Thailand Refurbishes Coal Units to Ensure Affordable Power Supply

In a bid to maintain a stable and affordable electricity supply, Thailand is focusing on refurbishing two key coal-fired power units. The Electricity Generating Authority of Thailand (EGAT) has announced plans to extend the operational life of Units 8 and 9 in Lampang. This initiative is part of EGAT’s broader strategy to keep electricity costs manageable for consumers.

EGAT’s Strategy: Extending the Life of Coal Units

Refurbishing Units 8 and 9 involves targeted maintenance to improve efficiency without requiring a full-scale overhaul. This approach aligns with EGAT’s goals of controlling power tariffs, which directly impact electricity bills across Thailand. By continuing to use coal—an economical fuel option—the agency aims to reduce costs and maintain affordable electricity rates.

Feasibility Study and Project Timeline

A feasibility study is currently underway to examine the potential service life extension of Units 8 and 9. Expected to conclude in 2025, the study will detail the refurbishment scope and budget requirements. With a generation capacity of 320 megawatts each, these units play a critical role in balancing Thailand’s reliance on imported liquefied natural gas (LNG), which has become increasingly necessary due to dwindling domestic gas supplies.

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

The Challenges of Replacement and the Importance of Refurbishment

EGAT has faced difficulties in replacing outdated machinery for these units. In an earlier attempt, a $1 billion bidding process attracted only one bidder, leading to a revised auction that also saw limited participation. This lack of engagement reinforced EGAT’s decision to refurbish rather than replace, as the refurbishment aligns with Thailand’s 2024 power development plan, which focuses on reducing fossil fuel dependence and promoting renewable energy.

EGAT’s Broader Energy Development Plans

Alongside refurbishing coal units, EGAT is moving forward with plans for a new 700MW gas-fired power unit near its Nonthaburi headquarters. This project, estimated at 20 billion baht, aims to strengthen Thailand’s energy infrastructure and is expected to begin operations by 2027.

A Strategic Move for Energy Stability

Thailand’s efforts to refurbish coal units and invest in alternative power sources illustrate a balanced approach to energy security. By extending the life of existing coal-fired units, EGAT is addressing immediate power needs while planning for a more sustainable energy future through diversification and renewable energy integration. This multifaceted strategy is crucial for maintaining affordable electricity and supporting Thailand’s long-term energy goals.

Ref – Thaiger