EGAT unlikely to extend Egco contracts

 He said it was difficult either to extend their terms or permit Egco to build new plants without the company taking part in a new independent power producer (IPP) bidding process. The plants have been used for a long time and to build new ones without bids would mean the Egco would have an advantage over other IPPs, he said.
He added that Egat had to see whether the ministry wants to retain the two Egco plants to produce reserve power to enhance national energy |security.
But he said it was likely that once the two plants are decommissioned, the government would launch a bid to procure new IPPs to set up new power plants.
Sahust Pratuknukul, Egco Group president, said the company had asked Egat to extend the terms of the two plants last May but had yet to receive a reply on how the company should proceed. Egco will wait until the end of this year. If there is still no clear direction from Egat, the company will consider selling the two plants and joining the IPP bid.
The Rayong plant has four generator units with a combined capacity of 1,175 megawatts. The plant will expire in 2015. The Khanom plant with 700MW capacity will expire in 2016.
From 2010 to 2020, power plants generating a combined 5,933MW will be decommissioned, while between 2021 and 2030 plants with a combined 11,737MW capacity will be decommissioned. Sahust said that if there is a new round of IPP bids, Egco was ready to take part. It already has land plots and a utilities system that would enable it to have lower power production costs than competing bidders.
Egco has 16 active power plants at home and overseas, with a combined capacity of 4,444MW, in proportion to its shareholding in these plants. It is developing five new plants in Thailand with a combined capacity of 549MW, in proportion to its shareholding in them. Egat owns about 25 per cent |in Egco.