The Electricity Generating Authority of Thailand (Egat) is preparing to revamp its business operations as it shifts its emphasis to innovation and disruptive technologies.
Kornrasit: Caught off guard by renewables
The state-controlled utility has been increasing its efficiency and shedding operating costs to compete against private companies.
During a seminar at Egat's headquarters yesterday, several ex-governors and ex-executives said they would not fall victim to disruptive technology.
Governor Kornrasit Pakchotanon said the authority is hindered by its slow bureaucratic decision-making process and the Egat Act, which limits the company to its core power generation and high voltage transmission line businesses.
"Policymakers won't allow Egat to compete with private investors tomorrow, but one day we will be faced with technology that makes [private residences] power generators and sellers," Mr Kornrasit said.
The real show is coming soon, he said in a live social media appearance.
The boom of renewable energy came earlier than Egat expected. Renewable energy can make it challenging for Egat to maintain stable power generation.
In the short term, Egat will find it hard to generate electricity quickly when the sun is down or the wind stops blowing, since energy storage systems are still in their initial stages, Mr Kornrasit said.
Egat will focus on developing energy storage technology in order to prepare for the adoption of renewable energy, he said.
Moving forward, controlling power demand and supply may require robots instead of humans.
Soonchai Kamnoonsate, ex-governor and a member of the National Energy Reform Committee, reiterated that Egat has better cost efficiency than players in the private sector.
Last November, the company sold power to other state utilities (the Metropolitan Electricity Authority and the Provincial Electricity Authority) at an average of 1.90 baht per unit, compared to independent power producers, which sold at an average of 2.30 baht, small size plants which sold at three baht and renewable energy producers which offered it at six baht.
"Nobody can say that we have low efficiency," Mr Soonchai said.
Last year, Egat paid 21 billion baht in dividends to the Finance Ministry -- 41% of its net profit. SET-listed power business firms, in contrast, have a combined turnover of 4 billion baht, he said.
Kraisi Karnasuta, another ex-governor and ex-commissioner of the Energy Regulatory Commission, said 2018 is the right time to start preparing for disruptive technology.
"CAT Telecom and TOT stood still as mobile telephone operators underwent a digital transformation and moved into smart phones a decade ago," Mr Kraisi said. "The two state telecom enterprises became going-to-die firms."
