Ratch to add 700MW with B10bn out­lay through PPA

Bangkok Post - - BUSINESS - YUTHANA PRAIWAN

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.

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