The NEPC approved the plan at a meeting yesterday chaired by Deputy Prime Minister and Industry Minister Kosit Panpiemras. The plan will produce 40,000 megawatts of electricity between 2007 and 2021 with an estimated investment of Bt2 trillion.

Buying 3,200 megawatts from independent power producers (IPP) is part of the plan. Under the plan, there will be 18 more IPP plants with a combined capacity of 12,600 MW.

"IPP bids must be submitted by October and the Energy Ministry plans to assess the bids in December. Contract signing is expected by June 2008," said Viraphol Jirapraditkul, director-general of the Energy Policy and Planning Office.

Local and foreign energy companies that have been waiting for the bidding to open include PTT, Electricity Generating, Ratchaburi Electricity Generating Holding, Thai Oil and Glow Energy. IPPs are expected to push up private investment as the plants require an outlay of US$1 million (Bt34.6 million) to $2 million per megawatt, depending on the type of fuel.

The NEPC yesterday also approved guidelines to establish a fund to develop communities around power plants. New power plants will have to pay an energy tax of Bt50,000 per megawatt per annum, or at least Bt500,000 a year, while existing plants must make to monthly contributions to the fund, with the rates varying in line with the choice of fuel and pollution emission.

The rates are one satang per unit for natural gas, 1.5 satang for diesel or bunker oil, 2 satang for coal or lignite, and one satang for biomass, waste and hydropower plants. Wind and solar plants are not taxed.

The fund, aimed at helping local communities, was launched amid rising protests against the construction of new power plants.

"The guidelines will be imposed on new IPPs while existing plants, as well as those now on-line, must start paying the contribution on July 1, 2007," Viraphol said.