TPCH looks abroad for biomass boost

MAI-listed biomass power operator TPC Power Holding Plc (TPCH) is considering an expansion of renewable power generation projects overseas after detecting a saturated market for biomass and biogas in Thailand.

In the latest version of the power development plan (2018-37), energy policymakers are emphasising solar power for renewable energy, while other sources will have no significant role in the country's power market.

Under the plan, renewable energy in Thailand will account for 20% of the total power mix by 2037. Of the renewable power sources, solar will account for 60%, mainly from solar rooftops, while the remainder will consist of wind, biomass and waste-to-energy.

Managing director Cherdsak Wattanavijitkul said the feed-in tariff for biomass means TPCH can no longer make a return on investment.

TPCH is talking to and preparing to sign agreements with local administrations in Myanmar and plans to form a joint venture with local partners to apply for a licence to generate power from biomass of 30 megawatts in that country.

"The development cost will stand at roughly 600 million baht, and the project is designed to be a hybrid power plant of biomass and biogas," Mr Cherdsak said. "The first phase will have capacity of 6MW, and the business model will be both generation operations and power distribution."

He said more details of the project will be publicly available by the end of the year after the deal is completed.

Last year, TPCH had wanted to expand its business presence in Cambodia, but the policy direction of that country was unclear, so TPCH put off the plan.

At home, Mr Cherdsak said potential power generation for TPCH will involve acquiring existing power projects in other forms of renewable energy.

A waste-to-energy power project is under development, but it faces complicated processes for licence granting and approvals because there are three related ministries and many laws to comply with.

Moreover, TPCH is in talks with other waste-to-energy licensees to acquire projects and carry out further development.

In March, TPCH was selected to be the developer and operator of a 1-billion-baht waste-to-energy power project from solid community waste at the Sai Noi landfill site in Nonthaburi.

The project is planned for an installed capacity of 9.5MW, 8MW of which will be sold to the state-run Metropolitan Electricity Authority under a power purchase agreement (PPA) with a feed-in tariff of 5.78 baht per kilowatt-hour.

The government's waste-to-energy power scheme, called the Quick Win initiative, will be open to interested investors, then each company can submit a proposal for policymakers' consideration.

Quick Win is aimed at destroying waste nationwide by using refuse-derived fuel (RDF) plants to generate electricity.

Under the Quick Win scheme, policymakers expect total power capacity of 78MW from 12 RDF projects.

Mr Cherdsak said TPCH expects to sign the PPA by July and the project will start operations in 2021, expecting to make 400 million baht a year.

TPCH shares closed Friday on the Market for Alternative Investment at 11.10 baht, up 10 satang, in trade worth 30.8 million baht.