Ratch eyes new ‘inertia’ power sales opportunity in Australia

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.

- RANJANA WANGVIPULA

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.