TPI Polene Power Plc (TPIPP), the renewable power generation arm of cement maker TPI Polene Plc, has won bidding on an eight-megawatt waste-to-energy (WTE) project in Songkhla, its first WTE project in three years.
The project, which is based on a 20-year build-operate-own agreement with Songkhla Provincial Administration Organisation, increases the capacity of its eight WTE facilities to 448MW, up from 440MW at present.
TPIPP failed to win any WTE auctions held by local administrative bodies over the past three years.
Pakkapol Leopairut, TPIPP executive vice-president for accounting and finance, estimated total development cost for the WTE project in Songkhla at 2 billion baht.
The facility is to be connected with the state grid and its electricity price includes tariffs of more than five baht per kilowatt-hour (unit).
Under a power purchase agreement to be signed with the Provincial Electricity Authority, TPIPP will be given a tariff of 5.78 baht per unit during the first eight years of operation, and 5.08 baht per unit for the next 12 years.
Mr Pakkapol said the facility has been designed to use minimum solid waste of 400-700 tonnes per day for 20 years.
TPIPP receives a waste tipping fee worth 400 baht per tonne. The rate can be adjusted to increase by 10% every three years.
In addition to its submission of a bidding proposal to Songkhla officials in December last year, the company joined another auction for a WTE plant with a capacity of 9.9MW in the Nakhon Ratchasima municipality.
The facility is to be located near a landfill site where 450-500 tonnes of daily city garbage is buried.
The bidding result is scheduled to be announced next month.
TPIPP targets total power generation capacity of 150MW from WTE plants in several provinces, including Nakhon Ratchasima, Chachoengsao, Chon Buri and Samut Prakan.
Mr Pakkapol said his company plans to participate in auctions for 11 WTE projects nationwide, with a combined capacity of 135MW.
Officials are expected to call bids for these projects between 2021 and 2022.