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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