Challenges

Climate change is a problem that affects every life on earth and is known to intensify natural disasters, such as severe drought and flooding, which can impact the company’s business operations.
Committed to business operations on the basis of sustainability, CKPower recognizes the significance of contributing to the conservation of natural abundance and resources for all life on earth. As an electricity producer that relies on different forms natural resources, such as water and natural gases, the company has studied and analyzed risks from climate change as well as developed detailed disaster response plans for each of its power plants. Furthermore, the company regularly studies and keeps abreast of policies of government agencies and international organizations so as to ensure timely adjustments both in terms of business operations and responses to climate change impacts.

Execution

CKPower and its subsidiaries strive to promote electricity generation from various forms of clean energy, access to power for all, and the utilization of cutting-edge technology for production stability and eco-friendliness. To achieve this, the company seeks to increase the proportion of power generated from renewable energy by incorporating regional and domestic resources through investments in energy infrastructure and technology, especially in clean energy power plants with zero or low carbon emissions. At present, the proportion of CKPower’s investments in hydroelectric, combined-cycle, and solar power plants is 87.71%, 10.96%, and 1.33%, respectively (calculated based on installed capacity), which aligns with the UN’s Sustainable Development Goals 7 (affordable and clean energy) and 13 (climate action). The company’s business activity also contributes to Thailand’s Nationally Determined Contribution (NDC), which are targeted reductions in greenhouse gas emissions.

Climate change risk management

Greenhouse gas emissions reduction goal: CKPower seeks to continuously increase the proportion of investments in clean energy power plants.

CKPower and its subsidiaries analyze and assess risks from climate change every year as it directly affects the company’s business operations. After climate change risks have been identified, impact mitigation plans are formulated in preparation for such risks.

In addition to the impact mitigation plans, the company has also improved its power plants to enable them to withstand extreme heat/coldness and flood-proofed their infrastructure. Furthermore, their safety is consistently and proactively monitored and maintained by teams of engineers and experts with the help of dam instruments and real-time monitoring systems.

Climate change risks

CKPower produces electricity from various kinds of energy, which require different raw materials.

For the Nam Ngum 2 Hydroelectric Power Plant and the Xayaburi Hydroelectric Power Plant, studies of the actual water volumes over the past 50 and 60 years respectively were conducted in order to determine their electricity production capacity, and the water level data was collected to regularly monitor and assess the water situations in the reservoirs.

As for the Bangkhenchai Solar Power Plant, studies on the project location were carried out, taking into account the appropriate irradiation intensity as well as the average irradiation intensity in the past in the area prior to the investment.

For cogeneration power plants, which rely on natural gases, a purchase agreement was made with a natural gas producer, requiring the producer to pay compensation for any failure to supply natural gas in the volume as specified in the Agreement.

Reduction of greenhouse gas emissions

Over 80% of the company’s electricity production is attributable to its hydroelectric and solar power plants, which require no fuels and thus emit no greenhouse gases throughout the production. On the other hand, a portion is generated by the company’s cogeneration power projects, which release greenhouse gases as a result of combustion as well as heat from the production process.

However, CKPower recognizes operational and environmental benefits of efficiency enhancement projects for its power plants and thus develops such projects on a regular basis. In 2019, the company emitted a total of 642,495 tons of carbon dioxide equivalent.

Efficiency-enhancing innovations for BIC

CKPower is aware of the importance of energy conservation and has incorporated it into its policies. To this end, the company has consistently encouraged employees to develop and suggest improvements that would enhance electricity production efficiency, which would reduce production costs per unit of electricity and lead to resource efficiency. In 2019, three production efficiency enhancement projects were carried out:
1. Replacing fluorescent lights with LED
2. Deactivating gas compressors during off-peak periods
3. Deactivating cooling tower fans between 00:00-06:00 hrs.

Kaizen Project (energy consumption reduction)

Thanks to its determination to produce electricity without creating impacts on the environment and communities, the Bang Pa-in Cogeneration Power Plants have carried out production improvement and maintenance to reduce greenhouse gas emissions as well as developed production control guidelines, limiting the emission of greenhouse gases for each phase (BIC1 and BIC2) to no more than 350,000 tons of carbon dioxide equivalent and the greenhouse gas emission rate to no more than 0.45 tCO2/MWh. The direct greenhouse gas emissions of each project from 2016 to 2019 are detailed below.

Performance Unit   Data collection period
2016 2017 2018 2019
Total direct greenhouse gas emissions Tons of CO 2 equivalent Project 1 Project 2 Project 1 Project 2 Project 1 Project 2 Project 1 Project 2
320,220 - 325,012 142,378 319,660 323,382 302,384 340,111
Greenhouse gas emissions for Scope 1 and Scope 2
Greenhouse gas emissions

Direct greenhouse gas emissions (Tons of CO 2 equivalent)