Thailand: ERC opens bids to buy power for state utilities

Thailand: ERC opens bids to buy power for state utilities

The Energy Regulatory Commission (ERC) announced yesterday that the bidding
process for state utility contracts to buy power generated from renewable
sources under power purchasing agreements (PPA) will open today and run
until Aug 21.

The move is aimed at cutting the financial burden of state utilities and
encouraging producers to develop their own systems and power storage
technologies to improve the country's renewable power sector as a whole.

ERC commissioner Veeraphol Jirapraditkul said the bidding is open for a
combined power-generating capacity of 300 megawatts with a fixed feed-in
tariff rate of 3.66 baht per kilowatt-hour.

"Those who win bids will have to start commercial operations by 2021," Mr
Veeraphol said.

He said this is the first time that policymakers are issuing PPAs for firms,
under which operators will be required to supply the exact amount of power
as specified by the Electricity Generating Authority of Thailand, the
Metropolitan Electricity Authority and the Provincial Electricity Authority.

For this hybrid PPA, investors will be allowed to use all kinds of renewable
power sources to help generate sustainable power for state utilities.
Renewable resources accepted by the ERC include biomass, biogas, wind, solar
and mini-hydro, allowing licence holders to use more than one source and use
newer power storage technologies.

Investors can enrol with their power-generating prices, which will be
screened by the ERC for the first time within Dec 8 before being screened
for the second time about their offer prices in Dec 14, when the winners are
expected to be awarded, Mr Veeraphol said.

The renewable project quota has been allocated by area: 100MW of total
capacity in the South, 65MW in the North, 65MW in the Northeast, 20MW in the
West, 20MW in the East, and 35MW in Bangkok and nearby areas, Mr Veeraphol
said.

TPI Polene Power Plc (TPIPP), an SET-listed power business arm of Thailand's
third-largest cement producer, has said it will likely bid for licences
because it has prepared areas and resources for renewable energy projects.

Vice-president Woravit Lerdbussarakam said TPIPP has allocated an area in
its existing power plant in Saraburi's Kaeng Khoi.

TPIPP plans to accommodate a second refuse-derived fuel (RDF) power plant, a
waste-heat recovery power plant and a coal-fired power plant in the same
block.

The company has planned for an additional 110MW through RDF in the coming
year, but Mr Woravit did not reveal the capital expenditure for the project.

The existing RDF power plant is expected to be capable of meeting state
contract requirements due to an abundance of community waste in the area.

Mr Woravit said TPIPP initially developed the RDF power plant for internal
power generation for cement production but decided to repurpose it for the
auction instead.

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Link to Original Article:
http://www.bangkokpost.com/business/news/1302075/erc-opens-bids-to-buy-power
-for-state-utilities

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com