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ADB finances 25MW biomass power plant in Thailand

CTBR Staff Writer Published 19 March 2018

The Asian Development Bank (ADB) and Gulf Chana Green Company (Chana Green) have reached financial close for a loan of up to THB1.109bn ($35m) for the development of a biomass power plant in Thailand.

The biomass power plant will be located in Chana, Songkhla province in southern Thailand. The plant is expected to contribute for an increase in the country's share of renewable energy.

The plant will convert waste from rubber trees into renewable electricity. The power plant has been given a tariff incentive of THB0.3per kWh for using biomass and a THB0.1 per kWh for investment in the southern Thailand both for a period of 7 years from commercial operations.

ADB private sector operations department director general Michael Barrow said: “Diversifying Thailand’s energy mix will help the country meet increased demand for electricity and help reduce its carbon footprint.

“ADB’s 18-year loan shows the bank’s long-term confidence in Chana Green and provides a positive signal to other banks and developers considering investing in infrastructure assets in the less-developed areas of southern Thailand.”

Chana Green is the project company set up to develop, construct, own and operate the project. It is a wholly owned company by Gulf Energy Development (GED), which is a private sector power generation company in Thailand. Presently, the company has a total gross installed power capacity of 11.12GW under development and operation in the country.

It is estimated that the country’s power consumption could double between 2015 and 2036. To meet this demand, the Government of Thailand has laid out plans to increase the share of renewable energy by up to 30% of the total energy mix.

The installed capacity of biomass is expected to increase from 2.92GW to 5.57GW in the country by 2036.