Thailand should delay calling bids for the independent power producer (IPP) programme, because the cost of electricity generation under the scheme over the next decade would increase, with inherent risks to energy security, a researcher said on Monday.
Chuenchom Sangarasri Greacen, an energy researcher, said the second round of the call for IPP bids by the Energy Regulatory Commission this year has a target of producing 5,400 megawatts (MW) fuelled by costly liquefied natural gas (LNG).
Piyasvasti Amranand, a former energy minister, said the LNG international market price is now about 560 baht per million BTUs (British thermal unit), or nearly double the cost of gas from the Gulf of Thailand and Myanmar, which averages 300 baht per million BTUs.
Natural gas fuels about 70% of Thailand's electricity generation. Bringing more LNG generators on line would increase the dependence on gas, leading to increased risk from a disruption to gas supplies, he said.