EGAT Identifies Potential Sites in Four Provinces for Thailand's First Nuclear Power Plant

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Researched by Industrial Info Resources (Sugar Land, Texas)--As part of an ongoing feasibility study, state-owned Electricity Generating Authority of Thailand (EGAT) (Nonthaburi, Thailand), the country's largest power-generating utility, has identified potential locations in four provinces for setting up Thailand's first nuclear power plant. The potential sites are located in the Chai Nat, Chon Buri, Nakhon Si Thammarat and Surat Thani provinces. A shortlist of potential sites in these three areas will be submitted to the government for consideration by late 2010.

EGAT's assistant governor for power plant engineering, Kamol Takabut, said that the feasibility study is one-third complete. Following the conclusion of the study, which is scheduled for late 2010, the government of Thailand will decide whether to proceed with the development of a nuclear power plant that will come into operation by 2020. The nuclear power project, if approved, will have a power generation capacity of between 1,000 and 1,300 megawatts (MW) and will entail an investment of $2.6 billion.

In April 2007, Thailand's Ministry of Energy passed a resolution in which EGAT was handed the responsibility of setting up nuclear power plants to produce 4,000 MW of clean and inexpensive power. The move signified the inclusion of nuclear power for the first time in the development plan for Thailand's power sector in the face of increasing prices of other sources of fuel such as natural gas used for power generation. Power generation from nuclear fuel is estimated to cost $0.0591 per kilowatt-hour, while power generated from natural gas and coal is estimated to cost $0.0597 per kilowatt-hour.

In June 2007, EGAT announced that it would invest $6 billion to set up Thailand's first nuclear power plant, scheduled to come into operation by 2020. The utility said that it would issue bonds and seek offshore loans to finance the proposed investment. The company also planned to recruit local engineers to study nuclear technology in the U.S., Europe and Japan. Toshiba Corporation (TYO:6502) (Tokyo, Japan), Westinghouse Electric Company LLC (Monroeville, Pennsylvania) and Areva SA (EPA:CEI) (Paris, France) expressed interest in setting up the nuclear power plant.

In November 2008, EGAT awarded a $4.98 million contract to Burns and Roe Group Incorporated (Oradell, New Jersey), a consultancy and engineering services provider, to undertake a 20-month feasibility study for the project. EGAT also earmarked funds to the tune of $38.33 million to be invested in the preparation stage of the project. According to the contract, Burns and Roe surveyed 14 sites in six provinces to evaluate the feasibility of setting up a nuclear power plant. The feasibility study evaluated potential sites on various parameters such as location, environmental impact, suitability for nuclear technology, nuclear power plant safety, radioactive waste, and personnel planning and development.

Among the various factors that influence the selection of a favorable site for a nuclear power plant is the proximity to a body of water such as a sea or a river from which fresh water can be procured and used as a coolant. EGAT is also exploring a potential site on an isolated island off the Chon Buri province in the event of a lack of availability of inland sites. Locations in the Prachuap Khiri Khan and Chumphon provinces have been eliminated as potential sites because of resistance from the local communities.

EGAT has received technology offers from seven firms in Korea, Japan, Canada and the U.S. for the project and is in the process of evaluating the services and equipment that would be best suited to the high-temperature climate of Thailand. A sub-committee on public relations has also been set up to educate local communities on the benefits of a nuclear power plant.

However, environmentalists argue that development of a nuclear power plant is not only unsafe but also a costly affair. The protestors cited a report published by Greenpeace International (Amsterdam, Netherlands), a global activist organization focused on environmental issues, which found that construction costs frequently exceed the budget, sometimes by as much as 300%. A similar opposition by the local community on the grounds of safety concerns thwarted EGAT's proposal in the mid-1970s to develop a 600-MW nuclear power plant in the Chon Buri province.

About 70% of the power generated in Thailand is based on a feedstock of natural gas, one third of which is procured through imports. However, the country's natural gas reserves are expected to dwindle in the next two decades. Under the power development plan, Thailand intends to reduce dependence on natural gas for power generation from 79% in 2009 to 40% in 2020. Nuclear power is expected to account for 5% of the power mix by 2020 and 10% by the following year.

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