FP_C.3_EGAT_ Thai-Laos Cross Border Energy and Environment: Case study on Hong Sa Lignite Power Plants in Lao PDR. Cherid Kalayanamitr, Project Environment Division Electricity Generating Authority of Thailand (EGAT) 53 Moo 2 Bangkruai, Nonthaburi, 11130, Thailand Tel: +662 436 1130 Fax: +662 436 1190 Email: cherid.k@egat.co.th ABSTRACT The EGAT, a state enterprise under the Ministry of Energy, is authorized with missions mainly focusing on the generation and distribution of electric energy to two other state enterprises i.e. Metropolitan Electricity Authority (MEA) and Provincial Electricity Authority (PEA), and procurement/distribution of electricity to neighboring countries. Presently, the national total capacity is 37,612 MW. According to the Power Development Plan 2015 (PDP, 2015-2036), the power purchase from foreign electricity will be at 11,016 MW installed capacity by the end of 2036. In case of the Hong Sa Lignite Power Plant, 626X3 MW (1,878 MW installed capacity) in Lao PDR is recently one of the power transboundary purchase in this plan, COD in 2015 and 2016. There are 2 sides of transmission line in Laos PDR, 67 km. of 500 KV to Thai border and 115 km. of 115 to Electricity Du Laos (EDL), and the transmission line of 500 KV in Thailand. The EIA and IEE had to be done and approved by National Environment Board (ONEP) and the Thailand Cabinet before construction. The Hong Sa Project and transmission lines of 2 countries are also environmental concerns to ensure that there is no cross border environmental impact of energy development. The outcomes of EGAT environmental performance which includes all of these activities not only satisfied the authorized government sectors but also the community and local government office acceptances. EGAT aims to serve the energy by Thai-Laos cross border as PPA schedule and PDP 2015. And also to be a main hub for the region s energy interconnection grid to facilitate electric energy trade and exchange among Asian Economic Countries (AECs) and help enhance energy as well as economic security of the region. Key Words: Power Purchase Agreement (PPA), Commercial of Date (COD), Cross Border, Environmental Impact Assessment (EIA), Initial Environmental Evaluation (IEE) 1
I. INTRODUCTION EGAT is Thailand s leading state-owned power utility under the Ministry of Energy (MOE), responsible for electric power generation and transmission for the whole country as well as bulk electric energy sales. EGAT is the largest power producer in Thailand, owning and operating power plants of different types and sizes which are located in 39 sites across Thailand. EGAT also owns and operates high voltage transmission networks, which covers all parts of the country. Under the enhanced single buyer model of Thailand s electricity supply industry, EGAT is the single buyer, purchasing bulk electricity from private power producers and neighbouring countries and sells wholesale electric energy to two distributing authorities and a small number of direct industrial customers as well as neighbouring utilities. EGAT is the national system operator, managing and controlling, via the National Control Centre and five regional control centres, the dispatch of power generation both from EGAT's own power plants and from private power plants to meet the country's demand in the most efficient, reliable, and environmentally-responsible way. It also owns and operates the national transmission network, which includes transmission lines and substations of various high voltage levels which covers all parts of Thailand. (Transmission system in Thailand as showed in the Figure 1) Figure 1 Transmission system in Thailand (as in March 2013) EGAT has conducted business in an environmentally responsible manner to ensure sound environmental practices in full compliance with all applicable laws and regulations. EGAT has observed in particular the environmental principles as outlined in the International Standard ISO 26000 titled Guidance on Social Responsibility, which includes the environmental responsibility, the precautionary approach, the environmental risk management, and the polluter pays principle. Key environmental issues taken into consideration are prevention of pollution, sustainable resources, climate change mitigation, and protection and promotion of the natural habitats. For decades, the Thai Government has continuously promoted private sector investment for electricity generation, through bid solicitations for power purchase. As of September 2012, Thai Government has purchasing agreement with the neighbouring countries (Lao PDR and Malaysia) 2,184.6 MW, large-scale independent power producers (IPPs) 12,741.7 MW and Small Power Producers (SPPs) 2,263.8 MW with EGAT being the single buyer of bulk electricity, under terms and regulations set by the Energy Regulatory Commission (ERC) to ensure 2
the best interests of public consumers, energy resource optimization and fairness to all. More over, EGAT is responsible for providing electric energy for the whole kingdom by generating, transmitting and selling electricity to Metropolitan Electricity Authority (MEA) 4,017 MW, Provincial Electricity Authority (PEA) 9,650 MW, number of direct customers prescribed by law 146 MW, and neighbouring countries (Lao PDR, Malaysia and Cambodia) 80.8 MW. II. ENVIRONMENTAL TOOLS Environmental Impact Assessment (EIA) is one of the environmental management tool used in project decision making. It is applied especially to some activities under the Ministerial Mandate. The main objective of EIA in Thailand, as in other countries, is to prevent and reduce environmental problems from major development projects in order to achieve sustainable development goals. The first mandatory notification for EIA requirement was issued in 1981. Presently, it is mandated under the Section 46 of the Enhancement and Conservation of National Environmental Quality Act 1992. The Minister of Natural Resources and Environment with the approval of National Environment Board (NEB) has the power to notify the type and size of projects or activities requiring EIA. For large scale projects which will cause significant impacts, the EIA reports must be submitted to the Office of Natural Resources and Environmental Policy and Planning (ONEP) to be considered and provide recommendations to permitting agencies or cabinet. EIA reports have to be prepared by a consulting firm which is registered with ONEP. Environmental Impact Evaluation Bureau, Office of Natural Resources and Environmental Policy and Planning has prepared a guidance on EIA, titled Environmental Impact Assessment in Thailand. This guidance is useful for the general public, consulting firms, developers and government agencies to understand the law, regulations, and guidelines for EIA in Thailand. The purpose of EIA is for forecasting the environmental impacts, both negative and positive impacts from development projects or significant activities. EIA in Thailand has been used to identify impacts of the projects as well as to establish the appropriate mitigation measures so that natural resources are used in a sustainable way for the economic development of the country. For transmission line projects or in specific cases where the radial expansion of the security of right of way are within the National Forest Conservation Areas or within the Environmentally Protected Areas and or may affect wetlands of international and national importance. Transmission Line Projects that require EIA report: transmission line project (for power plant under section 46 of the National Environmental Quality Act 1992), in National Forest Conservation area (located in the areas classified as Class 1 Watershed area by the cabinet resolution) are need to report together with that power. Transmission Line Projects that require specific (Initial Environmental Examination) IEE report or the specific case of the radial expansion of the security of right of way in National Forest Conservation area. Transmission Line Projects that require Environmental Checklists with environmental impact mitigation and preventive measures and environmental impact monitoring measures. All projects excluded from EIA and IEE requirements, projects need to provide environmental checklist with environmental impact mitigation and preventive measures and environmental impact monitoring measures. III. EGAT ENVIRONMENTAL CONCERNS FOR TRANSMISSION SYSTEM For the National Grid Planning, currently EGAT not only considers the environment related Acts and Laws but also all key principles under the environmental criteria and uses them in the organization s transmission system planning. The impacts on communities, health, social sectors, and natural resources are taken into account as first priority besides the transmission line engineering design and economic feasibility consideration for the route selection. Moreover, the project public participation processes required under the Act and associated Laws have been strictly followed to ensure the public and stakeholders participation in the project planning and management. In recent times, EGAT has conducted 20 environmental studies for transmission systems according to the scope and requirements of the stated Act. The paragraph below presents a case example of how EGAT handled a recent project in terms of its environmental performance. In June 2013, the National Environment Board approved the EIA and IEE reports of Hongsa-Lignite 500 KV project, power purchase from Hongsa-Lignite Power Plant (with installed capacity 2x491 MW) in Lao PDR (Figure 2 and Figure 3). The length of this TL is 42 kilometers with a 60 meters right of way. The TL passes 3
directly from Lao-Thai border into the Northern Thailand 1.4 kilometers into the national forest conservation within the Environmentally Protected Areas and or may affect wetlands of international and national importance and passes through 3 provinces (Nan, Prae and Lampang province) within 23 sections of national forest conservation area. EGAT approaches on environmental concerns, public involvements and stakeholder participations, throughout the course of EIA and IEE studies. The scope of the environmental study included physical environment, biological environment, human use value and quality of life. Public involvement and stakeholder participation were an important part of the process. The direct and indirect, short and long term of the environmental impacts in the construction and operation phase of the project were assessed and included in the final report. The main impact was predicted for the 60-month construction period. Impact included impacts on ecology, erosion and transportation. One of the mitigation measures required was plantations in 3 times the area of the forest that the project would destroy in 3 provinces with a 12 years maintenance requirement. Figure 2 and Figure 3: The Hongsa-Lignite 500 KV project, power purchase from Hongsa-Lignite Power Plant, Lao PDR, the activities during the operation period were predicted to have potential impacts on local environmental resources and well-being of communities nearby the transmission line. The project considered environmental action plans such as surface and groundwater quality, forest ecology, transportation, waste management, socio-economic conditions, public health, occupational health and safety to mitigate the impacts. VI. CONCLUSIONS EGAT not only considers the concerned Acts and Laws but also all key principles under the environmental criteria and using them in conjunction with the organization s transmission system planning. The mitigation of impacts on communities, health, social sectors, and natural resources are taken into account as first 4
priority as well as project engineering design and economic worthiness consideration for transmission route selection. The outcomes of EGAT environmental performance which includes all of these activities not only satisfied the authorized government sectors but also the community and local government office acceptances. EGAT aims to be a main hub for the region s transmission interconnection grid to facilitate electric energy trade and exchange among Asian Economic Countries (AECs) and help enhance energy as well as economic security of the region. REFERENCES [1] Enhancement and Conservation of the National Environmental Quality Act, B.E. 2535 (1992) [2] Types and Sizes of Projects or Activities requiring preparation of Environmental Impact Assessment reports, 20 June 2012 [3] Types and Sizes of Projects or Activities which may seriously affect community with respect to Quality of Environment, Natural Resources and Health, 2012 [4] Projects within the Environmentally Protected Areas (EPA), April, B.E. 2554 (2011) [5] Types and Sizes of Projects in Forest Conservation Area that required EIA report, IEE report, Environmental Checklist [6] National Public Health Act. B.E. 2550 (2007) [7] Rule of the Office of the Prime Minister on Public Consultation B.E. 2548 (2005) [8] The Environmental Impact Assessment Report on 500 KV Thai-Lao borders for Hongsa Lignite Power Plant Lao PDR. Project, January, 2010 [9] The Initial Environmental Examination Report on 500 KV Thai-Lao borders for Hongsa-Lignite Power Plant Lao PDR. Project, June, 2013 5