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     EGAT’s Sirindhorn Solar Cell Project was successfully registered with the United Nations Framework Convention on Climate Change (UNFCCC) as Clean Development Mechanism (CDM). This is the first project from government and state enterprise sectors and the third project among the whole country’s solar cell projects that earned certified emission reduction credits.

     These earned credits totaling 701 ton CO2 per annum can be immediately sold, accounting for about 112,000 baht per annum. The director of Power Plant Development Planning Division revealed that many were interested to buy the credits including Thai Airways, but the decision depended on the executives’ consideration. He also added that this success could be a model for other organizations, both in government and state enterprise sectors.

     Mr. Paskorn Dangsmakr, the director of Power Plant Development Planning Division revealed that as EGAT has complied with the government policy and UNFCCC by developing a 1 MW solar cell project at Sirindhorn dam, Ubon Ratchathani province since 2003, CDM Executive Board of UNFCCC in Bonn, Germany approved the registration of the project by the name of “Project 5739: 1 MW Sirindhorn Solar Cell Project, Thailand”. The registration is retroactive to February 21, 2012 covering ten years-period (with the expiry date on February 21, 2022) with the carbon credits accounting for 701 tons of carbon dioxide per annum. This is the first project from the government and state enterprise sectors and the third solar cell project of Thailand that was registered with UNSFCCC as CDM. Thailand Greenhouse Gas Management Organization (Public Organization) or TGO and Bureau Veritas Certification Thailand will issue certificate for EGAT to show that the project was registered with CDM Executive Board of UNFCCC, and it is planned that the certificate will be officially granted to EGAT in June 2012.

     “After the project was registered with UNFCC, EGAT can trade carbon credits over-the-counter market. They might be directly sold to countries listed in the Annex I of Kyoto Protocol or organizations that need carbon credits to fulfill its greenhouse gas reduction commitment. For example, Thai Airways needs to annually buy carbon credits of 500,000 ton carbon dioxide to fulfill European Union Emission Trading Scheme (EU ETS). As EGAT Governor has a policy that carbon credits should be primarily sold to Thai state enterprises, there is a coordination and carbon trade negotiation with Thai Airways. But, the decision depends on the executives’ consideration, while the sale price in the carbon market will be referred. The recent sale price in BlueNext market (one of the big carbon markets) is 4 Euros per 1 ton of carbon dioxide per annum, so the carbon credits earned from the Sirindhorn solar cell project will cost about 112,160 baht/year (calculated from the exchange rate of 40 baht:1 Euro). However, the success of CDM project development in every aspect is more significant than the revenue from the sale of carbon credits.”

     The director of Power Plant Development Planning Division explained the development process of Sirindhorn solar cell CDM project as follows:

  1. Letter of intent (LoI) and project idea note (PIN) were prepared to propose to the General Service Division acting as the CDM project coordinator.
  2. The director of Power Plant Development Planning Division submitted project design document (PDD) identifying the project details together with the calculating, monitoring, and reporting methods of green house gas emission reduction, then the submitted document was checked by designated operational entity (DOE) authorized by CDM Executive Board. In this case, EGAT hired Bureau Veritas Certification Thailand to act as DOE.
  3. PDD, initial environment examination (IEE), and sustainable development evaluation form covering 4 issues namely natural resources and environment, society, development and/or technology , and economy were submitted to the General Service Division to consider and issue letter of approval (LoA) with the signature of the permanent secretary of the Ministry of Natural Resources and Environment.
  4. After LoA was granted, DOE checked the project’s PDD and sent final validation report to independent technical review (ITR) from China and local product management (LPM) to check all document before approved and submitted to CDM Executive Board for registration approval to be CDM project by the project name of “Project 5739: 1 MW Sirindhorn Solar Cell Project, Thailand.” After that, EGAT can immediately trade carbon credits.

     Up to now EGAT has 7 CDM projects that grant letters of approval and are still in the CDM registration process. The 7 projects are as follows:

1. Pasak Chonlasit small hydropower plant
2. Khundan Prakarnchon small hydropower plant
3. Chao Phraya small hydropower plant
4. Naresuan small hydropower plant
5. Kwae Noi small hydropower plant
6. Mae Klong small hydropower plant
7. Power plant efficiency improvement; changing and installing retrofitting turbines at Mae Moh Power plant, Units 10 and 11

     Wind power project at Lamtaklong Cholapa Wattana power plant is also in the letter of approval submitting process.