Ratch giving Teco to Hin Kong Power

Ratch Group has announced a plan to decommission the wholly owned Tri Energy (Teco), a 20-year-old operator of a combined-cycle power plant, after its power purchase agreement (PPA) with Electricity Generating Authority of Thailand (Egat) expired on June 23.

Kijja Sripatthangkura, Ratch’s chief executive, said the company will have Hin Kong Power, which is jointly owned with Gulf Energy Development, continue the business.

He said Teco’s power plant, which uses natural gas from Myanmar to produce 700 megawatts of electricity, played a key role in supporting the national power grid, which has mainly covered the western, central and southern regions since 2000.

Last year, Ratch was awarded a licence by the Energy Regulatory Commission (ERC) to renew its 700MW concession, which is due to expire this year, for another 25 years with a capacity expansion of an additional 700MW.

The company set up Hin Kong Power for the new licences.

In January this year, Gulf Energy Development agreed to buy a 49% stake in Hin Kong for joint investment.

The commercial operation dates are set at 2024 for the first power generator and 2025 for the second.

The power plant will use imported liquefied natural gas (LNG) as the main fuel. In May, Ratch asked the ERC for a shipping licence, which was granted in the same month.

The company is preparing to

dismantle a Teco-owned plant on 250 rai in Ratchaburi after conducting asset valuation. Some equipment will become spare parts for other power plants under Ratch Group.

The dismantling process is expected to be completed in the middle of next year.

Teco is among the first independent

power producers (IPP), who were granted concessions from Egat to produce electricity under a state plan to encourage private investors to enter the business. Teco won the bid for the power project in 1994.

The company started electricity generation and sold power to Egat from July 1, 2000 under the PPA.

Mr Kijja said Teco also helped the government enhance living standards for communities located near its plant and boost the local economy through employment, local tax payments, contributions to the state-run Power Development Fund as well as community development programmes, based on villagers’ needs.

Teco’s power plant, which uses natural gas from Myanmar to produce 700 megawatts of electricity, played a key role in supporting the national power grid. KIJJA SRIPATTHANGKURA Chief executive, Ratch