BLCP was selected because of its low price of electricity, which is among the world’s lowest cost of electricity, and below EGAT’s costs to produce electricity. The cost per unit of electricity generated from a natural gas-fueled power plant is higher than when coal is used as fuel. This is due to the price of natural gas, which is affected by the movement of oil prices in the global market. At present, Thailand uses natural gas for up to 70% of its existing power production while coal used as fuel for only 19% of power production. The cost of fuel affects the price of electricity due to the price fluctuation value (Fuel Tariff, FT) which is calculated based on the average fuel price. Therefore, with higher use of low-cost fuel, power can be produced with a lower FT value so bringing down the price of electricity.
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