SET-listed TPI Polene Power Plc (TPIPP), which operates Thailand's largest capacity for waste-to-energy power generators, has commenced its commercial operation date (COD) for its coal-fired power plant in Saraburi province.
On Friday, TPIPP announced the start of its 150-megawatt coal-fired power plant, its eighth plant, after postponing the COD for many months.
TPIPP expects its 2019 financial performance to post a record high because the new capacity will give it a total of 440MW, up from 290MW in 2018.
In addition, TPIPP is increasing its utilisation rate from seven waste-to-energy power plants this year by another 10% from the average rate of 70%.
Vice-president Worawit Lerdbussarakam said the seven power plants are located in the central region and there are two types of waste to fuel the plants: community waste and waste heat.
All electricity output will be sold to the parent company, TPI Polene Plc, and the Electricity Generating Authority of Thailand.
"We have already upgraded efficiency in seven power plants with the installation of boilers in 2018," Mr Worawit said. "The new utilisation rate should increase starting in the first quarter of 2019. TPIPP's plan to increase utilisation was financed by a debenture issuance in 2018 worth 4 billion baht."
Before the plan was deployed, TPIPP developed a production process plant for dried and combustible waste, also known as a refuse-derived fuel (RDF) plant, to trim its production cost.
The RDF plant is located adjacent to TPIPP power plants in Saraburi, which can cut the transport cost by bringing many tonnes of fresh waste from surrounding areas and using them in the RDF.
"The RDF facility improves TPIPP's competitiveness in the waste-to-energy field," Mr Worawit said.
TPIPP is planning to participate in the largest capacity of waste-to-energy power projects in Thailand. The Bangkok Metropolitan Administration (BMA) has opened bidding for two landfill areas in Nong Khaem district and the On Nut area.
Each power plant under the BMA will have a capacity of 20MW and a feed-in tariff of 3.66 baht per kilowatt-hour, with both scheduled to operate by 2020.
The auction was announced in December. The BMA will conduct the screening process and announce the winner this month.
"If TPIPP is granted both power projects, we will allocate 3 billion baht for each unit in 2019," Mr Worawit said. "There will be another two power plants fuelled by community waste in Songkhla and Chon Buri provinces of 10MW for each project, which will open for bidding in 2019."
He said there is potential in Thailand for RDF power plants because there is more than 5 million tonnes of waste stored underground across the country, excluding the daily waste volume of 70,000 tonnes per day.
Thailand's RDF power plants can process slightly below 10% of national waste. Community waste is conventionally destroyed by incineration, stored in landfills or used for RDF and biogas.
Since renewable energy was first promoted by policymakers 10 years ago, Thailand has awarded licences to develop and operate waste-to-energy power projects for up to 442MW, of which 364MW is in operation.
The remaining 78MW of capacity is under construction.
TPIPP's operations represent 163MW of total waste-to-energy power projects.
Mr Worawit said new waste-to-energy power plants are likely to open because the government has eased regulations and conditions for allowing investors to develop and operate the plants.
Last Wednesday, the National Energy Policy Council approved the plan to grant new licences for waste-to-energy power projects of 520MW over the next two decades.
Of the total, the RDF will account for 300MW and the agricultural waste or biomass will represent 220MW.
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