Infrastructure
Electricity
The course of Thailand’s electricity
industry development has been set forth toward greater
efficiency - both on supply side and on demand side,
to ensure the optimization of energy resources and minimization
of environmental impacts, with an ultimate goal of sustainable
energy development. On the other hand, the industry
has also had to properly adjust to economic and social
changes as well as national energy policies and strategies
over the past decades.
For over a decade, the government has
encouraged more private participation in the electricity
generation business in order to reduce the public investment
burden and enhance greater competition in the industry.
In compliance with the national policy, EGAT established
and listed the Electricity Generating Public Company
Limited (EGCO), the country’s first independent
power producer (IPP), in 1992 to mobilize funds from
the stock market for its power investment, followed
by the privatization of Ratchaburi Electricity Generating
Holding Public Company Limited (RATCH), EGAT’s
subsidiary founded in 2000.
EGAT has also announced its solicitations
for power purchase from IPP projects to enhance competition
in the generation business. This has been followed by
power purchase from small power producers (SPPs) to
particularly promote energy efficiency and the use of
renewable energy resources for electricity generation.
On the international cooperation, EGAT
has collaborated with neighboring countries in pursuing
the ASEAN Power Grid Project to integrate the transmission
systems within ASEAN countries for energy security and
mutual economic benefits. The Electricity Generating
Authority of Thailand is also in talks with neighbouring
countries, to make joint developments in hydropower
projects.
Thailand’s geographical advantage,
the project has also been in favor of the government’s
strategic plan to transform Thailand to be the energy
hub of the region. Amidst changes and challenges, EGAT
has been and will be tirelessly developing the country’s
electric power system to ensure that its electricity
supply remains the most secure and reliable infrastructure
service which contributes significantly to the betterment
of the quality of life and the environment and drives
the country’s economic and social growth, today
and tomorrow. The expertise and experiences gained over
35 years of operation have provided EGAT with multi-faceted
power and strengths needed in maintaining its leadership
and a competitive edge in the new business environment.
Thailand’s electricity consumption
reached 120 million units in 2005. Domestic demand for
electricity is increasing by about 13 percent a year.
The Electricity Generating Authority of Thailand (EGAT)
estimated that the demand would rise more than twofold
to over 42,600 megawatts in 2011.
New Project
The new Namtheun hydroelectric project is a joint investment
by 3 countries, namely Thailand, Laos, and France. The
hydroelectric plant will feed Thailand with electricity
for the price of 1.59 baht per unit under a 25-year
contract. Power feed would commence 16 hours each day
from 6 am to 10 pm, providing an alternative source
of energy. The construction will be completed by 2009.
Source: EGAT
ELECTRICITY
MEDIUM AND LONG TERM PLANS |
| Growth in supply
and demand of energy until end of Eight
Plan |
| Year |
Supply (MW) |
Demand (MW) |
| 1995 |
14,372 |
11,880 |
| 1996 |
15,628 |
13,009 |
| 1997 |
16,960 |
14,193 |
| 1998 |
18,261 |
15,315 |
| 1999 |
21,136 |
16,446 |
| 2000 |
22,836 |
17,685 |
| 2001 |
25,376 |
19,029 |
| 2002 |
26,876 |
20,237 |
| 2003 |
28,376 |
21,440 |
| 2004 |
30,076 |
22,690 |
| 2005 |
31,766 |
23,997 |
| 2006 |
33,456 |
25,371 |
| 2007 |
35,296 |
26,835 |
| 2008 |
37,405 |
28,409 |
| 2009 |
39,318 |
30,044 |
| 2010 |
41,618 |
31,749 |
| 2011 |
43,918 |
33,532 |
| Source
: National Energy Policy Committee |
|
EGAT's long-term plan
is to increase the minimum power reserve from
15% to 25% to raise energy supply security.
EGAT's plans of increasing net installed capacity
by 30,929 MW will bring Thailand's total capacity
to 43,918 MW by 2011.
Independent Power
Producer Program
In 1995, the independent power producer (IPP)
program was launched in an effort to partly
privatize state-controlled power utilities.
Foreign and local companies have shown great
interest in building, owning and operating large
power plants that will ease the state's burden
of investing in power generation.
The IPP projects will be wholly private undertakings.
Some of the key IPP terms set by the Government
are:
|
Tny power prices submitted by IPPs should
not exceed EGAT's set cost |
|
The contract for the power purchase agreement
must be between 20 and 25 years |
|
The capacity of each project for
commissioning in 1996-2002 must not exceed
1,400 MW, but may be expanded during the
years 2003-2006 |
|
Investors must have proven technological
capability matching the required performance
specifications |
|
Fuel choices must be clear, acceptable
to the public, have stable pricing structure,
have secured supply and support the Government's
policy on fuel diversification for the country.
|
Priorities for project sites will be given
to the following areas in the following order;
central region, west coast (e.g. Prachuab Khiri
Khan), east coast (e.g. Rayong), other regions
and neighboring countries.
Sources: EGAT, MEA, PEA and The Bank of Thailand |
|
