Industries must accelerate green energy transition: FTI

The event at Pullman Bangkok King Power Hotel last week was hosted by one of Nation Group’s news outlets, Thansettakij.

As the industrial sector is among the largest emitters of greenhouse gases that contribute to global warming, the sector is calling for clean energy at an affordable price to reduce operational costs, mitigate impacts on the environment and boost trade competitiveness.

The price of oil and natural gas has fluctuated over the past four years due to such factors as geopolitics, global economic uncertainty, energy transition, natural disasters and severe weather.

Meanwhile, several regulations have been launched in response to environmental concerns, especially the European Union (EU)’s Carbon Border Adjustment Mechanism (CBAM) that directly affects industries like steel, electricity, cement, aluminium and fertiliser.

To cope with these issues, the FTI plans to drive green industry transition by using high efficiency machines, promoting the use of renewable energy, enabling industrial personnel to access energy-related technology, applying digital and innovations in production and creating an energy database. The federation is also urging 46 industries in Thailand to transition towards clean energy. “The industrial supply chain should be clean and accessible to drive the green industry transition,” Kriengkrai said.

Balance between clean, accessibility and affordability

Thailand is among countries working on energy transition to combat climate change as the country’s energy sector emitted 260.67 million tons of greenhouse gas in 2019. However, it is relying on importing liquefied natural gas (LNG), one of the fossil fuels that emits greenhouse gases.

The demand for energy like fuel and electricity has continued to rise as it is essential for people’s daily lives, whether working, cooking food or travelling.

The electricity price in Thailand is currently 4.18 satang per unit, higher than Vietnam and Indonesia where it costs 2.67 satang and 2.52 satang, respectively. This has resulted in an expense burden for the population and a decline in the industrial sector’s competitiveness.

Apart from expensive prices due to surging demand for environmentally friendly energy, maintaining the stability of renewable energy is difficult. For instance, solar power can be generated during the day, but energy storage is necessary to use solar power at night.

“Energy must be clean and stable at an affordable price,” said the Energy Ministry’s permanent secretary, Prasert Sinsukprasert.

To achieve this, Thailand would have to rely on existing energy like natural gas, while increasing the consumption of renewable energy to 70% to drive the country towards carbon neutrality in 2050 and net-zero carbon emission in 2065.

Development of energy storage and batteries is necessary to ensure that all people can access renewable energy. Meanwhile, batteries also help boost Thailand’s competitiveness in energy-related trade as they can be sold at a higher price compared to electricity alone.

“Batteries are the solution to clean, stable and affordable energy,” Prasert added.

Thailand needs energy trilemma

Oil giant PTT said Thailand needs an energy trilemma to drive net-zero carbon emissions and green energy transition, namely energy accessibility and stability, energy that is environmentally friendly, and energy that comes at an affordable price for economic growth.

“Energy is essential for people and the economy, but it is also luxurious because people consume a lot of energy,” the company’s president and CEO Auttapol Rerkpiboon pointed out.

He advised energy-related agencies to ensure operational excellence in securing energy sources, shifting from fossil fuels to renewable energy, developing carbon capture and storage facilities and boosting efficiency in energy consumption.

“Boosting energy efficiency is important as a 10% reduction in consumption could bring a decline in energy price,” he added.