Coal-fired power plants may return to Thailand : Inclusion in IPP bids under consideration
May 9--By Soonruth Bunyamanee, Bangkok Post, Thailand Knight Ridder/Tribune Business News
Coal-fired power plants may be allowed in the government's next round of independent power plant project bids.
He said allowing promoters of coal-fired plants to participate was now being
considered for the bids scheduled to begin late this year or early next year.
"Although, previously coal-fired power generating projects had faced
strong opposition from residents in the areas where they were located due to
environmental concerns, they still are seen as potential power sources when
taking into account energy security and pricing stability," said Mr Virapol.
Natural gas now accounts for 75 percent of total power generation demand,
raising concerns that the country's energy security is at risk due to its heavy
reliance on a single fuel source.
According to the Energy Ministry, the country's natural gas reserves are
expected to be depleted within the next 30 years based on existing discoveries
and the current high consumption.
The gas reserves could be exhausted even sooner if future power projects
continue to mainly use natural gas.
From now until 2015, a total of 18 power plants with a combined capacity of
13,000 megawatts are planned to come onstream.
Mr Viraphol conceded, however, that it would not be easy to convince
investors to invest in coal-fired power facilities in Thailand due to the recent
history of such projects, particularly the Mae Mo power plant in Lampang which
leaked heavy sulphur.
The unfortunate experience at Mae Mo led to the scrapping of two coal-fired
Bo Nok and Hin Krut plants in Prachuap Khiri Khan after they faced strong
opposition from local residents and environmentalists.
Mr Viraphol said the new round of bidding for IPPs would be called at the end
of this year or early next year at the latest to give private companies the
opportunity to complete for the construction of new power plants before 2011.
According to another EPPO official, new power demand between 2011 and 2015
was projected at 13,000 MW with Egat expected to provide half of that amount
based on the authority's requirement to maintain the electricity reserve level,
currently at 15 percent every year.
The Electricity Generating Authority of Thailand will be allowed to compete
with private investors in the bids despite the fact that the state utility has
been granted exclusive right to construct four power plants before 2011.
It will hold an advantage over other bidders if all the new power demand in
2011-2015 would be open for bidding, given its long presence in the industry and
the extensive size of its operation.
Also putting Egat in a more favourable position in the bidding is the
government requirement that 5 percent of the awarded capacity must be produced
by using alternative energy sources such as wind, solar power and biomass.
Egat now produces 48 percent of the 25,000 MW of electricity generated in
Thailand while private IPP and small power producers account for 49 percent,
with the remaining 3 percent supplied from neighbouring countries.
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