Challenges

Climate change has been growing in severity, triggering natural disasters, such as irregular weather patterns and flooding, and intensifying water shortages, which cause problems on a global level and can impact the Company’s business.
Committed to business operations on the basis of sustainability, CKPower has introduced energy management and climate strategies and reaffirmed its stance to reduce greenhouse gas emissions in pursuit of the UN’s Sustainable Development Goal 13: Climate Action.

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.

Furthermore, CKPower has studied and analyzed risks of climate change as well as developed detailed disaster response plans for each of its power plants under the supervision of the Board of Directors, which is responsible for reviewing strategies, responses, and measures for the management of risks and opportunities related to climate change in order to maximize outcomes. The Company also 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. As an electricity producer that relies on both water and natural gas fuels, CKPower’s investments are aligned with the UN’s Sustainable Development Goal 7: Affordable and Clean Energy and Goal 13: Climate Action. Its business activity also contributes to Thailand’s Nationally Determined Contribution (NDC), which are targeted reductions in greenhouse gas 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).

Compared to the power production in Thailand’s grid, CKPower has successfully reduced greenhouse gas emissions by 4.25 million tons.

Climate Risk Management

GHG reduction target: CKPower aims to continuously increase its investment in clean energy-based power plants.

CKPower and its subsidiaries analyze and assess risks related to climate change every year as they directly affect 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, CKPower 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 a result of the regular climate monitoring and surveillance, the Nam Ngum 2 Hydroelectric Power Plant announced the year 2020 as a drought year according to its power purchase agreements (PPAs) to ensure efficient drought management and exempt potential fines in the event that the average actual hours of electricity generation are lower than specified in the agreements.

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 power 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 CKPower’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 2020, the Company emitted approximately 636,223 tons of carbon dioxide equivalent in total, consisting of 316,745 tons of carbon dioxide for BIC1 and 319,478 tons of carbon dioxide for BIC2.

Greenhouse gas emissions for Scope 1: Direct greenhouse gas emissions (tons of CO 2 equivalent)
Performance Unit Data collection period
2017 2018 2019 2020
Project 1 Project 2 Project 1 Project 2 Project 1 Project 2 Project 1 Project 2
Total direct greenhouse gas emissions Tons of CO 2 equivalent 325,012 142,378 319,660 323,382 302,384 340,111 316,745 319,478

The Xayaburi Hydroelectric Power Plant relies on renewable energy, water level difference, and water flow in the its production, and thus its power generation involves no combustion of fuels. It generates 7,600 million units of electricity per year on average and can reduce the release of carbon dioxide by as much as 3.8 million tons per year – equivalent to the amount of CO2 absobed by 2.1 square rai of forest for each year of production. (Sources: Huachiew Chalermprakiet Science and Technology Journal and PTT Reforest Station)