EGAT opens for renewable energy purchase from SPPs and accelerates Spot LNG import to tackle global oil price crisis
20 April 2022EGAT opens for renewable energy purchase from Small Power Producers (SPPs), coupled with importing two cargoes of Spot LNG during April – May 2022 under ERC’s resolution, instead of using diesel oil and fuel oil for power generation in the surging global oil price period, to ensure the power system security during the energy price crisis.
Mr. Kitti Petchsanthad, Deputy Governor – Transmission System of Electricity Generating Authority of Thailand (EGAT) and Head of Energy Crisis War Room of EGAT, revealed that due to the ongoing global energy crisis affecting the power system security of the country, EGAT has carried out measures to deal with the situation. In compliance with the regulation of the Energy Regulatory Commission (ERC) dated April 11, 2022, EGAT has launched an announcement to purchase renewable energy from SPPs, limited only to those without any power purchase agreement with power utilities. The purchase will enhance the cooperation between private and public sectors to cope with the energy crisis and lessen PM2.5 problems due to using bagasse for power generation instead of burning it.
“Moreover, EGAT is accelerating the import of 2 cargoes of Spot LNG during April – May, 2022, in accordance with the ERC’s resolution No. 16/2565 dated April 5, 2022. With 65,000 tons per one cargo, the Spot LNG import can replace the diesel oil and fuel oil used for power generation, as the global oil prices have surged to a seven-year high and according to the Department of Energy Business, it is expected that the oil supply will be insufficient for power generation of around five million tons per day. The LNG import will ensure the power system security of the country and diminish the fuel costs for power generation of around 500 million Baht, compared to the rising oil prices in the global market.”
Previously, EGAT has implemented measures to lessen the fuel costs, including using oil instead of LNG as fuel for EGAT’s power plants, which can reduce the power generation cost of 437.50 million Baht. The decommissioning of Mae Moh Power Plant, Unit 8 has been postponed for a year, which can reduce the power generation cost of 3,162.41 million Baht. Besides, EGAT has borne the fuel costs to mitigate the burden of the public of around 60,000 million Baht.
