Bangkok: Ratchaburi Electricity Generating Holding Public Company Limited (RATCH) disclosed that Songkhla Biomass Company Limited (Songkhla Biomass), a 40% stake owned by RATCH, recently signed a 25-year non-firm Power Purchase Agreement (PPA) for Very Small Power Producer with the Provincial Electricity Authority (PEA). The Songkha Biomass, located in Chana district, Songkhla province, will develop and operate a 9.9 megawatt biomass power plant project fired by rubber wood slabs and roots. The project have been granted THB 1.30 adder tariff per unit from the Power Department Fund Management of Energy Regulation Commission for 7 years.
Mr. Noppol Milinthanggoon, Chief Executive Officer, Ratchaburi Electricity Generating Holding PCL., said that the project has been developed progressively since our joint investment in September last year. On 18 July 2012, the Songkhla Biomass entered into a PPA with PEA and was granted the BOI promotion privileges for 8 years. This stage is regarded as key milestones of the project development that were given thanks to cooperation and supports from the neighbouring communities who well recognised the concrete benefits not only to their own but also to the country as a whole.
“With our intention to create the power plant for community, we open for community participation since the early stage of the project development by engaging them in many constructive ways of information sharing, discussing and issue solving. Importantly, we has encouraged the community’s ownership approach and finally allowed Assiddeek Savings Cooperative Limited holding equity stake in the Songkhla Biomass. It will guarantee long-term success and sustainability of the project and we, moreover, sincerely hope this project as a model of community participation to be applied in future project development. We are confident that the Songkhla Biomass power project can help reduce utilization of fossil fuel for power generation and strengthen reliability of power system in the Southern region”, ended Mr. Noppol.
Songkhla Biomass Co., Ltd is a joint venture company where RATCH holds 40% stake, Precise Power Producer Co. Ltd. and Assiddeek Savings Cooperative Ltd. hold 40% and 20% respectively. Additionally, RATCH invested 40% equity in Songkhla Biofuel Co., Ltd., a supplier of wood slaps and roots for Songkhla Biomass Power Plant. It is certain that the surrounding community who mostly grow rubber plantation will get advantages from selling rubber slaps and roots for their additional income. The project is scheduled to commence its operation in 2014.
The Songkhla Biomass power plant project is one of RATCH's 18 renewable energy investments. They consist of domestic and international projects with total combined capacity of 170 megawatts; 11 solar farms, 6 wind farms and one biomass power station.
Public Relations Department
Wiwan Phayakvichien, Nuannang Changadveja
Tel: 0 2794 9941, 0 2794 9944
E-mail: wiwanp@ratch.co.th