Developers to get power direct via IPS

BGRIM holds talks regarding 6 projects

B.Grimm Power (BGRIM) is poised to start a new business by selling electricity directly to real estate developers, including mixed-used building owners, under captive independent power supply (IPS) model.

By law, the state power distribution arms — Metropolitan Electricity Authority and Provincial Electricity Authority — are only authorised to sell power to people, but under the captive IPS, a company can also do so if it produces and sells power on private properties which are owned by its customers.

BGRIM is in talks with real estate developers on six projects under captive IPS.

BGRIM president and chairman Harald Link did not give further details, saying only the company expects to finalise a new business plan in the middle of this year.

BGRIM has been allowed to sell power directly only to factories under private power purchase agreement, or private PPA.

Private PPA accounts for 25% of BGRIM’s total power purchase contracts. The remaining 75% is its sales of electricity to the state-run Electricity Generating Authority of Thailand under PPA.

“Captive IPS will be another channel to sell power to mixed-use building owners in cities,” said Mr Link.

The electricity can be produced by rooftop solar panels and gas-fired power generation facilities.

BGRIM has yet to decide whether to set up a new company to run the new business as the segment is in the development stage.

Mr Link said the new business is also designed to add value to its liquefied natural gas (LNG) shipping business after the company was granted an LNG import licence from the Energy Regulatory Commission (ERC) last year.

BGRIM is allowed to import 650,000 tonnes of LNG volume per year.

BGRIM announced late last year it plans to allocate 50 billion baht for capital spending this year for power generation business expansion.

The budget will support new and ongoing development projects, as well as asset acquisition plans in fossil fuelbased and renewable energy in Thailand and Asia, Mr Link said.

Investment in new projects will increase BGRIM’s power generation capacity by 1,000 megawatts, up from 3,089MW at present.

BGRIM has a t arget t o t otal 7,200MW across Asia-Pacific by 2025.

Major 2021 i nvestment projects include capacity expansion at B.Grimm Power Asia Map Ta Phut, Glow SPP 1’s new name after it was acquired by BGRIM last year.

The new capacity for this is scheduled to increase from 124MW to 280MW.

Captive IPS will be another channel to sell power to mixed-used building owners in cities. HARALD LINK President and Chairman, BGRIM