EGAT says the Market Quota will now end
Energy policymakers are currently planning to end the twenty year quota regime. They will do this by expanding the state-controlled power generation business to private sector competition, quoted by the Energy Minister himself Mr Siri Jirapongphun.
Thailand will now be removing the special quota from state-owned Electricity Generating Authority of Thailand (EGAT). “Thailand needs to increase power supply and allowing the market to set its price will be essential to developing the power generation industry,” he said.
The deregulation of power generation will be applied to both the renewable energy industry as well as the fossil fuels industry.
The energy price is currently at an average of 3.6 baht per kilowatt hour.
By JUNE 2018, policymakers have planned to open an auction under the small power producer programme. This will involve semi-firm power purchase agreements with a total of 269 megawatts.
The move is aimed at advancing the efficiency of the sector, of EGAT, and of other state-owned energy firms like PTT Plc.
Details of the deregulation programme will become finalised in the new national Power Development Plan (PDP). This is currently being revised by the relevant department. The new PDP, set to be finalised in March 31, will replace the existing PDP, which was drafted in 2014.
The current rules that state that one fifth of the country’s power must come from renewable energy sources by the year 2036 may also undergo major revisions. At present, renewable energy sources in Thailand account for 12% of the country’s power.
Companies from the private sector and EGAT (which recently expressed interest in importing LNG), will now be allowed to enter the business, which previously fell under the monopoly of PTT.
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Find the original Bangkok Post article here.