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BCPG to acquire more renewables

BCPG to acquire more renewables

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BCPG Plc, the renewable energy arm of Bangchak Corporation Plc, has announced it is financially ready for its plan to acquire more assets for renewable power generation across Asia.

Phatpuree Chinkulkitnivat, senior executive vice-president for finance and accounting, said the company recently increased its capital by 10.2 billion baht, enough for investment totalling 40 billion baht over five years.

The company expects to spend 8 billion baht in capital expenditure this year and 18 billion next year.

“The business expansion plan this year includes asset acquisitions and new investment,” said Mr Phatpuree.

Among them are a takeover deal for four solar power plants in Lop Buri, Prachin Buri and Kanchanaburi, with total capacity of 20 megawatts.

BCPG bought 99.99% of shares in RPV Energy Co, the owner of the four solar facilities.

The remaining capital spending will go to projects such as construction of a high-voltage transmission line from Nam San 3A and 3B hydroelectric power plants in Laos to the grid overseen by Vietnam’s state-run Electricity Vietnam.

This project is scheduled to operate in 2022.

Other projects include the 270MW Monsoon Wind Farm in Laos, expected to operate in 2023, and four solar farms in Japan, with combined capacity of 75MW, to be operated during 2021 and 2022.

The company is continuing its capacity expansion plan at Nabas Wind Farm in the Philippines by increasing it to 40MW from 26MW within 2023.

BCPG president Bundit Sapianchai stressed the asset acquisitions are in line with the company’s five-year plan to grow its business in the renewable energy sector.

Niwat Adirek, senior executive vice-president for operations, said new asset acquisitions are designed to scale up its power generation capacity, calculated as a proportion of its shareholding in energy businesses, to 842MW from 452MW within 2024.

Mr Bundit said earlier BCPG’s rapid expansion is aimed at offsetting a decline in revenue because adder tariffs for its 11 solar farms in Thailand, which allow it to sell electricity to the state grid at a higher price, are scheduled to expire during 2023 and 2024.

Once expired, the price will decrease to 3.6 baht per per kilowatt-hour (unit) from almost 13 baht per unit.

Krungsri Securities estimated the expiry will decrease the 11 solar farms’ net profit by 1.5 billion baht per year.

Source : bangkokpost
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Anand Gupta Editor - EQ Int'l Media Network