The Energy Ministry has raised its targets for renewable energy use to 10% of total national energy consumption by 2011 from 8%. Energy Minister Poonpirom Liptapanlop said the increase was in line with the government's push to encourage growth in renewable energy sources in the country.
Speaking at the Southeast Asia Summit Workshop on Biofuels in Bangkok yesterday, Lt Gen Poonpirom said energy consumption last year was 1.6 trillion barrels of oil equivalent or worth $44 billion, which accounted for 17% of Thailand's gross domestic product.
Once the renewable energy target is met, energy costs would be cut by $4.4 billion to $4.5 billion in that year.
Electricity and heating power generation are gradually being replaced by biomass, biogas, solar cells, wind power, mini-hydro and waste, which now represent 4% of the total, almost double the renewable energy use of last year.
Given the government's aggressive promotional campaign for renewable fuels for electricity, the number of new small power producer (SPP) projects submitted for the government's support is rising significantly.
In addition, alternative fuels such as gasohol, an mixture of ethanol and gasoline, and biodiesel, which is a biofuel blended in high-speed diesel, have recorded consumption much higher than expected, she said in a panel discussion on biofuel development at the Asean+3 Nuclear Safety Forum in Bangkok.
The government foresees ethanol demand in 2011 to rise to 2.4 million litres a day from 900,000 litres now, while biodiesel will be three million litres, up from 1.3 million litres.
The government remains committed to continue moving forward with the development of renewable energy through price and tax incentives, facilities, special added rates for power prices and by allocating more of the budget for research and development.
Panich Pongpirodom, the director-general of the Department of Alternative Energy Development and Efficiency, said renewable energy development plans did not include compressed natural gas (CNG) for the transport sector because it was a fossil fuel.
Even though it is not renewable energy, the state promoted the consumption of CNG with the aiming of replacing diesel by 20% in the transport sector.
Lt Gen Poonpirom added that from July, liquefied petroleum gas use in the transport and industrial sector will gradually be reduced, meaning the LPG price float will appear more slowly for the household sector than other sectors.
LPG refill station expansion will also be curtailed by strictly enforcing safety standards for vehicles and serious inspections for the illegal modification of household LPG cylinders.
