Published on 15/08/2014
Seven power projects on Ratch radar SET-listed Ratchaburi Electricity Generating Holding Plc (RATCH), Thailand's largest private power producer, plans to spend 3.5 billion baht between now and 2016 to expand its power business at home and abroad. Chief executive Pongdith Potchana yesterday said Ratch's executive board recently approved investment in seven projects to become operational from 2015-18. Once completed, Ratch's power generation capacity will increase to nearly 7,000 megawatts from 6,500 MW. Three Thai projects are a small power producer in Ratchaburi province with capacity of 100 MW, to be operational in 2018; and two waste-to-energy projects with combined capacity of 15 MW coming on stream in 2017. The other four are international — a 230-kilovolt transmission line in Cambodia with 125 kilometres to be operational in 2017; solar farms in Ueda and Fukushima, Japan, with combined capacity of 30 MW coming on stream in 2016; and a 200-MW gas-fired power plant in Mandalay, Myanmar, to be operational next year. All projects will serve Ratch's goal of increasing power generation capacity to 9,700 MW by 2023. Mr Pongdith said Ratch had been in talks with strategic partners and governments in neighbouring countries to develop three coal-fired power plants with capacity of 2,000 MW each, with the electricity serving local demand and exported to Thailand. "A final decision on these projects is expected soon," he said, adding that they were not included in the 2023 target of 9,700 MW. Ratch also announced it would be a strategic partner with local waste manager Eastern Energy Plus Co to develop a waste-to-energy power plant with capacity of 200 MW in the next five years at a cost of 10 billion baht. The two parties are conducting due diligence of two pilots projects in Samut Prakan and Nong Khai with combined capacity of 15 MW.
"If these two prove viable, we'll kick off projects in other metropolitan areas," said Mr Pongdith. However, the projects are waiting for the National Council for Peace and Order to waive rules against the private sector investing jointly with local administrations. Ratch plans to become a leader in renewable energy in Thailand and sees this kind of project as having high potential but lacks investment facilitators, Mr Pongdith said. It reported second-quarter revenue of 14.3 billion baht, up by 4.3% year-onyear, for a net profit of 1.84 billion, up by 51% thanks to foreign exchange gains. First-half revenue totalled 27 billion baht, up by 3% year-on-year, for a net profit of 4.2 billion, up by 20%. RATCH shares closed yesterday on the SET at 57 baht, up 50 satang, in trade worth 42.5 million baht.