Background

Electricity is the fundamental to economic and social development of the country. As EGAT is responsible for the acquisition and generation of electricity to meet the sufficient demand of the country, new power plants are necessary to increase the generating capacity. Chana Power Plant was included in the Power Development Plan (2004-2015) to enhance security of the power system of the South particularly the Lower South of which its economy and industry has a tendency to expand continuously. There is also a relatively high investment which results in a rising demand for electricity.

At present, as the availability of power supply is not sufficient, EGAT has to transfer electricity from the Central part through the transmission line to support the South in case that the Central part has a surplus of electricity.

Moreover, Thailand has a power purchase agreement with Malaysia to exchange and purchase electricity of 300 MW from Malaysia during the peak hours as a reserve back up for each other in time of emergency. The arrangement provides a choice for the country to buy electricity from the other, which has lower cost of investment. In addition, it has built up electricity cooperation among ASEAN countries in which Thailand and Malaysia have used the HVDC system. The high voltage direct current (HVDC) consists of 300 kV direct current of 110 km (25 km in Thailand and 85 km in Malaysia) connecting Khlong Ngae Substation in Thailand and Gurun Substation in Malaysia. 

In this connection, EGAT and Tenaga Nasional Berhad (TNB) signed the 25-year System Interconnection Agreement (SIA 2002) on May 14, 2002 of which the exchange and purchase of electricity through HVDC would start on June 3, 2002.

As a result, the Southern part should have more power plants to cope with the demand for electricity and to enhance more security of the power system. 

EGAT considers that Songkhla Province is an economic center which has various investment and has the highest demand for electricity. Moreover, the province has natural fuel source in the Malaysia – Thailand Joint Development Area (JDA) which can be used in electricity generation.