March 16 (Renewables Now) - The Asian Development Bank (ADB) will provide the equivalent of up to THB 1.1 billion (USD 35.3m/EUR 28.6m) in debt to Gulf Chana Green Co Ltd for a 25-MW biomass power project in southern Thailand.
Through the 18-year loan, the Thai developer has achieved financial close on the project, ADB said on Friday. The funds will be allocated for the construction and operation of a biomass power facility in Chana, Songkhla province, that will use rubber trees as fuel.
Chana Green, a unit of Thai power producer Gulf Energy Development (BKK:GULF), will receive a tariff of THB 0.3 per kWh for biomass and an additional incentive of THB 1 per kWh for investing in southern Thailand. Both allocations will be provided for seven years following the start of the plant’s commercial operations.
The implementation of the project is seen to help Thailand meet growing demand for electricity, as consumption is expected to double from 2015 to 2036, and cut its carbon footprint. In line with the plan, the government of the Asian nation aims to lift the share of renewables in final energy consumption to 30%, turning biomass into the second largest renewable energy source after solar power. The installed capacity of the country’s biomass plants is forecast to rise from 2,943 MW at present to 5,570 MW by 2036, ADB said.
(THB 10 = USD 0.321/EUR 0.260)