Thailand's pending power roadmap prompts guessing game

Thailand's pending power roadmap prompts guessing game

Energy companies in Thailand are considering how to position themselves
ahead of the government's update of the national power blueprint -- which
could happen as soon as this year.

Thailand formulates a Power Development Plan once every few years. The
latest one, announced in 2015, lists projects through 2036, giving energy
companies a roadmap to plan business strategies.

Depending on what is in the next PDP, electricity projects may focus on
coal-fired plants offering low costs but high carbon emissions, or greener
yet more expensive gas-fired plants. The implications are significant for
equipment makers and resource companies.

Thailand's current military government is pushing for the diversification of
energy sources, ostensibly to lower the country's dependency on domestically
produced natural gas -- the stores of which are expected to be depleted
soon.

However some say that the junta is far from pleased with the group
dominating gas interests, which is led by PTT, the energy company boasting
Thailand's biggest market capitalization. The PDP revision takes on new
meaning in that light, especially when it comes to new coal-fired plants. On
top of various groups protesting their construction, groundbreakings have
yet to be scheduled despite contractors winning preliminary offers.

That state of affairs appears to represent a black eye for the junta,
eliciting speculation on how coal-fired plant construction will fare in the
new PDP. One industry executive believes those projects will remain on the
list, but will be delayed instead of eliminated entirely as a way for the
junta to save face.

In that case, more resources may be poured into renewable energy to provide
further cover. That would be a boon for companies specializing in such
technologies as solar energy and biomass. The non-governmental organizations
protesting the coal plants are also said to include special-interest groups
pursuing political clout.

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Link to Original Article:
https://asia.nikkei.com/Politics-Economy/Policy-Politics/Thailand-s-pending-
power-roadmap-prompts-guessing-game

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com