BCPG plans private power microgrid for the community
BCPG Plc, a renewable power business arm of state majority-owned energy firm Bangchak Corporation Plc (BCP), has announced plans to be a private microgrid provider in Thailand in its new business development chapter over the next decade.
President and chief executive Bandit Sapianchai said BCPG plans to support any pilot project to generate power in the community, similar to New York’s Brooklyn Microgrid (BMG).
BMG is a peer-to-peer energy market for locally-generated renewable energy that is driven by the community it serves.
“The new business will be a value-added one, which requires higher technology for smart metres and a smart grid,” said Mr Bandit.
Thai energy policymakers are also planning to change the power purchasing agreement (PPA) system from non-firm PPA to firm PPA, through which power producers must send power to the grid constantly, as per their commitment to state utilities.
BCPG is also in talks with several IT firms on the possibility of establishing new business models if the policymakers launch any new pilot projects that are similar to BMG.
Mr Bandit said opportunities to expand the business and increase power-generating capacity in Thailand are diminishing and BCPG expects to raise capacity by only 30 megawatts, which is due to be under a PPA soon.
BCPG was recently announced as one of 21 firms shortlisted by the War Veterans Organization of Thailand to develop solar farm project with total capacity of 100MW.
BCPG is still maintaining its overseas business expansion in Japan, Indonesia and the Philippines, he said.
The company expects that committed capacity on hand to be 577MW, with 182MW in Thailand, 192MW in Japan, 182MW i n Indonesia and 20MW i n the Philippines.
Mr Bandit said BCPG successfully acquired a wind farm in the Philippines in March and a geothermal plant in Indonesia in April.
“There is strong potential to operate geothermal power plants in the two countries [Indonesia and the Philippines] since they are located in the ring of fire, with extremely rare resources that required technology to drill deep into the ground. However, it is worth investing as geothermal power plants can supply power constantly,” he said.
Indonesia’s geothermal development plan is aimed at increasing power generating capacity to 6,000MW over the next several years from 1,340MW as the Indonesian government encourages investment in many sectors, including utility.
Mr Bandit said BCPG is being approached by many f und managers to acquire assets at a range from 500-5,000MW.
Since BCPG started to spin off from BCP in 2015 and being listed in 2016, its renewable power capacity has jumped from 118MW by 2013 to 577MW currently.
BCPG shares closed on SET yesterday at 14.10 baht, down 20 satang baht, in trade worth 141 million baht.