GE Power looks to service smaller power producers in Thailand and the region
21 November 2018
GE POWER Services has invested US$1 billion (Bt44 billion) in new business, providing cross-fleet services for independent power producers (IPPs) and small power producers (SPPs) which have SGT-800 gas turbines in Thailand and the region.
Kovit Kantapasara, chief executive of GE Thailand and Laos, said that GE Power Services is waiting for the certainty of Thailand’s new Power Development Plan (PDP), which will reveal the country’s demand for power over the next five to 10 years.
GE Power Services has meanwhile shifted to new business, focusing on IPPs and SPPs which need to invest in services and work processes. They need flexible yet stable power generation equipment with higher efficiency and ability to be quickly put back into service after maintenance and repair.
The new cross-fleet business will upgrade gas turbines for higher efficiency . Thailand is a major market, with SGT-800 gas turbines using power and steam production processes, the most in the world, Kovit said.
“GE has invested $1 billion to develop technology and apply GE technology with other producers’ equipment in the past few years at the request of customers. GE provides maintenance service for all brands of machinery and is the first in the world with these multi-year agreements. About 350 staff have been hired, and about $60 million spent on research and development for the cross-fleet service to bring confidence for customers,” he said.
GE has the orders in hand and is waiting for installation of over $200 million worth of equipment for its cross-fleet service and will penetrate into Thailand next year, he said. The company expects to see results within six to 12 months negotiation begin with nearly all power plants in Thailand.
Kovit said the business has a chance to grow, as it is difficult to see new SPPs in the future and these power plants will likely opt to improve machinery, given lower costs.
Earlier, GE had provided cross-fleet service to Mexico’s 700-megawatt Tuxpan power plant under a 12-year contract, helping it save Bt100 million yearly in fuel costs and increase power production capacity by 9.2 per cent. This will be the model for upcoming projects, Kovit said.
GE’s ongoing projects in Thailand include installation of machines in the 270-megawatt wind farms of Wind Energy Holding in Nakhon Ratchasima and Chayaphum provinces, with estimated completion in mid-2019, the 600-megawatt Mae Moh power plant, and the 1,500-megawatt Bangpakong power plant with estimated completion in 2020.