Costly electricity bills create a financial burden for the public, but also accelerate momentum for the establishment of free power trade in Thailand.
"The time frame to transition to a new power trade will very from country to country, depanding on various factors such as fuel supplies and national energy policies." — Kirana Limpaphayom, Chief Executive, Banpu Power
Banpu Power Plc, the power generation arm of energy conglomerate Banpu Plc, sees a business opportunity. The company aims to benefit from a change in the electricity market that is projected to happen worldwide.
Digital technology is a leading factor in the new electricity trade, as more companies adopt clean energy sources because of growing concerns about climate change, said Kirana Limpaphayom, chief executive of Banpu Power.
In addition, decreasing development costs for renewable power plants and a surge in energy prices as a result of the impact of the Russia-Ukraine war are driving the shift, he said.
In Thailand, households and entrepreneurs are increasingly interested in using electricity generated by rooftop solar panels to reduce costly power bills.
Banpu plans to focus more on the power trade business while continuing to grow its energy solutions and electric mobility segments.
FREE POWER TRADE
The power market envisaged by Mr Kirana allows customers to freely choose electricity sellers and the types of energy that best suit their needs and budget.
Free trade in this segment means businesses can buy and sell electricity, notably from rooftop solar panels, freely among themselves without trading through the state-run Electricity Generating Authority of Thailand or the government's power distribution arms -- the Metropolitan Electricity Authority and the Provincial Electricity Authority.
"Some customers may opt to buy renewable power even if it is more expensive than electricity generated by fossil fuels, while others may be more price-sensitive," he said.
Mr Kirana said the new power market should be similar to the oil retail market, in which motorists can choose a filling station and type of fuel, including gasohol, a mix of gasoline and ethanol, or biodiesel, which is diesel blended with palm oil-derived methyl ester.
He wants the new government to promote free power trade as more competition will ultimately result in lower prices for consumers.
Digital technology should help buyers to purchase electricity via smartphones, said Mr Kirana.
He said he believes the campaigns for greater use of clean energy should help pave the way to establish a new power market, though it will take time.
Prime Minister Prayut Chan-o-cha vowed at the 26th UN Climate Change Conference in Glasgow in 2021 that Thailand would be more aggressive in addressing climate change, striving to reach carbon neutrality, a balance between carbon dioxide emissions and absorption, by 2050, along with a net-zero target, a balance between greenhouse gas emissions and absorption, by 2065.
FIRST STEPS
Energy authorities have already started testing new technologies that support power trading models.
The Energy Regulatory Commission (ERC) initiated its sandbox in 2019 by inviting state and private organisations to study how technologies can serve as energy solutions.
Peer-to-peer power trade, energy storage system development and smart grids, as well as distributed power generation systems are key topics in the sandbox.
Though their usage and efficiency are in a trial stage, Mr Kirana said he believes the technologies can be utilised in the power sector.
Free power trade can initially start in certain industries that are technologically ready, before being gradually expanded to cover more sellers and buyers, he said.
IN TRANSITION
The time frame to transition to a new power trade will vary from country to country, depending on various factors such as fuel supplies and national energy policies, said Mr Kirana.
Some countries may want to ensure there is sufficient energy supply before focusing on free power trade, he said.
With 20 years in the power business, Banpu has seen that each country has a different time frame for deregulating its electricity trade as they consider fuel types available, energy demand, national energy management plans and per capita income, said Mr Kirana.
In Japan, the transition period took 15-16 years, he said.
The country began by allowing major electricity consumers, notably factories and office buildings, to buy power directly from producers without going through the government.
Other groups of consumers, including hospitals, small and medium-sized enterprises and households, were later allowed to follow suit.
Banpu is interested in investing in Japan. The company announced last year it would approach renewable power companies to acquire new clean energy development projects in Japan.
Banpu is seeking the same investment opportunities in the US, Australia, China, Indonesia and Vietnam.
The time frame for Thailand to completely transition to free power trade is unknown after the government initiated policies to pave the way for the new form of energy management, said Mr Kirana.
In addition to the ERC sandbox, the Thai government set a goal to have renewable energy make up 50% of all fuels used for electricity generation by 2036, according to energy officials. In 2021, the proportion was 11%.
"The hope is our transition period will give consumers maximum benefits in terms of power stability, economic viability and better protection of the environment," he said.
MODERN TECHNOLOGY
Banpu continues to push ahead with energy technology and solution projects, which are part of its business expansion.
The company plans to scale up its energy technology business post-pandemic by joining hands with Altotech Global Co, a local information technology startup.
Banpu also announced an investment in Smart City Fund II, a venture capital fund managed by France-based Eurazeo.
Through its energy technology arm Banpu Next, Banpu acquired a 25% share in Altotech, which specialises in developing Internet of Things systems to support energy management in office buildings and hotels, as well as serve customers who want to adopt clean energy technology.
In the mobility business, Banpu Next launched a service named "Mobility as a Service", which provides electric vehicle rentals via the Haup application.
This service aligns with the sharing economy trend, which promotes renting rather than owning products, said Mr Kirana.
Another app named MuvMi was launched by Banpu Next, offering on-demand electric tuk-tuk service.
The three-wheel vehicles primarily serve as feeders, taking commuters to and from minor roads to mass transit train routes in Bangkok.
Passengers can share tuk-tuks if they travel on the same route, he said.