The new EGAT Governor targets renewable energy and coal power plant development

          Mr. Kornrasit Pakchotanon announced the policy after the appointment as the new EGAT Governor. He aimed to develop renewable energy together with coal fired power plants, driving EGAT to benefit the society and country.

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          On June 30, 2016 at EGAT Headquarters in Nonthaburi, Mr. Kornrasit Pakchotanon, EGAT Governor, announced the policy to the press in the occasion that he was appointed as the new Governor. He would strive to develop renewable energy coupled with coal power plant and lead EGAT to be accepted and sustainably supported as the organization bringing value to the public and country.

          The new Governor said that EGAT was a stated-owned enterprise helping the Government to develop the economy, the society, and the nation. There were several urgent issues that EGAT needed to handle such as continuously strengthening Thailand power system. There would be a proposal to review Power Development Plan (PDP2015) on both of energy mix and generation capacity. The renewable energy would be developed together with coal power plants with the proper proportion because coal was the main fuel with abundant reserve and low cost to ensure the power system security especially in the southern Thailand that has the average growth of power demand by 5% per year. In the previous year, the peak demand in the southern provinces increased by 7.69%. EGAT would strive for the acceptance of Krabi and Thepa power plants by holding the concept “wherever the power plants exist, the society is happy”. The community had to have better quality of life from EGAT Community Development Fund for surrounding and community development projects. For renewable energy development, EGAT would request the Ministry of Energy to increase its capacity under EGAT’s responsibility in the Alternative Energy Development Plan, in response to the Government policy to increase the renewable energy share.

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          For fuel supply, EGAT would rush feasibility study of floating storage and regasification unit in response to issues on power security and power generation cost. For international grid connection, bilateral power purchase between Thailand and Laos PRD as well as Thailand and Malaysia would be complemented by multilateral power purchase project that was called Lao PDR, Thailand, Malaysia, Singapore Power Integration Project: LTMS PIP expected to be completed in 2018. Moreover, EGAT would improve research and innovation development for the benefit of EGAT operation and economic growth.

          EGAT invested in overseas power development projects through EGAT International Co.,Ltd such as Quang Tri Power Plant Project in Vietnam and Mai Tong Power Plant Project in Myanmar. However, there was still flexibility problem that the Ministry of Energy supported to loosen the regulation. EGAT investment in the future amounted to one hundred billion baht, but EGAT would not add the public debt to the country. That was why EGAT found out new financial tools such as EGAT Infrastructure Fund (EGATIF) which was successful. EGATIF had better rate of return than specified in the prospectus, contributing to satisfaction of investors. EGATIF then would be an option for raising EGAT fund in the future.

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          On the side of bringing the value to the society, EGAT gave an importance on greenhouse gas reduction, in compliance with an agreement Thailand had submitted to United Nation. EGAT reduced the GHG through 4 measures, namely the increased share of renewable energy in power generation, efficiency improvement of power plants that replaced the outdated ones, efficient improvement of power plant tools, and demand side management. EGAT’s No. 5 Label that had been implemented since 1993 could reduce CO2 emission by 14 million tons, while EGAT Reforestation Project implemented since 1994 covering an area of 440,000 rai could absorb 8.45 million tons of CO2 and release 6.15 million tons of oxygen, assessed by Thailand Environment Institute Foundation.

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          “During my term of office as the EGAT Governor for 1 year and 10 months, I will focus on community development to show that power plants can stay with the communities in harmony. At the same time, I will develop renewable energy to the full extent of its potential together with coal power to balance the energy use, strengthen power security, and maintain proper cost of electricity for the competitiveness of the country with the concern on global warming solutions,” said the new EGAT Governor.