EGCO boosts investments in Q1
EGCO Group acquired several power plants in the first quarter, with the additional 71 megawatts of renewable power accounting for 24 per cent of its total power-generation capacity.
The company successfully acquired 99.99 per cent of two solar-power projects – the 6MW SSP4 and 8MW SSP3 projects – from MEMC Singapore Pte Ltd. Under contract agreements, power generated by both projects would be sold to the Provincial Electricity Authority (PEA) and receive an adder rate of Bt8 per kilowatt-hour (kWh) for electricity sales from the Power Development Fund for 10 years.
In addition, EGCO acquired a 60-per-cent equity stake in G-Power Source Co Ltd from Gunkul Engineering Plc to jointly develop four solar-power plants with combined capacity of 26MW. Three of these projects have started commercial operations and been awarded an adder rate of Bt8 per kWh for 10 years by the Electricity Development Fund.
In early March, G-Power Source supplied electricity from the three solar power plants to PEA according to contract agreements. The three solar power plants are the Ta Khit Solar Power Project and Ta Sang Solar Power Project in Nakhon Sawan and the Dong Khon Solar Power Project in Chai Nat.
The fourth project, located in Phetchabun, is expected to supply electricity commercially in December this year.
In addition, EGCO Group has acquired a 90-per-cent stake in Theppana Wind Farm in order to develop a 14MW wind-farm project, and a 49-per-cent stake in Yanhee Solar Power to develop six solar-power plants with a combined capacity of 57MW. The projects are now in the engineering, procurement and construction (EPC) process, and funds are being sourced.
“Due to its successful new investments in renewable power plant projects in the first quarter of this year, the company’s capacity has increased by 71MW or 24 per cent, [contributing to achieving] its target of 300MW of total renewable power generation by 2015,” EGCO president Sahust Pratuknukul said.
The company has already selected the contractor for the 8MW extension phase of its solar project in Lop Buri, Sahust said. Construction will be complete by the end of this year. The solar plant’s commercial operations have already begun, producing 55MW of power, making it the world’s largest solar plant using thin-film technology. EGCO Group holds a 33.33-per-cent stake in the plant.
Meanwhile, the company is conducting an environmental impact assessment (EIA) on the TJ Cogen, TP Cogen and SK Cogen small power projects, each of which have 90MW in total capacity.
In the middle of May, EGCO purchased additional shares in the Quezon Power Project in the Philippines, taking its total stake from 52.125 per cent to 98 per cent. The company also bought a 50-per-cent stake in Absolute Power P, which operates a bio-diesel plant in Rojana Industrial Estate in Rayong with about 300,000 litres per day in total capacity.
