Background: Mae Moh coal mine has been operating since 1951 and is the biggest lignite (brown coal) mine in Thailand. Presently, the mine is owned and operated by the Electricity Generating Authority of Thailand (EGAT) to feed into Mae Moh coal-fired power plant in order to meet the country’s electricity demand. However, the coal reserve is projected to run out in the next 25 years. The coal production closure will undoubtedly affect thousands of jobs. EGAT is determined to transition the region away from coal to renewable energy by 2050. To ensure the sustainability of the transition, the plan needs a holistic approach which is the highlight of the story.
The SIPET team had the opportunity recently to sit down with Ketsirin Paengsen, the Head of Mae Moh Smart City in Lampang, Thailand. Ketsirin leads the project and coordinates with the grassroots community and partners from the private and government sectors. This project is being implemented by EGAT and supported by multiple organizations, including Germany’s International Climate Initiative (IKI) through the Just Energy Transition (JET) project, since 2022.
In our interview, Ketsirin shares insights about the challenges and strategies of moving from coal to clean energy. As part of SIPET’s Labor Day commemoration this month, we also highlight the work done by Ketsirin and the Mae Moh Smart City team in building important skills for the energy transition in the coal region.
SIPET: What is the inspiration behind the establishment of the Mae Moh City project, and how does it align with EGAT’s mission and vision?
Ketsirin: EGAT’s Mae Moh Smart City Project is built around three main approaches: ‘Smart Energy’, ‘Smart Economy’, and ‘Smart Environment’. These initiatives are designed to develop Mae Moh into a low-carbon economy. This is in response to EGAT’s plan to phase out coal power production in Mae Moh by 2050. With the closure of the mine and power plants, Lampang's Gross Provincial Product (GPP) is projected to drop by about 17%, leading to substantial unemployment and economic decline. This project addresses this looming challenge by equipping workers with employable skills to manage this transition.
SIPET: How do EGAT and its partners contribute to developing a low-carbon society through the ‘Smart Environment’ approach?
Ketsirin: Under the ‘Smart Environment’ pillar, the Mae Moh Smart City project collaborates with professors from Chiang Mai University to achieve net-zero greenhouse gas emissions. This is facilitated through a City Data Platform that manages data and information on air quality, energy, water, waste, greenhouse gases, and green spaces. EGAT has installed 44 air quality sensors across Mae Moh District, providing real-time data to monitor and prevent air quality issues. This system aids in the prompt detection and resolution of problems, with alerts distributed via Line OA. These alerts include information for the public on current, historical, and forecast air quality levels, as well as the locations of hotspots. Additionally, EGAT partners with Mae Moh District to address dust and forest fires by purchasing agricultural waste and converting it into fuel pellets, thereby reducing PM 2.5 pollution caused by open burning. This initiative not only generates income for the community but also helps mitigate PM 2.5 pollution.
SIPET: Could you provide more detail on how the ‘Smart Energy’ pillar contributes to creating a “Low Carbon Economy City”?
Ketsirin: For the ‘Smart Energy’ pillar, we focus on energy management. This includes the ‘Near Zero Energy Building Initiative’, which involves studying electricity consumption behavior and applying for funding to install solar PV on rooftops. The data collected is used to apply for funding from the Power Development Fund for installing solar PV on rooftops. To date, studies have been conducted for 22 agencies in Mae Moh District, with some already installing solar rooftop and battery systems to promote clean energy use. As electricity is still unstable in some areas of the district, this project has greatly supported the community in securing reliable electricity.
Secondly, the ‘Biomass Co-Firing Project’ uses agricultural waste such as corn biomass and bamboo waste from chopstick production to create biomass pellets. These pellets are then co-fired with coal at the Mae Moh power plant. This initiative generates income for the community by purchasing agricultural waste, reduces PM 2.5 pollution from open burning, and encourages communities to set up their own biomass pellet production facilities with knowledge support from EGAT. We also collaborate with the Thailand Research Fund (TRF) to analyze the value chain of biomass utilization from upstream to downstream, ensuring cost-effective and efficient management of agricultural waste removal and processing.
Lastly, EGAT has partnered with a vocational college in Lampang to promote understanding among youth about the conversion of internal combustion engine vehicles to electric vehicles. This project has introduced 28 electric minibuses to replace diesel buses for employee transportation, reducing pollution and small particulate emissions. This aligns with the national policy on carbon neutrality. Additionally, the project receives support from GIZ to develop local workforce skills, enhancing their expertise and readiness for the future EV market.
SIPET: That’s good to know! How about your initiatives under the ‘Smart Economy’ approach? Could you please elaborate?
Ketsirin: For the ‘Smart Economy’ pillar, we initiated the Mae Moh Agricultural Community Project, aiming to promote careers and generate income for the relocated community of Ban Dong Subdistrict. Due to limitations in land and water resources, EGAT has collaborated with Distar Fresh Co. Ltd., a vertical farming expert, to integrate technology into agriculture and transfer this knowledge to the community. This initiative marks the first vertical farming operation in Northern Thailand, producing 1 ton per month and selling directly to consumers through online markets. The local vertical farming enterprise, operated by community youth under the Mae Moh Agricultural Community Co., Ltd., has branded its products as "Mae Moh Fresh”.
Watch this video to learn more.
SIPET: This is really interesting, and it sounds like a very important project. What specific initiatives has EGAT undertaken to prepare for a just energy transition for workers and communities affected by the phasing out of coal?
Ketsirin: EGAT has implemented several projects to support a just energy transition, focusing on skills training programs, community development projects, and collaboration with GIZ to ensure inclusive decision-making. These efforts aim to create new job opportunities and improve the quality of life for affected communities. By organizing training programs to assist workers in acquiring new skills related to renewable energy, EGAT aims to create readiness and opportunities for the local workforce. Additionally, by collaborating with industries and businesses to match job positions with existing skills, EGAT is initiating community development projects to stimulate the local economy and create new job opportunities.
Furthermore, collaborating with GIZ to involve labor groups and communities in decision-making processes related to various transitions in the area ensures the involvement of all stakeholders in a fair and comprehensive transition process. These initiatives will be presented to the government and policymaking sectors for future implementation. This approach minimizes the impact on labor groups and communities while promoting sustainable development in the region.
SIPET: What are the main challenges in transitioning from coal to renewable energy while ensuring economic sustainability?
Ketsirin: If EGAT ceases coal power production in Mae Moh by 2050, the loss of business will reduce Lampang's GPP from THB 71 billion (USD 1.9 billion) to THB 59 billion (USD 1.6 billion), significantly impacting the province's primary industrial sector. The decrease in production capacity will lead to unemployment, affecting the economy of Mae Moh District and neighboring areas. This would lead to substantial unemployment and economic decline. Upgrading infrastructure to support renewable energy will also require substantial investments. Due to the projected decrease in GPP, Lampang might face budget issues necessary for upgrading its energy infrastructure from reliance on coal to developing large-scale sources of renewable energy.
Upgrading power infrastructure to support renewable energy will require substantial investments in energy-related technology and systems. Communities accustomed to the coal industry will need education and support to adapt to new careers and economic activities. As Mae Moh transitions to a clean energy area, workers will need to enhance their skills and prepare for future opportunities, ensuring that they can continue to find employment in the area.
In sum, it will require significant amounts of funding to transform Mae Moh into a renewable energy hub, with reduced funding from the Power Development Fund posing an additional challenge.
SIPET: How are you overcoming these challenges?
Ketsirin: Collaboration is key. The Mae Moh Model emphasizes communication and education. We maintain continuous communication channels with stakeholders, including the public, government agencies, local authorities, and private sector networks. By collaborating with local communities and relevant agencies, we co-develop clear plans and goals, leveraging partnerships with the government and the private sector, academic institutions, and research organizations.
For example, the Innovation Regions for a Just Energy Transition (IKI-JET) has been a valuable partner, collaborating with EGAT to conduct studies, develop transition plans, and implement projects on ‘Green Job' skill development to engage us in knowledge exchange with other coal-using countries.
SIPET: Based on past operations, how has IKI JET contributed or provided recommendations related to a just transition, particularly in terms of careers and creating a sustainable local economy?
Ketsirin: IKI JET has facilitated learning exchanges and policy changes to support the clean energy transition. For instance, in January 2023, EGAT was invited to engage with experts to discuss the vocational skills of local workers and the employment situation following the cessation of coal usage. Additionally, in October 2023, we participated in a forum held in Germany. During this event, we gained insights into gender equality issues in the energy transition process. The forum, which included 45 participants from various countries, delved into a range of topics, including economic decline in coal regions, labor issues, and post-mine restoration.
A number of forums, including The Coal Regions Knowledge Hub, have enabled knowledge-sharing among experts, policymakers, and stakeholders, promoting cooperation and sustainable development in the region. In order to ensure that workers have the necessary skills for economic transformation, it is important to prioritize skills development in clean energy for the local workforce.
For part 2: here.