Thailand to receive $700m in loans from World Bank and IFC. Will Biomass Project developers benefit?

August 20, 2009

The World Bank and its private investment arm International Finance Corp (IFC) announced plans to provide US$700m in loan financing to help fund renewable power and energy efficiency projects. The IFC will contribute $400m, while the World Bank will commit $300m through its $5.2bn Clean Technology Fund, which provides financing for carbon reduction initiatives in developing nations.

The average interest rate for the loans will range from 0.25 to 1.75 per cent, with repayment periods of 20 to 30 years. Terms for the financing, which will be disbursed through Thai banks, will be released to loan applicants later this month.

According to IFC and World Bank estimates, it will cost $4.6bn to develop Thailand’s renewable energy sector over the next two years, with private sector investments accounting for about 85 per cent of the total, or $3.9bn.

Thailand last year drafted a $440m renewable energy development plan that sets an alternative power target of 20 per cent of by 2022. The scheme calls for a drop in annual oil imports by $10.6bn and a reduction in greenhouse gas emissions by 29 million tonnes per year.

Officials are counting on the increased use of alternative energy, such as biomass, ethanol and biogas, as a means of achieving the targets. Fossil fuels currently account for 85 per cent of the country’s energy needs.

Biomass energy in Thailand has traditional, small-scale applications in households and rural industries. The Thai Government also launched a project, through the Energy Policy and Planning Office (EPPO), to encourage Small Power Producers or SPPs to generate electricity from biomass feedstocks including rice husk, sugar cane, corn leaves, tapioca, palm shell and woodchips.

These SPPs then sell the generated electricity to the Electricity Generating Authority of Thailand (EGAT). As small and medium sized businesses, these Biomass power producers stand to reap benefits from the World Bank fund.

One such power producer is A.T. BIOPOWER, who has a 22 MW rice-husk power project in the Pitchit province in Thailand. In operation in May 2006, the power plant relies on agricultural wastes (rice husks) generated by the farming activities prevalent in the province.

A.T BIOPOWER was also the first company in Thailand to qualify for CDM and earn extra income from selling carbon credits.

A.T BIOPOWER’s CEO, Natee Sithiprasasana will be sharing insights at the upcoming Biomass & WtE summit, which convenes in Shanghai on 28-29 October 2009. His session entitled, “Rice Husk Power Plant, An Operators Experience” will touch on:

  • Securing supply of rice husk storage & handling
  • Technologies & environmental benefits
  • Incentive for SPP to sell electricity to the grid
  • Monitoring project for CDM – compliance

To find out more about Thailand’s emerging Biomass to power industry, and how small power producers are tapping on Thailand’s vast agricultural waste resources, come to Biomass & WtEsummit to pose your questions to Natee Sithiprasasana and other Thai Biomass power producers who will be participating in the summit.

>>CLICK HERE<< to submit your registrations for Biomass & WtE now!

Posted by admin | Filed Under Biomass News 

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