Energy Sector Liberalisation and Privatisation in Thailand by Piyasvasti Amranand Inspector General, Office of the Prime Minister APEC Energy Working Group Implementation Facilitation Team to Thailand (IFAT) A Follow-up Workshop Karon Villa & Karon Royal Wing 17-18 August 2000 National Energy Policy Office Management of the Energy Sector • Since there is no Energy Ministry in Thailand, responsibilities related to energy are scattered across Ministries • The National Energy Policy Council (NEPC) is responsible for determining energy policy • The National Energy Policy Office (NEPO) acts as the secretariat to the NEPC NEPO undertakes policy as well as regulatory work • In the near future, an independent regulatory authority will be established for the electricity and natural gas sectors National Energy Policy Office Objectives of Reform • Increase competition to achieve efficiencies and ensure supply at reasonable prices • Promote more efficient energy use • Reduce the government investment burden • Ensure best possible service, price and safety standards • Encourage public participation • Develop the capital market • Optimise the value of the public’s stake in the sector National Energy Policy Office Implementation of ESI Deregulation • The process started in 1992 and effort over 1992-2000 has concentrated on introduction of competition at the generation level – New Investment : Small Power Producer (SPP), Independent Power Producer (IPP) programs and power purchase from Lao PDR – Existing Asset : Initial Public Offering (IPO) of EGCO in the Stock Exchange of Thailand (SET) and sale of 14.9% to China Light and Power • Development of a long term structure for ESI in 1992 with updates in 1996, 1998 and 2000 National Energy Policy Office Implementation of ESI Deregulation (con’t) • The latest plan approved by NEPC on 13 July 2000 provides a detailed road map of reform over the next years • Restructuring under the current plan – Privatisation of Ratchaburi Power Plant (2000) – Privatisation of EGAT’s Thermal Power Plants (2003) – Establishment of a power pool and independent regulatory body (2002/3) – Introduction of retail competition (2003) – Restructuring of MEA and PEA National Energy Policy Office Regulations to Purchase Power from SPP • Cogeneration & Renewable – Cogen: Efficiency >45% and steam >10% – Renewable: May use up to 25% commercial energy • Direct sale to third party outside regulations • Each sale into transmission system not greater than 60 MW (90 MW on case by case) National Energy Policy Office Status of the SPP Program • As of June 2000, 95 proposals had been submitted with total capacity for sale of 4,646 MW • NEPC has approved the purchase of up to 3,200 MW from SPP projects by EGAT • As of June 2000, 52 proposals had been accepted with total capacity for sale of 2,136 MW and proposal is still waiting for approval with capacity for sale of MW – 50 contracts signed – contracts under negotiation – proposal under consideration National Energy Policy Office Status of SPP Projects (con’t) • 41 projects are already in operation with total generation capacity of 2,883 MW and total sale to EGAT of 1,580 MW • It is estimated that projects (capacity : 510 MW, sale : 130 MW) would not be completed, bringing the amount of power purchase by EGAT down to 2,006 MW • Of the 2,006 MW, 1,828 MW is firm energy • The surprisingly high success rate is due to capital injection by a number of foreign strategic partners eg CMS, Sithe Energy, Ogden, National Power, Air Products, Tractebel, Fortum and Heat Oy National Energy Policy Office SPP Proposals Classified by Type of Fuel (as of June 2000) Number of Projects Generating Capacity (MW) Sale to EGAT (MW) Commercial Energy Natural Gas Fuel Oil Coal Sub Total Renewable Energy 22 30 2,863 10 760 3,633 1,588 386 1,983 Bagasse 15 316 71 126 57 33 25 Sub Total 22 475 153 Total 52 4,108 2,136 Paddy Husk, Wood chips Black Liquor National Energy Policy Office Power Purchase from SPP (as of June 2000) Firm Non Firm Total Proposals Submitted Number of projects 67 28 95 Generating Capacity (MW) 7,686.8 665.4 8,352.2 Sale to EGAT (MW) 4,459.9 186.3 4,646.2 30 22 52 Generating Capacity (MW) 3,496.9 611.3 4,108.2 Sale to EGAT (MW) 1,958.4 177.6 2,136 30 20 50 Generating Capacity (MW) 3,496.9 556.4 4,053.3 Sale to EGAT (MW) 1,958.4 149.6 2,107.9 22 19 41 Received notification of acceptance Number of projects Contract Signed Number of projects Supply power to the grid National Energy Policy Office ...Management of the Energy Sector • Since there is no Energy Ministry in Thailand, responsibilities related to energy are scattered across Ministries • The National Energy Policy Council (NEPC)... Producer (SPP), Independent Power Producer (IPP) programs and power purchase from Lao PDR – Existing Asset : Initial Public Offering (IPO) of EGCO in the Stock Exchange of Thailand (SET) and sale... Fuel – Non-conventional energy, except nuclear – • 1996 - 2000 2001 - 2002 2003 Total Coal - Natural Gas - Orimulsion Locations – – – Central Region: Saraburi, Lopburi, Ang Thong, Singburi, Ayutthaya,