The Electricity Generating Authority of Thailand plans to put up a coal-fired power plant in the lower Central region to service demand in 2010.

Egat CEO Kraisi Karnasuta said last week that the country needed a large coal-fired power plant because it relies on natural gas for more than 70 per cent of its power and in 2010 the Gulf of Thailand would start running out of natural gas. This means natural gas or liquefied natural gas (LNG) would then need to be imported if it remained the main fuel.

The government's policy on sourcing fuel will depend on the country's energy security as well as the demand forecast for the five-year cycle from 2011-2015, Kraisi said.

Yongyuth Wichaidit, chairman of the Electricity Regulatory Board, said coal was initially expected to make up only 5-10 per cent of fuel for power generation due to its bad image.

The board forecasts that new capacity of 12,000 megawatts will be needed during the cycle, but locations for new power plants have not yet been determined.

Many foreign investors are interested in bidding for power plants next year, including Germany's Siemens, US-based Chevron, Hong Kong's CLP International, Japan's Mitsui and players from China and Malaysia, he said.

"The terms of reference should be announced next March," Yongyuth added.

Kraisi said the new power plants should be capable of generating more than 8,000 megawatts, half from coal and half from other fuels.

Half of the capacity, or 4,000MW, is reserved for Egat on a non-bidding basis under a Cabinet resolution. The remaining half will use other fuels including natural gas and LNG.

Egat's coal-fired power plant is expected to be built in Prachuap Khiri Khan, which neighbours Chumphon, where it can build a deep-sea port on the Gulf of Thailand to handle coal deliveries.

"Egat has land to build a power plant down there," he said.

Siting a coal-fired power plant on the Eastern Seaboard, which already has a BLCP Power coal-burning power plant, would stir up environmental problems, he said. BLCP Power is a 50:50 joint venture of Banpu Plc and CLP International.

New power plants should be located within the same complex, similar to industrial estates, to make it easier to manage environmental impact, he said, noting that before building a coal-fuelled power plant Egat would have to win over the local community.

Watcharapong Thongrung

The Nation