Two new egat plants on stream in 2012

The Electricity Generating Authority of Thailand (Egat) will build two new 800-megawatt power plants worth a combined Bt36 billion in Ayutthaya and Chachoensao provinces.

Egat expects to hire a contractor for construction of the first plant in Wang Noi district of Ayutthaya by the end of the year, so that the plant can feed power to the system in 2012.

Egat governor Sombat Santijaree yesterday said the bidding would also take place early next year for the construction of another 800MW plant in Chachoengsao's Bang Pakong district, which will supply power in 2013.

"During 2008 and 2009, Egat will borrow Bt10 billion per annum to finance the construction," Sombat said. "We're discussing with the Finance Ministry about the fund-raising options, whether we should issue bonds or tap loans from financial institutions."

Yesterday, Egat officially started the engine of its plant in Chana district, Songkhla, which is one of the investment projects under the 15-year power development plan (PDP).

The plant, fuelled by 130 million cubic feet of natural gas daily from the Joint Development Area, is supplying power for the South where demand rises 10-11 per cent per annum. With an installed capacity of 731MW, it cost Bt16.9 billion.

Egat has boasted that it faced no resistance from the local community, thanks to close discussions with local leaders. It has also contributed Bt400,000 to a community development fund. After the commercial start-up, the fund will receive Bt30 million-Bt50 million a year.

According to Santi, Egat will proceed with the planned investment under the PDP, which requires the state agency to erect two coal-fired power plants.

Egat is now looking for locations for the power plants, expecting to finalise the plan in 2009 so that the facilities can start feeding in power in 2015.

"If we can't keep to the schedule, the Chana power plant could be expanded to accommodate the generation of another 700MW, or Egat could buy more power from overseas sources like the one in Koh Kong, Cambodia," Santi said.