Weak demand in Thailand results in suspension of four power plants and delay the opening of a fifth
Sluggish economic growth has prompted energy authorities to halt the operations of four power plants and delay the opening of a fifth to avoid a financial burden for electricity producers and buyers, says Energy Minister Auttapol Rerkpiboon.
The suspension is meant to prevent a glut of electricity in the country when power demand is weak during a period of decreased economic activity, he said.
The decision was made recently by the National Energy Policy Council (NEPC).
The four power plants are operated by the Electricity Generating Authority of Thailand (Egat). Three of them — North Bangkok, South Bangkok and Nam Phong — are gas-fired power plants, while the other is Mae Moh units 8 and 9, a coal-fired power generation facility.
These power plants were scheduled to supply electricity from 2025 to 2030, but now they will be halted, resuming operations after 2029.
The Burapa power plant was set to commence commercial operations in 2027, with that opening now postponed until 2029. The power plant is jointly owned by power companies, including Gulf Development Plc.
“The postponements will help Egat and the companies save a combined 3.5 billion baht,” said Mr Auttapol, who is also a member of the NEPC.
He attributed the stagnant economy partially to the pandemic, which hit Thailand in early 2020. The outbreak subdued the economy as the government implemented lockdown measures, including a nighttime curfew, to contain the spread of the highly contagious virus.
Though the pandemic passed, the economy has yet to fully recover and Thailand struggles with slow GDP growth.
Mr Auttapol said a plan to build new power plants, which was included in a previous version of the power development plan (PDP), will be reconsidered to better match electricity demand amid changes in economic circumstances.
These considerations include the development of gas-fired power plants in Surat Thani province and the northeastern region.
The Energy Ministry is setting up a new committee to draft a novel PDP, expected to outline the country’s power supply management over the long term, he said.
Source: https://www.bangkokpost.com/business/general/3127982/weak-demand-results-in-suspension-of-4-power-plants
