Thailand Investment OpportunitiesThailand Investment Opportunities

In Renewable EnergyIn Renewable Energy

Thailand’s Energy SituationThailand’s Energy Situation

For the last 15 years, energy consumption has grown faster than GDP by an average of 40% a year1

Consumption of electricity has grown about 7% per year 2000-20052

Imported oil in 2005 averaged 1,007,200 b/d and domestically supplied oil 565,600 b/d. The total cost of imported refined products was up 92% from 20043

1) EPPO 2) NESDB 3) PTT b/d = barrels/day

Energy Situation in ThailandEnergy Situation in ThailandEnergy Situation in ThailandEnergy Situation in Thailand

Oil 49%

Natural gas 35%

Coal 13% Hydro 3%

Primary energy consumption

Energy consumption : 51% Electricity, 4 9 % Oil2005 Thailand’s energy cost 157. % of GDP

Logistics/transportation37%

Agriculture 6%Industrial36%

Resident & Commercial 21%

Consumption by Sector

90% import

Push for Energy SecurityPush for Energy Security

Increase domestic energy production

Increase refining capacity

2 new crude oil production facilities began operating in 2005

New crude oil discoveries in Sukothai

61,914

75,567

96,32285,516

113,890

130,056

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

BB

L/D

2001 2002 2003 2004 2005 2006

Thailand Production of Crude Oil

Purchase energy from neighboring countries Purchase agreements with Laos PDR, China, and Myanmar

Source: DMF, EPPO

Push for Energy SecurityPush for Energy Security

Increase efficiency of consumption Energy Policy and Planning Office seeks to

promote R&D in energy-conserving technologies Incentives to promote importation and use of

“green” machinery

Move towards alternative energy Develop alternative energy sources for long term

stability In 2004, alternative energy was made 1 of 6 BOI

Target Sectors

2011 Alternative Energy Consumption Targets2011 Alternative Energy Consumption TargetsEnergy Type Electricity Heat Fuels Total % total energy

consumptionMW Ktoe Ktoe M. ltr/day

Ktoe Ktoe

2011 Target 3,246 1,443 3,851 7 6,426 11,311 13.5

Renewable Energy 3,246 1,034 3,851 7 2,708 6,963 8.3

Ethanol - - - 3 820 820 -

Biodiesel - - - 4 1,258 1,258 -

Biomass (+395MW)

2,800 940 3,660 - - 4,600 -

Municipal Solid Waste (+100MW)

100 45 - - - 45 -

Biogas(-33MW) 30 14 186 - - 200 -

Hydropower(-244 MW)

156 18 - - - 18 -

Wind Power 115 13 - - - 13 -

Solar Energy 45 45 5 4,348 4,348 9 -

NGV - - - 508 mmscfd

- - 5.2

•24 ethanol plant concessions have been approved of total 4.8 mil LPD.

•6 existing ethanol plants of total 0.825 million LPD

•The 2011 target is 3 million LPD. Thailand needs an additional 200,000 litres of ethanol / day to be used in making gasohol.

•9 oil companies distributing Gasohol Octane 95 via 3,103 gas service stations;

•Bangchak is the pioneer on distributing Gasohol Octane 91 through about 180 stations only in Bangkok areas

• As of May 2006 , total gasohol volume sale was about 3.5 million litres per day

Gasohol Demand

0

0.5

1

1.5

2

2.5

3

3.5

4

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Am

onut

(Mill

ion

liter

s / d

ay)

2004 2005 2006Ref: www.doeb.go.th

Invest in renewable energyInvest in renewable energyEthanol

• Total installed capacity 336,000 litres/day (as of mid-2006)

• Actual production 75,500 litres/day (as of mid-2006)

• Raw materials: used vegetable oil, palm wax, palm oil, jatropha

• Market: trucks, vehicle commercial trucks

• The government targets the use of 4 million litres of biodiesel / day by 2011.

Biodeisel Current Status and PotentialInvest in renewable energyInvest in renewable energy

Biodiesel

Biomass: SPP ProjectBiomass: SPP ProjectBiomass Type No. of

ProjectsInstalled Capacity

Grid Connected

Bagasse 22 536.20 169.30

Rice Husks 6 85.90 54.00

Rice Husk &Wood

3 60.80 35.20

Rice Husk, Bagasse & Waste Wood

4 108.80 62.20

Bark, Waste Wood & Black Liquor

1 87.20 50.00

Black Liquor 1 32.90 25.00

MSW 1 2.50 1.00

Total 38 (MW) 914.30

(MW) 396.70

Source: Dept Alt Energy Dev/Efficiency, MOE

Invest in renewable energyInvest in renewable energy

15 biomass plants have been short listed for foreign investment.

Sugar Cane

Bagasse

13,960,739 tons/yr

Tops and leaves

11,412,433 tons/yr

Thailand’s Major Agricultural Wastes

TapiocaTapioca slurry

1,331,520 tons/yr

Tapioca Rhizome

101,771 tons/yr

Oil Palm

• Fiber

12,887 tons/yr

Shell

16,347 tons/yr

Bunches

237,285 tons/yr

Rice

• Husk 2,307,984 tons/yr

• Rice Straw 24,692,013 tons/yr

25 MW

47 MW

13 MW

15 MW● Thailand’s total MSW is

40,000 tons/day with potential electricity generating capacity of 400 MW

• Currently, 12 MW of electricity is generated from MSW.

• The target for 2011 is 100MW.

Invest in renewable energyInvest in renewable energy

Municipal Solid Waste

Wind capacity within the countryWind capacity within the country

Thailand’s yearly average wind power at 50 M

6.4 m/sec or higher: Nakornsri Thamarat,

Songkra, Patthani

4.4 m/sec or higher: Phangnga, Phuket,

Trang, Satun

Yearly average wind powerYearly average wind power4.4-6.4 m/sec4.4-6.4 m/sec

Invest in renewable energyInvest in renewable energyWind Energy

Geography

Yearly Average Strength of Light

(Mega jule/ m2 per day)

Energy Potential(Ktoe)

Over all country 18.2 554,070.6

Region Number of Systems Size (Kilowatt)

Central 107 286.675

North 521 1,255.241

North East 52 164.75

South 128 510.95

Total 808 2,217.616

Solar Power Projects Installed by the Department of Alternative Energy during 1993-2005

Invest in renewable energyInvest in renewable energy

Solar Energy

Increased NGVs 2006Increased NGVs 2006Unit: vehicle

Public VehicleBMTA 3,200Taxi 30,000Corporate/Government Car 16,800Van/Pickup 10,000Truck/Tractor 3,000The increasing number of vehicles in total (2006) 63,000

Currently, there are 18 companies with 70 service centers to install NGV equipments, and 7 auditors.Currently, there are 18 companies with 70 service centers to install NGV equipments, and 7 auditors.

Total vehicle in 2006 73,000Oil import replacement in 2006 (million liter) 846 Fuel saving value for users (million baht)

2011 NGV Target

7,415

508 mmscfd

Invest in renewable energyInvest in renewable energy

Thailand: A global leader in white goods Thailand: A global leader in white goods exports (2006 Q1-Q3)exports (2006 Q1-Q3)

€1.37 billion: air conditioners

€136 million: air con parts

€460 million: household refrigerators

€356 million: refrigeration compressors

€75 million: freezers

Share of Major Product in 2005Share of Major Product in 2005

% World Share

% Share by country

Philippines

Thailand

Malaysia Singapore

Indonesia

Room Air conditioner

11 2 76 19 4 2

Refrigerator

11 13 60 1 - 27

Strong domestic demand for air conditioners, withStrong domestic demand for air conditioners, with50,000 to 60,000 new home construction/year50,000 to 60,000 new home construction/year

ThailandThailand: Automotive Hub of ASEAN: Automotive Hub of ASEAN 2005 production ~ 1.125 million

units(World’s 14th largest)

Export ~ 440,000 units Largest in Southeast Asia Capacity of 2.0 million units in

2010 World’s largest production of one-

ton pickup trucks 820,000 units in 2005

2010 Target—World’s Top 10 2010 Target—World’s Top 10

• Auto assembly for local and export markets under AFTA and other FTA arrangements

• Auto part manufacturing to serve domestic and export markets

• Potential small car hub -- low fuel consumption

• NGV target: 120,000 NGVs by 2008

Investment Opportunities in Automotive Investment Opportunities in Automotive IndustriesIndustries