12 A Leader of Clean Energy Technology. Operations. Generation System. Power Generation and Purchase. Fuel Utilization

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1 Operations Generation System In 2013, EGAT s power plants had a total installed generating capacity of 15, MW accounting for percent of the country s gross energy generation. The purchased power capacity included 12, MW from domestic independent power producers (IPPs) representing percent of the country s total generating capacity, 3, MW or percent from small power producers (SPPs), and 2, MW or 7.14 percent imported from neighboring countries. In 2013, there was no new power plant synchronized to EGAT power system. More capacity of only 1,080 MW derived from the purchased power from SPPs was added to the system. Power Generation and Purchase In 2013, the peak demand topped 26, MW on May 16, 2013 marking an increase of MW or 1.83 percent from the previous year. In 2013, the net energy totaled 173, million kwh, representing an increase of million kwh or 0.19 percent from the preceding year. Of total electricity, the amount of 72, million kwh or percent of the country s energy demand was generated by EGAT s power plants, and 101, million kwh or percent was purchased from the private power producers and from neighboring countries. Fuel Utilization Natural gas supply for EGAT s electricity generation was derived from the various gas fields including the Gulf of Thailand, Nam Pong, Phu Hom, Sirikit, and imported from Myanmar. In 2013, natural gas utilization by EGAT s power plants amounted to 385,831 billion BTU, while 386,321 billion BTU was used by IPPs power plants, totaling the amount of natural gas of 772,152 billion BTU used in electricity generation. In 2013, natural gas consumption by EGAT s power plants decreased by 6.90 percent or 57 trillion BTU from the year During , the average price of natural gas rose up continuously owing partly to the import of expensive LNG resulting in a continued rising price since then. Other fuels included million tons of lignite which was used for Mae Moh Power Plant, while million liters of bunker oil used as scheduled and in emergency case decreased 1.15 percent from the previous year. Diesel was used in the amount of million liters. 12 A Leader of Clean Energy Technology

2 Energy Sales EGAT s electric energy sales totaled 169, million kwh. Its sales included 49, million kwh sold to the Metropolitan Electricity Authority (MEA), 116, million kwh to the Provincial Electricity Authority (PEA), 3, million kwh to direct customers and neighboring countries (Lao PDR, Malaysia, and Cambodia), and million kwh to other customers purchasing electricity for temporary and standby use. Energy Adjustment Charge (Ft Tariff) In the year 2013, the cost in power generation increased from the year The price of natural gas which is the major fuel in power generation, in particular, increased 11 Baht/million BTU or 4 percent (from the average of 300 Baht/ million BTU to 311 Baht/ million BTU), resulting in the increase of power generation cost. EGAT has been trying to manage the power generation with the maximum efficiency to control the cost to ease the cost of living burden of the consumers. As a result, the Energy Regulatory Commission (ERC) allowed the Ft Tariff to be increased only in some extent, not yet fully covering the actual cost of power generation, and EGAT had to shoulder the accrued Ft revenue. 13

3 In 2013, the Ft Tariff was revised 3 times during January - April (the Ft Tariff of Satang per unit), May - August (the Ft Tariff of Satang per unit) and September - December (the Ft Tariff of Satang per unit). In summary, in 2013, the Ft Tariff was as follows: Revision Month Ft Tariff Average Retail Tariff including Ft (Baht/Unit) (Baht/Unit) 1 January - April May - August September - December According to the resolution of the Energy Regulatory Commission (ERC), EGAT had to temporarily shoulder the accrued Ft revenue of 1,566 million Baht. EGAT Generation Facilities EGAT s capacity in power generation according to types of power plants Type of Power Plant Installed Capacity (MW) Percentage of the System Capacity Thermal 4, Combined cycle 6, Hydropower 3, Diesel Renewable energy Total 15, A Leader of Clean Energy Technology

4 EGAT s power plant performance Heat Rate (kj/kwh) 8, , , , GWEAF (%) POF (%) UOF (%) In 2013, the overall performance of EGAT s power plants was improved continuously with lower heat rate than in 2011 and The generating weighted equivalent availability factor (GWEAF) of all power stations of EGAT amounted 1.6 percent higher than the preceding year due to the control measure of the unplanned outage, the reduction of generation capacity, and the adjustment of maintenance schedule to be completed early without extension of the maintenance time. The planned outage factor (POF) in 2013 was 1 percent lower than 2012, while the unplanned outage factor (UOF) dropped 0.5 percent from EGAT was able to control the rate of UOF to be less than 3 percent continuously since

5 Transmission System In 2013, EGAT pursued its plan in transmission system development covering the improvement, maintenance, and expansion of transmission network to increase capability and stability of the power supply system. Major transmission system projects which were completed during the year included a double-circuit line of 500 kv Pachi 2 - Tha Tako and installation of KT4A and KT5A transformers of the capacity 300 MVA at Chiang Rai Substation. The newly operated substation in this year was the 115 kv Hua Wai Substation. Presently, EGAT s grid network comprises transmission lines of 32, circuitkilometers with 213 substations, 553 delivery points, and a total transformer capacity of 87, MVA. In 2013, forced outages occurred 69 times, 16 times of which were caused by failure of the transmission lines and 53 times from the errors in substation equipment. The interruption was mainly caused by malfunction of substation equipment and control and prevention equipment (25 times), by animals (21 times), by human errors, either staff or outside people (8 times), by environment (5 times), by weather (twice), by system failure (once), and by unidentifiable reasons (7 times). Among the forced outages, important events which worth mentioning were as follows: On May 21, 2013 at hour, a short circuit occurred at the 500 kv Bang Saphan 2 - Chom Bueng line due to lightning leading to the operation of the protection system, detaching the line from the system. At hour, the Chom Bueng Substation had supplied the electricity to Bang Saphan 2 Substation but failed to connect with the system. More power from Malaysia had been requested, but the protection system of the transmission line linking HVDC in Malaysia had an error, ordering the line to detach from the grid system. The overall system then lost its stability leading to the separation of the system between the Central area, which is the main system of the country, and the Southern Area at hour. 16 A Leader of Clean Energy Technology

6 In 2013, EGAT s bulk power supply system reliability performance was as follows: System interruption severity (SISI) - System-minutes (MW-minutes/MW) System average interruption frequency index (SAIFI), number of occurrence/ delivery point System average interruption duration index (SAIDI), minutes/delivery point The availability of the transmission system in 2013 was as follows: System availability (SA) (%) Transmission circuit availability (%) Transformer availability (%) The quality of the power supply service has been well maintained with frequency being controlled within the band of Hz and the system voltage being steadily controlled within the range of percent of nominal voltage. To ensure the availability and continuity of the supply service, EGAT has given priority to the improvement and maintenance of existing transmission facilities. Works carried out during the year included insulators cleaning for the 500 kv transmission lines in the area highly exposed to dirt, pollution, smoke, and waste from birds. Fire drills and exercises of black start restoration were practiced as well as the preparation of transmission network development plan. Preventive measures to minimize interruption of power supply caused by human errors and equipment malfunctions caused by animals were set up. EGAT also implemented public communication program to reduce power losses and damages to transmission facilities caused by community activities as well as addressing the concern and complaints of all stakeholders regarding power transmission. With this, EGAT has successfully maintained its capability in supplying electricity of high quality in terms of voltage and frequency with continuity, stability, and reliability. Moreover, EGAT has participated in the benchmarking of the International Transmission Operation and Maintenance Study (ITOMS) to have available data in work improvement and to find performance index appropriate to the transmission work. 17

7 Awards of Honor and Pride Ban Klong Rua Micro-Hydropower Project was awarded 2013 Outstanding State-Owned Enterprise in the category of corporate social responsibility (CSR) and the outstanding energy award in the category of the off-grid renewable energy projects. Moreover, in the ASEAN Energy Awards 2013 contest, Ban Klong Rua Project won the first runner-up in the category of the off-grid renewable energy projects. 18 A Leader of Clean Energy Technology

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