IPP bids no longer need recyclable energy proposals
Energy companies joining the next round of independent power producer (IPP) bidding are no longer required to include a proposal to produce energy from recyclable materials, as such energy will be bought from small producers instead.
Viraphol Jirapraditkul, deputy director-general of the Energy Policy and Planning Office, said the decision was in line with the understanding that not all IPPs had expertise in recyclable power and the requirement could complicate the bidding. "We maintain the campaign to promote energy generation from recyclable sources, but we will focus on very small power producers. At present, the Electricity Generating Authority of Thailand (Egat) is open to buying power from these producers," he said. As a way of encouraging generation, the pricing structure will better fit the production costs and a power development fund will shoulder the extra cost, Viraphol said. The fund will be supported by contributions from winning IPPs. The fund's operations are detailed in the power business bill, which is expected to be implemented prior to the purchase of power from IPPs in 2011. Originally, participants in IPP bidding were believed to have proposed a plan to produce 5 per cent of the awarded capacity from recyclable materials. Following the change, only Egat is now producing power from recyclable sources - 140 megawatts or 5 per cent of the combined capacity of its four new plants. A ministry source said that in the next three months Egat should start the bidding to find recyclable power producers, mostly those who are producing power from solar cells. Egat's recyclable power plants, including those which would be located at the dams of the Royal Irrigation Department, are estimated to require an investment of Bt8.5 billion. Out of the investment, Bt3.8 billion would be invested by independent producers who will join the bidding. Egat expects to buy 20MW each from biomass plants and waste-based plants, plus 10MW each from solar cell-generated plants and wind plants. Due to the investment in the recyclable power plants, Egat's electricity cost will be pushed up by 0.5 satang per unit. The cost of solar-cell generation is now Bt18-Bt19 per unit, biomass at Bt2.603, waste at Bt4.60 and wind at Bt6. Energy Reporters The Nation
|
