[PPT] - Thailand Stock Market Roadshow Thailand Stock Market Roadshow PowerPoint Presentation

SLIDE 1

Thailand Stock Market Roadshow Thailand Stock Market Roadshow Thailand Stock Market Roadshow Thailand Stock Market Roadshow January January 21 21-25 25, , 2003 2003

SLIDE 2

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SLIDE 3

Agenda Agenda Agenda Agenda

RATCH Overview

RATCH Overview

Power Industry

Power Industry

Benefits of Interest Reduction

Benefits of Interest Reduction

Operating Performance

Operating Performance

Operating Performance

Operating Performance

Investment Consideration

Investment Consideration

Investment Consideration

Investment Consideration

Appendix

Appendix

Appendix

Appendix

SLIDE 4

RATCH Overview RATCH Overview RATCH Overview RATCH Overview

SLIDE 5

The Company The Company

Ownership Structure Ownership Structure

5

Ownership Structure Ownership Structure

RATCH has been set up as a holding

EGAT 45% Public 34.05%

RATCH has been set up as a holding

company with the primary objective

f seeking investments in attractive

power generating assets in order to

EGAT EGAT Provident Fund GSB* 45% Public 34.05% Banpu Group

power generating assets in order to enhance shareholders’ value.

Ratchaburi

Electricity Generating

14.99% Fund 3.34% 2.62%

Ratchaburi

Electricity Generating Company Limited (“RATCHGEN”) is a project company which will acquire Ratchaburi power plant from EGAT.

RATCH

100%

Ratchaburi power plant from EGAT.

RATCHGEN’s main objective is to
perate the power plant to maximize

RATCHGEN

100%

perate the power plant to maximize

its full potential.

EGAT will hold a significant stake in
EGAT will hold a significant stake in

RATCH.

*GSB = Government Saving Bank *GSB = Government Saving Bank

SLIDE 6

The Company The Company

Top Ten Largest Shareholders Top Ten Largest Shareholders

6

Top Ten Largest Shareholders Top Ten Largest Shareholders

The Company’s top ten largest shareholders as at April 2,2002. The Company’s top ten largest shareholders as at April 2,2002.

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Source: Thailand Securities Deposition Company Limited

SLIDE 7

RATCHGEN PROJECT RATCHGEN PROJECT

7

RATCHGEN PROJECT RATCHGEN PROJECT

Generating Capacity Comparison of RATCHGEN and Country’s Generating Capacity Comparison of RATCHGEN and Country’s Generating Capacity Comparison of RATCHGEN and Country’s Generating Capacity Comparison of RATCHGEN and Country’s

Capacity (MW)

12.38%

14.61 %

7.17 %

12.38%

Electricity Generating Electricity Generating Capacity Capacity 3,645 645 MW. MW.

TH

Unit 1 735 MW.

Oct-00 Apr-02 Nov-02

Transferring of TH & CC Power Plants

Transferring of TH & CC Power Plants

TH

Unit 1 735 MW.

TH

Unit 2 735 MW.

CCGT Block 1

725 MW.

CCGT Block 2

725 MW.

Transferring of TH & CC Power Plants Transferring of TH & CC Power Plants

Source: EGAT PDP Source: EGAT PDP 2001 2001

CCGT Block 2

725 MW.

CCGT Block 3

725 MW.

SLIDE 8

Appendix: Appendix:

Mini Mini Hydro Projects Hydro Projects

8

Mini Mini Hydro Projects Hydro Projects

Project Contract Structure

*

RATCH RE EGAT EGAT

OMA PPA

RE EGAT

Hydro Operating Unit

EGAT

Power Purchaser PPA

Mini Hydro Projects

All commercial contracts i.e. Power Purchase Agreements (PPAs) and Operation and

Maintenance Agreement (OMA) have been structured to mitigate project risk

25 years non-firm SPP with tariff structure at Baht 1.68 per unit plus incentive of Baht 0.20

per unit from Energy Conservation Fund for the next 5 years per unit from Energy Conservation Fund for the next 5 years

SLIDE 9

RATCH Overview: RATCH Overview:

Power Purchase Agreement Power Purchase Agreement

9

Power Purchase Agreement Power Purchase Agreement

Thermal Units and Combined Cycle

Units have separate year PPAs.

PPA Tariff Structure

Units have separate year PPAs.

Tariff is designed to cover all operating

and financing costs and yield an equity

Fixed O&M Costs FX/ Inflation Adjustments

and financing costs and yield an equity IRR of 6

Revenues are from Availability

Payments (“AP”) and Energy Payments

Availability Payment Availability Factor Debt Services Adjustments Interest Indexation Return on Equity

Payments (“AP”) and Energy Payments (“EP”).

AP (Baht/MW/month) - includes fixed

Availability Factor Return on Equity

RATCHGEN EGAT

AP (Baht/MW/month) - includes fixed
peration and maintenance expenses,

debt servicing, and return on equity.

AP ispayable irrespective of whether

Variable O&M Cost Fuel Cost Inflation Adjustments Efficiency Factor Energy Payment

AP ispayable irrespective of whether

electricity is dispatched or not as long as plants are available

Source : RATCHGEN

Fuel Cost Efficiency Factor

EP (Baht/MWh) - includes fuel costs

and variable operation and maintenance costs with inflation indexation and pass through mechanism.

Source : RATCHGEN

through mechanism.

SLIDE 10

RATCH Overview: RATCH Overview:

Debt Structure Debt Structure Debt Structure Debt Structure

Largest ever Baht project financing

transaction in Thailand and one of the transaction in Thailand and one of the largest in Asia.

Debt structure divided into:

Tranche A

Lead Arrangers

Tranche A Term loan of Baht ,million Tranche B Working capital facility of Baht ,

Tranche A Baht 42,500 MM. Tranche A1 - Baht 18,475 MM

Working capital facility of Baht , million

The tenor of Tranche A and Tranche B is

approximately 3 years.

Tranche A2 – Baht 18,716 MMl Tranche A3 –Baht 5,309 MM

approximately 3 years.

The interest rate of Tranche A is the

Minimum Lending Rate (“MLR”) and for Tranche B is the Minimum Overdraft

Tranche B Baht 1,500 MM

Tranche B is the Minimum Overdraft Rate (“MOR”).

Foreign currency risk mitigated as all

debt financing has been arranged in Baht.

21 August 9 Oct 2000 Loan 31 Oct 2000 1st 18 April 2002 2nd 1 Nov 2002 3rd

debt financing has been arranged in Baht.

Interest rate risk mitigated as it is passed

through the tariff.

21 August 2000 Term sheet signed Loan docu ment s sign ed 1st debt draw dow n 2nd debt draw dow n 3rd debt draw dow n

Source : RATCHGEN

ed

SLIDE 11

RATCH Overview: RATCH Overview:

Operation and Maintenance Operation and Maintenance

11

Operation and Maintenance Operation and Maintenance

EGAT will operate and maintain

RATCHGEN under the Operation and Maintenance (OMA).

Maintenance Schedule

The OMA will expire in year 2010,
ne year from the completion of the

first major maintenance of the last Combined Cycle Block transferred.

Thermal Generating Units

No. of days

Once every Warranty Inspection - normal 40

Minor Inspection

40 3 years Major Overhaul 57 6 years

Combined Cycle Block transferred.

Extended by mutual agreement

between RATCHGEN and EGAT.

Combined Cycle Generating Units

No. of days

Once every Gas Turbines GT Warranty Inspection - normal 26

GT Combustion Inspection

15 1.5 years

between RATCHGEN and EGAT.

Scope of work covers routine
peration and maintenance, provision

GT Combustion Inspection 15 1.5 years GT Minor Inspection 30 6 years GT Major Overhaul 52 6 years Steam Turbines ST Warranty Inspection - normal 26

peration and maintenance, provision
f major maintenance services and

additional repair services.

Source : RATCHGEN

ST Warranty Inspection - normal 26

ST Minor Inspection

26 3 years ST Major Overhaul 49 6 years

EGAT personnel experienced in

commissioning and operating Combined Cycle and Thermal Power Plants.

Source : RATCHGEN

Plants.

SLIDE 12

The Power Plant : The Power Plant :

Facilities Description Facilities Description

12

Facilities Description Facilities Description

Located on -....acres of land in
Located on -....acres of land in

Ratchaburi Province, -KM from Bangkok, .KM from Ampur Muang . Ratchaburi, and KM from Mae Klong river.

RATCHGEN’s total generating capacity

is ,(MW. With combined capacity of 1,470 MWfor two thermal units and 1,470 MWfor two thermal units and three Combined Cycle Units of 2,175 MW, RATCHGEN is Thailand's largest and most advance private power producer in Thailand

The existing facility can support future
The existing facility can support future

expansion of upto MW.

SLIDE 13

Power Plant & Facilities Power Plant & Facilities

Thermal Power Plant Thermal Power Plant

13

Thermal Power Plant Thermal Power Plant

Generator Transmission Line Transformer Steam Turbine Transformer Stack Heat Exchanger Condenser Fan Condenser Dearator Flue Gas Desulferization

FGD

Fan Boiler Economizer Cooling Tower Dearator Economizer

Reservoir

Water Treatment Plant

Reservoir

Water Treatment Plant

SLIDE 14

Power Plant & Facilities Power Plant & Facilities

Combined Cycle Power Plant Combined Cycle Power Plant

14

Combined Cycle Power Plant Combined Cycle Power Plant

Steam Generator Heat Recovery Steam Generator (HRSG) Transmission Line Gas Turbine Steam Generator Dearator Natural Gas Inlet Value Generator Condenser Transmission Line Generator Transformer Stack Condenser Transformer Generator Cooling Tower Stack Natural Gas Inlet Value Gas Turbine Water Pump Transmission Line Gas Turbine Stack Water Treatment Plant Transformer Generator

Reservoir

Heat Recovery Steam Generator (HRSG) Generator (HRSG)

SLIDE 15

RATCH Overview: RATCH Overview:

Gas Sales Agreement (“GSA”) Gas Sales Agreement (“GSA”)

15

Gas Sales Agreement (“GSA”) Gas Sales Agreement (“GSA”)

Natural gas supplied by PTT will be

sourced from gas fields in Myanmar.

Gas Pipeline System

sourced from gas fields in Myanmar.

Aggregate proven reserves of .trillion

cubic feet exceeds gas consumption over cubic feet exceeds gas consumption over PPA term.

Terms of the GSA will be requirement-
Terms of the GSA will be requirement-

based with PTT subject to reasonable endeavors obligation.

EGAT will be responsible for minimum

take-or-pay obligation with PTT under Ratchaburi Master Gas Sales Agreement (“RMGSA”). (“RMGSA”).

EGAT is obligated to make Availability

Payments to RATCHGEN regardless of Payments to RATCHGEN regardless of availability of fuel

SLIDE 16

Power Industry Power Industry Power Industry Power Industry

SLIDE 17

Power Industry: Power Industry:

Forecast of Peak Generating in Thailand Forecast of Peak Generating in Thailand

17

Forecast of Peak Generating in Thailand Forecast of Peak Generating in Thailand

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Source: Thailand Load Forecasting Sub-committee,

Source: Thailand Load Forecasting Sub-committee, Energy Planning and Policy Office (EPPO)

SLIDE 18

Power Industry: Power Industry:

Average Annual Expansion of Power Demand Average Annual Expansion of Power Demand

18

Average Annual Expansion of Power Demand Average Annual Expansion of Power Demand

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Source: Thailand Load Forecasting Sub-committee,
Source: Thailand Load Forecasting Sub-committee,

Energy Planning and Policy Office (EPPO), Aug 2002

SLIDE 19

Current Power Industry: Current Power Industry:

Monthly Peak & Energy Generation Monthly Peak & Energy Generation

19

Monthly Peak & Energy Generation Monthly Peak & Energy Generation

Peak Generation

MW

Peak Generation

15,500 16,000 16,500 17,000 15,500 16,000 16,500 17,000 5.1% 4.5% 9.8% 3.4% 7.3% 7.7% 6.5% 5.4% 3.7% 10.1% 7.6% 8.3%

Highest demand, so far, was
n April 4th with 16,681MW

with 3.44% increase yoy

13,000 13,500 14,000 14,500 15,000 13,000 13,500 14,000 14,500 15,000 5.1% 3.3% 4.1% 2.4%

with 3.44% increase yoy

13,000 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Month 13,000 2002 2003 2001

Average monthly energy

generation growth in the fiscal year* is 5.07%

Energy Generation

10,000 10,500 GWh 10,000 10,500 8.5% 4.4% 6.2% 6.6% 8.6% 5.9% 5.6% 8.2%

year* is 5.07%

Average yearly energy

generation growth in the fiscal year is 5.67%

8,000 8,500 9,000 9,500 8,000 8,500 9,000 9,500 3.9% 3.2% 1.4% 3.2% 1.7% 4.4% 6.6% 5.6% 13.6% 8.2% 13.0%

Source :EGAT , Energy Generation Monthly Report Source :EGAT , Energy Generation Monthly Report

year is 5.67%

* Thailand Government Fiscal year October * Thailand Government Fiscal year October-September September

7,500 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Month 7,500 2001 2003 2002

Source :EGAT , Energy Generation Monthly Report Source :EGAT , Energy Generation Monthly Report

SLIDE 20

Current Power Industry: Current Power Industry:

Energy Consumption Energy Consumption

20

Energy Consumption Energy Consumption

Energy Consumption for Energy Consumption for 2002 2002 compare with compare with 2003 2003

The Large, Medium and Small

General Service comprising over 70%

Sale Increase GWh Weight (%) GWh Weight (%) (%) Residential 7,422 20.98 7,918 21.22 6.67 Customer Category 2002 2003 (Forcast)

General Service comprising over 70%

f total electricity consumption.
The average growth for all customer

Residential 7,422 20.98 7,918 21.22 6.67 < 150 kWh per month 453 1.28 464 1.24 2.57 > 150 kWh per month 6,970 19.71 7,453 19.97 6.94

category in 2003 is 5.51% and residential is the most potential in demand growth.

> 150 kWh per month 6,970 19.71 7,453 19.97 6.94 Small General Services 4,870 13.77 5,141 13.78 5.57 Medium General Services 8,078 22.84 8,440 22.62 4.48

demand growth.

The Large Medium and Small General

service growth are 5.8% , 4.48% and 5.57% respectively, indicate the

Services 8,078 22.84 8,440 22.62 4.48 Large General Services 12,092 34.19 12,793 34.28 5.80 Specific Business Services 1,601 4.53 1,676 4.49 4.67

5.57% respectively, indicate the growth for Thailand's industrial sector in year 2003

Services Government Institutions 1,146 3.24 1,183 3.17 3.19 Street Lighting 161 0.45 169 0.45 4.82 Total 35,371 100 37,319 100 5.51

Source: PEA 2002

SLIDE 21

Current Power Industry: Current Power Industry:

Tariff Structure Tariff Structure

21

Tariff Structure Tariff Structure

The existing average retail tariff is about

4.05% higher than the marginal cost

Difference Average Tariff (Baht/kWh)

4.05% higher than the marginal cost based retail tariff.

There is significant subsidization for the

Difference Marginal Cost Based Existing Tariff (%) Residential

2.31 2.28 1.32

Customer Category Average Tariff (Baht/kWh)

There is significant subsidization for the

agricultural pumping customers.

The overall residential tariff reflects the

marginal costs; however, the application

Residential

2.31 2.28 1.32

Small General Services

2.47 2.77

10.83

Medium General Services

1.94 2.30

15.65

marginal costs; however, the application

f the progressive block rates has

resulted in cross-subsidization within the category itself. Large residential

Services

1.94 2.30

15.65

Large General Services

1.90 2.00

5.00

Specific Business Services

1.78 2.00

11.00

category itself. Large residential customers have to subsidize small residential customers.

Services

1.78 2.00

11.00

Government Institutions

2.31 2.27 1.76

Agricultural Pumping

2.37 1.80 31.67

Moreover, customers under the small

/medium general services and specific business services will pay for electricity

Agricultural Pumping Service

2.37 1.80 31.67

Street Lighting

1.83 0.00

Total

2.11 2.20

4.05

business services will pay for electricity in excess of the marginal costs.

Total

2.11 2.20

4.05

Source: EPPO, February 2001

SLIDE 22

Current Power Industry: Current Power Industry:

Comparison of neighboring tariffs Comparison of neighboring tariffs

22

Comparison of neighboring tariffs Comparison of neighboring tariffs

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Thai tariffs are the lowest among the neighboring countries in almost all categories. Exceptional

Source : EGAT Source : EGAT

Thai tariffs are the lowest among the neighboring countries in almost all categories. Exceptional

is in industrial classification.

Average tariff is 2.45 Baht per unit for combined categories

Note: 1)2001 figure (Oct 2000 – Sept 2001) 1)2001 figure (Oct 2000 – Sept 2001) 2) Tariffs excluded VAT 3) Average Baht 44.33/ US$

SLIDE 23

Benefits of Interest Benefits of Interest Benefits of Interest Benefits of Interest Reduction Reduction Reduction Reduction

SLIDE 24

Benefit of Interest Reduction: Benefit of Interest Reduction:

Interest Saving Interest Saving

24

Interest Saving Interest Saving 5%

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5%

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* Average MLR of KTB,

SCB, BBL and BAY

The amendment on loan agreements

!
SCB, BBL and BAY

Interest rate reduction are as follows: -

1. MLR* - 1.50% for period of the first three years (from July 1, 2002 to June 30, 2005.)
2. MLR - 1.125% for period of the next three years (from July 1, 2005 to June 30, 2008.)
2. MLR - 1.125% for period of the next three years (from July 1, 2005 to June 30, 2008.)
3. MLR flat for the remaining period(starting from July 1,2008.)

The total saving is around Baht 2,734 million In conjunction, the prepayment fee will be 3%,2%and 1% pertinent to such periods In conjunction, the prepayment fee will be 3%,2%and 1% pertinent to such periods

SLIDE 25

Operating Performance Operating Performance Operating Performance Operating Performance (Unaudited) (Unaudited) (Unaudited) (Unaudited)

SLIDE 26

Operating Performance Operating Performance 2001 2001&2002 2002

26

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SLIDE 27

Operating Performance Operating Performance – 2002 2002

27

Operating Performance Operating Performance – 2002 2002

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SLIDE 28

Investment Consideration Investment Consideration Investment Consideration Investment Consideration

SLIDE 29

Why RATCH ? Why RATCH ?

29

Why RATCH ? Why RATCH ?

Dominant Player

RATCH is the largest private power producer in Thailand. Its forefront

position and financial strength will serve as a solid platform for further

Dominant Player

position and financial strength will serve as a solid platform for further business expansions.

Strong expansion economics with:

– Average EBITDA of approximately 9 billion Baht per annum during the next ten years. – Excess cash after dividend at RATCH (payout ratio of 40% and net

f debt reserve accounts) retention will be served for business

expansion – Competitive advantage for future expansion potential with minimal investment cost estimated at around US$ 500,000/ MW. investment cost estimated at around US$ 500,000/ MW.

SLIDE 30

Why RATCH ? Why RATCH ?

30

Why RATCH ? Why RATCH ?

Solid Industry Growth

Electricity consumption still grow at a solid pace; country need new capacity in the near
Electricity consumption still grow at a solid pace; country need new capacity in the near

future

Strong Earnings Growth

Strong earnings growth from the 25 years well structured PPAs.

SLIDE 31

Why RATCH ? Why RATCH ?

31

Why RATCH ? Why RATCH ?

– Minimal earning swings from change in foreign exchange rate as Low Risk – Minimal earning swings from change in foreign exchange rate as total financing will be in Thai Baht. – No Minimum-Take-Or-Pay risk on natural gas purchases from – No Minimum-Take-Or-Pay risk on natural gas purchases from PTT. – Availability Payments will be received irrespective of whether – Availability Payments will be received irrespective of whether electricity is dispatched or any fuel supply disruptions. – Protected from impact of change in law and Grid Code via the – Protected from impact of change in law and Grid Code via the ability to pass through cost increases above certain thresholds. – Minimum DSCR of 1.2x and average DSCR of 1.7x over the life – Minimum DSCR of 1.2x and average DSCR of 1.7x over the life

f all outstanding debt.

SLIDE 32

Awards in Awards in 2002 2002 Awards in Awards in 2002 2002

SLIDE 33

Awards in Awards in 2002 2002 :

Good Corporate Governance Good Corporate Governance

33

Good Corporate Governance Good Corporate Governance

RATCH ranked the 3rd in

Asiamoney corporate governance poll for utilities sector in Asia poll for utilities sector in Asia

Source : Asiamoney October Source : Asiamoney October 2002 2002

SLIDE 34

Awards in Awards in 2002 2002 :

Good Corporate Governance Good Corporate Governance

34

Good Corporate Governance Good Corporate Governance

Award Title : Disclosure Award Award details : Disclosure of Form 56-1 (Particular on Risk Factors and Nature of Business) Organizer : The Office of the Securities Organizer : The Office of the Securities and Exchange Commission Commission Date : 5th November 2002

SLIDE 35

Awards in Awards in 2002 2002 :

Environmental and Social Responsibilities Environmental and Social Responsibilities

35

Environmental and Social Responsibilities Environmental and Social Responsibilities

Award Title : Excellent quality Award on Nationwide basis Nationwide basis Award details : Excellent maintenance of Navaratchaburirom Park Navaratchaburirom Park (a recreational center located in front of the power plant built and maintained by Ratchburi and maintained by Ratchburi Generating Co.) Organizer : Ministry of Public Health Date Organizer : Ministry of Public Health Date 31st October 2002

SLIDE 36

Appendix Appendix Appendix Appendix

SLIDE 37

Appendix: Appendix:

Thai Electricity Market Structure Thai Electricity Market Structure - Current Structure Current Structure

37

Thai Electricity Market Structure Thai Electricity Market Structure - Current Structure Current Structure

Key Features of current structure

SPPs EGAT IPPs RATCH EGCO

Currently, the private sector has only a limited

role ( generation only).

EGAT has a market monopoly at the wholesale

SPPs EGAT IPPs EGCO

Power Purchase
EGAT has a market monopoly at the wholesale

level, supplying electricity to PEA, MEA and some direct customers.

There are few incentives for private power

Government EGAT

Power Purchase
System Operation
Transmission
Bulk Power Supply
There are few incentives for private power

producers to improve efficiency due to lack of market competition (aside from when bidding for the PPA with EGAT).

PEA MEA Direct Customers

the PPA with EGAT).

As EGAT is responsible for long-term electricity

planning, new generating capacity must be

Customers Customers

planned and approved through/by EGAT.

PEA

and MEA are responsible for distribution/retail supply to most end users at the

EGAT: Electricity Generating Authority of Thailand Source: Electricity Supply Industry Reform and Thailand Power Pool, November 2000, modified by RATCH consultant

distribution/retail supply to most end users at the prices regulated by EPPO.

In some limited cases (mostly industrial users),

some end users are able to purchase electricity

EGAT: Electricity Generating Authority of Thailand PEA: Provincial Electricity Authority MEA: Metropolitan Electricity Authority SPP: Small Power Producer

some end users are able to purchase electricity either directly from EGAT or SPPs.

SPP: Small Power Producer IPP: Independent Power Producer EPPO: Energy Policy and Planning Office

SLIDE 38

Appendix: Appendix:

Thai Electricity Market Structure Thai Electricity Market Structure – New Electricity Supply Arrangement New Electricity Supply Arrangement

38

Thai Electricity Market Structure Thai Electricity Market Structure – New Electricity Supply Arrangement New Electricity Supply Arrangement

Hydro Plants GENCOs

G

Over the time of Power Pool operating, customer groups

Key Features of NESA structure

Hydro Plants Independent System Operator Forw GENCOs Bila Bila

GENCOs

and interest parties need for reform it to improve for more efficiency, economic and transparency in the

peration of pricing.

Independent System Operator

rward & Fina

Grid Company Spot Market ilateral Contrac ilateral Contrac

Bilateral Contract S C

NESA provide greater choice for market participants than

the Pool-based trading to purchase and trade electricity with more active demand-side participation in the

Supply Distribution

Direct Customers

nancial Marke REDCO ract ract

Supplier Direct Customer Trader

market, while maintaining the operation of a secure and reliable electricity system by the establishment of close to real time balancing arrangements.

Balanc Mechan

Supply

Direct Customers

Customers ket Retail Co.

The forward trading would lead to the emergence of

forward price curves that would better facilitate efficient new entry, by providing both generators and suppliers

ncing anism

Customers

Retailer

with clearer signals.

The

new balancing mechanism and settlement arrangements were designed to ensure the national grid

Source: Electricity Supply Industry Reform and Thailand Power Pool, November 2000

arrangements were designed to ensure the national grid company and independent system operator (ISO) was able to maintain short-term quality and security of supply

The Balancing Mechanism and the Settlement process

required new IT systems to be built and operated.

SLIDE 39

Appendix: Appendix:

Thai Electricity Market Structure Thai Electricity Market Structure - Third Party Access Third Party Access

39

Thai Electricity Market Structure Thai Electricity Market Structure - Third Party Access Third Party Access

Key features of third party access

Under a third party access system, EGAT would in
Under a third party access system, EGAT would in

most cases maintain its monopoly at the wholesale market level (central supplier).

SPPs GENCOs IPPs RATCH EGCO

“Third Party Access” regime would be introduced so

that generating companies could directly supply end users through the network of PEA, MEA or EGAT.

INDEPENDENT R EGAT

Power Purchase
System Operation
Transmission
Bulk Power Supply

users through the network of PEA, MEA or EGAT.

An Independent Regulator would be set up to regulate

transmission/distribution pricing and other standards.

T REGULATOR PEA MEA

transmission/distribution pricing and other standards.

EGAT’s power generating assets (i.e. Thermal,

Hydro, CCGTs, etc.) would be ring-fenced (and/or

Large Customers Small Customers Small Customers

Hydro, CCGTs, etc.) would be ring-fenced (and/or grouped) and operate as business units (profit centres).

Source: Electricity Supply Industry Reform and Thailand Power Pool, November 2000, modified by RATCH

EGAT would be structured as a holding company.

Grid Company and other subsidiaries would be separated out and incorporated as separate entities,

Power Pool, November 2000, modified by RATCH consultant

separated out and incorporated as separate entities, whist remaining under the EGAT holding company.

SLIDE 40

Appendix: Appendix:

Operation and Maintenance Schedule for Operation and Maintenance Schedule for 2003 2003

40

Operation and Maintenance Schedule for Operation and Maintenance Schedule for 2003 2003

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SLIDE 41

Appendix: Appendix:

Mini Mini Hydro Projects Hydro Projects

41

Mini Mini Hydro Projects Hydro Projects

Project Contract Structure

*

RATCH RE EGAT

Hydro Operating Unit

EGAT

Power Purchaser OMA PPA

Hydro Operating Unit

Power Purchaser

Mini Hydro Projects

All commercial contracts i.e. Power Purchase Agreements (PPAs) and Operation and

Maintenance Agreement (OMA) have been structured to mitigate project risk

25 years non-firm SPP with tariff structure at Baht 1.68 per unit plus incentive of Baht 0.20

per unit from Energy Conservation Fund for the next 5 years per unit from Energy Conservation Fund for the next 5 years

SLIDE 42

Appendix: Appendix:

Mini Hydropower Development Projects Mini Hydropower Development Projects

42

Mini Hydropower Development Projects Mini Hydropower Development Projects

Project Chao Phraya Pasak Cholasith Khlong Tha Dan Project Chao Phraya Pasak Cholasith Khlong Tha Dan

Installed Capacity (MW ) 12 6 10 Type of PPA Nonfirm Nonfirm Non-firm Term of PPA (yrs) 25 25 25 Term of PPA (yrs) 25 25 25 Location (Province) Chainat Lopburi Nakorn Nayok Energy Generation (GWh/ yr) 6052 3181 2799 Use in Station Service and RID (GWh yr) 054 054 54 Energy Sale (GWh yr) 5998 31. 2745 Project Cost (Million Baht ) 65787 32404 27850 Project Cost (Million Baht ) 65787 32404 27850

SLIDE 43

Appendix: Appendix:

Future Projects Future Projects

43

Future Projects Future Projects

Biomass Projects*

Project Ayutthaya Suphanburi

All commercial contracts i.e. Power

Purchase Agreements (PPAs) and Husk Sell Agreement (HSA) have been

Project Ayutthaya Suphanburi

Installed Capacity (MW) 9.9 Type of PPA Firm Firm 9.9

Sell Agreement (HSA) have been structured to mitigate project risk. To ensure the supply of husk, rice mill will

Type of PPA Firm Firm Term of PPA (Yrs.) 21 21 Location (Province) Ayutthaya Suphanburi

be shareholder in each project

Tentative 21 years firm SPP with tariff

structure at Baht 2.30 per unit

Energy Generation 70 70 Use in Station Service 8 8 Energy Sale 62 62 (GWh/yr) (GWh/yr)

Biomass Projects

structure at Baht 2.30 per unit

*Under studying projects Energy Sale 62 62 Project Cost 520 520 (GWh/yr)

(Million Bath)

RATCH

*Under studying projects

NP Rice Mill EGAT

Power Purchaser PPA

Project 1,2,3..N

HSA

SLIDE 44