1. Overview on Energy Security and its Strategy in Thailand

2. National Energy Policy Thailands Energy Situation Strategies to Enhance Energy Security Efficient Supply Management Natural Gas/ Oil/ Power Diversification of Energy Types & Supply Sources Fuel Diversification in Power Generation Promotion of Renewable Energy & Energy Conservation Energy Efficiency Improvement Consideration on Nuclear Power Overview

3. 1.Intensify Energy Development for Greater Self-reliance expediting more investment in E&P of energy within the country, in JDAs and from neighboring countries. 2.Set the Policy on Alternative Energy as a National Agenda by encouraging production and use of alternative energy, particularly biofuels and biomass, to enhance energy security; encouraging production & use of RE at the community level; expediting greater use of NG in the transportation sector; and promoting R&D of all forms of RE. 3.Supervise & Maintain Energy Prices at appropriate, stable & affordable levels by setting appropriate price structure; managing prices through market mechanism and Oil Fund; and encouraging competition and investment in energy business. 4.Promote Serious and Continuous Energy Conservation and Efficiency in the household, industrial, service & transportation sectors. 5.Promote Energy Production & Consumption concurrently with Environmental Conservation giving importance to tackling of global warming by promoting CDM projects. National Energy Policy

4. Thailands Consumption and its Expenditure on Final Energy

5. Value of Energy Import

6. Installed Generating Capacity by source of supply Share of Power Generation by Fuel Type Power Generation (status @ May 2009) EGAT, 13,615 MW (48%) IPP 12,151 MW (43%) Import & Exchange 640 MW (2%) SPP 2,073 MW (7%) Total: 28,482 MW Oil, 0.1% Natural Gas, 70% Hydro, 6% Coal & Lignite, 21% Import & Others, 3%

7. Thailand s Strategies to Enhance Energy Security Efficient supply management of conventional fuel –Natural Gas Supply Management –Oil Supply Management –Power Supply Management to diversify energy types and supply sources –Fuel diversification in power generation Promotion of Alternative/Renewable Energy Energy efficiency improvement Consideration on Nuclear Energy

8. Natural Gas Supply Management Natural Gas Demand –In Thailand, NG utilization is promoted, particularly in power generation and transport sectors, to replace petroleum products such as fuel oil, diesel and gasoline. –Since the world oil prices have increased during recent years, more industries have switched to use NG instead of oil. –Based on PDP 2007, NG demand during 2007-2011 is projected to increase by an average of 6% per year for power generation. –If included industry and transport demand, NG demand will grow at an average of 10% per year.

9. Natural Gas Supply Management Natural Gas Supply –Total supply of NG (Jul 2009) was 3,670 million cubic feet per day (MMSCFD), 1.6% increase from the same period in 2008. 2,944 MMSCFD (80%) produced in Thailand. 727 MMSCFD (20%) imported from Myanmar. –It is expected that NG production will increase to about 5,400 MMSCFD in 2012 and about 7,440 MMSCFD in 2021. –Support PTTEP to be the arm of the government in petroleum resource development, particularly at the international level. –Encourage Thai energy operators to joint venture in energy projects overseas.

10. Oil Supply Management Oil demand is projected to increase at an average growth rate of 2.83% during 2007-2021. Oil remains to be the major fuel of the country in spite of promotion of energy conservation and greater use of NG. Oil remains the major fuel in the transport sector. Type20062007201120162021 CAGR % 20072007-112012-162017-212007-21 LPG*5,0745,8127,3489,68812,47314.57.95.685.26.26 Gasoline**7,1257,3378,1579,43810,9291.72.545.685.202.83 Jet & Kerosene 4,5384,9504,5775,7967,3379.10.424.84 3.37 Diesel**18,37118,71019,63023,02727,3151.81.403.243.482.71 Fuel Oil5,8514,2223,3413,2664,063-27.9-8.880.104.48-1.43 Total41,05041,03043,05251,21562,1170.01.003.563.942.83 Projection of Oil Demand up to 2021 Unit: M. Litres * Excluding demand in petrochemicals ** Replacement by NGV already deducted

11. Use of Refining Capacity RefineryRefining Cap. (KBD) Refinery Intake (KBD)* % of Refining Cap. Use Thai Oil270272101 Bangchak1209075 ESSO16014490 IRPC (former TPI) 21513563 PTT Aromatics & Refining (former RRC) 14514097 SPRC145155107 RPC171059 Total1,07294688 * Data of Jan-Jun 2009 Thailand Refining Capacity Total 1,072 KBD (@ Jun 09) PTTAR SPRC RPC Thai Oil Bangchak IRPC ESSO Total domestic refining capacity is sufficient to serve demand in long term. Oil Supply Management

12. At present, about 80% of crude oil import is from the Middle East. As Thailand does not have much potential for new crude oil resources, to meet the increasing demand in the future, we have to: Expand full trading activities with global network, by: Building purchasing power by alliance among buyers Increase supply sources/markets Accelerate alternative energy development, e.g. NG and biofuels, to reduce oil consumption. Encourage Thai operators to invest or joint venture in energy project development overseas, e.g. Oman, Iran. Oil Supply Management

13. Power Supply Management Review the Power Development Plan (PDP) every 6 months to be in line with the changing demand situation Maintain the reserve margin to be no less than 15% Diversify fuel types in power generation: Give importance to SPPs and VSPPs using renewable energy as fuel Study the feasibility of nuclear power generation. Promote Clean Coal Technology for coal-fired power generation International cooperation in power development projects: Power purchase from LPDR, Myanmar, China, Cambodia and Malaysia

14. Status of Power Generation from Renewable Energy and Potential & Target in 2011 Fuel Diversification in Power Generation Existing 5 MW Target 78 MW Potential 400 MW Existing 1 MW Target Target 115 MW Potential 1,600 MW Existing 46 MW Target Target 60 MW Potential 190 MW Existing 32 MW Target Target 55 MW Potential 50,000 MW Existing 1,610 MW Target Target 2,800 MW Potential 4,400 MW Existing 56 MW Target Target 165 MW Potential 700 MW Biomass Wind Biogas Hydro Solar PV MSW (Data as at Jan2009) - Wind farm in southern Thailand - Sugarcane industry, etc. - Biomass power plants - Community power plants Biogas from livestock farms and agro, palm industry - Mini Hydro and Micro Hydro - Bangkok 9,000 tons/day - Municipality 6,300 tons/day - Industry 1,000 tons/day - Urban areas - Solar homes - His Majestys projects - 0.1% of installation areas - Currently, Thailands power generation depends heavily on natural gas as fuel. - Efforts are being made to boost greater use of renewable energy as fuel. Share of Power Generation by Fuel Type (@ May 2009) Oil, 0.1% Natural Gas, 70% Hydro, 6% Coal & Lignite, 21% Import & Others, 3%

15. Renewable Energy Development Plan

16. Promotion of Energy Efficiency Improvement Promotion of Energy Efficiency Improvement Promote power & cool-water generation using Distributed-Generation (DG) system in large department stores Promote Energy Services Company (ESCO) business Provide revolving funds/tax incentives/investment promotion via BOI privileges Logistic System Improve & expand public transport systems/promote rail & waterway transport modes Promote energy-saving vehicles Set Energy Saving Target at 10.8% in 2011 Public Awareness Campaigns on energy saving Speed up energy efficiency labeling Establish Minimum Energy Performance Standards (MEPS): air-conditioners, refrigerators, ballast, fluorescent lamps and compact fluorescent lamps Building code & building material standards Unified Thai Power to Reduce Energy Use

17. 1.Energy Security At present, Thailand uses natural gas from the Gulf of Thailand and import from Myanmar for power generation, accounting for a share of almost 70%. However, the R/P of domestic natural gas reserves is rather low (~ 30 years), which is considered a high risk in terms of energy supply. 2.Concern over Global Warming and Climate Change For an NPP, no GHG emission from the power generation process. 3.Energy Price Stability & Competitiveness in the Long Run Nuclear power is a fuel option for large-scale power generation, with low generation cost that can be competitive with other types of power plants. Consideration on Nuclear Power:

18. NPIEP Milestones for Nuclear Power Program Implementation

19. Intensify Energy Development for Greater Self-reliance Set the Policy on Alternative Energy as a National Agenda Supervise & Maintain Energy Prices at appropriate, stable & affordable levels Promote Serious and Continuous Energy Conservation and Efficiency Promote Energy Production & Consumption concurrently with Environmental Conservation 4.Revise of the obstructive legislation. Challenges and Success Factors 1.Subject RE as a National Agenda. 5.Fully allocate the budget for research, development, demonstration, dissemination and public relation of RE. 3.Government provides infrastructure for the RE expansion. 2.Government continuously and strongly support RE, especially, Incentive of BOI, ESCO Fund, Revolving Fund and adder cost. 6.Accessibility of RE data, e.g. Potential and raw material management. 7.RE technology standards.