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ALTHERNATIVE ENERGY

Alternative energy plea for more investment and tax incentives

By Achara Deboonme
The Nation, Pattaya
Published on August 2, 2008

Nesac hears plan to ensure balance of food and fuel

A "One Tambon One Megawatt" scheme was proposed at the annual meeting yesterday of the National Economic and Social Advisory Committee (Nesac) as one of 11 points in a proposal to promote alternative energy and ensure the bal¬ance of food and energy security.

"The government must provide investment and tax incentives plus assistance in equipment development and imports of knowhow for pilot projects in each of the five regions," said Visut Jettasant of the working committee on infrastructure. "Our target is to generate 7,800MW from this project within 10 years. That will delay the need for large new power plants and even nuclear power plants."

The 11 points to be submitted to the government include preparation for alternative and nuclear energy, tax incentives for alter¬nativeenergy inno¬vations and national strategies for food and energy crops.

Renewable energy accounts for less than 10 per cent of energy con¬sumption in Thailand. France's ratio is climbing towards 25 per cent, mainly through nuclear power, while Germany aims to bring the ratio to 20 per cent by 2020.

Over 500 academics and repre¬sentatives of state agencies and civic groups yesterday gathered at the annual meeting, which was designed to find national strategies for food and energy security.

In the morning session they agreed that despite its recent dip the global oil price would not fall below US$100 per barrel, which they said required Thailand to have proactive measures in place.

Much of the discussion centred on the huge cost of energy, around Bt1.2 trillion or 8 per cent of gross domes¬tic product, and on the switch of food crops to energy, particularly sugar, tapioca and palm oil, threatening the supply and accessibility of food.

Anusorn Sangnimnuan, president of Bangchak Petroleum, said that to prevent shortage of these three crops and forest encroachment for addi¬tional planting area, Thailand would by 2015 need 6 million litres of ethanol from sugar and tapioca and 5 million litres of biodiesel from palm oil a day.

"At our maximum capacity, based on official forecasts of planted area, we can if all exports are stopped pro¬duce up to 16 million litres of ethanol daily and 15 million litres of palm oil, but this is not a sustainable level, as it could encourage forest encroach¬ment," he said.

He formulated that 60 per cent of petrolburning cars in Thailand would run on gasohol E10 (petrol with 10 per cent ethanol) within a year, with the rest split between E20 and E85. He called this a realistic target given that at present the number of E10 cars is only half the total.

The low alcohol content will, he said, let refineries main¬tain positive opera¬tions and obviate the need for fuelretail¬ers to invest heavily in adjusting their nozzles.

Others suggested increased yields of these crops and research in turn¬ing them into valueadded products. Also highlighted was the improve¬ment of the national logistics network to cut energy costs, given that freight transport accounts for over half of fuel consumption.

"Rail and water account for less than 10 per cent of all shipments. We must raise that to 25 per cent to boost competitiveness and reduce energy costs," said Voraphol Sokatiyanurak, vice chairman of Nesac. "Thailand's weak point is energy costs. The ratio of energy costs to GPD in Korea, a big¬ger economy, is much lower than ours. Oil prices may be falling, but we still need drastic measures; for as an oilimporter Thailand will suffer any¬way."

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