Thailand’s TPIPP allocates 14 billion baht to phase out coal by 2026

Photo Courtesy of Facebook (Chamnarn Kaewkhon)

TPI Polene Power Plc (TPIPP), the leading waste-to-energy project developer and operator in Thailand, is set to continue its five-year capital expenditure plan of 14 billion baht. The plan, which began last year, aims to replace coal usage with renewable energy sources and increase the company’s power generation capacity.

TPIPP has earmarked 3 billion baht for projects focused on reducing coal imports and eliminating coal-fired power generation by 2026, according to Worawit Lerdbussarakam, the company’s vice president. In 2021, coal accounted for half of the total electricity generation of 440 megawatts. By 2024, coal usage is projected to decrease by 30% to 150MW of the new total capacity of 502MW.

Worawit Lerdbussarakam confirmed that all power plants would be coal-free by 2026, with the total power generation capacity increasing to 538MW. TPIPP aims to rely more on refuse-derived fuel, solar farms, and rooftop solar energy for power generation, aligning with the Thai government’s carbon dioxide reduction campaign.

TPIPP is also preparing to develop a waste-fired power plant in the southern province of Songkhla, costing 1.8 billion baht. The facility, with a planned capacity of 7.92MW, is set to begin operations in 2024. The company is currently awaiting the signing of a power purchase agreement with the Provincial Electricity Authority after winning the project in a recent auction, reported Bangkok Post.

Energy authorities have scheduled a new auction for four waste-to-energy projects, each with a capacity of 8MW, in July.

Despite the expiration of adder tariffs for two of its renewable power plants in January, leading to a drop in revenue, TPIPP anticipates improved financial performance in 2023 compared to last year. Pakkapol Leopairut, TPIPP’s executive vice president for accounting and finance, explained that the decline would be offset by higher fuel tariffs for power plants and increased electricity sales to TPI Polene Plc, TPIPP’s parent company.

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Alex Morgan

Alex is a 42-year-old former corporate executive and business consultant with a degree in business administration. Boasting over 15 years of experience working in various industries, including technology, finance, and marketing, Alex has acquired in-depth knowledge about business strategies, management principles, and market trends. In recent years, Alex has transitioned into writing business articles and providing expert commentary on business-related issues. Fluent in English and proficient in data analysis, Alex strives to deliver well-researched and insightful content to readers, combining practical experience with a keen analytical eye to offer valuable perspectives on the ever-evolving business landscape.