Banpu researching power trade in Japan
Recent deregulation attracting entrants
Banpu Power Plc (BPP), the SET-listed power arm of Banpu Plc, Thailand’s largest coal miner by capacity, is conducting a feasibility study of the power trading and biomass power sectors in Japan.
Chief executive Voravudhi Linananda said Japanese energy policymakers deregulated the power trading business earlier this year.
Several local companies have made inroads into the power trading business following the deregulation, he said.
The power trade will be a direct agreement between buyers and power generators, and will not involve state utility sales agents, Mr Voravudhi said.
BPP has not released a timeline for its investment plan.
With regard to the biomass business, Mr Voravudhi said BPP has tentatively designed a project that will generate power from wood chips, the machinery for which it plans on exporting from Thailand to Japan.
Further details of the biomass project in Japan will be revealed next year, he said.
There is huge potential for renewable power investments in Japan, and the government has opened the door to overseas investment.
The move is part of the Japanese government’s efforts to replace power generated by nuclear power plants with renewable power, following the March 2011 tsunami, Mr Voravudhi said.
The company already operates a solar farm business in Japan. In the near future, the company expects to reach an agreement to double the capacity of solar farms in Yamagata Project to 200 megawatts by 2023.
The agreement will be part of BPP’s expansion plan, which would see the company’s investment in renewable power capacity rise to almost 1,000MW in AsiaPacific by 2025, up from 165MW.
BPP operates a combined 2,068MW across China, Japan, Laos and Thailand. The company plans to increase its operations to 2,360MW next year and to 2,800MW by 2023.
The power business in Thailand has reached maturity, which means no new large power plant will be developed by the private sector over the next 10 years. However, Thai power companies have rapidly expanded in the surrounding region, he said.
BPP operated in Japan through its coal
trading business even before listing on the Stock Exchange of Thailand.
BPP shares closed yesterday on the SET at 27.50 baht, up 25 satang, in trade worth 69.3 million baht.