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Published on October 29, 2007

The Hongsa Lignite coal mine and electricity-generating plant project, with annual capacity of 1.8 gigawatts, should be ready to supply power to Thailand by 2013, Chanin Vongkusolkit, CEO of the mining and power company, said last week.

Banpu has opted out of the current IPP round to concentrate on the preparation work for the Lao project, which will require an investment of about US$2 billion (Bt68 billion). The power-purchasing agreement between the Thai and Lao governments was signed late last year.

Banpu is skipping the IPP because it is not ready. The company also believes the Thai public is not receptive to coal power plants. More public relations is needed on the issue, Chanin said.

If other coal power companies participate in the new IPP round, Banpu could use a comparison of its rates with their suggested prices for the company's future business plan, he said.

At the Hongsa site, the company is placing high priority on the community and the environment, he said. The Lao government supports the project. That makes it easier for the company to operate a coal power plant in Laos rather than in Thailand, where some groups of consumers still fight against the construction of coal power plants.

Wanchai Lertsaroj, CEO of Banpu Power Investment (China), said Banpu used its considerable experience with coal power plants in China to choose the appropriate technology at a reasonable price for its Lao plant.

An Energy Ministry source said that if the new IPP round can't find enough winners, the ministry may have to accelerate the development of coal power plants in Laos because gas reserves in the Gulf of Thailand will not be adequate to meet rising power demand by 2012.

The prospects for constructing new coal power plants in the Kingdom don't look too promising. The Bo Nok and Hin Krud power plant projects in Prachuap Khiri Khan faced strong resistance from the local people to the point where they were forced to move to Saraburi and Ratchaburi respectively and change their fuel from coal to natural gas. Such intense public hostility made other power producers hesitate to invest in coal power plants.

Recently, IRPC's proposed coal power plant also ran into stiff opposition.

One the other hand, the coal power plant project of BLCP, a joint venture of Banpu and EGCO in Rayong, didn't encounter such a strong challenge from villagers.

A source said power plant producers were required to submit environment impact assessments to the authorities by November 19. The EIAs should receive the blessing of the Office of Environmental Policy and Planning and the community by September next year before the projects can be signed.

The prospective coal power plants are facing a risk, as producers may not be able to implement their projects as planned. In that case, the Energy Ministry will withdraw their rights and choose an alternate winner.

Watcharapong Thongrung

 The Nation