A new report documents the continuing work of EGI partner Palang Thai to build the capacity of the newly formed Energy Regulatory Commission (ERC). Palang Thai worked with Washington State-based AWISH (A World Institute for a Sustainable Humanity) to organize an exchange trip that brought high level Thai and US counterparts together for a set of discussions on power sector planning and regulation.
Final Report: Exchange Trip and Follow-up Activities of Thai Energy Delegates on Energy Regulatory and Planning Practices to Washington and
Oregon
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Background: In 2005, EGI worked closely with Thai NGOs and government on energy regulatory reform. The EGI toolkit helped broaden and give weight to the discussion of the need for a good regulatory framework, leading to the drafting of the Energy Industry Act in 2007 and the establishment of the Energy Regulatory Commission (ERC) in 2008.
Update: A new report documents the continuing work of EGI partner Palang Thai to build the capacity of the newly formed ERC. Palang Thai worked with Washington State-based AWISH (A World Institute for a Sustainable Humanity) to organize an exchange trip that brought high level Thai and US counterparts together for a set of discussions on power sector planning and regulation. In September 2008, the Thai delegation visited energy installations and participated in round-table discussions with energy decision-makers in the Pacific Northwest . Follow-up meetings and a public seminar in Thailand in January 2009 built on the momentum generated by the exchange.
As a result of these activities, the Thai Energy Regulatory Commission publicly stated their intention to support transition to an integrated resource planning process.
The report frames the context for this exchange in terms of the respective structures of the Thai and Pacific Northwest power sectors. Thailand , despite being the first developing country to adopt net metering regulations, has an incentive system that has contributed to substantial overinvestment in electricity generation. As of 2008, Thailand ’s reserve margin is 29%, compared to an official target of 15%. At the same time, the cost of new investments and those related to power purchase agreements are passed on to rate payers, who have virtually no voice in deciding what types of power plants are built.
In the Pacific Northwest , environmental restrictions on large dam construction led to a massive nuclear effort in the 1970s and 1980s. Delays, cost-overruns and high interest rates lead to electricity tariffs doubling overnight, and the mothballing of 5 out of 6 of the plants that had been planned. Bond holders were left with a 2.25 billion default. Citizen activism in the wake of these issues led to a revolution in energy planning, with a regulatory process that was much more open to public participation.
The ultimate goal of the exchange activities is to build the capacity of Thai energy stakeholders – and the ERC in particular – to consider institutionalizing true least-cost power sector planning and utility incentive structures, and to enable more meaningful public involvement in key decisions in the sector.
