BCPG to start Vietnam sales
SET-listed BCPG, the renewable power generation arm of energy conglomerate Bangchak Corporation Plc, expects its new power transmission business to start sending electricity across the border from Laos to fast-growing Vietnam in September.
“The transmission system will not only serve high electricity demand in Vietnam, but also strengthen our renewable energy development in the long run,” said Niwat Adirek, president and chief executive of BCPG.
The company ventured into the business to operate the 220-kilovoltage transmission system to facilitate electricity sales between the two countries after it acquired a US$32 million stake in Laos-based Nam Tai Power Sole Co.
Owning a 25% share in Nam Tai Power Sole grants BCPG the right to operate the transmission line to send electricity over the border to state-owned Vietnam Electricity (EVN).
The investment was made through BCPG’s wholly-owned BCPG Indochina Co.
Through the transmission system and its substations, BCPG will supply “green electricity” from the Nam Tai hydropower project, with construction currently more than 90% completed, said Mr Niwat.
“The investment in Nam Tai Power Sole is a good opportunity for BCPG to expand into the power transmission and substation business,” he said. “The transmission line is also an essential infrastructure for both Laos and Vietnam.”
The facility can be connected with other nearby renewable energy projects to sell electricity from Laos to EVN, thanks to its transmission capacity, which is designed to serve up to 800 megawatts. It can also be supplied by new hydropower plants in the future, said Mr Niwat.
BCPG previously acquired two hydropower plants — the 69MW Nam San 3A and 45MW Nam San 3B — both located in Xiangkhouang province in northeastern Laos. The two plants played a key role in raising revenue in the third quarter last year thanks to higher rainfall in Laos.
Earlier this month, BCPG announced plans to expand its clean energy investments in developed countries and mature markets, notably Taiwan, over five years to achieve better risk management. Taiwan has potential as its government is promoting clean energy development.