Dr. Poonpat Leesombatpiboon

Chief of International Energy Cooperation Division International Energy Cooperation Office,

Ministry of Energy, Thailand

Hosted by the Energy Regulatory Commission of Thailand (ERC)

Inter Continental Hotel, Bangkok 1 October 2015

LTMS – PIP A greater step to regional

Power Integration in ASEAN

Outlines:

Potential

Demand & Supply

Infrastructure Readiness

Market integration possibility existing

Status of LTMS

Background

Refer to the Lao PDR, Thailand, Malaysia, Singapore (LTMS) Power Integration Project (LTMS-PIP) was initiated during the Special Senior Official Meeting on Energy (SOME) convened on 9 – 11 December 2013 in Manado, Indonesia.

Consequently, in the ASEAN 32nd SOME and Its Associated Meetings under the Theme of Power Integration for ASEAN Prosperity held during 9 – 13 June 2014 in Luang Prabang, Lao PDR, the Meeting welcomed the initiation on the Energy Connectivity Project among Lao PDR, Thailand, Malaysia, and Singapore, which provides the framework for the cross border power trade from Lao PDR to Singapore via Thailand’s grid and Malaysia’s grid.

In addition, the 32nd AMEM during 21 – 23 September 2014 in Vientiane, Lao PDR, the Meeting stated the progress of the initiation by setting up the LTMS PIP Working Group to conduct the study and report to SOME.

THAILAND

Installed cap. = 37,612 MW Peak Demand = 26,942 MW

LAO PDR Installed cap. = 3,246 MW

Peak Demand = 899 MW

MALAYSIA (Peninsula)

Installed cap. = 21,060 MW Peak Demand = 16,901 MW

SINGAPORE Installed cap. = 13,182 MW Peak Demand = 6,880 MW

5

Voltage

Level

115 kV 1 5 6

230 kV 1 2 3

500 kV 2 2

Total 0 1 1 9 11

TotalEDC EVN CSG Thailand

Remarks:

115kV – Exchange

230kV – Purely Export

500kV – Purely Export

6

Existing Interconnection between Thailand and Lao PDR

115 kV Nong Khai (Thailand) – Vientian (Lao PDR)

115 kV Bueng Kan (Thailand) – Pakxan (Lao PDR)

115 kV Nakhon Phanom (Thailand) – Thakhek (Lao PDR)

115 kV Mukdahan 2 (Thailand) – Savannakhet (Lao PDR)

115 kV Sirindhorn (Thailand) – Bang Yo (Lao PDR)

7

Future Interconnection between Thailand and Lao PDR

500 kV Nan (Thailand) – Hong Sa (Lao PDR)

500 kV Udon Thani 3 (Thailand) – Nabong (Lao PDR)

500 kV Udon Ratchathani 3 (Thailand) – Pak Se (Lao PDR)

8

500 kV Main Grid (Existing)

500 kV Main Grid (Future)

9

1

TNB – EGAT

Interconnection

(Gurun - Khlong Ngae and Chuping - Sadao)

2

TNB – PGL

Interconnection

(Plentong-Senoko)

TNB-EGAT Interconnection

Gurun – Khlong Ngae 300kV HVDC Monopole Capacity of 300MW Mode of Operation: Power

Purchase

Chuping - Sadao 132kV HVAC Capacity of 80MW Mode of Operation: Energy

Transaction

1

Plentong-Senoko 275kV HVAC Capacity of 2x250MVA

(450MA) Mode of Operation: Energy

Exchange

2 TNB-PGL Interconnection

2 x 275kV 250MVA HVAC circuits, comprising of underground cable and overhead line

Bi-directional power flow

Interconnection is for mutual support between 2 systems during system disturbances.

Not meant for energy exchange during normal operation, Total Energy Exchange within calendar month is settled on a monthly basis by netting to zero.

The 1st Multilateral power trade in ASEAN

Size of Pilot project up to 100 MW

Representatives in LTMS-PIP Government

Electricity Utilities

Regulatory Commission

Mechanism LTMS WG (Working Group)

LTMS TTF (Technical Task Force)

Technical Viability (Malaysia)

Commercial Arrangement (Thailand)

Legal & Regulatory (Singapore)

Tax & Tariff Structure (Lao PDR)

Power Flow Control through interconnection:

Between Lao-Thailand: without power flow control (without ACE)

Between Thailand – Malaysia: controlled by pole control of HVDC

Between Malaysia – Singapore: AGC setting of Area Control Error (ACE)

Lao PDR

(L) Thailand

(T) Malaysia

(M) Singapore

(S)

115 kV HVAC 275 kV HVAC

450 MW 300 kV HVDC

300 MW

Note:

Lao-Thailand: TNL and PHT to NK, Paxan-BKN, Thakhek-NN, Pakbo-MD2, Bangyo-SRD all are 115 kV

Thailand – Malaysia: KNE-Gurun 300 kV 300 MW HVDC

Between Malaysia – Singapore: Plentong-Senoko 275 kV HVAC

TNL and PHT - NK

Paxan-BKN

Thakhek-NN

Pakbo-MD2

Bangyo-SRD

Plentong-Senoko KNE-Gurun

Agreements :

1. Lao PDR and Singapore Power Purchase Agreement (L-S PPA)

2. Thailand and Singapore Wheeling Charge Agreement (T-S WCA)

3. Malaysia and Singapore Wheeling Charge Agreement (M-S WCA)

Lao PDR

(L) Thailand

(T) Malaysia

(M) Singapore

(S)

L-S

PPA

M-S

WCA

T-S

WCA

Wheeling Charge Agreement (WCA)

Power Purchase Agreement (PPA)

Conceptual energy flow from Lao PDR to Singapore through Thailand Grid and Malaysia Grid Seller

Country Purchaser

Country

Transit

Country Transit

Country

Lao PDR

(L) Thailand

(T) Malaysia

(M) Singapore

(S)

Balancing Mechanism or Balancing Agreement

• To handle the energy difference, balancing mechanism is required.

• Due to performance of system control, an appropriate band for energy difference is

necessary and the energy difference which is not over the band may be treaded as energy

exchange between two countries.

• An extra charge (Balancing Charge) should apply on a period that the difference between

the scheduled energy and the exported energy (Δ1 for Seller Country), or the imported

energy and the exported energy (Δ2 and Δ3 for Transit Country) are exceed the band. In

addition, PPA between Seller and Purchaser should have the same balancing mechanism

to handle the difference between scheduled energy and imported energy (Δ4 for Purchaser

Country).

• Otherwise, all parties should have Balancing Agreement(s).

Δ2 x Balancing Charge Δ3 x Balancing Charge Δ1 x Balancing Charge Δ4 x Balancing Charge

Wheeling

Charge

Transmission

Charge Loss Charge

Balancing

Charge

Administration

Charge + + ±

• Cost per MWh for

difference energy between

imported energy from Laos

and exported energy from Thailand to Malaysia

• General costs including

scheduling, system control,

coordination services, and billing

• Cost per MWh of

transferred energy

• Estimated from simulated

losses from importing and

exporting 100 MW and

forecasted system marginal cost

• Cost of transmission system

usage, which is based on MW-Mile concept

TNB Wheeling Charge

Single Buyer Operations

System Operation and

Admin

Transmission Usage Charge

and Losses

Tax & Tariff

Balancing Charge

To recover the costs of billing, meter reading and administering of power purchase and power transfer contracts

To recover the costs of operating the power system and administering the safe and secure operation of the power system including but not limited to the cost of ancillary services

To recover the cost of transporting electricity through the power grid i.e. CAPEX, congestion cost, losses etc.

Applicable tax and tariff

Cost per MWh for difference energy between imported energy from Laos and exported energy from Thailand to Malaysia

(as proposed by EGAT, Thailand)

EGAT

Wheeling

Charge

Transmission

Charge Loss Charge

Balancing

Charge

Administration

Charge + + ±

Transmission Usage Charge and Losses Single Buyer Operations

System Operation and Admin

Balancing Charge

TNB

Import and Export TAX :

1. Import

• Import Duty • VAT

2. Export • Export Duty • VAT

Border

Thailand Foreign

Countries

Import : • Import Duty = 0% • VAT = 7%

Border

Thailand Foreign

Countries

Export : • Export Duty = 0% • VAT = 0%

- Lao PDR - Malaysia

- Lao PDR - Malaysia - Cambodia

Purchasing Price

=

Proposed Selling Price

Wheeling Charge

+ Others

Wheeling Charge

+ Others

+ +

Singapore

Lao PDR

Malaysia Thailand

Concept of Electricity Tariff “Preliminary”

Great hydropower potential from Lao PDR

A well established power pool market in Singapore

Reliable power transmission lines from

Lao PDR-Thailand, Thailand-Malaysia and Malaysia-Singapore

Existing Bilateral Power Purchase Agreement and experiences in cross – border power trade

Technical Expertise

Close Coordination among Governments, Public Utilities and Regulatory Commissions

Political Commitment

Sign MOU on LTMS – PIP by 4 Ministers

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