Thailand's First Demonstration Project of Optimized Performance Enabling Network for Volt/Var(Q) (OPENVQ) in Power Transmission Networks

- Aiming to reduce greenhouse gas emissions through more advanced
and efficient power system operations -

THAILAND, Jan 12, 2021 - (JCN Newswire) - Electricity demand in Thailand is growing as its economy develops, and the country is now faced with a challenge to reduce the loss of power in the transmission network (hereinafter called "power losses"). In addition, with the amount of fossil fuels, such as natural gas, also rising because electricity is generated mainly by thermal power plants in Thailand, the country needs to introduce renewable energy to create a power source mix that could mitigate environmental impacts.

Under these circumstances, there is a plan for terminating the operation of some thermal power plants partly due to facility deterioration in northeastern Thailand, the area in which the demonstration project will be carried out, after 2025. Then, the purchase of electricity from neighboring countries and construction of new power generation facilities, such as hydroelectric power plants and/or photovoltaics (PV), are being considered as alternatives. To realize electricity supply through such multiple generations, transmission facilities should be expanded and reinforced for increasing an available transfer capability. However, not much progress has been made in that plan because significant investments are required. Moreover, EGAT has been faced with a challenge of dealing with the difficulty of supplying electricity stably while reducing power losses because no technology for voltage optimization has been installed in the current transmission network with various power sources connected.

Against this background, NEDO and MOEN agreed to implement a demonstration project for the purpose of low carbonization and enhancements in power system operation, exchanging Letters of Intent for cooperation. In parallel, Hitachi, the consignee of the demonstration project(3) and Electricity Generating Authority of Thailand (EGAT), a state-owned electric power company that undertakes power generation and transmission in Thailand, concluded a Project Agreement.

Following the conclusion of these agreements, NEDO in collaboration with these partner companies started the demonstration project of the OPENVQ, an online-based optimal voltage/reactive power control system, in the power transmission system owned by EGAT in northeastern Thailand in December.

This demonstration project will install OPENVQ on EGAT's transmission network to reduce power losses through more advanced and more efficient operation of electric power systems, seeking to reduce greenhouse gas emissions. In parallel, it will seek the quantification of greenhouse gas emission reduction through the Joint Crediting Mechanism(4) (JCM).

(1) OPEX
Stands for operating expenses and refers to expenditures related to the operation of power transmission systems in this demonstration project.
(2) CAPEX
Stands for capital expenditures and refers to spending for physical assets such as transmission system facilities and control equipment in this demonstration project.
(3) Demonstration project
Project name: Program to Facilitate Private Sector-Led Promotion of Low-Carbon Technology Overseas / Program to Promote Market Creation Using Low-Carbon Technology / Low-Carbonized Operation of a Power Grid Utilizing Online Voltage-var (Q) Optimal Control "OPENVQ" with ICT (Thailand)
Project period: FY2020 - FY2022
(4) Joint Crediting Mechanism (JCM)
A scheme for reducing greenhouse gas emissions in cooperation with JCM partner developing countries, in which the result of reduction is allocated as contribution by both partner countries and Japan.

For full press release, visit http://www.hitachi.com/New/cnews/month/2021/01/210112.html.

Source: Hitachi, Ltd.

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