Ratch to add 700MW with B10bn outlay through PPA
Ratchaburi Electricity Generating Holding Plc (RATCH), Thailand’s largest private power producer by capacity, plans to spend 10 billion baht to increase generating capacity by 700 megawatts next year.
Chief executive Kijja Sripattangkura said yesterday that Ratch expects to add 700MW through a committed power purchase agreement (PPA), while the company has existing committed PPA of 7,500MW. Of the total, 6,500MW has started operations and 1,000MW is under construction.
He said of the 10 billion baht to be spent next year, 4 billion will be for mergers and acquisitions and 6 billion for investing in greenfield projects.
SET-listed Ratch aims to invest in new power projects in Indonesia and the Philippines with a combined generating capacity of 649MW.
“The opportunity to develop a large power plant in Thailand is getting smaller over the next decade, so there will be only a small amount of renewable power projects to emerge” Mr Kijja said.
For Ratch’s long-term business, plans call for increasing generating capacity to 10,000MW by 2023, with most of the new capacity coming from Asean countries.
By 2023, Ratch’s revenue from overseas projects would rise to 50%, up from 30% now, while revenue from domestic projects would decline to 50% from 70%.
Ratch is also continuing to diversify into other business such as pallet production, biotechnology and telecommunications, Mr Kijja said.
In transport, Ratch has joined with Sino-Thai Construction Plc to invest in the construction of the Yellow Line and Pink Line mass transit projects, which are due to start work next year and begin operations in 2021. The two projects’ combined construction cost is 100 billion baht.
Ratch posted revenue of 11.9 billion baht for the first nine months of this year, up 12%, due to higher efficiency at power plants such as the Hongsa lignite plant in Laos and the Ratchaburi power units.
Net profit was 5.42 billion baht in the nine months, up 69%.
Mr Kijja said next year Ratch will work on ongoing projects: the Pink and Yellow lines, the 144MW Mount Emerald Wind Farm in Australia, the gas-fired combinedcycle Riau power plant in Indonesia, the Collinsville solar project in Australia and the Xe Pian Xe Namnoy hydropower project in Laos.
RATCH shares closed yesterday on the Stock Exchange of Thailand at 55 baht, up one baht, in trade worth 136 million baht.