RATCH's biomass project wins power supply contract
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Ratchaburi Electricity Generating Holding's 40-per cent-owned venture, Songkhla Biomass, has recently signed a 25-year power purchase agreement with the Provincial Electricity Authority.
Noppol Milinthanggoon, chief executive officer of RATCH, said that the agreement marked the success of the 9.9MW very-small-power project, underpinned by support from the community. "We aim to turn this into a truly community project, allowing the community's participation from the designing stage. Villagers are welcomed as shareholders, through a cooperative. We plan to introduce this successful model elsewhere, on a belief that biomass power can help in power generation and strengthens the national power security."
The project will generate power from biomass residues - the organic by-products of the food, forestry, agricultural and other industries that rely on plants. Residues such as rubber-tree wood and roots are abundant in the southern provinces, which are home to many rubber plantations. A thorough study of the raw-material supply indicated that residues would be available in adequate quantities to serve the facility throughout the life of the project.
Ratchaburi acquired a 20 per cent stake in Songkhla BiomassCo, in which Precise Power Producer Co holds a 40-per-cent shareholding and Assiddeek Savings Cooperative 20 per cent.
The project wins 8-year investment incentive from the Board of Investment and was granted a Bt1.30 "adder tariff" per unit from the Power Department Fund Management Division of the Energy Regulatory Commission for seven years.
The Bt600 million project is expected to commence commercial operations in 2014.
This is one of 18 alternative-energy projects of RATCH in Thailand and overseas, which include 11 solar power and 6 windpower projects, with combined capacity of 170MW.
