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Ninth Ministerial Conference on Subregional Cooperation
Eighth Ministerial Conference on Subregional Cooperation
Sixth Meeting of the Subregional Transport Forum
Fifth Meeting of the Subregional Transport Forum
Fourth Meeting of the Subregional Transport Forum
Seventh Meeting of the Subregional Electric Power Forum
Sixth Meeting of the Subregional Electric Power Forum
Fifth Meeting of the Subregional Electric Power Forum
Fifth Meeting of the Experts Group on Power Interconnection and Trade
Fourth Meeting of the Experts Group on Power Interconnection and Trade
Third Meeting of the Experts Group on Power Interconnection and Trade
>>Second Meeting of the Experts Group on Power Interconnection and Trade
Appendix 1
Appendix 2
Fifth Meeting of the Subregional Telecommunications Forum
Steering Committee Meeting for the Regional Technical Assistance on the Establishment of the Backbone Telecommunications Project for the Greater Mekong Subregion - Phase 1 (RETA 5915)
Fourth Meeting of the Subregional Telecommunications Forum
Sixth Meeting of the Working Group on Environment
Fifth Meeting of the Working Group on Environment
Fourth Meeting of the Working Group on Environment
Third Meeting of the Working Group on Human Resource Development
Second Meeting of the Working Group on Human Resource Development
Twelfth Meeting of the Subregional Working Group on Tourism
Eleventh Meeting of the Subregional Working Group on Tourism
Tenth Meeting of the Subregional Working Group on Tourism
Ninth Meeting of the Subregional Working Group on Tourism
Eighth Meeting of the Subregional Working Group on Tourism
Workshop on Customs Facilitation in the GMS
Meeting of the Ad Hoc Group on Customs Matters
Inception Meeting of Trade Facilitation Working Group
Third Meeting of the Subregional Investment Working Group
Inception Meeting of the GMS Business Forum (Core Group)
Second Meeting of the Subregional Investment Working Group
GMS Mid-Term Review cum Senior Officials Meeting
Workshop on the Preinvestment Study for the Greater Mekong Subregion: East-West Economic Corridor

Second Meeting of the Experts Group on Power Interconnection and Trade

Introduction

The Second Meeting of the Experts Group on Power Interconnection and Trade (EGP-2) was held in Bangkok, Thailand on 9-10 December 1998. The Meeting was hosted and organized by the National Energy Policy Office (NEPO) of the Government of Thailand, with the assistance of the Asian Development Bank (ADB). Mr. Koomchoak Biyaem, Assistant Governor - Policy and Planning, Electricity Generating Authority of Thailand (EGAT), delivered the opening remarks on behalf of NEPO, while Mr. James Rockett, Manager of ADB's Energy Division - West delivered the welcoming remarks on behalf of the Bank. The Meeting was chaired by Mr. James Rockett. The objectives of the Meeting were (a) to review the updates of the countries' transmission and generation master plans; (b) to review the existing planning criteria for generation and transmission systems; (c) to discuss preparation of a draft policy statement for regional power trade in the GMS; and (d) to develop a work plan to promote regional power trade. The Meeting agenda is in Appendix 1.

Participants included delegations from Cambodia, People's Republic of China (PRC), Lao People's Democratic Republic (Lao PDR), Thailand, and Viet Nam, as well as ADB staff. Representatives from the World Bank attended as observers. The delegation from Myanmar was not able to attend the meeting. The list of participants is in Appendix 2.

Opening Session

In his opening remarks, Mr. Koomchoak Biyaem, Assistant Governor, Policy and Planning, EGAT reported that during the First Meeting of the Experts Group held in Rose Garden, Nakorn Pathom, Thailand in June 1998, the delegates agreed to prepare the following for presentation at this meeting: (a) development of a master plan for each country; (b) updates of generation and transmission master plans; (c) preparation of planning and design criteria; (d) drafting of a policy statement by ADB; and (e) formulation of the work program for 1999-2000. On behalf of NEPO of the Government of Thailand, Mr. Biyaem expressed his appreciation to the ADB for its financial assistance to the experts group and power forum.

Mr. James Rockett welcomed the GMS country delegates and all other participants to the meeting. During the two days, he anticipated a very interesting discussion on each country's generation and transmission system planning criteria. He also looked forward to the agreements that will be reached in terms of a policy and action plan for regional power trade.

In his introductory remarks, the Chairman of the Experts Group, Mr. Prutichai Chonglertvanichkul, Assistant Director, System Planning Division - Transmission, EGAT welcomed the delegations and guests to the meeting. He expressed appreciation for the kind assistance and cooperation from the ADB, the World Bank, Experts Group members, and other agencies concerned. He reiterated the importance of the preparation of the generation and transmission plans, and the planning and design criteria. He recognized the benefits of power trade in the region which dates back to 1968. He enjoined the group to take the opportunity to study and plan the optimal regional integrated networks and then provide the most efficient and economical means of promoting regional power trade. Mr. Prutichai shared his honor as chairman of the Experts Group.

Country Presentations

A. Updates of Transmission and Generation Master Plans

The GMS countries each presented a paper that provides an update of their transmission and generation master plans. Myanmar sent a communication of its inability to attend the meeting. The highlights of the country-specific developments are presented below.

Cambodia

Mr. Ty Norin, Director of Corporate Planning and Projects, Electricité du Cambodge reported that electricity generation in Cambodia is likely to grow from 97MW and 522GWh in 1998 to 746MW and 2,634GWh in 2016. While majority of this growth will occur in Phnom Penh, significant growth is expected in other provincial towns. To meet this growing demand, a long-term transmission development plan has been formulated. The plan involves: (a) connection of all provincial towns to the integrated network creating access to the cheapest available energy resources and facilitating establishment of local distribution networks supplying provincial and rural areas; (b) connection of all identified major generation centres; (c) supporting diversity of energy resources (oil, gas, coal, hydro) and reducing reliance on imported fuels and a single importing source; and (d) supporting regional interconnections with a 500kV substation in the Stung Treng area collecting output from Cambodia's hydro resources and supporting interconnections with Thailand, Lao PDR, and Viet Nam. Initial priorities will be the development and rehabilitation of local generation and expansion of distribution systems of provincial towns.

High priority generation expansion projects include establishment of a generating plant in Phnom Penh, rehabilitation/construction of Kirirom and Prek Thnot hydro projects, and development of a 90MW gas turbine and 90 MWcombined cycle base load thermal generation plants in Sihanoukville. The proposed transmission system is proposed to be developed in four stages, with stage one covering 1998-2000, stage 2 from 2000-2005 (at an estimated cost of $125 million), stage 3 from 2005-2010 (estimated to cost $60 million), and stage 4 from 2010-2016 (estimated at $177 million).

In response to a query on the pricing of diesel, gas turbine, and combined cycle power plants, Mr. Ty Norin noted that Cambodia follows the fuel prices depending on the availability of electricity from 80 percent to 90 percent. Mr. Ty Norin reported that the country is faced with high tariffs for energy and capacity charges. He further reported that the recent strategy of the Ministry is to open the bidding process and let the market decide on the prices. With regard to the contracts of the IPPs, Mr. Ty Norin noted that the Ministry selects the best proposal depending on price and capacity.

Mr. Ty Norin also provided clarification on the question of a Vietnamese delegate regarding hydroelectric power development in Sambor. He reported that there were two proposals for power development in the area, the mainstream hydroelectric plant proposed by the Mekong River Commission but which is yet to be agreed on by the Mekong countries, and the 450MW run-of-river option. However, he emphasized that Sambor is not included in the least cost study for power development.

On the question of a delegate from the People's Republic of China on the ownership of power generation in Cambodia, Mr. Ty Norin reported that in 1994, the country has opened private sector participation in power development.

People's Republic of China

In his presentation, Mr. Pan Fu, Deputy Chief of Planning Department, Yunnan Electric Power Group Co., Ltd., discussed the following basic policies in developing the master plan of Yunnan's power industry: (a) fully utilize its natural resources; (b) accelerate hydropower development; (c) distribute thermal power plants; (d) construct a power grid; and (e) guarantee power utilization for economic development.

In accordance with these policies, Yunnan's hydropower development will focus on exploiting the Lancang River. However, in order to meet the entire province's and the whole China requirements, it may also be necessary to begin the development of the Jinsha River. Building large-sized mine mouth thermal power plants is another key element to meeting power demand. The construction and operation of 5 thermal power plants and 4 hydropower stations will ensure a balance between Yunnan's power demand and supply until 2010.

Yunnan's hydropower resources are concentrated in the western area, while thermal resources are in the eastern and northeastern areas. As such, the existing power sources in Yunnan's main grid are also distributed along those areas. Power demand, however, is concentrated in Kunming, including the Qujing and Yuxi areas. Thus, the main target of network construction is to accelerate development of the 220kV network, enlarge the covering area, and increase the capacity and load ratios. Along with power source development, it is also necessary to increase the capacity of the related transmission lines.

In response to a question on the demand for the expected large capacity of hydroelectric projects in PRC, Mr. Pan elaborated that the generated capacity, which connects to the Kunming center and the South China network is primarily for domestic consumption. Electricity export of Jinghong hydroelectric power project to Thailand is currently under consideration.

A member of the Vietnamese delegation expressed his interest in PRC's financing sources for hydroelectric projects. Mr. Pan reported that PRC may mobilize funds from various financing resources provided that technical study, financial and economic analyses show that the projects are feasible.

Mr. Enrique Crousillat, Senior Energy Economist from the World Bank, requested an elaboration on PRC's policy for private sector participation in power generation and transmission. Mr. Pan reported that PRC allows private sector to construct power plants but they are not allowed to install power networks.

Lao People’s Democratic Republic

Mr. Daovong Phonekeo, Manager of System Planning Department, Electricité du Laos discussed the present status of Lao PDR's energy sector. Total installed capacity is 427MW of which almost 97 percent is from hydropower, and the remaining 3 percent from diesel. Annual energy consumption is about 380GWh, or about 80kWh per capita, one of the lowest in Southeast Asia. As a country with a relatively low energy demand and large untapped hydropower potential (about 26,500MW), Lao PDR is expected to play a key role as a net exporter of energy in the GMS. With increasing bilateral ties in the region as a result of Lao PDR's ASEAN membership, cross-border cooperation in the power sector is increasing. Power trade began in 1971 and was initially limited to Thailand. In 1996, Lao PDR started importing electricity from the Vietnamese 35kV grid. The feasibility of connecting with Yunnan Province has also been studied and construction is expected to begin in 1999. Discussions with Electricité du Cambodge have been initiated as regards the possibility of exporting electricity to Cambodia.

The transmission and interconnection system development plan of Lao PDR relate to the following: (a) Nam Leuk hydropower project (transmission line to Nam Ngum 1 power station and to Pakxan); (b) transmission line expansion to the north of Vientiane (from Nam Leuk power station to Phonsavanh, from Thalat to Xanakham and from Xieng Ngeun to Xayaboury); (c) Savannakhet province (from Pakbo to Champhone); (d) northern provinces (interconnection with the Chinese grid of Yunnan to supply electric power to that area); and (e) transmission line closing the loop of the network in the Central-1 area (Xiengkhouang-Phoukhoun and Xayaboury-Parlay-Xanakham).

At the 500kV level, the first phase would be the Nam Theun 2 - Savannakhet - Roi Et D/C line to transmit the power from Nam Theun 2 HPP to the EGAT grid; the second phase would be the Nabong-Udon Thani 3 D/C line of which a feasibility study has been carried out; the third phase would be the Hongsa-Maemoh D/C line; and the last phase would be the interconnection with the Vietnamese power grid from the Se Kong Basin, south of Lao PDR.

The power generation development plan to 2010 estimates a generation capacity of 5,290MW and an annual energy output of 26,510GWh.

As a comment to the report, Mr. Rockett underscored the importance of looking at activities for cooperation with Lao PDR considering its location at the center of the GMS countries.

In response to a query by a Thai delegate on which hydroelectric projects have provisions for export to Viet Nam, Mr. Somboune Manolom, Deputy Director General, Department of Electricity responded that exports to Viet Nam are possible, one in the Northeast part of Vientiane and several others in the Southern part, which are for discussion with concerned parties.

On the question of interconnection between Lao PDR and Viet Nam, Mr. Somboune reported that there are some available studies by the Mekong River Commission and MITI. These studies also look into possible interconnections with other GMS countries.

Mr. Somboune also briefly presented the procedure being adopted by the Government of Lao PDR on bilateral arrangements in power interconnection after a PRC participant requested discussion on the matter. Mr. Somboune reported that Lao PDR has two types of power purchase agreements (PPA); the conventional one prepared with bilateral agencies, and those used with foreign investors. The former is normally used for government projects involving EdL and another agency. The latter is a complicated one involving many parties and is usually a long process. With regard to tariff structure, EdL adopts either a flat rate or a time of day scheme. To date, the IPP and BOT hydropower projects have a one part tariff structure. However, tariffs differ from one project to another depending on the return on investment factor. Regarding private sector participation, the Lao government does not allow them to own a national grid facility.

Thailand

Mr. Prutichai Chonglertvanichkul, Assistant Director, System Planning Division - Transmission of EGAT, presented an overview of Thailand's generation expansion plan. According to the revised Power Development Plan, installed capacity will increase by 21,320.8MW during the period 1999-2011, bringing total installed capacity at the end of fiscal year 2011 to 39,672.9MW. The development plan includes 8 new power projects, 5 of which are already under construction. These are: (a) Lam Takhong Pumped Stage Project Units 1-4; (b) Ratchaburi Combined Cycle Power Plant Project Blocks 1-3; (c) Ratchaburi Therman Power Plant Project Units 1-4; (d) EGAT-TNB Stage II Interconnection Project; and (e) Krabi Thermal Power Plant Project Units 1-2. The other projects are: (a) Surat Thani Combined Cycle Power Plant Project Block 1; (b) Kirdharn Pumped Storage Project Units 1-3; (c) Thap Sakae Thermal Power Plant Project Units 1-2; and (d) IPPs and SPPs.

Apart from the transmission system associated with the power plant projects, EGAT plans to implement several transmission system expansion projects. So far, EGAT has implemented seven transmission system expansion projects; 2 are in progress; and one project is under preparation for implementation between 1999-2003.

A participant from PRC made a query on the elasticity factor of electricity to GDP and the date when Thailand would purchase power from PRC. In response, Mr. Prutichai explained that they have no figures on hand but informed that there would be a positive GDP growth in 1999. Regarding the power purchase, he noted that as per the MOU, Thailand would purchase power from PRC by the year 2017 but this may be considered during the current plan.

With the expected dominance of IPPs by 2011, Mr. B.M. Karunaratne, Senior Project Engineer, Energy Division - West of ADB requested clarification on whether EGAT would adopt a take or pay or a merit order approach. Mr. Prutichai explained that EGAT is still holding negotiations with IPPs on this matter.

Mr. Prutichai also provided information on the progress of the ASEAN grid and its implications on the GMS initiative when a delegation from Lao PDR posted the question. He discussed that the terms of reference of the ASEAN master plan are still under preparation and discussion by the heads of power utility authorities. He reported that there are ten projects being proposed under the ASEAN plan. With the proposed ASEAN interconnection, the GMS would form part of the ASEAN grid.

With the expected increased capacity in Thailand by the year 2001-2003, Mr. Enrique Crousillat, Senior Energy Economist from the World Bank noted the potential benefits to the regional market and asked whether Thailand has plans of making the power pool available in the market. In reply, Mr. Prutichai cited that Cambodia and Myanmar have expressed interest in purchasing power from Thailand. However, Cambodia and Myanmar still have to construct the transmission lines. In addition, Myanmar has concerns regarding their forest areas, which cover potential transmission routes. Mr. Rockett of ADB suggested that Thailand could sell power to Yunnan Province by building a HVDC transmission line but Mr. Prutichai noted that it would be very expensive to do that.

On the question of the delegation from PRC regarding the ownership of power plants, Mr. Prutichai reported that while EGAT used to own all the power plants, there are now two power plants owned by the private sector. In the future, with more IPPs, the private sector would be owning a higher share of power plants. The small power producers (SPPs) are also expected to own power plants. The IPPs, however, cannot build their own transmission lines but can connect to the Government's lines. The SPPs can build their own transmission lines but only within an industrial estate. Any outside connection should be made through the Provincial Electricity Authority (PEA).

Mr. Jean-Pierre Charpentier, Senior Energy Specialist from the World Bank questioned whether the neighboring countries would be allowed to buy and sell from the expected power pool. Mr. Prutichai explained that this would be allowed, and in fact the access to transmission lines and its pricing are currently under study.

The delegation from the PRC requested clarification on the interconnection between Malaysia and the percentage of IPPs in the year 2010. Mr. Prutichai emphasized that the existing interconnection between Malaysia and Thailand cannot operate in parallel due to technical problems. Upgrading the interconnection is being constructed. On the percentage of IPPs, Mr. Prutichai explained that about 43 percent of generated capacity is expected to be available for IPPs.

Viet Nam

In his presentation, Mr. Vu Van Thai, Deputy Director General, International Cooperation Department, Ministry of Industry, discussed the current status of Viet Nam's energy sector. Installed capacity is 4,817MW, of which about 4,440MW is available. About 64% of available capacity is from hydropower stations, 18% from diesel and gas turbines, and the rest from various other sources. In 1997, electricity production was 19,152GWh, a 13% increase from 1996. Over 64% of total production came from hydropower stations.

The update of Viet Nam's transmission and generation master plans indicated that electricity production has been targeted at 30 billion kWh by the end of year 2000. Due to the economic crisis, however, several projects have been delayed. Estimates of electricity production have now been downgraded by 2-3 billion kWh. The construction of transmission systems has also been affected by capital constraints and the delays in completion of the power stations. The 500kV power lines and substations scheduled for construction between 1996 and 2000 are as follows: 537km Pleicu - Phu Lam line; 2 x 42 + 22km Phu My - Nha Be - Phu Lam; 450MVA Ha Tinh step-down 500/220KV substation; and the 2 x 450MVA Nha Be/Cat Lai 500/220KV substation.

Mr. Rockett requested clarification on the difference between IPP and BOT projects in Viet Nam, and the level of prices that are normally received from the IPPs. Mr. Thai explained that private IPPs are permitted to develop power in specific zones (e.g., export processing zones and industrial zones) and supply power only within the area. Although the Government does not have any obligation to buy power from them, the Government has no objection if they send surplus power to EVN. For BOT projects, government responsibility includes, among others, power purchases, debt guarantees, connection to the national grid, and risk guarantee. EVN may also have equity in BOT companies. Price offered by the IPPs and BOT providers is about 6 cents on average.

On the question of the Lao delegation regarding the currency of payment for tariffs, Mr. Thai reported that while payments are made in Vietnamese Dong, the Government allows repatriation of hard currency to the developer to recover investment costs, pay debts or declared profits. The exchange rate used is the official rate used at the conversion not fixed but depends on project considerations at the discretion of the Government.

B. Planning and Design Criteria for Generation and Transmission

The GMS countries each presented a paper which describes the planning and design criteria for their generation and transmission activities. Mr. Rockett, Manager, Energy Division - West, ADB emphasized that while countries have generally similar criteria, countries should strike a balance between the reliability of supply and the investment costs associated with a stricter set of criteria. The highlights of the country-specific criteria are presented below.

Cambodia

Mr. Ty Norin, Director of Corporate Planning and Projects, presented the report for Cambodia. He noted that to support economic development in Cambodia, growing demand and customers' expectations of quality electricity supply, the designed power system must satisfy concerns on reliability, economic and financial constraints, affordability of produced product, safety, and environmental and social acceptability.

Mr. Ty Norin reported that the proposed set of planning and design criteria would influence power system development in Cambodia over the next 20 years. The objective of the planning and design criteria is to set basic principles of system performance and technical requirements, which will facilitate the establishment of the power system in Cambodia, and guide connections of new generators and loads. Performance requirements cover the main system characteristics such as frequency variations, power frequency voltage variations, voltage fluctuations, voltage harmonics, voltage unbalance and system stability.

For generation planning purposes, the deterministic criterion is used based on the loss of the two largest units wherein the firm capacity is defined as the difference between the total dependable capacity of thermal and hydro plants and the dependable capacity of the two largest generating units in the system. Alternatively, the reserve margin of 15 percent could be used for the initial development period.

A set of power grid development criteria is also being proposed for Cambodia in terms of grid voltages, regional compatibility, network security, system frequency, power frequency voltages, equipment ratings, fault levels, radial transmission system, transmission reliability target levels, standard sizes, grounding principles, tap changer, busbar layout, and reserve capacity requirements.

People's Republic of China

Mr. Pan Fu, Deputy Chief of Planning Department, Yunnan Electric Power Group Co., Ltd. discussed the six principles and regulations for power system planning and interconnection, planning and design in China as follows: (a) working out a power development plan for trial implementation; (b) regulation of content and depth of feasibility study of power system interconnection, also for trial implementation; (c) the principle of power system safety and stability; (d) the temporary regulation of power system transient problem calculation; (e) the regulation of power system; and (f) the regulation of voltage and reactive power in power system, also for trial implementation.

The first two of the principles and regulations are designed for power system development, planning and interconnection planning in scope, fundamental policy, contents and methodology. The last four regulations are designed for power system development, planning and interconnection in terms of technology such as the calculation of load flow, system stability and reactive power control.

Mr. Pan discussed the power source planning criteria. He reported that there should be a power balance of dry year and energy balance of normal year for the power system with hydropower. The reserve should be 20 percent of the system's maximum generation load, with load reserve equal to 2-5 percent of the system's maximum generation load. The emergency reserve is set at about 10 percent, not less than the unit capacity of the largest generating unit in the system. The maintained reserve is set at 8-15 percent of the maximum power generation load. Mr. Pan further reported the power grid planning criteria in terms of regional load requirements; voltage quality of a power network; the fault pattern; and the fault clearing time.

In interconnection planning, the criteria are consistent with the Regulation of content and depth of feasibility study of power interconnection, which was issued by the Ministry of Electric Power in 1998. The reliability criteria for generation planning would be worked out for generation planning next year.

Lao People's Democratic Republic

In his presentation, Mr. Daovong Phonekeo, Manager, System Planning Department, Electricité du Laos, noted that the Lao power system has established different sets of planning criteria under different conditions, namely, the pre-disturbance steady-state, the stable state, and the post-disturbance steady state. Under the pre-disturbance state, overloading is not permitted; the bus voltage and generator reactive capacity should be in the range of 0.95 p.u. - 1.05 p.u. and 0.9 leading to 0.85, respectively. In addition, there should be sufficient spinning reserve to cover the loss of the large unit in the system. Under a stable state, a temporary over voltage of 1.25 p.u. is allowed with the frequency remaining between 49 Hz. - 51 Hz. During a post-disturbance steady-state, continuous overloading is not permitted and the bus voltage should be in the range of 0.92 p.u. and 1.08 p.u. based on a 100 percent normal rating of transmission lines and transformers. The post-disturbance state does not include manual operation such as transformer tap changing and generation re-dispatch. The planning criteria require some flexibility due to the financing requirements to sustain the foregoing requirements.

Under normal contingencies, the Lao power system adopts the loss of the largest generating unit criteria for no fault loss. For single element outage, the criterion is a 3-phase fault for 4 cycles (80 ms) followed by a loss of a transmission element or a generator. Under extreme contingencies, the criterion for the loss of a bus-section is 10 cycle (200 ms) phase to ground fault followed by the loss of entire bus-sections. These are being adopted for system studies for Lao power system planning.

Thailand

Mr. Prutichai Chonglertvanichkul, Assistant Director, Systems Planning Division - Transmission, Electricity Generating Authority of Thailand (EGAT) presented the paper on Thailand. EGAT as the main producer of the country, has the responsibility to supply electricity with sufficient availability, high reliability and at reasonable cost. EGAT's power development plan is formulated with this mandate in mind. EGAT has two sets of generating planning criteria and assumptions, namely, the deterministic approach and probabilistic approach.

Under these approaches, the three criteria being adopted are the loss of the largest generating unit; the reserve margin; and the loss of load probability. The loss of the largest generating unit is based on a contingency principle that the generating capacity of the system must be sufficient to meet the annual peak load with one or two units out of service. The reserve margin, defined as the difference between total dependable capacity and the annual system peak load, was previously set at 15 percent but EGAT is now planning a minimum margin of 25 percent by the year 2001. The increased margin, however, has resource implications owing to the need to build more power plants to sustain the required capacity. The loss of load probability or LOLP, which uses the probability theory, is currently widely used. The LOLP for EGAT generation system should not exceed one day in a year. This has been considered the normal practice in most power utilities, which have the mixed hydro-thermal generation. A relationship that has been established using a computer software model is that the LOLP will be lower (i.e. the reliability level is higher) if the reserve margin is larger and vice versa. Based on the present reserve margin criterion of 25 percent, the LOLP will be approximately one day in a year.

In determining the peak capacity, EGAT uses the dependable capacity of the hydroelectric power plants defined as the unit output at the reservoir water levels equal to about 90 percent of the water level frequency base on the long term reservoir simulation, using historical record. EGAT also uses the dependable capacity of thermal plants, including gas turbine power plants as a criterion.

The transmission expansion program of Thailand is conducted based on the regional distribution of load growth, and generation development to optimally sustain performance and reliability level. For transmission system planning, EGAT adopts a two-step approach. The power system study approach identifies the requirements where various transmission alternatives are evaluated. The economic study would indicate the least cost plan among the technically feasible alternatives, and the rate of return study would verify the financial viability of the selected project. The transmission planning criteria for EGAT's power system analyses are adopted in terms of the steady state system voltage at any busbar, which should be in the range of 98-105 percent of the nominal voltage under normal conditions and 92-108 percent under contingency; the system design should operate satisfactorily under both conditions; the bulk power system should maintain its stability during and after the most severe contingencies; and the normal fault clearing time should be used.

Mr. Prutichai further reported that while EGAT currently adopts a deterministic set of criteria for transmission system, it is also preparing to use a probabilistic set of criteria. EGAT needs to build up its database in preparation of this shift. With the regional interconnection initiative, there is a need to determine and agree on a suitable and common set of criteria.

Further to the question of the PRC delegation, Mr. Prutichai reported that there has been no reliability analysis as yet on their interconnection with Lao PDR and Malaysia.

Mr. Rockett suggested that countries could look into a match between generation and transmission system criteria.

Mr. Prutichai noted that the generation criteria will mainly focus on the sufficiency of power supply to meet the increasing demand while the transmission system criteria will place emphasis on the quality of the power supply.

Viet Nam

In his presentation, Mr. Nguyen Van Chung, Engineer, Power Investigation and Design Company I noted that in Viet Nam, the planning and design criteria for the electric sector must be based on all general laws issued by the Government and Ministries. In the process of moving from a centrally planned to a market economy, the criteria is also being changed from one based on the Soviet Union's system to an international one, such as those being used by the G7 group.

Power Trade Strategy for the Greater Mekong Subregion

The World Bank representative distributed the report "Power Trade Strategy for the Greater Mekong Subregion". This report was presented and discussed among the GMS countries at the First Meeting of the EGP and Workshop on Power Trade (Thailand, June 1998). The report is presented as a resource tool for the EGP. It was agreed that the EPF will discuss and decide on the report's further dissemination.

Policy and Action Plan for Regional Power Trade

Mr. Prutichai Chonglertvanichkul, Assistant Director, System Planning Division -Transmission, EGAT, presented a proposed work program for the EGP which included topics such as a draft policy statement on regional power trade, a regional protocol, a master plan and design criteria for generation and transmission, draft TOR for further studies and work plan for EGP.

Mr. B. Karunaratne, Senior Project Engineer, ADB outlined the major issues and the elements of a proposed policy statement affecting regional power trade.

Mr. Jean-Pierre Charpentier, Senior Energy Specialist, World Bank, outlined possible topics for support of an action plan for regional power trade which complemented and supplemented those proposed by Mr. Prutichai.

Mr. James Rockett, Manager of Energy Division - West, ADB, after some discussions of the issues concerning a policy statement and action plan, outlined how a suitable policy statement and agreed work program should be prepared for further endorsement of the fifth EPF and the meeting of Ministers in 1999 and requested that a suitable work plan be prepared by a designated subcommittee as part of the output from the EGP meeting. Mr. Karunaratne of ADB then presented the meeting with an Action Plan for the Experts Group for the period 1999-2001. The work plan was endorsed and adopted by the meeting.

Other Matters

The Meeting agreed to hold the third meeting of the EGP in May 1999 in Bangkok, Thailand. It was also agreed that the fourth meeting of the EGP be held back-to-back with the sixth EPF meeting tentatively set in September 1998, the venue of which would be decided during the fifth EPF meeting on 11-12 December 1998.



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