Challenges (GRI 103-1)

Digital transformation is rapidly changing consumers’ daily life, behavior, consumption, as well as society.
Innovation has, therefore, become an important factor in driving business operations and ensuring the business’s adaptability to such changes and the turning tides of the world. Ultimately, CKPower believes that driving innovation will help us deliver high-quality products to our customers as well as reduce environmental impact throughout the supply chain.
Thus, innovation management presents both a challenge and an opportunity for CKPower to improve its competitiveness in the power plant industry and meet the needs and expectations of consumers while also taking into consideration the well-being of society, environment conservation, and the sustainable development of the organization.

Execution (GRI 103-2)

CKPower has established policies that focus on integrating innovation management as part of efficient resource management, such as development of engineering knowledge, personnel performance, utilization of advanced technology, and an environmentally friendly management system to mitigate the environmental and social effects of the power plant’s operations, as well as developing a cost management system that can increase the competitiveness of the organization and maximize returns for stakeholders. In addition, the Company actively and continuously promotes learning, development, and innovation through three-pronged guidelines on knowledge development for innovation as detailed below.

Guidelines for the Development of Knowledge in Innovation

Innovations and Performance in 2020 (GRI 103-3)

Six Innovation Programs Expenses reduced as a result of new innovations: approximately Baht 18,409,417.

Innovation and Diffusion of Innovation

With the determination to develop a model for eco-friendly hydroelectric power plants on the Mekong River, the Xayaburi Hydroelectric Power Plant features not only up-to-date technology but also innovative design and construction never before seen in the region, such as a multi-system fish passage. Furthermore, CKPower strives to support the dissemination of knowledge and experiences of success in various aspects to all sectors through activities like power plant facilities tours and seminars and lectures on the aforementioned innovations, along with consistently sharing knowledge on clean energy, renewable energy, and energy-saving innovations as well as energy efficiency guidelines. The Company is also committed to promoting and passing on knowledge of innovation among youths living in communities surrounding the plant, which in turn supports the achievement of the United Nations Sustainable Development Goal 4 (Quality Education) in a tangible way.

CKPower has undertaken a digital transformation in order to improve the readiness of its business operations by implementing “SAP S/4 HANA 1610 SP 2” to reduce the complexity of the work process for operators while increasing efficiency. Additionally, the Company has updated its internal work process to prepare for the organization’s future growth in accordance with the “Industry Framework,” an industry standard model for business processes, in order for the company to achieve its goal of implementing a digital transformation within the allotted timeframe and budget with full efficacy.

Manufacturing Innovations

Deactivation of Gas Compressors

Bangpa-in Cogeneration Power Plant 1 (BIC-1) currently has three gas compressors, two in use and one as backup, which serve to pressurize fuel gas, increasing pressure from 26 to 51 bars during peak periods and from 26 to 38 bars during off-peak periods, before being fed into the gas turbine. Inspection of gas compressor efficiency during off-peak periods revealed the occurrence of low fuel gas flow in the gas turbine, causing an amount of residual fuel gas to flow back through the recirculation control valve into the gas compressor for repressurization and resulting in energy loss. The result of this research, development, and experimentation project on the deactivation of gas compressor use during off-peak periods has thus enabled the Company to reduce its energy consumption in 2020 by about 396,253 units and the ensuing costs by as much as Baht 1 million. This innovation received recognition by Asian Power, a leading magazine in the Asian power industry, earning a silver medal in the Asian Power Awards 2020 in the category of gas-fired power plants and the top spot for the power plant with the most notable environmental upgrades of the year in Thailand.

Steam Turbine Load Adjustment Project

Due to reduced consumer demands for steam energy at Bangpa-in Power Plant 1, resulting in residual steam which is then discarded into the compressor and thus a large amount of energy wasted during the production process, the Company recognized the opportunity to channel this excess steam into the electricity production process and, consequently, initiated an engineering research project to reduce wastage by diverting excess steam into electricity production during periods of low steam energy usage. To this end, the Company has undertaken a project to increase the energy production capacity of the steam turbine to achieve a higher MW as well as the efficiency of the production process by enabling the steam turbine control system to utilize residual steam to successfully generate 1 MW of electricity.

As a result of this project, CKPower successfully reduced consumption of natural gases for power generation in 2020 by approximately 80,000 MMBTU, exceeding the goal of 28,700 MMBTU. The initiative saved natural gas expenses in 2020 by about Baht 17 million.

Deactivation of a Cooling Fan during Off-peak Periods

As there is less heat that needs to be dissipated during off peak periods, coupled with lower temperatures at night, there is no need for cooling towers to operate at maximum capacity. Thus, the company has begun to deactivate one cooling fan during 00.00-06:00 hrs. every day, which reduces electricity consumption by 200,000 kilowatt/hour annually or an equivalent of Baht 500,000 each year. In addition, the Company has shortened the working hours to slow wear and tear of the machine.

In 2020, this initiative educed electricity use during the production process by 118,202 kWh, thus achieving the established project goal of reducing energy consumption by at least 81,760 kWh and saving a calculated total of approximately Baht 200,417 in the cost of natural gases.

Moreover, CKPower has submitted this initiative to the Matterhorn Challenge, a program that promotes creativity and use of innovation by GPSC Group, and won a first runner-up award.

Air Dryer Initiative (BIC-2)

Bangpa-in Cogeneration Power Plant has instituted a policy to promote the reduction of energy use in order to help reduce the cost of electricity production, extend the life of machinery, and decrease ensuing maintenance costs. To this end, the power plant has implemented an initiative for the joint use of air dryers between BIC-1 and BIC-2 as well as reduced the number of air dryers in use at BIC-2 by one unit in order to reduce energy consumption by 1200 kWh during the production process.

Adjustment and Control of the Chloride Range in the Cooling Water of BIC1 to Reduce Effluent

Bangpa-in Cogeneration Power Plant 1 (BIC-1) has implemented the Adjustment and Control of the Chloride Range in the Cooling Water of BIC1 program to increase chloride concentration, as the amount of effluent released from the cooling tower depends on the coolant cycle of concentration, which is correlated with chloride concentration. Given this, the Company has undertaken to increase chloride concentration in order to reduce the amount of effluent produced by the cooling tower at Bangpa-in Cogeneration Power Plant 1. In 2020, BIC-1 was able to reduce its effluent by 80,000 cubic meters as well as save over Baht 3 million in operation costs, achieving its 2020 goal of reducing effluent by 30,000 cubic meters as well as setting a new target for 2021. This program safely reduces the use of water under the supervision of specialized personnel, thus demonstrating CKPower’s commitment to enhancing the efficiency of energy production alongside environmental conservation.

Reduction of Gas Compressor Lubricant Use

Bangpa-in Cogeneration Power Plant has undertaken the improvement of its machinery lubrication injection system to increase efficiency and match the actual consumption level, thus significantly reducing the amount of lubricant used and hazardous waste generated. In 2020, the power plant effectively reduced the amount of lubricant used and hazardous waste produced by approximately 7,200 liters per year, thus saving around Baht 209,000 per year in cost of lubrication and waste oil disposal.