 172 (2009)Barisic V, Zabetta E, Hotta A, Krzton B (2008) Fosterwheeler experience in combustion of low-grade high- ashfuels in CFBs. In: Power plants symposium 2008, VrnjackaBanja, Serbia, 29-31 Oct 2008, Available at:http://www.fwc.com/publications/tech_papers (Oct 2008)Baruya P (2009a) London, UK, IEA Clean Coal Centre,personal communication (Sep 2009)Baruya P (2009b) Prospects for coal and clean coaltechnologies in Indonesia. CCC/148, London, UK, IEAClean Coal Centre, 70 pp (Jun 2009)Bhattacharya S (2008) Coal-fired power generation:replacement/retrofitting of older plants. In: Workshop on fueloptions for power generation in ASEAN, Bangkok, Thailand,22-23 September 2008 (Sep 2008)Boonyasirikul T (2009) Bangkok, Thailand, EGAT, personalcommunication (Aug 2009)BP (2009) BP Statistical review of world energy 2008,British Petroleum, London, UK (Jun 2009)Cabrera M I, Lefevre, T (2002) Wind Power in SoutheastAsia. The Centre for Energy Environment ResourcesDevelopment. Bangkok, Thailand (2002)Chavalparit O (2006) Clean technology for the crude palmoil industry in Thailand. PhD Thesis, Wageningen University,The Netherlands, 237 pp (2006).CIA (2008) The world factbook. Available at:https://www.cia.gov/library/publications/the-world-factbook/geos/th.html (Dec 2008)Chirarattananon S, Nirukkanaporn S (2006) Deregulationof ESI and privatization of state electric utilities in Thailand.Energy Policy; 34 (16); 2521-2531 (Nov 2006)Clean Air Network (2008) Clean air in Thailand: summaryof progress on improving air quality. Clean Air Initiative forAsian Cities Center, Manila, The Philippines, 16 pp,Available at: http://www.cleanairnet.org/caiasia/1412/articles-70822_Thailand.pdf (Nov 2008)Cogen (2002) Thailand energy situtation. In: COGEN 3launching seminars, Bangkok, Thailand, 20 Aug 2002,Available at: http://www.cogen3.net/presentations/asean/thailand_energy_situation.pdf (Aug 2002)Dayananda, A (2009) Bangkok, Thailand, Banpu, personalcommunication (Aug 2009)Du Pont, P (2005) Nam Theun 2 hydropower project (NT2):impact of energy conservation, DSM and renewable energy

8 References

generation on EGAT’s power development plan. WashingtonDC, USA, World Bank 63 pp, Available at:http://siteresources.worldbank.org/INTLAOPRD/Resources/DSMmarch2005.pdf (Mar 2005)EGAT (2009a) EGAT 2008 Annual report. Bangkok,Thailand, Available at: http://www.egat.co.th/en/ (Oct, 2009)EGAT (2009b) Thailand power development plan revision 22008-2021, Bangkok, Thailand (Aug 2009)EPPO (2009) Energy database. Ministry of Energy,Bangkok, Thailand, Available at:http://www.eppo.go.th/info/index.html (Oct 2009)Fungtammasan B (2009) Bangkok, Thailand, Joint graduateschool of energy and environment: King Mongkut’suniversity of technology Thonburi, personal communication(Aug 2009)Guillermo B, Tjaroko T, Zamora C (2003) Overview ofbiomass for power generation in Southeast Asia. ASEANCentre for Energy, Jakarta, Indonesia. Available at:www.ec-asean- greenippnetwork.net/dsppage.cfm?view=page&select=148 (Jun 2003)Harris G (2009) Rayong, Thailand, BLCP, personalcommunication (Aug 2009)Hotta A (2000) Current status of clean coal technologies inthe APEC region. The clean and efficient use of fossil energyfor power generation in Thailand. Available at:http://www.egcfe.ewg.apec.org/publications/proceedings/CoalFlow/ThaiSeminar_2000/5-2%20A_Hotta.pdf. Bangkok,Thailand (Nov 2000) Hotta A (2008) Foster Wheeler experience in combustion oflow-grade high-ash fuels in CFBs. In: Power plants 2008,Brnjacka Banja, Serbia, 29-31 October 2008, Available at:http://www.fwc.com/publications/tech_papers/files/TP_CFB_08_10.pdf (Oct 2008)IEA (2009) World Energy Outlook 2009. InternationalEnergy Agency, Paris, France, 696 pp (Nov 2009)IPCC (2004) IPCC expert meeting on industry technologydevelopment, transfer and diffusion. IPCC Working Group IIITechnical Support Unit, RIVM, Netherlands, 33 pp(Oct 2004)Intarapravich D (1991) Coal and the environment inThailand. Thailand Development Research Institute,Bangkok, Thailand (1991)IISD (2009) Carbon capture and storage bulletin. Vol 163,No 1, International Institute of Sustainable Development,Available at: www.iisd.ca/ymb/climate/ccs, Bergen, Norway(Jun 2009) Kamolthanat S (2009) Bangkok, Thailand, Banpu, personalcommunication (Aug 2009)Limlertcharoenvanit C (2006) Replacing new system foreconomic power to the community. EGAT, Mae Moh District,Thailand, Available at: http://www.worldenergy.org/documents/p000980.pdf (2006)Lohsomboon P (2003) Efforts of local companies inThailand to green their purchasing. Thailand EnvironmentInstitute, Bangkok, Thailand, Available at:http://www.city.sendai.jp/kankyou/kanri/icgps-e/pdf/3-2.pdf(2003)Major S, Commins T, Noppharatana A (2008) Potential ofwind power for Thailand: an assessment. Maejo University,Chiang Mai, Thailand (Mar 2008)Mekong River Commission (2003) State of the basin report:2003. Executive summary, Mekong River Commission,

48

References

IEA CLEAN COAL CENTRE

Phnom Penh, 50 pp, ISSN 1728:3248 (Jun 2003)Mulugetta Y, Mantajit N, Jackson T (2007) Power sectorscenarios for Thailand: An exploratory analysis 2002-2022,Energy Policy; 35 (6) 3256-3269 (Jun 2007)Muncharoen, Chaiwat (2006) Prospect of Wind Energy inThailand. Policy and Strategy Coordination Office, Office ofthe Permanent Secretary, Ministry of Energy. Thailand,Available at: http://stweb.ait.ac.th/~wind/Activities/Kick0ff%20Workshop/Presentations/Prospect%20of%20Wind%20Energy%20in%20Thailand%20-%20MoE%20-%20Chaiwat%20-%2031%20March%202006.pdf (Mar, 2006)Nakawiro T, Bhattacharyya S, Limmeechokchai B (2008)Expanding electricity capacity in Thailand to meet the twinchallenges of supply security and environmental protection,Energy Policy; 36 (6) 2265-2278 (Jun 2008)Nalbandian H (2008) Performance and risks of advancedpulverised coal plant. CCC/135, London, UK, IEA CleanCoal Centre, 77 pp (May 2008)NESDB & World Bank (2008) Thailand infrastructureannual report 2008. NESDB & World Bank. Available at:http://siteresources.worldbank.org/INTTHAILAND/Resources/333200-1177475763598/3714275-1234408023295/5826366-1234408105311/full-report.pdf, World Bank,New York, USA, pp 144 (2008) PDP Australia Pty Ltd, Meyrick and Associates (2005)Promoting efficient and competitive intra-ASEAN shippingservices – Thailand country report. REPSF Project No.04/001, ASEAN Secretariat, pp 27 (Mar 2005)Platts (2008) Platts: Power in Asia. Issue 500/ March 27,London, UK, 34 pp (Mar 2008)Platts (2009a) Platts: Power in Asia. Issue 532/ July 23,London, UK, 24 pp (Jul 2009)Platts (2009b) Platts: Power in Asia. Issue 524/ March 19,London, UK, 24 pp (Mar 2009)Power Engineering International (2009) Powerbrief:Thailand. Power Engineering International. 17 (9);38-40 (Oct 2009)Probe International (2005) Small power producers inThailand, Probe international briefing, Available from:http://old.probeinternational.org/catalog/pdfs/SPP.pdf 25 pp(Mar 2005)REN21 (2009) Renewables global status report: 2009 updateParis: REN21 Secretariat, Deutsche Gesellschaft fürTechnische Zusammenarbeit (GTZ) GmbH (2009)Reuters, (2008) Interview - Thai EGAT to start coal importsin 2015, sells bond. Available at: http://uk.reuters.com/article/idUKBKK14693920080123 (Jan 2008)Sajjakulnukit, B (2009) Bangkok, Thailand, Department ofalternative energy development and efficiency, personalcommunication (Aug 2009)Siam Cement (2008) SCG sustainability report 2008,Available at: www-scg.co.th (2008)Sivavong, V (2009) Coal Demand/Supply Outlook inThailand. Available at: http://www.egcfe.ewg.apec.org/publications/proceedings/CFE/Korea_2009/index.htmlAPEC clean fossil energy technical and policy seminarcleaner coal: moving towards zero emissions, October 12-14,2009, Inchon, Korea (Oct 2009)Southern States Energy Board (2008) SSEB AnnualReport. Available at: http://www.sseb.org/documents/SSEB2008AnnualReportFINAL.pdf, Georgia, USA, pp 48(2008)

49

References

Srisovanna P (2004) Thailand’s biomass energy. Electricitysupply industry in transition: Issues and prospect for Asia.Energy Conservation Center of Thailand, Bangkok, Thailand(Jan 2004)Steel and Metallurgy (2009) Thailand steel industry in2007: what’s next? Steel and Metallurgy, Koklata, India (Apr2009)Suaysom K, Wangwongwatana S (2003) Success of SO2

control at Mae Moh lignite-fired thermal power plant in thenorth of Thailand. Available at: http://www.cleanairnet.org/baq2003/1496/articles-57873_suaysom.doc, Bangkok,Thailand, 7 pp (2003)Suksumek S (2007) Coal demand outlook in Thailand.Energy policy and planning office, Bangkok, Thailand,Available at: http://www.egcfe.ewg.apec.org/publications/proceedings/CFE/Xian_2007/1-3_Suksumek.pdf (Oct 2007)Tangtermsirikul S (2005) Development of fly ash usage inThailand. Sirindhorn International Institute of Technology,Thammasat University, Thailand pp 11, Available at:http://management.kochi-tech.ac.jp/PDF/IWPM/IWPM_Tangtermsirikul.pdf (2005)Thailand Investment Review (2007) Thai steel industry.Thailand Investment Review; 17 (12), Bangkok, Thailand12%pp (Dec 2007)The Nation (2007) Thailand may face electricity shortage infuture, The Nation, Available from:http://www.thaivisa.com/forum/Thailand-Face-Electricity-Shortage-t151733.html&pid=1633833 Thailand (2007)Thomas L (2002) Coal Geology. IBSN 0471 48531 4,Chichester, Hoboken NJ, USA, John Wiley & Sons, USA.384 pp (2002)Thongsathitya Amnuay (2007) Thai experiences inrenewable energy and energy efficiency. Paper presented at:Workshop on future scenarios toward sustainable energypolicies and practice in Thailand. Bangkok, Thailand, 26Aug 2006. Bangkok, Thailand, Workshop Proceedings,26-33 pp (2007)USAID (2007) Designing a cleaner future for coal: Solutionsfor Asia that address climate change. USAID, Bangkok,Thailand, ECO-Asia clean development and climateprogramme, 34 pp (Oct 2007)Vichaidid T, Soodprasert T, Sastri N, Oopathum C,Limsuwan P (2008) Determination of U, Th and K insediments and fossil collected from Mae Moh mine usinggamma-ray spectrometry and neutron activation analysis.Kasetsart Journal of Natural Science, Available at:http://kasetsartjournal.ku.ac.th/kuj_files/2009/A0903191553350625.pdf, Bangkok Thailand, vol 42 (5), pp 333- 339 (2008)Wantawin S (2006) Energy overview and coal situation inThailand. APEC, Lampang, Thailand (Feb, 2006)Watcharejyothin M, Shrestha R (2009) Effects of cross-border power trade between Laos and Thailand: Energysecurity and environmental implications. Energy Policy; 37(5); 1782-1792 (May 2009)Wattana S, Sharma D, Vaiyavuth R (2008) Electricityreforms in Thailand: an historical perspective, GreaterMekong Subregion Academic and Research NetworkInternational Journal, 2(2), June, pp 41-52 (Jun 2008)Wibulswas P (2003) Sustainable energy developmentstrategies for Thailand. In: Proceedings of the 2nd regionalconference on energy technology towards a cleanenvironment. Phuket, Thailand, 12-14 Feb 2003. Available at:

Prospects for coal and clean coal technologies in Thailand

http://www.energy-based.nrct.go.th/Article/Ts-3%20sustainable%20energy%20development%20strategies%20f or%20thailand.pdf 12 pp (Feb 2003)Wongopasi S (2009) Bangkok, Thailand, Energy researchinstitute, Chulalongkorn university, personal communication(Aug 2009)Woo P Y (2005) Independent power producers in Thailand,Working paper 5, Stanford, USA, Center for environmentalscience and policy, 30 pp (Aug 2005)World Bank (2004) Thailand country developmentpartnership-environment. World Bank Office, Bangkok,Thailand, 42 pp, Available at:http://siteresources.worldbank.org/INTTHAILAND/Resources/333200-1089769609581/cdp-e_report.pdf(Jul 2004)

Websites on coal and energy

Asia Development Bank – ://www.adb.org/Thailand/role-gms.aspAsian Centre for Energy – http://www.aseanenergy.org/Banpu – http://www.banpu.co.th/eng/Home/index.phpBLCP – http://www.blcp.co.th/index.phpDepartment of Alternative Energy Development and Efficiency – www.dede.go.thElectricity Generating Authority of Thailand – www.egat.co.thEnergy for Environment Foundation – www.efe.or.thEnergy Policy and Planning Office, Ministry of Energy – www.eppo.go.thEnergy Policy Research Project – http://thaienergy.orgEnergy Regulatory Commission – http://www.erc.or.thThe Federation of Thai Industry - Renewable Energy Industry Club – www.fti.or.thInternational Institute for Energy Conservation – www.pvthailand.orgJoint Graduate School of Energy and Environment – http://www.jgsee.kmutt.ac.th/jgsee1/index.phpMetropolitan Electricity Authority – www.mea.or.thMinistry of Energy – www.energy.go.thMinistry of Interior - Department of Public Works and Town & Country Planning – www.dpt.go.thMinistry of Natural Resources and Environment – www.monre.go.thOffice of the Natural Resources and Environmental Policy and Planning – www.onep.go.thPalang Thai – www.palangthai.orgThai Provincial Electricity Authority – www.pea.co.thThailand Energy and Environment Network – www.teenet.infoThailand Environment Institute – www.tei.or.thThailand Greenhouse Gas Management Organization – www.tgo.or.thWorld Bank Thailand – www.worldbank.or.th

50 IEA CLEAN COAL CENTRE