SET-listed TPI Polene Power Plc (TPIPP), a waste-to-energy power plant operator with the largest capacity in the Thai segment, plans to acquire new assets this year after licences for eight power plants are all operational.
Pakkapol Leopairut, executive vice-president for accounting and finance, said the company has been approached to acquire new assets, particularly a refuse-derived fuel (RDF) power plant, either to take on new licences or make a green field investment.
TPIPP is conducting due diligence on several acquisition deals, which are expected to be closed this year.
Mr Pakkapol said most power plant operators lack liquidity, while some of them need RDF expertise, and TPIPP can offer know-how in this segment.
Energy policymakers and the Interior Ministry granted licences for waste-to-energy development to several dozen firms for a combined capacity of 505 megawatts over the last three years, but only 265MW was developed.
"TPIPP is open to buying the assets of the remaining licence holders," he said.
The Interior Ministry recently increased the quota for waste-to-energy licences by another 300MW, raising concerns about environmental management policy.
Mr Pakkapol said TPIPP aims to receive licences from existing holders as well as new developments.
The firm has four projects in the pipeline. Two are RDF and waste-heat power plants with combined capacity of 100MW, which began operating in April.
This month TPIPP plans to begin operations at an RDF power plant located next to a coal-fired power plant, for a total capacity of 70MW. In September, the last licence will be used to develop a 150MW coal-fired plant. By year-end, TPIPP expects to operate 440MW at full capacity, up from 220MW in March.
"All the licences that we have received are being used, so we need to expand to new assets," said Mr Pakkapol.
Worawit Lerdbussarakam, vice-president for production, said new waste-to-energy licences will be open for auction in the second half, with Nakhon Ratchasima, Chon Buri, Songkhla and Chiang Mai targeted for new power plants, which would be located near landfills.
TPIPP shares closed Tuesday on the Stock Exchange of Thailand at 6.7 baht, unchanged, in trade worth 91.8 million baht.