IEEJ：February 2015

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Special Bulletin

A Japanese Perspective on the International Energy Landscape (205)

February 6, 2015

Thai Energy Policy Challenges and Public Trust
Ken Koyama, PhD
Chief Economist, Managing Director
The Institute of Energy Economics, JapanOn February 4, an international meeting titled “1st ASEAN Energy Literacy Conference”
took place in Bangkok. The Thai Ministry of Energy hosted the conference for which the Petroleum
Institute of Thailand served as an organizer. More than 300 people from Thailand and other membersof the Association of Southeast Asian Nations participated in the conference, including energy policy
officials, energy industry officials, researchers, experts and media reporters. In four sessions
following keynote addresses, participants vigorously discussed Thai and other countires’ problems
involving energy literacy for establishing ordinary people’s trust in energy policy planning andpromotion. On the occasion of this conference, I had an opportunity to personally exchange views
with energy policy and industry officials. In the following, I would like to discuss what I viewed as
key points mainly in regard to the conference and other meetings in Bangkok.

The keynote address at the outset of the conference indicated that while it is mostimportant to secure citizens’ understanding about various energy policy challenges facing the Thaigovernment at present, the dissemination of inaccurate or distorted understanding and information
makes it difficult for the government to make and promote energy policies. Behind the conference
was the recognition that it is basically important to promote the diffusion of accurate knowledge andunderstanding about energy problem realities to overcome and solve relevant problems.

As Thai energy policy challenges, the keynote speaker and other conference participants
cited responses to growing energy demand and imports, diversification of electricity generation
sources to address the power generation sector’s excess dependence on natural gas, the improvementof policy, framework and systems for domestic oil and gas development to address its declining
production trend, the energy market distortion created by energy subsidies and many other problems.
Among initiatives to address these problems, however, a coal-fired power plant expansion program
designed to stabilize energy supply-demand and diversify electricity sources has hit a snag in theface of strong opposition amid citizens' concerns over environmental problems and their distrust ingovernment policies. The government is urgently required to obtain citizens' understanding about
and support for the program, according to participants in the conference.
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Other problems related to energy literacy were cited. Regarding public distrust in policies,
emotional and nationalistic criticisms have come against the Thai government's present concession
system for domestic oil and gas development. Some people have criticized a delay in oil
development and Thailand's dependence on oil imports based on overestimated (wrongly assessed)
domestic oil deposits. Furthermore, biased critics have blamed domestic energy problems on theenergy industry.

Through serious discussions on these problems, I have understood that Thai energy policy
challenges and citizens' understanding about them pose a serious problem and found that suchenergy literacy problem exists in other countries as well. Particularly, I have recognized that Japan
faces similar problems. The sponsor of the conference asked me to report various energy problems in
the world and the positions of coal and nuclear from the viewpoint of the best energy mix as well as
discussions on these issues in Japan. My report attracted close attention. In Japan, there are majorenergy policy problems toward establishing the best energy mix. In this regard, Japan has problems
securing the people's understanding about and their trust in energy policies. In my report, I frankly
discussed this point, drawing interest and understanding from other participants in the conference.

Thailand must address and solve various problems, as a provisional government led byPrime Minister Prayut Chan-o-cha, since the coup in May last year, has been attempting to stabilize
politics, the economy and society. Particularly, the stabilization of the economy is important as thebase for the stable lives of the people. As Thailand’s economic growth in 2014 is widely estimated tohave been limited to less than 1%, economic reconstruction is important for the provisionalgovernment. The promotion of domestic economic reform, the exploitation of foreign funds andinternational cooperation are indispensable. In this sense, the enhancement of relations with Japan
should be a matter of interest for Thailand.

Through discussions at the conference and my talks with some of the meeting counterparts,
I felt that Thailand sees the resolution of energy problems as important for economic stabilizationand has great interest in enhancing cooperation with Japan in the field of energy problems. Given
that Thailand has great growth potential for a medium to long term and holds a key position among
ASEAN countries, enhancing cooperation with Thailand is significant for Japan’s government andindustry. Through the discussions, I felt that Thailand needs to promote and deepen comprehensive
talks on overall energy policies, promote appropriate coal utilization based on clean coaltechnologies, stably procure natural gas which accounts for the largest share of power generation,
secure the competitive procurement of liquefied natural gas which is now growingly important, stepup oil and gas development in the domestic market and neighboring countries, promote energy
conservation and consider nuclear energy use as a long-term challenge. Japan can apparently accept
most of these measures and cooperate with Thailand in implementing them. I really hope to see
Japan-Thailand talks and cooperation deepening at government and industry levels.
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Contact: report@tky.ieej.or.jp
The back issues are available at the following URL
http://eneken.ieej.or.jp/en/special_bulletin.html

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