Policymakers seek renewable flexibility
State-owned utility and power enterprises are preparing for disruptive technology as they work to avoid the fate of Nokia and Kodak.
Several energy analysts from Europe and the US have said the development cost of renewable energy is almost competitive with that of traditional fossil fuels, with the trend of renewable energy set to come rushing like a tidal wave over the next two decades.
In Thailand, energy policymakers plan to decentralise the power sector to handle disruptive technology.
The National Energy Reform Plan 2016 aims to shift control away from state authorities, letting private operators participate more in the power sector.
The reform plan notes that renewable power accounted for just 4% of the country’s electricity generation a decade ago, rising to 13% last year.
The plan sets a goal for renewable power generation to make up 30% of the total by 2036, with a majority of the developers and operators in the private sector.
Independent power suppliers and power-generating units in the private sector are in the pilot stage at present.
Viboon Rerksirathai, governor of the Electricity Generating Authority of Thailand (Egat), the state’s lone electricity buyer, said a “duck curve” of disruption is happening in the power supply system because of massive investment flows from solar and biomass power project operators.
Solar can generate power during the day time, but peak demand is at night, creating the duck curve, so named for resembling the shape of a duck.
“The investment in solar power projects is also a burden for Egat, planning for backup power plant investment it made in 2016,” Mr Viboon said.
“The backup system requires the state grid to be flexible to demand changes in response to the power supply.”
Egat has budgeted 1.6 billion baht for investment in two pilot backup projects in Lop Buri and Chaiyaphum provinces, where solar and wind farms are plentiful, to test an energy storage system and a smart transmission project.
“We want to make sure we can tackle intermittent power resources and smart management with higher efficiency,” he said.
Moreover, 11 Egat hydropower reservoir units nationwide are designed to develop floating solar power at a combined capacity of 2.76 gigawatts, with solar panels occupying 11,240 rai.
This project is designed to test the possibility that both hydro and solar can distribute electricity for 24 hours.
“The solar projects normally sell the power when they generate it in the daytime, so the power-generating units remain in a non-firm mode, unlike other fossil power projects that come with a firm-mode powergenerating unit,” Mr Viboon said.
“The auction for the project’s development is coming soon.”
Egat’s pilot smart city in Mae Hong Son province is set to test decentralised power generation and smart power supply management.
“The new system is becoming so costcompetitive that consumers can afford it, and the system should make the power supply more stable without any interruption,” he said.
Sompong Preeprem, deputy governor for planning and power system development at the Provincial Electricity Authority (PEA), said the state utility has initiated the PEA DX project to bring about digital utility transformation by 2022.
“The project is budgeting 29.087 billion baht for 2018-22 to make more productive services for users by revamping infrastructure, system management and human resources,” Mr Sompong said.
“The PEA has already prepared for the popularity of electric vehicles with the development of 32 charging stations in Pattaya by 2022 as part of our mission to expand charging outlets across the country.”
He said another PEA pilot project in Pattaya is a smart grid that will connect the PEA and consumers via a mobile app.
Other measures are in motion from SETlisted state enterprises.
For example, PTT Plc, the national oil and gas conglomerate, is keen on its energy storage business through a power subsidiary, Global Power Synergy Plc (GPSC), aiming for the development of a lithium-ion battery facility in the Eastern Economic Corridor.
GPSC signed a contract with US-based 24M Technology last year to produce and localise battery cells at low cost and high efficiency, as well as provide products that can serve Thailand and other Southeast Asian countries.