Tuesday, September 22, 2020

SET, Egat team up in study for wholesale power trading platform 

Sep 04. 2019
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By The Nation

The Stock Exchange of Thailand (SET) today signed a Memorandum of Understanding (MoU) with the state-owned Electricity Generating Authority of Thailand (Egat) on a joint study for a energy trading platform and related issues in preparation of the country being the electricity trading hub in Asean.

SET's Senior Executive Vice President Soraphol Tulayasathien said under MoU, the two parties would jointly conduct a study for a reliable platform, catering to the wholesale electricity market. SET has realised that a mechanism to maximise electricity management efficiency is important for both power producers and consumers, she added.

"The cooperation is also in line with SET's vision "To Make the Capital Market 'Work' for Everyone". SET has been joining up with various sectors to develop the capital market's basic infrastructure, products and services to keep pace with global standards while creating new business opportunities. Nowadays, all businesses worldwide, including utility which is part of Thailand's basic infrastructure, must embrace changes amid competition," Soraphol said .

Bhawana Aungkananuwat, Egat's Deputy Governor/Administration said the purpose of this cooperation was to prepare for a new trading platform for the wholesale electricity market or Capacity market for advance trading of 3 - 5 years and the Energy market for daily energy trading, in support of the country being the regional centre of electricity trading.

Moreover, it will help prepare for market liberalisation and promote competition in the energy industry. The cooperation covers the study on the development of a wholesale electricity market trading platform, energy industry model, energy trading mechanism, and wholesale power purchase agreement (both in advance and during the day). 

The cooperation between the two organisations is the start of energy industry development, using market mechanism to increase energy management efficiency, ability to compete, and the overall Thai economy. 

The MoU covers a one-year period, starting from September 4, 2019 to September 3, 2020. Both parties will study readiness and develop business model for the wholesale electricity market, support information, and exchange knowledge.

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