Despite recent opposition from activists and villagers to a planned coal-fired power plant in Krabi province, two more are in the pipeline to be developed over the next seven or eight years in the new power development plan (PDP) starting next year, says Energy Minister Narongchai Akrasanee.
Narongchai: No dependence on gas
The PDP for 2015-36, which is in the final stage of drafting, includes coal-fired power plants with a total generating output of 3,100 megawatts in Songkhla's Thepha district and Rayong's tambon Map Ta Phut.
The Electricity Generating Authority of Thailand (Egat) will build and operate the Songkhla project, while BLCP Power Co, a unit of leading regional coal miner Banpu Plc, will operate the Rayong project.
While Egat and BLCP have prepared the initial stages of the projects, the new PDP is being finalised by the working team of the ministry in preparation for seeking approval from the National Energy Policy Council in December.
Mr Narongchai said the Songkhla power plant was expected to generate output of 2,000 MW.
The project is scheduled to start operations in 2022.
Egat plans to open the scheme for public participation and environmental and health impact assessments next year.
BLCP, a joint venture between Banpu and Electricity Generating Plc, will add output of 1,100 MW to its existing coal plant in Map Ta Phut. The plant currently produces 1,400 MW.
BLCP is one step ahead of Egat and is already working on conducting the assessments for the expansion.
It is also preparing to use clean coal technology to ensure the plant is environmentally friendly for surrounding communities.
Banpu chief executive Chanin Vongkusolkit said the company had moved forward faster than others because it had been well prepared since BLCP was launched.
The expansion will take less time than a project on a greenfield site.
"We prepared the land and essential facilities for the expansion since we invested in the 1,400-MW power plant. It is not hard to predict that electricity supply in Map Ta Phut will be inadequate sooner or later, as the factories there have been expanding constantly," said Mr Chanin.
He is confident coal will have to be used for producing power, as the fuel has the highest reserves in the world.
"Under the new PDP, the government will use more coal in generating power, with a proportion of 30-40% from the current level of 19% in the PDP this year. Our natural gas will last no more than seven years," said Mr Chanin.
The expanded plant will be invested in by BLCP with the same shareholding structure.
Mr Chanin said there was no need to mobilise funds from shareholders, as BLCP's strong financial position made it easier to find project finance at a reasonable cost.
Mr Narongchai reaffirmed that over the next decade, further capacity from four coal-fired power plants would join the national grid — the 1,400-MW Hongsa lignite plant in Laos next year, the 800-MW Krabi plant in 2020 and the Songkhla and Rayong projects in 2022.
Prime Minister Prayut Chan-o-cha wants to find energy resources in Myanmar and Cambodia. A memorandum of understanding could be signed this week for turnkey projects from exploration to electricity trading.
Mr Narongchai said mainstream fuel for generating electricity over the next two decades should amount to 30% from gas and 30% from coal. Some electricity would be bought from neighbouring countries. Renewable energy should supply 10% of electricity.
"It is inevitable that we cut the use of gas. We cannot depend so much on gas any more. It would affect our economic development in the future if there is no diversification into other fuels," he said.
Mr Narongchai said energy policymakers should educate the public about premium-grade coal, which is a lot cleaner than the coal used in Lampang's Mae Moh lignite plant in 1992. That plant caused severe damage to the environment and nearby communities.
New technology would make coal-fired power as clean as gas-fired power, he said.
Mr Narongchai said those who won licences for solar farms in 2008 and 2010 would have them revoked if they failed to start operations next year.
Many licence holders put projects on hold to wait for costs to decrease, but that affected the Energy Ministry's plans to develop renewable energy. Solar power generates 1,236 MW, short of its target of 2,000 MW.