Electricity Generating Authority of ThailandPower for Thai Happiness

Case Study : Bilateral Interconnection

Dr. Suthep ChimklaiAssistant Governor Transmission System Maintenance

27 November 2013

Content

Thailand’s Power Outlook

Power Development Plan

Power Purchase Process

Power Purchase from Neighboring Countries

ASEAN Power Grid

2

Thailand’s Power Outlook

3

Enhanced Single Buyer (ESB) Model

IndependentPower

Producer

Power Purchase

fromNeighboring

Countries

SmallPower

Producer

EndUsers

IndustrialEstate

Generation

Transmission

End User

Distribution

EGATGen.

EGAT Trans.System

Operator

Go

ve

rnm

en

tal b

od

y a

nd

ER

C

Policy

Regulate

Vary SmallPower

Producer

MEAPEA

EGATDirect Customers

Current Thailand ESI Structure

ring fenced

Account Unbundling

Ele

ctric

+ S

team

ERC stands for Energy Regulatory Commission4

17,000

19,000

21,000

23,000

25,000

27,000

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

MW

2011

2012

4.5%

2010

6.1%

2.5% 3.0% 5.3%

9.4%

2013

5.1%

4.4%

7.5%

% = Growth Rate (on a month-on-month basis)

0.8%

Monthly Statistics of EGAT’s System(Net Peak Generation from 2010 to 2013)

26,598.1 MW16 May 2013, 2.00 p.m.

Peak rose by 5.5 % from a year earlier

4.6%

6.1%

12.0 %

5.5%

3.9%

17.7%

14.1%

5

2.7%

-0.9%

1.5%

-1.6%

0

50,000

100,000

150,000

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2011

GWh

20102013

Cumulative Growth

1 Jan – 31 Oct 2013 = 1.5 %(compared to 2012)

2012

4.7%

2.3%

1.9%

2.7%

2.3%

Monthly Statistics of EGAT’s System(Net Energy Generation from 2010 to 2013)

6

2.4%

2.0%

1.9%

1.8%

1.5%

Total Peak Demand

(16 May 2013)

26,598.1 MW

Total Contract Capacity

(31 October 2013)

33,591.0 MW

Biomass 313.6 MW

5%

Others 4.5 MW 0.1%

Renewables5,858.9 MW

Generating Capacity by Plant Types

7

Combine Cycle18,718 MW

56%

Thermal 8,589.7 MW

25.6%

Renewables5,858.9 MW

17%

Gas Turbine & Diesel

124.4 MW 0.4%

TNB (HVDC) 300.0 MW

1%

Domestic 3,754.3 MW (11%)Laos 2,104.6 MW ( 6%)

Laos Hydro 2,104.6 MW

35.9%

Thai Hydro 3,436.2 MW

59%

8Corporate Planning Division

Electricity Generating Authority of Thailand

EGAT’s Transmission System

EGAT’s Transmission System

Substation 212

Transformer Capacity 86,924 MVA

Transmission Line Length

32,047 Circuit-km

69 kV

115 kV

132kV

230 kV

300 kV DC

500 kV 12.8%

44%

43%

Circuit-km

as of August 2013

Power Development Plan

9

SUMMARY of PDP2010: Revision 3 (2012 - 2030)

Coal-fired Power Plant (Clean coal Technology)

Gas-fired Power Plant

Nuclear Power Plant

Gas Turbine Power Plant

Cogeneration (SPP / VSPP)

Renewable Energy (SPP, VSPP, EGAT)

Power Purchase from Neighboring Countries

7,740 (10 Units)

18,400 (23 Units)

4,000 ( 4 Units)

-

8,264 / 55

4,433

10,982

4,400 ( 6 Units)

25,451 (29 Units)

2,000 ( 2 Units)

750 ( 3 Units

6,374 / 102

9,481

6,572

PDP2010

Rev2

Unit: MW

PDP2010 Rev3

Total Capacity as of December 2011

Total Added Capacity

Total Retired Capacity

Grand Total Capacity at the End of 2030

32,744

53,874

- 17,061

69,557

32,395

55,130

-16,839

70,686

Numbers of Added Power Plants During 2012 - 2030

Capacity During 2012 - 2030

10

0

30,000

80,000

2019 2030

MW

EGAT Power Plant Projects

34,086

2012

SPP, VSPP,

HSA1-2

, PG

S1-2

SPP, VSPP,

SEC1-2

SPP,

VSPP,N

NG

3,

NPS3-4

SPP, VSPP,

KN

2, H

SA3, N

PS 1

-2

SPP,

VSPP,

NN

P,

XPN

SPP, VSPP,

XYB

SPP,

VSPP

Peak Demand + RM 15%

Existing Generating Capacity

26,348

EG

AT R

E

EG

AT R

E,W

N4, CH

A2

EG

AT R

E

EG

AT R

E

EG

AT R

E,L

TK3-4

EG

AT R

E

EG

AT R

E, EG

AT C

F1

EG

AT R

E

SPP,

VSPP

SPP, VSPP,

IPP1,P

P

EGAT

VSPP+SPP+IPP+PP

VSPP, PP

VSPP, PP

VSPP, PP

SPP, VSPP,

PP

SPP, VSPP,

IPP6,P

P

SPP, VSPP,

IPP5,P

P

SPP, VSPP,

IPP4,P

P

SPP, VSPP,

IPP3,P

P

SPP, VSPP,

IPP2,P

P

EG

AT R

E,

BP

K1

EG

AT R

E,

BP

K2

, EG

AT C

F2

70,686

52,256

EG

AT R

E,

SB

12

EG

AT R

E,

BP

K3

, S

B3

EG

AT R

E,

BP

K4

, EG

AT C

F3

EG

AT R

E,

BP

K5

, EG

AT N

UK1

EG

AT R

E, EG

AT G

T3, EG

AT C

C2

EG

AT R

E,

BP

K6

, W

N1

, EG

AT N

UK2

EG

AT R

E,

WN

23

, EG

AT G

T1,E

GAT C

F4

EG

AT R

E,

SB

4, EG

AT G

T2,E

GAT C

C1

Peak Demand

underline Replacement

11

GWh

0

40,000

80,000

120,000

160,000

200,000

240,000

280,000

320,000

360,000

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Diesel

Renewables

Fuel Oil

EGAT-TNB

Natural Gas

Import Coal

Lignite

Nuclear

65% 66% 68% 67% 64% 63% 62% 61%

59%

60%

59%59%

60%

60%59%

57%55% 56%

58%

9% 9% 9%8%

9% 10% 10% 11% 11% 11% 12% 12% 12%12%

12%12% 13% 13% 12%

9% 9% 9% 11% 13% 13% 12% 12% 12% 11% 11% 10% 10%10%

9%9% 9%

18%18%

18%18%

18%

18%18%

18%

18%18%

18%

15%16%

2% 4% 5% 5% 5%

14%

14%14%

14%

8% 7%

15%15%

Nuclear

Lignite

Import Coal

NaturalGas

Renewables

Energy Generation by Fuel Types

1) PDP2010 : Revision 3

Note : Renewables include domestic and imported hydro power

12

Power Purchase Process(Bilateral)

13

Procedures

[ Neighboring Country Name] nominates project to Thailand’s S-ECTN

Investor contacts S-ECTN

Investor discusses with S-ECTN’s Working Group

Investor submits tariff proposal to S-ECTN

Negotiation with Working Group

Draft Tariff MOU Approval by S-ECTN, NEPC, Cabinet

Draft PPA Preparation and Approval (Same Process as Tariff MOU)

S-ECTN = The Sub–Committee on Electric Power Cooperation between Thailand and Neighboring CountriesNEPC = National Energy Policy Council

Thai

Investor contacts [Country Name] government

MOU for Feasibility Study

Feasibility Study

Project Development Agreement

Activities in [Country Name]

Concession Agreement

Investor

14

Agreements on Project Development & Power Purchase

Host Country

PrivateInvestor

Purchaser(EGAT)

1. Right to Develop 3. Electrical Energy

2.1 ConcessionAgreement

2.2 Power Purchase Agreement

5. Royalty Fee, Tax, etc.

4. Payment

15

Tariff Setting

1. Costs of New Transmission System in Thailand

2. Competitive Price

Electricity Purchase Priceat Border

+

Costs of New Transmission System in Thailand

Other Alternatives

Factors to be considered :

≤

X Baht/kWh Y Baht/kWh Z Baht/kWh+ ≤

Note : Typically, payments are set and made in 50% Baht, 50% $US16

Power Purchase from Neighboring Countries

17

Optimized use of energy

resources in the region

Competitive price

Promotion of regional

cooperation

Fuel diversification

Limitation in domestic site

selection issue

System Security

Power Losses

Impact on domestic

investment in power

generation

Knowledge and skill lost

Benefits and Drawbacks

18

Pros Cons

Lao PDR

PPA signed 3,316 MW

COD achieved 2,104.6 MW

Project MW COD

Theun-Hinboun 434 1998, 2012

Houay Ho 126 1999

Nam Theun 2 948 2010

Nam Ngum 2 596.6 2011

Potential Project 2,457 MW

Project MW Earliest

Xe Kong 4-5 570 2021

Nam Kong 1 75 2022

Senakam 660 N.A.

Don Sahong 240 2023

Pak Beng 912 N.A.

Hongsa

Xayaburi

Nam Ngum 2 Nam Ngeip 1

Theun-Hinboun

Nam Theun 2

Houay Ho

Xe-Pian

MOU 7,000 MW

19

Myanmar

Project MW Earliest

Hutgi 1,190 2023

Mai Khot 390 N.A.

Mong Ton 6,300 2026

Dawei 1,800 2018

MOU 1,500 MW

Hutgi

Potential Project MW

Dawei

Mai KhotMong Ton

20

Malaysia

Project MW COD

Sadao-Chuping(HVAC)

85 1980

Khlong Ngae-Gurun(HVDC)

300 2002EGAT-TNB

Project MW Earliest

Su-ngai Kolok -Rantau-Panjang

100 2015

Coal fired 800 2021

Potential project 900 MW

COD achieved 385 MW

21

China

Potential Project MW

Project MW Earliest

Yunnan 3,000 2019

22

MOU 3,000 MW

Cambodia

Potential Project MW

Project MW Earliest

Stung Num 94 N.A.

Koh Kong 1,800 N.A.

Koh Kong

23

ASEAN Power Grid

24

HAPUA Members

Electricity of VietnamSocialist Republic of Viet Nam

Department of Electrical ServicesBrunei Darussalam

Electricité du CambodgeKingdom of Cambodia

PT. PLN (Persero)Republic of Indonesia

Electricité du LaosLao PDR

Tenaga Nasional BerhadMalaysia

Department of Electric Power of MyanmarUnion of Myanmar

National Power CorporationRepublic of the Philippines

Singapore Power LTDRepublic of Singapore

Electricity Generating Authority of ThailandKingdom of Thailand

25Note : HAPUA = Heads of ASEAN Power Utilities and Authorities

AIMS-II Results

CAMBODIA

INDONESIA

SARAWAK

BRUNEI

P. MALAYSIA

PEOPLE'S REPUBLIC OF CHINA

YUNNAN

BATAM

SINGAPORE

8

11

14

10

6

12

43

1

7

2

5

9

13

15

LAO PDR

16

SABAH

Earliest COD1) P.Malaysia - Singapore (New) 2018

2) Thailand - P.Malaysia • Sadao - Bukit Keteri Existing

• Khlong Ngae - Gurun Existing

• Su Ngai Kolok - Rantau Panjang 2015

• Khlong Ngae – Gurun (2nd Phase, 300MW) 2016

3) Sarawak - P. Malaysia 2015-2021

4) P.Malaysia - Sumatra 2015

5) Batam - Singapore 2015-2017

6) Sarawak - West Kalimantan 2012

7) Philippines - Sabah 2020

8) Sarawak - Sabah – Brunei• Sarawak –Sabah 2020

• Sabah – Brunei Not Selected

• Sarawak – Brunei 2012-2016

9) Thailand - Lao PDR• Roi Et 2 - Nam Theun 2 Existing

• Sakon Nakhon 2 – Thakhek – Then Hinboun (Exp.) Existing

• Mae Moh 3 - Nan - Hong Sa 2015

• Udon Thani 3- Nabong (converted to 500KV) 2017

• Ubon Ratchathani 3 – Pakse – Xe Pian Xe Namnoy 2018

• Khon Kaen 4 – Loei 2 – Xayaburi 2019

• Thailand – Lao PDR (New) 2015-2023

10) Lao PDR - Vietnam 2011-2016

11) Thailand - Myanmar 2016-2025

12) Vietnam - Cambodia (New) 2014-2017

13) Lao PDR - Cambodia 2011

14) Thailand - Cambodia (New) 2015-2017

15) East Sabah - East Kalimantan Newly Proposed

16) Singapore – Sumatra 2020

26

16 interconnection projects are proposed.

Project No.

Interconnected Systems Capacity (MW)

1 P.Malaysia – Singapore 450

2 Thailand – P.Malaysia 380

- Sadao – Bukit Keteri 80

- Khlong Ngae – Gurun 300

9 Thailand – Lao PDR 2,105

- Nakhon Phanom - Thakhek - Theun Hinboun 214

- Ubon Ratchathani 2 – Houay Ho 126

- Roi Et 2 – Nam Theun 2 948

- Udon Thani 3 – Nabong – Nam Ngum 2 597

- Nakhon Phanom 2 - Thakhek - Theun Hinboun (Exp) 220

10 Lao PDR - Vietnam 248

12 Vietnam – Cambodia 170

14 Thailand – Cambodia 100

Existing APG Projects (May 2013)

27

APG Priority Projects(May 2013)

Project No.

Interconnected Systems Capacity (MW)

4 P.Malaysia – Sumatra (2017) 600

- Melaka – Pekan Baru

6 West Kalimantan – Sarawak (2015) 230

28