Thailand: GDP growth raises thirst for power

Thailand: GDP growth raises thirst for power

Energy demand in the first nine months of 2016 rose by 1.1% from the same
period last year, in line with the growing Thai economy, according to the
Energy Policy and Planning Office (Eppo).

Electricity demand rose by 4.9%, but the rise was in contrast to a 1%
contraction in natural gas demand, a major source of the country's
power-generating system, said Eppo director-general Twarath Sutabutr.

He said the rise in electricity demand can be attributed to increases in
power purchased from Laos, and the fall in gas demand is likely due to
increasing proportions of renewable power being added to the grid.

Natural gas demand, which makes up 43% of Thailand's total power demand, has
dropped due to the maintenance shutdown in Myanmar and in the Thailand Joint
Development Area (JDA) in the Gulf of Thailand.

"This year, Laos's Hongsa coal-fired power plant started working at full
capacity and was added to Thailand's grid, allowing power purchases from the
neighbouring country to continue to rise substantially," Mr Twarath said.

"Power generated from renewable sources also rose as planned, and we expect
the quantity of renewable power to rise substantially over the next few
years."

Mr Twarath said renewable power produced in the first nine months of the
year was mostly from biomass, biogas and solar farms.

Delays in several solar farm projects, especially in agricultural
cooperatives, have led Eppo to estimate that only 281 megawatts of solar
power will be on the grid next year.

Oil demand in the first nine months grew by 4.8%, as relatively low global
oil prices encouraged motorists to consume more, while Eppo estimated that
Dubai crude oil prices would stay in the range of US$45-$50 a barrel for the
whole of this year.

Mr Twarath said plans to purchase power from Cambodia, and to develop new
coal-fired power plants in the southern region, have yet to progress.

He said demand for natural gas is estimated at 4,726 cubic feet per day,
down 1% in the first nine months because of falling demand in every sector.

Gas demand from the power-generating sector dropped 1.3%, while demand from
the transport sector fell by 8.6% as falling oil prices encouraged motorists
to switch from gas to oil.

Electricity consumption in the first nine months was at 137,424
gigawatt-hours, a rise of 4.9% from the same period last year, in line with
the recovering economy, Mr Twarath said.

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Ref:
http://www.bangkokpost.com/business/news/1097609/gdp-growth-raises-thirst-fo
r-power

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com