IPP bidders will not be required to specify their fuel source
Independent power producers (IPPs) will not be required to specify the type of fuel to be used at their new power plants in the upcoming IPP bidding, since the government is apparently trying not to provoke protests from local anti-coal groups and environmentalists.
Energy Minister Piyasvasti Amranand yesterday said the type of fuel was not a prerequisite for the bidding documents. The private companies will have to deal with the public if they are interested in erecting coal-fired power plants and run into problems with environmentalists. The decision was announced after protesters stormed into Siam City Hotel two weeks ago to protest against the use of coal. Their appearance put on hold the first IPP public hearing. However, the ministry's decision has upset Electricity Generating (Egco), one of the private companies planning to join the bidding. A coal-fired power plant is one of its options. "To put up a coal-fired power plant, the government needs to take part in neutralising responses from non-governmental organisations (NGOs), because coal-related pollution can be handled by modern technology," said Egco president Visit Akaravinak. "Leaving the private sector to handle the NGOs is like dumping it in the ocean. It would never be possible to invest in a coal-fired power plant." The Energy Ministry plans to announce bidding terms of reference late next month or in April. Piyasvasti said the ministry would not specify how much power would come from natural gas or coal. "The private sector needs to think for itself what fuel they want. If the ministry specifies the details, it would not be different from awarding the generating to the Electricity Generating Authority of Thailand," said Piyasvasti. Several companies have prepared for the bidding. Egco plans to erect a 700-megawatt power plant in Rayong's Map Ta Phut area, a project using natural gas as a fuel, which has passed an environmental-impact assessment. One possible location is near the Khanom power plant in Nakhon Si Thammarat, which could accommodate a 700MW-capacity power plant. Egco is also looking at a land plot outside the Map Ta Phut area for the location of a 1,400MW plant. The gas turbine power plant's investment is estimated at below US$500,000 (Bt17.86 million) per megawatt. "It's likely we'll not put up a new plant in the Map Ta Phut Industrial Estate, so as to avoid causing more pollution problems in the area," said Visit. Egco also plans to invest in a coal-fired power plant, and an advisory firm has been hired to find a location for it. Five options have been enlisted, some in the South. The investment cost is $1 million per megawatt. The study should be completed this month.
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