IPP bidding to open soon

ENERGY

The third round of bidding for the independent power producer (IPP) scheme will be held this month for a combined capacity of 5,400 megawatts at an expected cost of 113 billion baht.

Energy Minister Pongsak Raktapongpaisal yesterday said the official invitation will be made next Tuesday.

The Energy Regulatory Commission (ERC) will make a request of proposals available from Dec 20 to Jan 21 for interested bidders.

Proposals will be submitted in mid-March, and the agency will take about four months to consider the finalists before the results are announced in June.

Mr Pongsak expects the next IPP round to get six units of power generators with a maximum capacity of 900 MW each.

All the units will be gas-fired power generators. Commercial operations are expected during 2021-26.

The announcement drew the interest of potential bidders such as the SET-listed Ratchaburi Electricity Generating Holding Plc (Ratch).

"Our goal is to expand power capacity in Thailand and also in Asia-Pacific," said chief executive Noppol Milintanggoon.

Ratch, Thailand's biggest private power producer, is striving to expand by an additional 5,400 MW. The company was disqualified from the second IPP bidding in 2008, when more than half of its shares were controlled by state agencies, but that has since been diluted.

Mr Pongsak said energy policy makers should revise the Power Development Plan (PDP) to buy more electricity from hydroelectric and coal-fired power plants in Myanmar and Laos.

Under the current memorandum of understanding, Thailand agrees to buy a combined 8,500 MW from Laos and Myanmar, 3,000 MW of which have been delivered. The country expects to buy an additional 20,000 MW from the two countries.

Mr Pongsak also voiced support for more imports of electricity from coal-fired power plants to strengthen the security of the country's power supply and to lower electricity tariffs in future.

As much as 72% of Thailand's electricity supply comes from gas-fired power plants.

The latest PDP was revised in May to reflect the economic situation.

"If we continue to have more gas-fired power plants, the electricity bill will increase to five baht per megawatt-hour in the next decade from 3.20 baht at present," said Mr Pongsak. "So we need to diversify the fuel."

Bangkok Post online classifieds

Try buying selling goods and properties 24/7 in our classifieds which has high purchasing power local expatriate audience from within Thailand and around the world.

About the author

Writer: Yuthana Praiwan
Position: Business Reporter






Article source: http://www.thethailandlinks.com/2012/12/01/ipp-bidding-to-open-soon/