An obstacle for renewable power and ageing fossil fuel-fired power plants is presenting a new revenue channel for power companies, with SET...
An obstacle for renewable power and ageing fossil fuel-fired power plants is presenting a new revenue channel for power companies, with SET-listed power producer Ratch Group driving growth by selling "inertia" to a customer in Australia.
Inertia, provided by synchronous condenser technology, refers to the grid's ability to resist sudden changes in power frequency and maintain a stable electricity supply.
Through inertia sales, Ratch contributes inertia to the grid, enhancing grid stability and helping prevent blackouts, which is a growing concern as more solar and wind power are integrated to meet rising clean energy demand.
STUMBLING BLOCK
Like other countries, Australia is promoting the use of clean energy and finding ways to ease some of the downsides.
The sun and wind are intermittent sources of energy, unable to ensure a steady supply of electricity due to uncertain weather patterns.
"A more technical term is renewable energy lacks the moment of inertia," said Nitus Voraphonpiput, chief executive of Ratch, a power generation arm of Electricity Generating Authority of Thailand.
By converting part of its 25-year-old Townsville Power Station in Queensland to a synchronous condenser, the company contributes inertia to the grid system, helping power transmission operator Power Link provide a continuous supply of electricity.
"It's the first power plant in Australia repurposed to have a synchronous condenser," said Mr Nitus.
The plant continues to sell electricity, while selling inertia simultaneously to earn extra money.
Ratch spent A$32 million installing a synchronous condenser, which started operations on Aug 10, and it projects earnings of $6.8 million a year.
Under a new agreement signed with power company QPM Energy Ltd, Ratch can operate the Townsville Power Station for another 10 years after its original 25-year power purchase agreement with QPM expired on Feb 6 this year.
"I believe Thailand will have similar synchronous condensers in the future," he said, adding the US also converted old power plants to synchronous condensers.
Germany and Saudi Arabia are also utilising synchronous condensers, according to media reports.
Ratch has not planned to convert its ageing power plants in Thailand to synchronous condensers, as it is awaiting the right time when the downsides of renewable energy usage in the country become clearer, said Mr Nitus.
The Thai government is promoting renewable energy, which comprised 22% of all energy production in 2024. The country cannot avoid this stumbling block as it aims to be less dependent on fossil fuels in its campaign against climate change, he said.
"If the renewable power proportion exceeds 30% or 40%, then we will start devising a synchronous condenser plan," said Mr Nitus.
CASSETTE TAPE
Though grid operators can use a battery energy storage system (BESS) to deal with this obstacle, Ratch sees a business opportunity with synchronous condensers, which he compared to a cassette tape.
The company invests in many energy assets in Australia, and is developing new BESS projects. Ratch also is fond of synchronous condensers, which form part of the Australian government's grid security policy.
A synchronous condenser is not a new invention -- the technology is used in conventional power plants. Coal and gas-fired power plants as well as biomass-based power facilities are equipped with features to add inertia and control electricity voltage at appropriate levels.
"This is like a cassette tape that should have been discarded, but it was brought back into use again," said Mr Nitus.
A synchronous condenser's moment of inertia -- essentially its resistance to changes in motion -- helps to maintain the grid's electrical frequency when there is a sudden drop in power supply.
"It's like tossing a small stone onto the ground," said Sahachthorn Putthong, chief executive of Ratch-Australia Corporation, who threw a pebble in front of the company's synchronous condenser.
"The stone tries to maintain speed while moving, but it faces friction on the ground."
BESS can also prevent outages, offering functions to add inertia and maintain voltage levels, but it requires higher investment.
"A synchronous condenser can make use of our old assets," said Mr Nitus, adding that enhancing the value of ageing power plants is part of Ratch's business strategy.
The 234-megawatt Townsville Power Station uses both gas and steam turbines to generate electricity, supplying power to 33,106 households a year.
"The facility has now become a hybrid business, selling both electricity and inertia," he said.
SPRINGBOARD
Ratch is seeking new business ventures, including sustainable aviation fuel (SAF), other than its core businesses directed by Thailand's power development plan (PDP).
Authorities are drafting a new PDP with a greater focus on renewable energy, which could shape Ratch's business path over the long term, said Mr Nitus.
The company aims to increase its renewable energy proportion to 30% of total power generation capacity by 2030, up from 16% at present.
"However, the Thai PDP has been delayed for a while. If we wait for its completion, we will lose opportunities," he said.
Ratch needs new partners to give it a springboard to diversify from its power businesses and develop new revenue channels, said Mr Nitus.
SAF is a biofuel for aircraft, and Ratch wants to invest in this business abroad.
"Overseas investment is preferable because Thailand already has big players in the SAF business," he said.
Some 32% of Ratch's total revenue of 2.9 billion baht in the first half of this year came from foreign countries, while 68% was from domestic sources.
Provided by SyndiGate Media Inc. (Syndigate.info).
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