Thailand had 24 gigawatts (GW) of power generation capacity as of January 2003 from which it produced approximately 115 billion kilowatt-hours (Bkwh) of electricity. The decline of the Thai economy as a result of the Asian financial crisis resulted in a decline in domestic demand for electricity of about 3 Bkwh in 1998 before rebounding in 1999. This situation compelled EGAT the state-owned electricity company to revise its electricity demand projections. EGAT postponed or delayed a number of projects including: delaying the commissioning of the third and fourth 300-MW thermal units of the Ratchaburi power complex by three years to 2004 and 2005 respectively; postponing the start-up of the second 300-MW thermal unit at the Krabi power plant from 2001 to 2005; and delaying power purchases from three Laotian projects - the lignite-fired Hongsa project and the Nam Ngum 1-2 hydro projects to 2004 and 2005 respectively. While demand growth has recovered in step with Thailands economic growth over the last five years EGAT decided to lower its planned generating capacity reserve from 25% to 15% which further delayed the need for additional generating capacity.
Now that the country has worked through most of the backlog of projects approved before the financial crisis several major new power generation projects are again being planned.
The Ratchaburi power plant Thailands largest power project has moved forward despite the slowdown in power demand growth. The complex eventually will have a capacity of 3200 MW including 1800 MW in six combined cycle gas-fired generators and 1400 MW in two conventional thermal units that can burn either natural gas or fuel oil. The first combined-cycle unit began operation in January 2000. Ownership of the plant was transferred from EGAT to Ratchaburi Electric Generation in October 2000 and a successful initial public offering of stock was carried out. One other independent power producer (IPP) also began operation in August 2000 Tri Energy which has a 700-MW plant at Ratchaburi. The company is owned by a consortium including Edison Mission Energy ChevronTexaco and local Thai firms.
Several prospective new power projects were approved in 2004. Thai Oil is planning a 1400 MW gas-fired plant at Sri Racha adjacent to its existing refinery. It will sell the power generated to EGAT beginning in 2008. EGAT is planning four new 700-MW plants of its own two near Bangkok one in Chachoengsao province in the north and one to be located in the south near Songkla. These new plants are to begin operation between 2006 and 2009.
A bidding round for additional generating capacity is planned for late 2006 with projects approved to come online between 2011 and 2015. A total of around 13 GW is to be added during that period based on current demand forecasts. EGAT will build half of the new capacity with the other half awarded to IPPs.
The Thai government has stated that it plans to eventually privatize EGAT but it is still studying the options for structuring the privatization process. The previous privatization scheme was abandoned in March 2004 after labor union protests.