Independent power bidding may be delayed
Bidding by companies wishing to become independent power producers may be delayed from this month, because the National Energy Policy Council (NEPC) has yet to approve a ratio for sharing the provision of additional electricity between the Electricity Generating Authority of Thailand (Egat) and private producers.
Energy Minister Piyasvasti Amranand yesterday said his ministry was finalising the ratio, after which it would be approved by the NEPC. "Whether the bidding can be opened this month as scheduled depends on when the next NEPC meeting will be," he said. On Monday, the NEPC approved Thailand's power-development plan, which calls for a variety of fuels - including nuclear energy - to generate electricity between now and 2021. In that time, Thailand will need an additional 24,600 megawatts of power from coal (2,400MW), natural gas, (18,200MW) and nuclear energy (4,000MW). Earlier, it was proposed that half of the new capacity be given to Egat. The independent power producers' programme is expected to be a magnet drawing foreign investment into Thailand, given the consistent growth in domestic power demand, which guarantees returns on investment. Piyasvasti said Egat was in the best position to build the coal-fired plants required under the power-development plan, because of the greater risks to private operators. Under the law governing Egat, the Finance Ministry must guarantee Egat's loans or extend financial assistance in case of liquidity problems. "Private investors can still submit bids for coal-fired power generating, but they could face difficulties," he said. The NEPC earlier decided to set up a fund to raise money from old and new power plants, apparently as a means of reducing public resistance to power plants. Piyasvasti said the proceeds might be used to improve the environment in areas surrounding power plants or subsidise power tariffs for nearby communities. Egat governor Kraisri Karnasutra said the state agency was ready to construct coal-fired power plants. Three or four coastal locations have been short-listed for the plants, each of which will have the capacity to generate at least 1,000MW of electricity. He believes that when the community-development fund is set up, public resistance to the plants will be reduced. Advanced technology that greatly reduces pollution will also foster public acceptance. Referring to the NEPC's resolution that Egat raise its power purchases from abroad to more than 20 per cent of total capacity, he said the state agency had been conducting feasibility studies and was looking at several potential projects, particularly in southern China, which would be able to supply 2,000-3,000MW. "We have been contacted by many parties for power sales but have not yet signed any agreements," Kraisri said.
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