State-owned Electricity Generating Authority of Thailand (Egat) has earmarked capital expenditure of 600 billion baht over the next 10 years for power plants and transmission line development nationwide.
The move is in line with the revised national Power Development Plan (PDP) for 2018, which set a quota to increase power-generating capacity by 5,400 megawatts over the next decade as well as upgrade high-voltage transmission lines, said Egat governor Viboon Rerksirathai.
The PDP covers the next 20 years and is revised every 2-3 years, depending on the domestic and international economic situation. The latest version was revised in part because of fast advancements in renewable energy.
Until 2028, Egat plans to construct a new power plants and refurbish 11 retired power plants costing a total of 300 billion baht.
The remaining 300 billion baht will go towards upgrading transmission lines.
The new power plant will be a gas-fired power plant in Surat Thani, while the units in line for an upgrade include gas-fired power plants in North Bangkok, adjacent to Egat's headquarters in Nonthaburi, South Bangkok in Samut Prakan, Bang Pakong in Chachoengsao province, and Nam Phong district in Khon Kaen. Only one is coal-fired, located in Lampang's Mae Moh.
All power plants are subject to a design and feasibility study before construction, which is planned to take place over the next couple years.
The source of the funds has not yet been decided whether it will come from a loan, debenture issuance or IPO through Egat's infrastructure fund.
Mr Viboon said the new PDP has set a quota for Egat to reduce its market share in total power generation to 31% over the next 10 years from 34%.
By the end of the PDP in 2038, Egat's market share will be brought down to 24%.
The PDP was designed to gradually deregulate the power generation market and emphasise more private sector development, and transition from fossil fuels to renewable energy.
The National Energy Policy Council approved the PDP two weeks ago, forwarding the plan to the cabinet for final approval.
Mr Viboon said there would be further delays for two new coal-fired power plants in Krabi and Songkhla that were suspended in 2015 for policymakers to conduct a Strategic Environmental Assessment.
He said Egat's goal is to improve power supply through control systems to make power generation more flexible, in preparation for a future based on renewable energy, where inconsistent fluctuations in power supplies will be unavoidable.
Photovoltaic (PV) power generates power only in the daytime, while wind power farms generate power only when it is windy, and biomass depends on seasonal crops.
Egat is planning to launch floating solar PV panels on its hydropower plants' water reservoir, with an expected total capacity of 2,725MW.
The project was designed to enhance hydropower generation systems to be more consistent as it only generates energy in the monsoon season, but the floating solar panels could be active all year long.
Egat is in the process of procuring some 1.5 million tonnes of liquefied natural gas per year from 43 international producers through an auction that will be finalised in the first quarter of this year.
