Thailand, May 2009 Mekong Energy and Ecology Network The First Mekong Energy and Ecology Training

1. Status of Electricity Sector 2. Fuel Sources for Electricity Generation 3. Status of Renewable Energy 4. Procedure for Making PDP 5. Power Sector Issues 2

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 GDP had increased at 7.75%, while electricity production and consumption at and 14.67% annually 4

 Total installed capacity is more than 13,000 MW with hydropower, coal, gas, oil and import  IPP generating capacity includes coal, gas, hydro and renewable power 5

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 Peak demand had increased at 12.7% annually while capacity at 11.8%  In 2007, peak demand was 11,286 MW 7

 Total electricity consumption in 2007 was 58,414 GWh  Industrial and residential shares accounts for 90% of total consumption 8

 Coal and gas are currently main fuels for power generation  Coal is main fuel in future including domestic and imported coal types 9

 Hydropower: Potential mainly concentrated to the northern and southern regions  Coal-fired power plants: The coal-fired power plants are currently mainly concentrated to the northern region where the coal reserves are located. Coal may however be transported from the north or imported from outside (e.g. from Australia) that will facilitate coal-fired power plants also in the central and the south.  Gas-fired power plants and combined cycle gas turbines (CCGT): The gas-fired power plants are mainly concentrated to the southern region where the offshore gas reserves are located. Gas reserves are however limited and other types of energy sources will be required to cover the future demand in the southern region.  Nuclear power: Uranium for nuclear power plants will need to be imported due to limited domestic resources.  Import of hydropower: Import will be to the northern (mainly from China) and central (mainly from Laos) and southern parts (mainly from Cambodia).  Renewable energy, including small hydropower: Renewable energy (500 MW) and small hydro (1,400 MW) are mainly being used for rural electrification in remote areas that for economic reasons may not be connected to the national grid.  Pumped storage hydropower: Pumped storage plants (4,200 MW) will used to produce peak power using surplus base load energy during the pumping mode.  Diesel and oil-fired plant: (-485 MW) will be taken out of service as they are the most expensive power plants to operate.  Energy efficiency and conservation 10

11 Peat Deposit in the Mekong River Delta Di Linh Coal Deposit Ba River Coal Deposit Nong Son Coal Deposit Quang Ninh Coalfield An Chau - Thai Nguyen Coalfield Na Duong Coal Deposit Red River Delta Concave Area Black River Coalfield Nghe Tinh Coalfield

 Electricity consumption is projected to increase at 14% during and 7% during  Industrial and residential sectors are two main consumers 12

 Coal will be the main source for power generation including domestic and import coal types  Nuclear power is expected to come in

14 Ministry of Industry Consultant (i.e. Institute of Energy for the series of PDP 1 to 6) Government Assigning a consultant to make PDP Submitting PDP to Ministry of Industry for appraisal Submitting PDP to Government for approval Prime Minister’ decision on approval of PDP National Appraisal Commission for PDP (headed by Ministry of Industry; including other related ministries and institutions)

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 Growing power demand  Energy efficiency  Environmental impact  Power supply capability  Power sector reform  Tariff setting 17