Thailand refurbishes coal units to ensure affordable power supply

Thailand is taking steps to ensure a stable and affordable electricity supply through the refurbishment of two coal-fired power generation units. The Electricity Generating Authority of Thailand (EGAT) plans to extend the service life of Units 8 and 9, located in Lampang, as part of its strategy to maintain low-cost electricity production.

Refurbishing these units involves essential maintenance to boost efficiency without the need for a complete overhaul. This approach aligns with EGAT’s goal to help manage the power tariff, which influences electricity bills, by utilising coal, a more economical fuel option.

A feasibility study is underway to assess the refurbishment of the two units nearing retirement. The study, expected to conclude in 2025, will provide details on the potential extension of service life and the budget required for the project.

Units 8 and 9, each with a generation capacity of 320 megawatts, are crucial in mitigating Thailand’s reliance on imported liquefied natural gas (LNG). The domestic gas supply is dwindling, making LNG, a more expensive alternative, increasingly necessary, said an official, highlighting the importance of these units in the energy mix.

“Gas from domestic sources and LNG imports account for 60% of the fuels used for power generation in Thailand.”

Despite earlier efforts, EGAT faced challenges in replacing ageing machinery for these units. A previous bidding process, estimated at 35 billion baht (US$1 billion), attracted only one bidder, prompting a new auction that still failed to secure participants.

Egat operates a total of 14 units in the Mae Mo district of Lampang, having already decommissioned Units 1 to 7. The move to refurbish existing units is part of a broader initiative under Thailand’s 2024 power development plan, which aims to reduce fossil fuel use and increase renewable energy adoption, reported Bangkok Post.

In addition to refurbishments, EGAT is preparing an auction for the development of a new 700MW gas-fired power generation unit near its headquarters in Nonthaburi. This project, valued at 20 billion baht, is expected to commence operations by 2027.