The ministry estimates that the country will need an additional 10,000 megawatts in the 2011-2015 period.

Egat also proposed that the additional power during the years would be generated 40 per cent each from coal and natural gas plants, while the remaining 20 per cent will be purchased from neighbouring countries.

Energy Minister Piyasvasti Amranand said yesterday that the ratios were preliminary and in one or two months, the ministry would welcome opinions from all parties - state agencies, private organisations and investors. The ministry will then finalise the power development plan.

"On the increased use of coal, we need to see how possible this is as its involves mainly the locations of the new plants. But if we maintain the coal ratio at 40 per cent, we will find no problem in supplying natural gas at the 40-per-cent ratio. If we lower the coal ratio, we will need to increase the gas supply. That may force us to rely on gas imports," he said.

Egat governor Kraisi Karnasuta said opening up the bidding to more coal-fired plants was workable as BLCP Power, a coal-fired power plant operator, has enough land in its compound to accommodate more plants. Egat is also reviewing the business potential of a few new locations.

"Many countries have embarked on coal-fired plants, such as Hong Kong and Australia, as coal technology has been improved immensely," Kraisi said.

Piyasvasti insisted that the IPP bidding documents would be available in the first quarter of next year, but said the purchase contracts may be inked during the next government's term.

"The main criteria is the power price quotation, while public acceptance will also be taken into account," he said.

Under the criteria, he believes the winners could be existing power plants with space to expand capacity on their premises, such as Egat, Egat's subsidiary Ratchaburi Electricity Generating Holding, or BLCP Power. These plants can offer lower power rates than others.

During the five-year period, the state will also buy from small power producers, he said.

Egat has signed memorandums of understanding for the purchase of 2,800MW from abroad, he said. Egat will next month sign another MoU for 2,000MW from the Nam Nguem 3 and Nam Theun 1 projects in Laos. The government is also exploring the possibility of buying power from other sources such as the Hongsa Lignite project in Laos.

Egat forecasts that during 2006-2021, Thailand will need a total of 28,270MW, based on the estimated annual growth in power demand of 5 per cent.

Energy Reporters

The Nation