Thachang Green Energy (TGE), a SET-listed biomass power plant developer and operator, has been awarded contracts to develop three municipal solid waste-fired power plants, as the firm aims to reach a revenue target of more than 3 billion baht (€80.7 million) in 2026.
Last year TGE's revenue was 955 million baht (€25.7 million).
The company signed power purchase agreements (PPAs) with the Provincial Electricity Authority, the state electricity distribution arm, to supply electricity to three administrative bodies in Ratchaburi, Sa Kaeo and Chumphon.
PPAs are crucial for the business as they serve as collateral for loan applications from commercial banks, said Pongnarin Wanasuwanakul, chairman of the executive committee of TGE.
The new power plants, each supplying 8 megawatts of electricity, require a total of 3.8 billion baht for development.
The company raised funds worth 1.2 billion baht (€102 million) through its initial public offering last year.
"We secured the PPAs because of our cost effectiveness, good logistics and maintenance management, as well as stable production of fuels. These give us a competitive edge," said Sumate Laksitanonta, chief executive of TGE.
The new facilities are scheduled to start commercial operation in the fourth quarter of 2024, the year TGE expects to see its revenue soar.
The company is preparing to sign another two PPAs with the Provincial Electricity Authority after it won licences to build two power plants: an 8MW municipal solid waste-fired power plant and 9.9MW waste-to-energy power plant.
They will supply electricity to Nong Mamong municipality in Chai Nat and a local administrative body in Samut Sakhon, respectively.
These two facilities are scheduled to operate within the fourth quarter of 2025.
According to TGE, its new power plant projects will be based on the build-own-operate business model.
The firm designs its municipal waste-fired power plant to work in a closed environment to ensure the stench from piles of garbage will not disturb communities near the facilities.