Thailand: FTI backs Krabi coal-fired plant

Thailand: FTI backs Krabi coal-fired plant

The Federation of Thai Industries (FTI) has agreed with the plan to develop
a coal-fired power plant in Krabi, saying the delay or cancellation of the
project would lead to insufficient power supply that could cut the gross
regional product (GRP) in the South by at least 1%.

Energy policymakers will make a final decision Friday about whether the
government will proceed with the plan to build a 800-megawatt coal-fired
power plant in Krabi.

The project has been delayed for about two years because of strong
opposition from local residents and non-governmental organisations worried
about the plant's potential adverse effect on the environment, which could
damage the tourism industry, which accounts for some 17% of the country's
GDP.

Power supply also plays a crucial role in other sectors, including industry.

Chen Namchaisiri, FTI chairman, said the FTI agreed with the plan as it
would generate sufficient power supply for the region, where power demand
grows at an average of 5% a year.

"Although we understand the concerns about the environment and tourism, we
still believe a coal-fired power plant is the right answer for the current
situation as the region needs more power at an appropriate price," said Mr
Chen.

"We want the plant to have good governance so it is run with minimal effect
to the country's environment."

Delays have pushed the commercial operation date from December 2019 to some
time in 2021.

He said further delays in plant construction could mean power shortages,
disrupting processes in the industrial sector and hurting the tourism
industry, which generates the major proportion of regional revenue.

"A possible blackout or brownout in the region would mean disruptions in
production industries, insufficient power for hotels, falling
competitiveness and a fragile economy," said Thanarak Phongphatra,
vice-chairman of the FTI.

He said a power shortage would lead to a drop of at least 1% of the GRP,
which is 1.13 trillion baht, or 8.6% of the country's GDP.

Rubber processors, food processors and agricultural processors in the region
have limited choices for power supply at a reasonable cost in order to
retain their competitive advantage, said Mr Thanarak.

Mr Chen said the choice consists of buying more power from Malaysia at cost
of 12-15 baht per kilowatt hour, or firms generating their own power from a
diesel-power generator that would cost 9-12 baht per unit. The current power
cost from the Electricity Generating Authority of Thailand is four baht per
unit.

Some businesses plan to develop their own biomass power plants, but this
requires a huge investment and the South has limited agricultural waste to
power such plants, he said.

Power demand in the South peaked on April 18 last year at 2,630MW, while
total supply from regional power plants was 2,225MW. The gap of around 400MW
had to be transmitted from the central region or bought from Malaysia.

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Link to Original Article:
http://www.bangkokpost.com/business/news/1199949/fti-backs-krabi-coal-fired-
plant

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com