The rise of SPP – Thailand

Published: December 9, 2013

Bangpa-In Cogeneration : signing ceremony in Bangkok –in the middle : Narong Saengsuriya, Chairman of the Board of Directors and Tanakitt Jaroensuk, CEO Tractebel Engineering Thailand © Tractebel Engineering Thailand

 

Opening an office in Bangkok in 2011 to be closer to the ASEAN market, Tractebel Engineering expertise is already benefitting new customers; key players among them being some of Thailand’s Small Power Producers (SPP).

THAILAND’S SPP PROGRAM

Quietly booming behind the ASEAN region’s large and ambitious conventional power plant and hydropower plans, public and private SPP are a rising power in Thailand – contributing 7% of the country’s total installed generating capacity. Read more

BRINGING VALUE TO VALUED CLIENTS

Given the constraints of realising new power plants in busy, operating industrial parks, Tractebel Engineering’s expertise in CHP (Combined Heat & Power) plant design and project management is valued both by experienced SPP power generation developers and private investors new to the field… Read about 2 new SPP contracts:


Tractebel Engineering Thailand

Tractebel Engineering Thailand – left to right : B. Smondack, R. Kulsrivorarak, N. Lefèvre, T. Jaroensuk, S. Wannasri © Tractebel Engineering Thailand

“Thailand’s SPP program is essential in the country’s efforts to diversify its power generation infrastructure and to increase the share of power in the grid that is generated by cleaner, highly efficient sources. Key to this strategy is access to and ability to employ (our) proven design expertise.” Tanakitt Jaroensuk, Chief Executive Officer, Tractebel Engineering (Thailand).

THAILAND’S SPP PROGRAM

Quietly booming behind the ASEAN region’s large and ambitious conventional power plant and hydropower plans, public and private SPP are a rising power in Thailand – contributing 7% of the country’s total installed generating capacity.

A NEAT ENERGY ANSWER
The SPP program was created in 1992; Thailand being one of the first countries in Southeast Asia to realise the need to diversify its energy sector and promote investment in smaller-scale, clean and decentralised PP of 2 types: high efficiency cogeneration plants combining heat and power generation (CHP); and plants running on renewable energy resources (wind, solar/PV, biomass etc.). 3 rounds of SPP licence allocations have seen over 80 SPP projects being realised. A 4th licensing round is due to open in 2014.

WHY SPP WORKS FOR THAILAND
Driven by long-term Power Purchase Agreements (PPA) with The Electricity Generating Authority of Thailand (EGAT) the program is focussed on the development of small PP, averaging 60 MW to 100 MW, in Thailand’s many industrial parks. Next to major IPP energy projects which face increasingly restrictive environmental constraints, smaller, cleaner SPP projects are relatively fast and easier to implement. Helping to meet the demand of Thailand’s residential, commercial and industrial growth, depending on the SPP investor/EGAT PPA, up to 90 MW of electricity generated is sold directly to EGAT. Additional electricity and steam (in the case of cogeneration /CHP plants) is also sold to on-site industrial estate users, ensuring an important and reliable supply to manufacturers.


Glow Energy GSPP cogeneration in Rayong © GDF SUEZ/BRETON JULIEN

BRINGING VALUE TO VALUED CLIENTS

Given the constraints of realising new power plants in busy, operating industrial parks, Tractebel Engineering’s expertise in CHP (Combined Heat & Power) plant design and project management is valued both by experienced SPP power generation developers and private investors new to the field…

A NEW 120 MW COGENERATION PLANT FOR BANGPA-IN COGENERATION LTD.

CRITICAL SPP DEVELOPMENT
Tractebel Engineering (Thailand) has signed an Owner’s Engineer contract with PP developer Bangpa-In Cogeneration Ltd. a subsidiary of CK Power, for a new SPP cogeneration facility in Ayutthaya Province. Under a PPA with EGAT for 90 MW for 25 years, the new 120 MW/20 t/h steam gas-fired plant is to be built alongside a first 117.5 MW Cogeneration PP commissioned earlier this year.

A SPIRIT OF PARTNERSHIP
With one project behind them, Bangpa-In Cogeneration Ltd. has a clear idea of what they want to achieve with Bangpa-In Cogeneration 2. Demonstrating the importance of partnership, Tractebel Engineering worked with them to fully understand their vision and needs – bringing unusual value by helping them to develop a project masterplan long before any commitments were signed.

HIGH SERVICE DELIVERY
Still in early pre-construction phase, Tractebel Engineering will consolidate the conceptual design of the cogeneration plant, support the tendering process for the gas turbines package and provide all EPC tendering services. Ongoing services will include project management, design review, construction supervision, testing and commissioning. The project team, bringing together local and overseas thermal power experts, are gearing up to ensure successful commercial operations by mid 2017.


Tractebel Engineering Indonesia representative office – left, Nurlaily Idham, right Manahan Simanjuntak, Managing Director © Tractebel Engineering Thailand

BRINGING VALUE TO VALUED CLIENTS

Given the constraints of realising new power plants in busy, operating industrial parks, Tractebel Engineering’s expertise in CHP (Combined Heat & Power) plant design and project management is valued both by experienced SPP power generation developers and private investors new to the field…

A FIRST COGENERATION PLANT FOR SIAM PURE RICE COMPANY LTD.

PRODUCTION ORIENTED SPP
Singha Corporation (a leading brewery) and Asia Golden Rice (AGR-Thailand’s largest rice exporter) have created Mahasan Enterprise Co – a new entrant to the private electricity generation business. Its subsidiary Siam Pure Rice Company Ltd. (SPR) has since awarded Tractebel Engineering (Thailand) an Owner’s Engineer contract for a fast track, 120 MW/55 t/h Combined Cycle Cogeneration Plant in Chaiyo District, Ang Thong Province. The CHP will operate under a 25 year, 90 MW PPA with EGAT. While also serving other industrial users in the plant vicinity, plans for a co-existing rice mill (and perhaps a rice bran oil refinery) will also allow SPR to take strategic advantage of the process steam and power produced.

EXPERIENCE MATTERS
With the goal to meet the PPA agreed Scheduled Commercial Operation Date of April 2016, SPR are under pressure to deliver their first PP. Within the full scope of Owner’s Engineer services; conceptual design, tender documentation and EPC contracting, design review, site supervision, testing and commissioning, Tractebel Engineering’s ability to manage the timing of the project will help. Drawing on the experience of local and international experts, and advising on all opportunities to optimise the plant, first critical services relate to ensuring the conceptual design meets the specific needs of SPR:

  • Preparing a feasibility study confirming technology capability meets SPR’s business model requirements in terms of electricity and process steam generation obligations.
  • Assessing the site, infrastructure needs and environmental impact of the future plant.
  • Identifying preliminary Investment, Operation and Maintenance costs of the plant.

Other additional services anticipated are:

  • The compiling of key vendor/supplier technical documents; Supply contracts, Erection and Installation manuals, Operation & Maintenance manuals.
  • Providing services facilitating/coordinating training for SPR personnel.

“We do as much for all our clients, but for SPR, as a new plant Owner, it is important that we pay even more attention to ensure there are no weak points in the project plan and that their first venture into the energy sector is a success.” Somporn Wannasri – VP Business Development Thermal Power

THAI HISTORY

Tractebel Engineering’s activities on the Thai market go back to the early 80’s. The company was involved in the construction of three dams: Nam Khek, Tha Dan and Mae Suai.

ASEAN ACTIVITY

Tractebel Engineering (Thailand) is the group’s hub for the development of energy projects in the ASEAN region; specifically Thailand, Laos, the Philippines, Vietnam and Indonesia. Focussed on Hydro & Renewable Energy, Gas & LNG and Thermal Power, current projects include:

  • THAILAND

RATCH – IPP SOLICITATION (5,400 MW) – Technical Advisor
GLOW ENERGY (GDF SUEZ) – EXPANSION GSPP11 – Owner’s Engineering
GLOW – CHANTHABURI – WIND MEASUREMENT CAMPAIGN

  • LAOS

PNPC – XEPIAN – XENAMNOY 410 MW HPP – Owner’s Engineering
FINNFUND – NAM SIM 9 MW HPP – Lender’s Engineer
GLOW – Several Due Diligence Projects

  • PHILIPPINES

FIRST GEN – LNG TERMINAL – CONCEPT STUDY

  • INDONESIA

WEST KALIMANTAN POWER GRID EXTENSION

MORE PRESENCE

To provide greater proximity and local services to its clients, Tractebel Engineering recently opened a representative office in Indonesia. Contact: Manahan Simanjuntak – Managing Director, Indonesia

More information

Tanakitt Jaroensuk – CEO Tractebel Engineering Thailand
Somporn Wannasri
– VP Business Development Thermal Power

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