Thai electrical authority to subsidize purchases of backup generators
Bangkok Post, Thailand --Sep. 21
Sep. 21--Operators of factories and other buildings that use their own backup power generators during peak demand periods will soon qualify for substantial subsidies, according to a senior executive of the Electricity Generating Authority of Thailand (Egat).
"It will also help make use of machines that normally do not operate
unless there are power blackout emergencies."
The "Peak Cut" campaign will offer incentives to users of standby
generators during the hot season from March to May when demand for electricity
is at its highest.
About 2,000 factories and other buildings nationwide own generators that
altogether are capable of producing 2,600 megawatts of power.
Starting next year, Egat hopes to have about 400 factories and buildings
participate in the campaign to help generate about 500 MW of electricity.
The subsidy is expected to be about seven baht per unit (kilowatt-hour),
based on the cost of diesel used to power the generators. Egat expects the
subsidy over five years to be about two billion baht.
If the power generators are left idle, Egat would be required to invest 20
billion baht to build a power plant with a capacity of 500 MW, excluding fuel
costs for generation.
"It's a win-win situation for the factory and building owners who can
make use of the power generators and receive a subsidy from Egat, while in turn
keeping Egat from having to invest in new power plants," Mr Trong-art said.
Peak electricity demand in the most recent hot season reached 19,325.8 MW on
March 30, up from the previous record of 18,121.4 MW set the previous May.
A trial last week involving 17 companies using their own generators resulted
in the production of 30 MW of electricity. The participants included seven
Carrefour stores, Saint Louis Hospital, a TPI Polene cement plant, the True
Corporation headquarters, Seacon Square shopping centre and the head office and
factory of Union Frozen Products Co.
Mr Trong-art said Egat also planned to promote redesign or modification of
machinery in factories and buildings to reduce energy consumption.
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