Thailand's EGAT Signs Nuclear Technology Agreement with China Guangdong Nuclear Power Group

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Researched by Industrial Info Resources (Sugar Land, Texas)--Thailand's state-controlled Electricity Generating Authority of Thailand (EGAT) (Nonthaburi) recently signed a nuclear technology agreement with China Guangdong Nuclear Power Group (CGNPG) (Shenzhen, China) and CLP Holding Company (Kowloon, Hong Kong). According to the memorandum of understanding, China will assist Thailand's nuclear power development program by providing nuclear power expertise, research and development, and training for the next three years. EGAT has not decided whether to use Chinese nuclear reactor technology to build the nuclear power plants. However, signing the agreement reinforces Thailand's commitment to developing nuclear power to meet the country's growing electricity demand. In 2008, as part of the nuclear power program, EGAT sent 80 technical personnel and engineers for nuclear technology training to China.

EGAT operates power plants with a total electricity generating capacity of 15,035.8 megawatts (MW), which accounts for 59% of the country's total installed capacity. Thailand's total power generating capacity is about 25,647 MW.

CGNPG, which is one of China's premier nuclear power development companies, operates 53 nuclear power plants, accounting for 20% of the world's nuclear power generating capacity. CGNPG has co-developed CPR-1000 Pressurized Water Reactor (PWR) technology with Areva SA (EPA:CEI) (Paris, France). In the past 10 years, CGNPG has sold more than 1,000 PWR units. Company officials have stated that CGNPG has the expertise to build nuclear power reactors within 52 months, which is the lowest time period in the industry. The group, which is constructing eight new nuclear power plants in Guangdong, consists of 20 subsidiaries with total assets of about $8.82 billion. In early November, CGNPG commenced operations of its Thai subsidiary. Recently, CGNPG also signed $146 million of contracts with 30 private companies in China's Zhejiang province to provide services and equipment for nuclear power plants in the region.

As part of Thailand's National Power Development Plan, which includes a 15-year nuclear power program, EGAT is exploring the possibility of operating two nuclear power plants with a total capacity of 2,000 MW. While environmental, legal and other approvals are pending, EGAT has started the process of selecting potential locations for the nuclear power plants. The company has reportedly shortlisted five of the 14 selected sites. The possible locations include one site each in Nakhon Sawan, Nakhon Si Thammarat and Trat, and two sites in Surat Thai. EGAT has also prepared a human resources plan for construction of the first nuclear power plant.

Leading project consultant Burns and Roe Group Incorporated (Oradell, New Jersey) has been selected to carry out technical and demographic studies for the first nuclear project. The study, which will also include geological surveys, is expected to reduce the number of shortlisted locations to three. Final decision on technology and location is expected by late 2010 or early 2011. Sources indicate that 62% of the feasibility study has been completed. The company has also requested nuclear technology companies in the United States, China, South Korea and Japan to submit information pertaining to nuclear reactor technology and expertise. Project officials have indicated that the first nuclear power plant is likely to begin operations by 2021, and the second by 2022.

Industry experts have cautioned that EGAT's nuclear power program may meet with stiff public opposition. Recently, villagers refused to allow the survey team to explore potential sites in Nakhon Si Thammarat. EGAT's effort to distribute information on the nuclear power plants to locals was also thwarted. It has been an uphill task for independent power producers and EGAT to set up new power plants in Thailand. The reasons have been not only from a lack of financing, but also opposition from environmental groups and the public, which view these projects as schemes to benefit industries and urban development.

EGAT has expressed an interest in signing similar agreements with international energy firms to develop other sources of power. According to the "Thailand Q4 Power Report - 2009," published by Business Monitor International (London, England), oil contributed 42.1% to Thailand's primary energy demand (PED) in 2008. Hydropower, gas and coal accounted for 1.8%, 38.6% and 17.6%, respectively. During 2008-18, the country's electricity generation is expected to increase 44.7%. During 2008-13, the report forecasts that Thailand's PED will grow 16.5%

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