Lao hydropower to reduce Thailand's reliance on imported LNG?
By Jon Fernquest
What
will be Thailand's future source of
power and
energy?Will it be coal, nuclear, or liquified natural gas (LNG)?
No one wants a coal-fired power plant in their backyard (See photo of protesters on right).
Overreliance on LNG could turn into a disaster if Thailand's own LNG resources are exhausted and LNG has to be imported in massive quantities.
This is what happened when the government heavily subsidized LNG for automobiles.
During the period of soaring oil prices last year PTT was footing huge LNG bills on behalf of the government for mounting LNG imports in a completely unsustainable fashion (Read articles #1 , #2 , and #3).
Purchasing more hydropower from Laos may be the answer. China is planning to do this.
Hydropower has problems too. Environmental activists have long called for a halt to dam construction along the Mekong river (Read critical report with press release).
On the other hand, Thailand's energy security has always been an issue and energy security increases with diversification of energy sources. If one energy source disappears or becomes too expensive Thailand can always turn to another source if the country cultivates many alternative sources.
hydropower - using
the fast moving water in rivers to generate electricity (See Wikipedia)
hydroelectricity - the electricity produced by hydropower (See Wikipedia)
natural gas - a fuel in the form of a gas used for heating, cooking, and to generate electricity (power) in gas and steam turbines (See Wikipedia)
reliance on X - a situation where you really need X, cannot do without X
overreliance on X - when you need X too much (a variety of sources may be safer)
Liquified Natural Gas (PNG) - natural gas that has been converted to liquid form for easy transportation by ship or pipeline (See Wikipedia)
energy - in physics the amount of work that can be performed by a force (See Wikipedia)
power - energy in the form of electricity produced in large quantities and used to operate lights, machines, and heating
source of power - the method used to create energy and electricity (power generation): coal, gas, hydropower, etc...
plant, factory - a large building with machines used to produce large quantities of goods
power plant - the place where power is produced or generated
coal-fired power plant - a place for generating power from coal
resources - the things that an organisation or person that they use to function and operate
exhaust resources - when the things needed for normal operation are used up and disappear
subsidize - when the government gives money (subsidy) to pay the costs of some activity
heavily subsidized - a large part of the costs of an activity are paid by the government
footing huge bills - paying large bills for someone else
on behalf of the government - for the government, doing a favour for the government
mounting - increasing and growing large
sustainable - can be continued for a long period of time, without need to stop
do in an unsustainable fashion - cannot continue for long periods of time (for example costs too much)
security - actions to prevent harm and damage to something
energy security - actions to prevent damage to economy from high oil prices or no oil at all
diversification - increasing the variety of something
cultivate - develop and improve something, make it better
X is an alternative to Y - X can be used instead of Y
hydroelectricity - the electricity produced by hydropower (See Wikipedia)
natural gas - a fuel in the form of a gas used for heating, cooking, and to generate electricity (power) in gas and steam turbines (See Wikipedia)
reliance on X - a situation where you really need X, cannot do without X
overreliance on X - when you need X too much (a variety of sources may be safer)
Liquified Natural Gas (PNG) - natural gas that has been converted to liquid form for easy transportation by ship or pipeline (See Wikipedia)
energy - in physics the amount of work that can be performed by a force (See Wikipedia)
power - energy in the form of electricity produced in large quantities and used to operate lights, machines, and heating
source of power - the method used to create energy and electricity (power generation): coal, gas, hydropower, etc...
plant, factory - a large building with machines used to produce large quantities of goods
power plant - the place where power is produced or generated
coal-fired power plant - a place for generating power from coal
resources - the things that an organisation or person that they use to function and operate
exhaust resources - when the things needed for normal operation are used up and disappear
subsidize - when the government gives money (subsidy) to pay the costs of some activity
heavily subsidized - a large part of the costs of an activity are paid by the government
footing huge bills - paying large bills for someone else
on behalf of the government - for the government, doing a favour for the government
mounting - increasing and growing large
sustainable - can be continued for a long period of time, without need to stop
do in an unsustainable fashion - cannot continue for long periods of time (for example costs too much)
security - actions to prevent harm and damage to something
energy security - actions to prevent damage to economy from high oil prices or no oil at all
diversification - increasing the variety of something
cultivate - develop and improve something, make it better
X is an alternative to Y - X can be used instead of Y
Relying on LNG the wrong strategy
Laos hydropower talks should be revivedBy: YUTHANA PRAIWAN
8/04/09
Energy policy planners should resume negotiations with hydropower producers in Laos in order to balance Thailand's sources of power in the future, says former energy minister Piyasvasti Amranand.
The revised Power Development Plan (PDP) contains too much reliance on liquefied natural gas (LNG), Dr Piyasvasti said at a discussion held by the Thailand Research Fund yesterday.
He said the country should buy more power from neighbouring countries rather than import huge amounts of LNG to serve power generation plants.
resume - start
again
negotiations - when two or more sides talk about their problems (a dialogue): to resolve disputes, to produce an agreement upon courses of action, to bargain for individual or collective advantage, or to craft outcomes to satisfy various interests (See Wikipedia)
resume negotiations - start negotiations again (after they have stopped)
revised - written again to improve
Power Development Plan (PDP) - the official Thai government plan for Thailand's energy future
Thailand Research Fund - a fund that sponsors academic projects and joint ventures with foreign scholars in Thailand (See website)
power generation plants - places where electricity is created (generated) and sent out along lines to homes and businesses
negotiations - when two or more sides talk about their problems (a dialogue): to resolve disputes, to produce an agreement upon courses of action, to bargain for individual or collective advantage, or to craft outcomes to satisfy various interests (See Wikipedia)
resume negotiations - start negotiations again (after they have stopped)
revised - written again to improve
Power Development Plan (PDP) - the official Thai government plan for Thailand's energy future
Thailand Research Fund - a fund that sponsors academic projects and joint ventures with foreign scholars in Thailand (See website)
power generation plants - places where electricity is created (generated) and sent out along lines to homes and businesses
Lao hydropower talks delayed last year
During the first half of last year, due to rising construction costs, the Electricity Generating Authority of Thailand (Egat) decided to delay its talks with all four hydropower producers and a coal-fired plant in Laos. Egat wanted to settle on more appropriate prices for the power it intended to buy.Dr Piyasvastisaid that overall costs for power plant construction had declined by 30% in line with drops in materials prices in the recession, so better prices were now possible.
Electricity
Generating Authority of Thailand (EGAT) - the government
monopoly that produces electricity for Thailand
coal-fired plant, lignite coal-fired plant -
settle on - agree on
appropriate - matches, fits, or is good for a situation; suitable
intended to buy - had a plan to buy
coal-fired plant, lignite coal-fired plant -
settle on - agree on
appropriate - matches, fits, or is good for a situation; suitable
intended to buy - had a plan to buy
Costly reliance on imported LNG
He said that the revised 15-year PDP ending in 2021 put too much weight on imported LNG, which was more expensive than natural gas from the Gulf of Thailand. Consumers then would face high power bills.The cost of power produced from LNG would rise to three baht per kilowatt/hour compared to 2.50 baht for gas from the Gulf of Thailand, he said.
Egat earlier signed memoranda of understanding for purchases with four hydropower developers in Laos: the 278- Nam Ngiep, 440megawattMW Nam Ngum 3, the 523MW Nam Theun 1 and the Theun-Hinboun expansion phase and Nam Ou totalling 1,393 MW, along with the developers of the 1,473MW Hong Sa lignite coal-fired plant.
Six other power developers are waiting to sign agreements with Egat.
put too much weigh on - emphasize too
much, consider too important
a memorandum of understanding (MOU) - a informal agreement that provides a framework for cooperation on activities, establishes policies or procedures of mutual concern, and/or establishes expectations between two or more parties (See Wikipedia)
watt - a measure of power output or energy conversion (See Wikipedia)
megawatt (MW) - one million watts, used to measure power producing capacity of electrical generators operated by utility companies: "A large residential or retail building may consume several megawatts in electric power and heating energy....Modern high-powered diesel-electric railroad locomotives typically have a peak power output of 3 to 5 MW, whereas U.S. nuclear power plants have net summer capacities between about 500 and 1300 MW" (See Wikipedia)
Theun-Hinboun, Nam Theun-Hinboun Hydropower Project in Laos - biggest hydropower project in Laos, Nam Theun 2 was French-led with assitance by the World Bank and the Asian Development Bank (See case study from University of Michigan and critical report with press release , 25-09-08; and University of Sydney, 1999)
a memorandum of understanding (MOU) - a informal agreement that provides a framework for cooperation on activities, establishes policies or procedures of mutual concern, and/or establishes expectations between two or more parties (See Wikipedia)
watt - a measure of power output or energy conversion (See Wikipedia)
megawatt (MW) - one million watts, used to measure power producing capacity of electrical generators operated by utility companies: "A large residential or retail building may consume several megawatts in electric power and heating energy....Modern high-powered diesel-electric railroad locomotives typically have a peak power output of 3 to 5 MW, whereas U.S. nuclear power plants have net summer capacities between about 500 and 1300 MW" (See Wikipedia)
Theun-Hinboun, Nam Theun-Hinboun Hydropower Project in Laos - biggest hydropower project in Laos, Nam Theun 2 was French-led with assitance by the World Bank and the Asian Development Bank (See case study from University of Michigan and critical report with press release , 25-09-08; and University of Sydney, 1999)
Laos as hydropower source
Under the agreement signed by the Thai and Lao governments last year, Thailand would buy 7,000 MW over the next decade.The country now imports 360 MW from Theun-Hinboun and Houay Ho. Another 1,535 MW from two hydropower plants will enter Thailand's power grid soon: 920 MW from Nam Theun 2 by the end of this year and 615 MW from Nam Ngum 2 next year.
Dr Piyasvasti said that China is another potential buyer for Laos, adding that talks with Beijing were proceeding more quickly than those with Bangkok.
"Buying power from Laos would be a better choice for us compared to Burma and Cambodia, given its lower country risk," he said.
Songsak Chusanapiputt, an engineering lecturer from Mahanakorn Institute of Technology, said Laos had potential to develop 31,200 MW of hydropower, according to the Australian Agency for International Development. He said Vientiane was counting on power as a major export to help its economy.
power grid - the
electricity lines and wires that send electricity from the power plant
to homes and businesses
talks proceeding quickly - fast progress towards agreement (differences being eliminated, compromises being made)
country risk - teh likelihood in a country that changes in the business environment will reduce profits or the value of assets, includes financial factors such as currency controls, devaluation or regulatory changes, or stability factors such as mass riots, civil war and other potential events contribute to companies' operational risks (See Wikipedia)
Mahanakorn Institute of Technology - engineering university in Bangkok: "Only ten years after it was
founded.Mahanakorn was rated 36th by Asia Week Magazine in the category Best Science and Technology Institution in Asia" (See website)
Australian Agency for International Development (AusAID) - the Australian government agency responsible for delivering most non-military foreign aid (See Wikipedia)
count on Y - need Y, rely on Y, depend on Y
talks proceeding quickly - fast progress towards agreement (differences being eliminated, compromises being made)
country risk - teh likelihood in a country that changes in the business environment will reduce profits or the value of assets, includes financial factors such as currency controls, devaluation or regulatory changes, or stability factors such as mass riots, civil war and other potential events contribute to companies' operational risks (See Wikipedia)
Mahanakorn Institute of Technology - engineering university in Bangkok: "Only ten years after it was
founded.Mahanakorn was rated 36th by Asia Week Magazine in the category Best Science and Technology Institution in Asia" (See website)
Australian Agency for International Development (AusAID) - the Australian government agency responsible for delivering most non-military foreign aid (See Wikipedia)
count on Y - need Y, rely on Y, depend on Y
(Source: Bangkok Post, business, 08-04-09, Relying on LNG the wrong strategy, YUTHANA PRAIWAN, link)
