NED looks to branch out to wind power
After its successful launch of Lopburi Solar with a capital investment of more than Bt10 billion, and expected return of investment (ROI) within 10 years on projected Bt1.3-billion annual revenue, Natural Energy Development Co (NED) is exploring the possi
NED president Johnny Chuen Yu Wang said the solar-powered plant had capacity of 84MW. Construction began in 2010, with the first phase completed in 2011 and the second phase this month. The plant utilises thin-film solar technology, which is most suitable for Thailand’s climate, and 540,000 solar panels.
The Sharp brand solar cells come with a 25-year usage warranty, with no more than a 10-per-cent drop in power generation during the warranty period.
NED has established contracts to supply power to the Electricity Generating Authority of Thailand; the first phase reached full production capacity in March.
The Lopburi Solar project is entitled to the Bt8-per-unit power-purchase price. This rate will allow NED to reap ROI within 10 years.
Revenue this year from sale of power in the first phase is projected at about Bt750 million, and between Bt1.2 billion and Bt1.3 billion in 2014 from both the first and second phases. However, if the government switches from an “adder” purchase-price basis to an actual-invested-amount basis (feed interest) at Bt6.50 per unit, the ROI period will be prolonged from 10 years to 15 years, with the possibility of lower support funds for communities.
NED wants to invest more in solar plants, but the operating permits have all been booked. The company is looking for joint-venture opportunities to expand the solar project further.
NED plans to invest in a 20MW wind-power plant in Nakhon Ratchasima. It has conducted a feasibility study since 2008, but has yet to find a suitable location.
NED is a joint venture of CLP Thailand Renewables, a wholly owned subsidiary of CLP Holdings; Diamond Generating Asia, a wholly owned subsidiary of Mitsubishi Corporation; and Electricity Generating (Egco), each holding a 33.33-per-cent share. Each company has registered capital of Bt2.3 billion.
