Egat picks Marubeni, Siemens

 

Each project will cost Bt20 billion and they are now under construction. The deadline for completion is before April 2014.

Egat has indicated that the projects will increase the production capacity of each plant by 800 megawatts. In addition, the authority will need to invest in upgrading the electrical-distribution lines. 

It is projected that both plants will be connected to the grid in 2014, but there are concerns that the target completion dates will not be met, as protests from nearby villagers have not been resolved. If there are delays, there could be risks of future electricity shortages, because the present reserves of 9 per cent may not be sufficient. Once the two plants come on stream, the reserves will increase to 15 per cent, and that level is expected to meet the predicted growth of the economy.

Sutat said Egat would also consider investing in upgrades to the power plant at Mae Mo in Lampang province. 

It is examining two options. One is to wind down the coal-fired plants of Mae Mo Phases 4 to 7 and retrofit all the phases into a single power plant using new technology that would reduce air pollution and be able to generate electricity more efficiently. This would cost about Bt30 billion and have an operating life of 25-30 years. 

The second option is merely to repair the Phase 4-7 plants and resume coal-fired operations. This would cost considerably less, but would only increase the life span by 15 years and would not address the pollution concerns.

Egat expects electricity consumption to increased by 4 per cent in 2012, the same as the expected growth rate for the economy. This year it was estimated that the flood reduced electrical consumption by 0.5 per cent to 150,000 units of projected demand. Next year demand will be boosted as industry recovers from the flood.