So why is EGCO a clear favourite for the current round of IPP competitive bidding in Thailand?

Thailand’s current IPP bidding is an exciting process for equipment suppliers of gas fired power plants. It boasts some ambitious developers and continues to represent the major growth market in South East Asia for combined cycle power stations. Vendors across the globe are waiting to find out who will be successful in what will ultimately be some of the most advanced in-class plants that Thailand has seen. Insiders believe that a big contender, well placed to win, is EGCO.

EGCO is one of the top two contestants in this bidding alongside Gulf JP. Both have major operations in Thailand, have major Japanese shareholders and as such, access to competitive financing packages from JBIC, but EGCO has a slight edge in terms of location. The company has faced a tough period with EGAT revealing that it was difficult to extend the contracts for the companies Rayong and Khanom plants or permit EGCO to build new plants, without EGCO competing in the IPP competitive bidding process, which subsequently they did.

The company has submitted two bids totalling 3.6GW, it is widely believed that EGCO is likely to win at least one project (1.8GW) at the Rayong site where the existing plant is scheduled to be retired in 2015. This is due to REGCO’s available infrastructure (such as transmission line) and proximity to an LNG terminal, which means a lower capex requirement for the new plant. It is also believed that regulators will view Rayong renewal as a low-risk option from permitting and environmental perspectives as compared to a greenfield development. It is noted similarity for the Khanom site in the south that will undoubtedly represent a location for a replacement plant, when the concession expires.