{"id":13019,"date":"2016-11-04T17:11:56","date_gmt":"2016-11-04T21:11:56","guid":{"rendered":"https:\/\/digital.hbs.edu\/platform-rctom\/submission\/negative-impact-of-climate-change-on-egat-used-of-renewable-energy\/"},"modified":"2016-11-04T17:46:43","modified_gmt":"2016-11-04T21:46:43","slug":"negative-impact-of-climate-change-on-egat-used-of-renewable-energy","status":"publish","type":"hck-submission","link":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/negative-impact-of-climate-change-on-egat-used-of-renewable-energy\/","title":{"rendered":"Negative impact of climate change on EGAT used of renewable energy."},"content":{"rendered":"

EGAT is the leading state-owned electricity generation and transmission in Thailand. Controlling more than 40%[1]<\/a> of country\u2019s gross energy generation and nationwide electricity transmission, EGAT controls the future of Thailand electricity production landscape. Climate change has significant impact on EGAT in many aspects. The most intuitive aspect is in downstream where climate change drives incremental electricity consumption in Thailand each summer. Other climate change impact is, however, not so straight forward. In 2011 and 2015, Thailand faced two extreme of climate change.<\/p>\n

\"1\"In 2011 Thailand faced the worst flood in half a century causing $46.5[2]<\/a> billion in economic damage. EGAT was blamed, despite its effort to clarify[3]<\/a>, as the public held EGAT responsible for its mismanagement of water level in Bhumibhol Dam that later cause \u201cThe great flood\u201d. Four years later, in late 2015, Thailand faced the worst drought in 10 years. The EGAT\u2019s dams are drying up resulting in 28%[4]<\/a> declined in electricity generated through hydropower in 2015 when compared with 2014.
\nAs climate change drives an increase in Thailand, demand for electricity consumption of grew 3.2%[5]<\/a> in 2015. Thais energy consumption growth put pressure on EGAT to grow at a faster rate if it were to maintain the position of leading electricity company. However, EGAT struggles to keep up with the \"2\"generation effort. To illustrate, in 2015 EGAT faced a decline in electricity generated of 5% vs. 2014 (from 73,335 to 69,840 million kWh). A number driven by drought, another negative impact of climate change affecting EGAT. The Thai electricity giant rely too much in its Hydropower. EGAT\u2019s 22 Hydropower plants account for 22% of total installed capacity, yet generated only 5% of EGAT total energy generation in 2015. Each year due to climate change yearly rainfall become more and more difficult to predict, making it difficult for EGAT to fully leverage its Hydropower source[6]<\/a>. Not to mention the risk from climate change when the company is trying to fully utilize the dam to generate electricity is so great as we have seen in 2011 and 2015.<\/p>\n

The trend of climate change affecting reliability of hydro power is consistent across the globe. Research in Brazil, a country where 93.2% of electricity generated locally is through hydro power plants[7]<\/a>, confirmed that like Thailand Brazil faces high degree of vulnerability from the risk of climate change.<\/p>\n

The pressure to find alternative source of energy is high as EGAT need to balance three challenges. First, EGAT need to diversify from its reliance
\non Hydropower, which has become much less reliable due to climate change and present high risk of managing at the optimal level. Second, EGAT must grow at least as fast as the market to maintain its the no.1 position as demand continue to grows. Third, EGAT to maintain the share of renewable energy in its production mix due to the focus of \u201cEnergy Industry Act 2007\u201d[8]<\/a> emphasizing the importance of renewable energy.<\/p>\n

\"3\"Having hydropower as a key part of electricity generation used to be beneficial to EGAT. However, EGAT is at the cross road where it need to shape the future landscape of electricity power generation mix of itself and Thailand. The challenge that EGAT need to overcome is whether to choose an easy path to diversify away from hydro quickly through fossil based power plant or choose sustainable path of alternative renewable energy. So far the company shows good intention in concentrating most of its future power source on renewable energy. In 2012, EGAT along with Thailand Ministry of Energy, and The Department of Alternative Energy Development and Efficiency (DEDE) developed Alternative Energy Development Plan (AEDP). The plan that is considered one of the most aggressive renewable energy plan in Southeast Asia targeting alternative energy of 25% within 2021[9]<\/a>.<\/p>\n

However, EGAT action move against its vision. Since 2013 electricity generation from clean energy (non-hydro) compound annual growth rate is -27.4%. Clean energy share is in fact shrinking in absolute term from 5,938 million kWh in 2013 to 3,128 in 2015. Moreover, number of Clean Development Mechanisms (CDM) project power plants drops from 8 to 4 projects in 2015[10]<\/a>.<\/p>\n

\"4\"<\/a><\/p>\n

The decision faced by EGAT is tough. It is now time for the company to \u201cwalk the talk\u201d. The company vision is certainly in the right direction with clear sustainable objective, however, can EGAT stay true to its goal given a rise in pressure to be power generation leader in Thailand and the need to diversify from existing hydropower to mitigate the risk in climate change?
\nIn 2015, the new version of AEDP[11]<\/a> was launched with the target of 30%[12]<\/a> final energy from renewable energy sources by 2036. The revised plan place emphasis on solar and wind energy.<\/p>\n

(793 words)<\/p>\n

 <\/p>\n

Source:\u00a0http:\/\/www.renewableenergy-asia.com\/Portals\/0\/seminar\/Presentation\/04-Overview%20of%20Alternative%20Energy%20Development%20Plan%20(AEDP%202015).pdf<\/p>\n

 <\/p>\n

[1]<\/a> “EGAT Annual Report 2015.” Electricity Generating Authority of Thailand. EGAT, Jan. 2016. Web. 4 Nov. 2016. http:\/\/www.egat.co.th\/en\/images\/annual-report\/2015\/egat-annual-eng-2015.pdf<\/p>\n

[2]<\/a> “Thai Flood 2011.” World Bank. World Bank, 2011. Web. 4 Nov. 2016. http:\/\/documents.worldbank.org\/curated\/en\/677841468335414861\/pdf\/698220WP0v10P106011020120Box370022B.pdf<\/p>\n

[3]<\/a> “Floods: Blame the Weather, Not Humans.” Bangkokpost. Bangkokpost, 3 Nov. 2011. Web. 4 Nov. 2016. http:\/\/www.bangkokpost.com\/learning\/learning-news\/264569\/floods-blame-the-weather-not-humans<\/p>\n

[4]<\/a> “EGAT Annual Report 2015.” Electricity Generating Authority of Thailand. EGAT, Jan. 2016. Web. 4 Nov. 2016. http:\/\/www.egat.co.th\/en\/images\/annual-report\/2015\/egat-annual-eng-2015.pdf<\/p>\n

[5]<\/a> “EGAT Operation in 2015 and Direction in 2016.” Electricity Generating Authority of Thailand. EGAT, n.d. Web. 4 Nov. 2016. http:\/\/www.egat.co.th\/en\/index.php?option=com_content&view=article&id=303&Itemid=146<\/p>\n

[6]<\/a> “EGAT Annual Report 2015.” Electricity Generating Authority of Thailand. EGAT, Jan. 2016. Web. 4 Nov. 2016. http:\/\/www.egat.co.th\/en\/images\/annual-report\/2015\/egat-annual-eng-2015.pdf<\/p>\n

[7]<\/a> Andrade, Eur\u00eddice M., et al. “Sensitivity of Hydropower Performance to Climate Change: A Case Study of a Brazilian Company.” African Journal of Business Management, vol. 6, no. 32, 2012., pp. 9250-9259doi:http:\/\/dx.doi.org.ezp-prod1.hul.harvard.edu\/10.5897\/AJBM11.2695.<\/p>\n

[8]<\/a> “Energy Industry Act 2007.” Enegy Regulatory Commission. ERC, n.d. Web. 4 Nov. 2016. http:\/\/www.erc.or.th\/ERCWeb2\/Upload\/Document\/Enery%20Act%20(unoffical%20Translation%202012)%20FINAL.pdf<\/p>\n

[9]<\/a> “The 10-Year Alternative Energy Development Plan …” N.p., n.d. Web. 4 Nov. 2016. http:\/\/weben.dede.go.th\/webmax\/content\/10-year-alternative-energy-development-plan<\/p>\n

[10]<\/a> “EGAT Sustainability Report.” Electricity Generating Authority of Thailand. EGAT, 2015. Web. 4 Nov. 2016. http:\/\/www.egat.co.th\/en\/images\/sustainable-dev\/csr-report\/Sustainability-Report-2015-EGAT-EN.pdf<\/p>\n

[11]<\/a> “Alternative Energy Development Plan (AEDP) 2015.” Renewableenergy-asia. Ministry of Energy Thailand, 2015. Web. 4 Nov. 2016. http:\/\/www.renewableenergy-asia.com\/Portals\/0\/seminar\/Presentation\/04-Overview%20of%20Alternative%20Energy%20Development%20Plan%20(AEDP%202015).pdf<\/p>\n

[12]<\/a> “Thailand Electricity Security Assessment 2016.” International Energy Agency. IEA, n.d. Web. 4 Nov. 2016. https:\/\/www.iea.org\/publications\/freepublications\/publication\/Partner_Country_Series_Thailand_Electricity_Security_2016_.pdf<\/p>\n","protected":false},"excerpt":{"rendered":"

The impact of climate change on electricity company renewable energy choice.<\/p>\n","protected":false},"author":2668,"featured_media":13085,"comment_status":"open","ping_status":"closed","template":"","categories":[],"class_list":["post-13019","hck-submission","type-hck-submission","status-publish","has-post-thumbnail","hentry"],"connected_submission_link":"https:\/\/d3.harvard.edu\/platform-rctom\/assignment\/climate-change-challenge-2016\/","yoast_head":"\nNegative impact of climate change on EGAT used of renewable energy. - Technology and Operations Management<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/negative-impact-of-climate-change-on-egat-used-of-renewable-energy\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Negative impact of climate change on EGAT used of renewable energy. - Technology and Operations Management\" \/>\n<meta property=\"og:description\" content=\"The impact of climate change on electricity company renewable energy choice.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/negative-impact-of-climate-change-on-egat-used-of-renewable-energy\/\" \/>\n<meta property=\"og:site_name\" content=\"Technology and Operations Management\" \/>\n<meta property=\"article:modified_time\" content=\"2016-11-04T21:46:43+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/5-2.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"975\" \/>\n\t<meta property=\"og:image:height\" content=\"209\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data1\" content=\"5 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/submission\\\/negative-impact-of-climate-change-on-egat-used-of-renewable-energy\\\/\",\"url\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/submission\\\/negative-impact-of-climate-change-on-egat-used-of-renewable-energy\\\/\",\"name\":\"Negative impact of climate change on EGAT used of renewable energy. - Technology and Operations Management\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/submission\\\/negative-impact-of-climate-change-on-egat-used-of-renewable-energy\\\/#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/submission\\\/negative-impact-of-climate-change-on-egat-used-of-renewable-energy\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/wp-content\\\/uploads\\\/sites\\\/4\\\/2016\\\/11\\\/5-2.jpg\",\"datePublished\":\"2016-11-04T21:11:56+00:00\",\"dateModified\":\"2016-11-04T21:46:43+00:00\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/submission\\\/negative-impact-of-climate-change-on-egat-used-of-renewable-energy\\\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/submission\\\/negative-impact-of-climate-change-on-egat-used-of-renewable-energy\\\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/submission\\\/negative-impact-of-climate-change-on-egat-used-of-renewable-energy\\\/#primaryimage\",\"url\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/wp-content\\\/uploads\\\/sites\\\/4\\\/2016\\\/11\\\/5-2.jpg\",\"contentUrl\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/wp-content\\\/uploads\\\/sites\\\/4\\\/2016\\\/11\\\/5-2.jpg\",\"width\":975,\"height\":209},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/submission\\\/negative-impact-of-climate-change-on-egat-used-of-renewable-energy\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Submissions\",\"item\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/submission\\\/\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"Negative impact of climate change on EGAT used of renewable energy.\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/#website\",\"url\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/\",\"name\":\"Technology and Operations Management\",\"description\":\"MBA Student Perspectives\",\"potentialAction\":[{\"@type\":\"性视界Action\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Negative impact of climate change on EGAT used of renewable energy. - Technology and Operations Management","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/negative-impact-of-climate-change-on-egat-used-of-renewable-energy\/","og_locale":"en_US","og_type":"article","og_title":"Negative impact of climate change on EGAT used of renewable energy. - Technology and Operations Management","og_description":"The impact of climate change on electricity company renewable energy choice.","og_url":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/negative-impact-of-climate-change-on-egat-used-of-renewable-energy\/","og_site_name":"Technology and Operations Management","article_modified_time":"2016-11-04T21:46:43+00:00","og_image":[{"width":975,"height":209,"url":"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/5-2.jpg","type":"image\/jpeg"}],"twitter_card":"summary_large_image","twitter_misc":{"Est. reading time":"5 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/negative-impact-of-climate-change-on-egat-used-of-renewable-energy\/","url":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/negative-impact-of-climate-change-on-egat-used-of-renewable-energy\/","name":"Negative impact of climate change on EGAT used of renewable energy. - Technology and Operations Management","isPartOf":{"@id":"https:\/\/d3.harvard.edu\/platform-rctom\/#website"},"primaryImageOfPage":{"@id":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/negative-impact-of-climate-change-on-egat-used-of-renewable-energy\/#primaryimage"},"image":{"@id":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/negative-impact-of-climate-change-on-egat-used-of-renewable-energy\/#primaryimage"},"thumbnailUrl":"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/5-2.jpg","datePublished":"2016-11-04T21:11:56+00:00","dateModified":"2016-11-04T21:46:43+00:00","breadcrumb":{"@id":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/negative-impact-of-climate-change-on-egat-used-of-renewable-energy\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/d3.harvard.edu\/platform-rctom\/submission\/negative-impact-of-climate-change-on-egat-used-of-renewable-energy\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/negative-impact-of-climate-change-on-egat-used-of-renewable-energy\/#primaryimage","url":"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/5-2.jpg","contentUrl":"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/5-2.jpg","width":975,"height":209},{"@type":"BreadcrumbList","@id":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/negative-impact-of-climate-change-on-egat-used-of-renewable-energy\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/d3.harvard.edu\/platform-rctom\/"},{"@type":"ListItem","position":2,"name":"Submissions","item":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/"},{"@type":"ListItem","position":3,"name":"Negative impact of climate change on EGAT used of renewable energy."}]},{"@type":"WebSite","@id":"https:\/\/d3.harvard.edu\/platform-rctom\/#website","url":"https:\/\/d3.harvard.edu\/platform-rctom\/","name":"Technology and Operations Management","description":"MBA Student Perspectives","potentialAction":[{"@type":"性视界Action","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/d3.harvard.edu\/platform-rctom\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"}]}},"_links":{"self":[{"href":"https:\/\/d3.harvard.edu\/platform-rctom\/wp-json\/wp\/v2\/hck-submission\/13019","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/d3.harvard.edu\/platform-rctom\/wp-json\/wp\/v2\/hck-submission"}],"about":[{"href":"https:\/\/d3.harvard.edu\/platform-rctom\/wp-json\/wp\/v2\/types\/hck-submission"}],"author":[{"embeddable":true,"href":"https:\/\/d3.harvard.edu\/platform-rctom\/wp-json\/wp\/v2\/users\/2668"}],"replies":[{"embeddable":true,"href":"https:\/\/d3.harvard.edu\/platform-rctom\/wp-json\/wp\/v2\/comments?post=13019"}],"version-history":[{"count":0,"href":"https:\/\/d3.harvard.edu\/platform-rctom\/wp-json\/wp\/v2\/hck-submission\/13019\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/d3.harvard.edu\/platform-rctom\/wp-json\/wp\/v2\/media\/13085"}],"wp:attachment":[{"href":"https:\/\/d3.harvard.edu\/platform-rctom\/wp-json\/wp\/v2\/media?parent=13019"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/d3.harvard.edu\/platform-rctom\/wp-json\/wp\/v2\/categories?post=13019"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}