Thai Energy Agency Says Switch to Gas Would Lift Power Bills.

Nov. 6--Shifting power production by two projects in Prachuap Khiri Khan from coal-fired to gas turbines could lift the cost of electricity generation by 8.7 billion baht a year, which would be passed on to consumers.

A senior official at the National Energy Policy Office (Nepo) warned yesterday that using gas turbines would increase the cost by 59 satang per unit more than coal-fired production. The total additional cost would be 217.5 billion baht throughout the projects' 25-year lifespans.

Nepo last week asked the executives of both electricity firms involved in the projects for comment on the government's proposed three options for the 1,400-megawatt Hin Krut plant of Union Power Development Co and the 1,700-megawatt Bo Nok plant of Gulf Power Generation Co.

The authorities are seeking ways to overcome opposition to the plants from conservationists and some members of communities near the proposed sites.

The options are: shifting from coal-fired generation to use of gas turbines, relocating the plants to the Sahaviriya steel complex in Bang Saphan district of the province, or giving up the projects and focusing on expanding the Electricity Generating Authority of Thailand's capacity instead.

The Nepo source said PTT Plc could supply Bo Nok and Hin Krut with natural gas piped from the Erawan field in the Gulf of Thailand. However, gas supply through the installation of an offshore pipeline would affect the environment. The result would be deterioration of seawater quality, obstruction of navigation and fisheries, a change in the ecological system in the construction area, and a deterrent to the development of tourist sites.

According to a Nepo report, the onshore establishment of a gas pipeline would put communities nearby at risk of accidents, affect land utilisation and destroy the land surface.