Thai power producer Electricity Generating (Egco) says it has surveyed 10 possible sites for the construction of a new coal-fired power plant, acting in the hope of winning a government concession to build it in next year's second round of bidding by independent power firms.

Until recently, Egco was banned from taking part in the bidding because it is a subsidiary of the Electricity Generating Authority of Thailand (Egat). However, the interim government has opened bidding to all-comers for contracts to supply an additional 10,000 megawatts of power in the years from 2011-15.

Amid complaints from environmentalists about the dangers of using coal to produce electricity, Egco is now urging the government to opt for coal because it says the country's supplies of natural gas may not last for another 10 years.

Egat has already spoken of additional power during the contract years being generated 40 per cent from coal and 40 per cent from natural gas, with the rest coming from neighbouring countries.

"Coal-fired power is needed for the country, because at present 70 per cent of electricity comes from natural gas," said Egco president Visit Akaravinak. "That is a relatively high level of dependence, considering the fuel options available to us.

"We see coal as a favourable alternative, as its low cost and abundant supply will result in cheaper electricity in the long run."

While the cost of natural gas depends on oil prices, the cost of coal has never risen more

than 2 per cent a year, and there's enough high-quality coal to last for as long as 164 years, he added.

The 10 possible sites for a coal-powered plant are in the central, southern and eastern regions of the country. Two potential sites out of the 10 will be selected before the end of this year, Visit said.

"A coal-fired power plant has to be near to a deep-sea coast, so imported coal can be conveniently unloaded, and the plant must be acceptable to the local people," he said.

Egco expects to win about 30 per cent of the electricity generation offered in next year's bidding. This will lead to growth of 21 per cent in the company's electricity output within the next 10 years, Visit said.

If the government confirms that it wants coal-fired generation, Egco plans to built a power plant consisting of two 700MW units. It will take four years to build at a cost of about US$1.68 billion (Bt59.66 billion), he said.

The environmental organisation Greenpeace claims that coal is the dirtiest of fossil fuels and a major contributor to climate change. It emits 29 per cent more carbon per unit of energy than oil and 80 per cent more than gas. However, Visit said Egco will guarantee an environmentally friendly plant.

Egco's senior executive vice president Somyos Polachan said the plant will use high-grade bituminous coal and not low-grade lignite that emits a high volume of sulphur dioxide and carbon dioxide.

Also, Egco will use the latest technology

from its new partner, Mitsubishi. The Japanese

giant recently bought an 11-per-cent stake in Egco from CLP Power Asia. Mitsubishi is a world leader in innovative electricity-generating technology and has invested in 18 power plants worldwide, including in Japan.

Egco is also in the process of taking over BLCP, the country's only bituminous coal-fired power plant, with a 1,434MW capacity.

Ownership will be transferred within the first three months of next year.

Egco currently has a total generating capacity of 2,405MW from 11 power plants and is building another four.

Its capacity is expected to increase to 3,500MW within five years.

Chatrarat Kaewmorakot

The Nation

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