Thailand: Southern coal plants scuppered again

Thailand: Southern coal plants scuppered again

The development and operation of two coal-fired power plants in Krabi and
Songkhla provinces may be delayed for another year, the third such delay in
three years, says energy permanent secretary Areepong Bhoocha-oom.

The two plants have been delayed from an original plan that scheduled the
two plants to start operations in 2019. Strong opposition from local
residents and environmental activists has postponed the projects several
times.

The 800-megawatt plant in Krabi and the 2,000MW plant in Songkhla's Tepha
district were delayed for the first time in 2014, putting off the projects
from 2019 to 2020. The latest setback is expected to push the timetable to
2023.

The reason for the latest delay is the development of high-voltage
transmission lines by the Electricity Generating Authority of Thailand
(Egat).

The delay in development of the transmission lines was largely because of
complicated paperwork about the rights to land plots along the route of the
lines, he said. The lines carry electricity from power plants in the central
region to the South, and are expected to transport power from the two new
coal-fired plants.

The first phase of development of the transmission lines was delayed until
next year, while the second phase was delayed to 2021, said Mr Areepong. The
operational date for the first phase is 2020 and the second phase is 2022.

Energy policymakers insist the country is at a crossroads in diversifying
its power supply. They are determined to build the two coal-fired power
plants to reduce Thailand's heavy reliance on natural gas in generating
power, as it contributes up to 70% of the total.

Demand for power in the South has risen substantially, especially during the
peak tourism season when demand exceeds the power-generating capacity of
2,600MW. Power demand is expected to rise by 8-10% each year, he said.

Egat governor Kornrasit Pakchotanon said power supply in the region has
reached a critical point because real supply is 2,600MW while demand during
peak hours in the high season is above 2,800MW.

Egat recently turned its fuel-fired Surat Thani power plant from standby
mode to active, raising power supply in the region to 3,088MW to meet rising
demand.

"If no new power plants are built and we don't diversify into coal, the
region's power supply may reach a crisis point," Mr Kornrasit said.

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Link to Original Article:
http://www.bangkokpost.com/business/news/1147797/southern-coal-plants-scuppe
red-again

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com