top of page
Search
  • Writer's pictureYOG INFRA

Infrastructure & PPPs in Thailand - Q2 2023 Update

YOG INFRA Q2 2023 insights

THAILAND is seeing considerable activity in the clean energy sector from local Thai developers across emerging technologies like green hydrogen, green ammonia, battery storage, floating solar as well as e-mobility. The ongoing evaluation of 5.2 GW of renewable energy projects in the country will significantly boost investor confidence on PPP projects in the sector, along with initiatives to phase-our coal power production.

Read more about key developments in Infrastructure and PPPs in the country in our latest insight.

 

April 2023

NO TAKERS FOR PHUKET ISLAND EXPRESSWAY PPP

The Expressway Authority of Thailand (EXAT) has not received any bids for the Kathu-Patong Expressway Project PPP. The authority will seek feedback from potential investors before deciding on another procurement schedule for the 35-year concession. The authority received at least 13 expressions of interest (EoI) for the expressway project, including from China Railway Construction Corporation, China Harbour Engineering Corporation, as well as local and French developers.

The project requires the construction of a 4 km highway with 4 lanes, linking the Kathu district in the eastern part of the island to Patong Beach. It will feature 2 elevated sections and a 1.8 km tunnel and require an estimated THB 14.7 Bn (USD 427 Mn). This includes the cost of construction of about THB 8.6 Bn (USD 243 Mn), as well as THB 3.1 Bn (USD 87.5 Mn) for operations and maintenance. The contract will be in the design, build, finance, operate and maintain model, with the government responsible for land acquisition, which will require around THB 5.8 Bn (USD 163 Mn).


THAILAND TO USE PPP FOR M81 MOTORWAY TOLL COLLECTION

Thailand's Highways Department will use the public-private partnership model to collect toll and manage traffic on the M81 motorway. The department aims to open the 96 km stretch in January 2025. The project is being built at an estimated THB 56 Bn (USD 1.6 Bn). About 70 km has already been constructed. The highway connects Kanchanapisek Road in the district of Bang Yai with Highway 324, which runs between the districts of Kanchanaburi and Phanom Thuan. Completion of all the 25 sections of the motorway, featuring 4 to 6 lanes is anticipated by January 2024 ,following which it will undergo a 3-month free trial run.



May 2023

JERA IN THAILAND HYDROGEN AND AMMONIA SUPPLY CHAIN TIE-UP

JERA Co., Inc. (JERA) signed a Memorandum of Understanding with PTT Public Company Limited (PTT). The Memorandum of Understanding stipulates that JERA and PTT will jointly consider the following hydrogen and ammonia related activities:

  • Study on the development of supply chain for hydrogen and ammonia in Thailand.

  • Evaluation of feasibility of ammonia cracking technology as a means of supplying hydrogen to Thailand.

  • Consideration of joint development of hydrogen/ammonia upstream business or investment opportunities assuming supply to Thailand.

Thailand has declared in its National Energy Plan that it will be carbon neutral by 2050 and achieve net zero by 2065. The two companies will also consider joint development of hydrogen/ammonia upstream businesses or investment opportunities.


THAILAND TO SIGN RENEWABLES PPAs IN 3Q

Thailand’s state grid is expected to sign power purchase agreements (PPAs) with businesses that have been selected for the government’s 5.2 GW renewable energy plan after the scrutiny is complete. The scheme includes wind power (1.5 GW), bio-gas (335 MW), on-ground solar power farms (2.36 GW), and on-ground solar farms with energy storage systems (1 GW).

Thai power producer Gulf Energy Development has the largest capacity share among all the projects, with 28 projects and cumulative capacity of over 2 GW. Absolute Clean Energy, Thai Solar Energy and Bangchak Group’s power generation arm BCPG have also been selected among the private developers. The 2nd phase of the plan will entail a capacity of 3.66 GW.


THAILAND’S BANPU NEXT PLANS EXPANSION INTO BATTERY STORAGE

Thai smart energy solutions provider Banpu NEXT is entering the battery storage business. The company is partnering with its subsidiary, Durapower Holdings, to become a vertically integrated player and build up its capabilities in the Asia-Pacific region. The pair have already installed a battery energy storage system (BESS) at a solar hybrid power plant on an Indonesian mining site. Banpu NEXT plans to build more such systems for other business operations of the group, as well as offer this solution to enterprise customers.


EGAT TO SPEND THB 300 BN ON FLOATING SOLAR FARMS IN THAILAND

The Electricity Generating Authority of Thailand (EGAT) will spend THB 300 Bn (USD 8.47 Bn) till 2037 to develop new floating solar capacity in the country. The Government of Thailand has approved the utility’s plan to build 2.72 GW of floating solar facilities at 9 hydropower dams. EGAT has already completed works on the 1st facility, a 45 MW solar floating farm at the Sirindhorn Dam in Ubon Ratchathani. Work on the 2nd solar floating farm, a 24 MW facility at the Ubonrattana Damin Khon Kaen, is ongoing which will feature an energy storage system (ESS) as well as weather forecasting equipment for higher energy stability. The remaining 7 projects are currently in the pipeline.


SUVARNABHUMI AIRPORT TO BE THE 1st GREEN AIRPORTIN THAILAND

The Airports of Thailand (AOT) has announced plans to power Suvarnabhumi International Airport through renewable energy (RE), making it the country’s 1st green airport. The move is expected to reduce electricity costs by around 20% - 30%. In line with this, rooftop solar panels have been installed on the main terminal. AOT is now looking to add photovoltaic capacity as well. Other plans include the deployment of electric vehicles (EVs) to service the airport. By 2027, the Suvarnabhumi Airport will completely transition to RE. If this project is successful in considerably reducing energy costs, AOT will deploy the same model at other major airports across Thailand.



June 2023

PATTAYA TO HAVE 4 NEW MONORAIL LINES BY 2036

The Pattaya City Administration has approved plans to build 4 new monorail lines in the city in Thailand. The 4 lines include the Green, Yellow, Purple, and Red Lines. The project will be executed in 3 phases with the 1st phase (2021-2026) covering works on the Green and the Yellow Lines. The 9.9-km-long Green Line will be built on a priority basis and will link the city’s future high-speed rail (HSR) station to Bali Hai pier. Meanwhile, the dual-track Yellow Line will link Chon Buri and the Sattahip district.

The 2nd phase, to be carried out between 2027 and 2031, will cover the construction of the Purple Line which will operate between Nong Prue, in the east of the city, to Bang Lamung in the north. Works on the Red line will be carried out in the 3rd phase between 2032 and 2036. This line will link Chaiyaphruek 2 Road to the Dolphin Roundabout.


POWERCHINA PARTNERS FOR LAOS SOLAR AND THAI EFW PROJECTS

Power Construction Corporation of China's (PowerChina) international arm has signed preliminary agreements to develop two renewables’ projects in Southeast Asia. One of these is with Thai utility Superblock for a 609 MW solar project in Sekong province in southern Laos. The second is for an energy-from-waste project in Thailand, for which the 2 companies have partnered with Shanghai-headquartered SUS Environment.

The project, to be given out as a 22-year concession, will have a daily waste treatment capacity of 1,000 tonnes and will be built in Nonthaburi town in the southern part of the country. The Nonthaburi EfW project is estimated to cost about USD 110 Mn. The construction is scheduled to be completed in 2 years. The government will provide monthly availability payments.


GOVERNMENT OF THAILAND TO DEPLOY 2,000 E-BUSES IN BANGKOK

The Government of Thailand and the Government of Switzerland have partnered to launch the Bangkok E-Bus Programme under which 2,000 electric buses will be deployed in the Bangkok Metropolitan Area. The vehicles are expected to reduce 500,000 tonnes of carbon dioxide emissions by 2030.

The partnership between the two countries will create a carbon emissions trading arrangement whereby Switzerland-based KliK Foundation will purchase the carbon reductions generated by Thailand-based Energy Absolute from the Bangkok E-Bus Programme. The carbon credits earned will enable Energy Absolute to generate sufficient climate finance to replace the diesel buses with electric buses and deploy a city-wide network of electric charging infrastructure.


THAILAND ENERGY COMPANY OUTLINES PLAN TO STOP USING COAL

Thailand’s TPI Polene Power (TPIPP) plans to allocate its 5-year capital expenditure of THB 14 Bn (USD 402 Mn) to replace coal with renewable energy. The company plans to spend THB 3 Bn (USD 86 Mn) to facilitate projects that aim to cut down the import of coal and phase out coal-sourced generation by 2026.

In 2022, coal accounted for 50% of the 440 MW of electricity generated. Its usage is expected to decrease by 30% for the new estimated capacity in 2024. All power generation plants expected to be free of coal by 2026, with total capacity rising to 538 MW. The company is planning to increase its dependence on refuse-derived fuel and solar energy for generating power. It is also preparing to construct a THB 1.8 Bn (USD 51 Mn) waste-fired project in the province of Songkhla. The 7.92 MW unit is scheduled to begin operations in 2024.

 

List of Transactions - Thailand Q2 2023

Source: Inframation, YOG INFRA analysis

 

ABOUT YOG INFRA

Our objective is to drive economic growth and make positive social impact through sustainable infrastructure development.

​YOG INFRA is an infrastructure focused financial advisory firm. We work with Developers and Development Finance Institutions (DFIs) and help them make informed investment decisions across infrastructure development lifecycle.

With our offices in Singapore, India and UAE, we work on projects globally, and the team brings strong experience in supporting development of infrastructure projects.


For more information about us, our service offerings and team, please visit www.yoginfra.com Contact us at info@yoginfra.com


©2023 YOG INFRA. All rights reserved.

62 views0 comments
Post: Blog2_Post
bottom of page