BCPG sets aside B45bn for growth
SET-listed BCPG Plc, the renewable power arm of Bangchak Corporation, has earmarked 45 billion baht in 2020 capital expenditure to expand its business over the next four years.
President and chief executive Bundit Sapianchai said areas for investment in renewable power plants include Asean and Japan, where renewable energy demand is on the rise.
Those projects will be both new developments, capacity expansions and takeover deals.
The investments are expected to grow earnings before interest, taxes, depreciation and amortisation by an average of 10-15% over the next five years.
One new development project is a wind power farm in southern Laos, selling electricity to Vietnam’s state utility, Vietnam Electricity (EVN), said Mr Bundit.
BCPG will invest through its subsidiary, Impact Energy Asia Development Co, which is expected to sign a power purchase agreement (PPA) with EVN soon to operate in 2023.
This project requires 400,000 rai or 64,000 hectares to operate a wind catcher tower.
A takeover deal saw the company acquire Nam San 3B Power Sole Co, the owner of Nam San 3A and 3B hydropower plants and transmission line system in Laos, worth US$113 million (3.45 billion baht) in February.
He said BCPG took over the entire ownership from Phongsubthavy Roads and Bridges Construction and Irrigation, a local business firm.
The Nam San 3B and Nam San 3A plants have a combined capacity of 114 megawatts and have been in operation since 2015, with a concession of 27 years. It is also selling electricity to Vietnam’s EVN.
For new developments, the company has four licences from Japan’s policymakers to develop and operate solar power farms with a combined capacity of 100MW.
The four solar farms are slated to start development soon and operate during 2021-2022.
BCPG wants to expand existing projects in Indonesia by increasing the capacity of a geothermal power plant from 157MW, adding 24MW after signing a PPA with Indonesia’s state utility recently.
The new expansion capacity is expected to be available in 2024.