NATIONAL POLICIES

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THE WORLD BANK
NATIONAL POLICIES
Deputy Secretary GeneralMr. Arkhom
Termpittayapaisith
Future Energy Scenarios Toward Sustainable
Energy Policies and Practice in ThailandOn
Renewable Energy and Energy Efficiency with
International Experiences
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Table of Content
1. Thailand Energy Problems 2. Energy
Self-Sufficiency? 3. 10th National Plan 4.
National Energy Development Plan
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Thailand Energy Problems
More than 80 of Thailands energy consumption
depends on huge oil import bills. Hence, the
continuous oil price hike and volatility
inevitably leads to national account imbalances.
I Oil Price Movement
II Trade balance Current Account
III Price VS Quantity
2000
2006
(RHS)
64,702
43,760
36,428
64,847
571,687
1,229,719
(LHS)
50,494
202,907
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Thailand Energy Problems
Thailand Energy Elasticity
1
2001 2002 2003 2004 2005 Ave. 5 ysr
1. GDP Growth Rate 2.1 5.4 6.7 6.2 4.5 4.98
2. Energy Consumption Growth 4.9 7.3 5.8 9.6 2.5 6.02
3. Energy Elasticity 2.3 1.4 0.9 1.6 0.6 1.36
Thailand vs International Energy Intensity
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Energy Consumption by Sector
2
5
Transportation Mode
Energy Consumption Structure
Logistic Structure 46
Chiangmai

• Rail 88.3
• miningconst. materials 40
• rice, rubber, agriculture 35
• petroleum 14
• manufg 12

Transport38
Road 88.3
Suwannabhum Airport
Donmuang

• Rail 2.8
• petroleum 36
• cement 20
• agriculture 3
• const. Materials 2

Road 70.4

• Inland waterway 4.8
• Costal transport 3.7
• const. materials 47
• rice, tapioca, sugar, agri. 35
• petroleum 12

Lam Chabung Seaport
Manufacturing 35

• Air 0.2
• perishable products
• gems jewelry
• electronic parts

Rail 0.7

• Pipe 2.1
• oil 98
• gas 2

Phuket
Inland waterway 4.1
Costal transport 4.0
Rail 2.8
Pak Bara Seaport
Inland waterway 4.8 Costal transport 3.7
Residential Commercial 20
Air 20.7
Air 0.2
Pipes 2.1
Transportation Sector consume 38 of total energy
consumption. Transportation on road consume 70
of all transport consumption.
Agriculture 6
Source Study from NESDB and Thamasart University
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Self-Sufficiency for Sustainable Development
How much Energy Self-Sufficiency does Thailand
have?
To become more Self-Sufficient, either reduce
consumption or increase domestic production.
However, the consumption behavior will
determine what type of fuel is needed to be
produce.
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10th National Plan by NESDB
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Macroeconomic Analysis
Low Quality Education
Low Quality labour
Enabling factors MACROECONOMIC MANAGEMENT
(Low margin/return)
Low Quality for Raw-material, machinery and
equipment
Insufficient inRD Investment
No immunity/ High volatility Financial System
Lack of Saving
Lack of regulation on industrial products
quality control
Low Basic infrastructure and Logistic
development
Slow Technology Development
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Framework for 10th Plan
Self-Sufficiency for Sustainable Development

• Philosophy of Sufficiency Economy from His
  Majesty the King

Middle Path
Sufficient(Enough)
Reasonable
Self-Immunity
Sufficiency Economy is a philosophy that
stresses appropriate conduct and way of life
while incorporating moderation, due consideration
in all modes of conduct,and the need for
sufficient protection from internal and external
shocks.
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Visions of Nations Development
The philosophy of Sufficiency Economy
Thai People
CommunityInstitutes
EconomicSystem
AdministrativeSystem

• Having moral and knowledge, self-
  immunity, discipline and responsibility
• Maintaining Thai culture and local wisdom

• Having stability with happiness under
  diversification of culture and resources

• Having growth with stabilization
• Being self-reliant / competitive
• Equal distribution

• Transparent / fair
• Collaboration from all sectors
• Culture and democracy

Green and Happiness Society
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New Issues ..
Past development
5 Major Changes
Asia Century
Unbalanced growth
Knowledge Based Economy
Social risks
Aging Society, (Savings and Productivity)
Naturalresources constraints
Energy Security and Efficiency
More quantitythan quality capitals
Opportunities from Global Consumer Trends
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Energy Development Plan
Guiding Principles for National Energy Policy
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Energy Development Plan
Three main goals to be achieved by1. Reducing
energy import2. Leveling down the energy
production cost (public energy expenditure)3.
Minimizing all pollution created by all economic
sectors

• Targeting by the end of 10th National plan- To
  increase consumption level of new alternative
  source of energy to 8- To increase energy
  security of the nation for the next 50 years- To
  increase efficiency in energy consumption of all
  economic sectors
• To reduce the energy elasticity from 1.41.0
• To reduce the energy intensity in transport
  sector

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Energy Development Plan
Main action plans

• Short-term management in transportation sector
  for example, rail for merchandise transportation
  in the Eastern-seaboard area.
• New investment long-term management in modal
  shift. To illustrate, a redesign of rail system
  and mass transit. This includes consideration
  and serious study about DC, ICD, and CY.
• New sources of energy supply from both local and
  international to strengthen energy security.
• Thailand is negotiated a long-term contract for
  natural gas supply from neighboring countries.
• Thailand will purchase additional some thousand
  Megawatts of electricity from neighboring
  countries.

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Energy Development Plan
Main action plans (cont.)

1. Usage of alternative energy in order to increase
   knowledge and participation. This is to produce
   and to implement alternative sources of energy by
   both general public and private.
2. Demand management like energy saving and
   electrical appliances.
3. Research and development on alternative sources
   of energy and renewable sources of energy. This
   also includes improving technology on energy
   saving.

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Energy Development Plan
Main action plans (cont.)

1. Seriously planning for domestic production of
   bio-diesel from palm oil. As well, contract
   farming in neighboring countries.
2. Private participation in financing projects.
3. Value creation in Petrochemical industries.

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THE WORLD BANK
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