Electricity Generating Authority of Thailand, Power Purchase Agreement Division, Thailand
Online published on 19 July, 2016.
Thailand as a country located in the center of Southeast Asia and as the second largest energy consumer plays an important role in electricity cross border trading among the member of Southeast Asia. Representing by state-owned enterprise named Electricity generating Authority of Thailand (EGAT), Thailand is now trading electricity with neighboring countries through 2 patterns: foreign Independent Power Producer (Foreign IPP) and Government-to-Government (G-to-G). These two patterns have different concept of trading. First, the Foreign IPP pattern, the project developer from private sector shall invest in the project and enter into power purchase agreement with EGAT. EGAT will guarantee to purchase a certain amount of electricity produced by the project and the project developer will guarantee the quality of electricity transmitted (Take or Pay Concept). Second, the G-to-G pattern, utility from each country will negotiate the power purchase agreement and trading for security and reliability of the system rather than economic benefit. The G-to-G does not guarantee the buying and selling amount.
This paper shows will provide concept, principle, commercial aspect and technical aspect for each trading pattern in detail. In addition, this paper states the main problem occurred and the solution in cross border trading by collecting the information through the assistance from related experts. Risk allocations of these 2 patterns are discussed. Moreover, this paper also stated the ASEAN power grid roadmap that ASEAN member moving towards.
The information from this paper will benefit not only the member countries of ASEAN to cooperate with each other in electricity system integration within region for secure and sustainable energy but also for the countries who plan to initiate cross border trading with their neighboring country. Moreover, this paper also benefits investors by giving information needed for making an investment both in current pattern of Foreign IPP and G-to-G.
cross border trading in Thailand, power purchase agreement, foreign independent power producer, ASEAN Power Grid
