Ratch plans joint bid for plants

Chief operating officer Peerawat Pumthong yesterday said the submission would be made on August 19, with Ratch expecting to hold between 30 and 40 per cent in the project.

One partner has already agreed to take part in the bid, while the company is in final talks with the other partner.

The bidding for the project is scheduled to take place in October, and the result is expected to be announced at the end of the year.

Ratch will have to compete with at least five other bidders, but the company is confident of its chances of winning, he said.

Ratch is also considering investment in three overseas solar-power projects with a combined 45MW capacity. A decision on this is expected to be reached this quarter.

Meanwhile, for the first half of the year, the company recorded Bt27.617 billion in revenue, mainly derived from electricity sales from its Ratchaburi power plant, the Nam Ngum 2 hydropower plant in Laos, renewable-power plants, and power plants in the portfolio of Ratch-Australia Corp.

Revenue was also boosted by the gain made from liquidating the debt of Loy Yang A after the company’s divestment from the Australian project.

Overall profit in the first six months amounted to Bt3.709 billion.

Business growth in the period was accomplished in accordance with the company’s business plan, which aims to achieve 7,800MW of capacity by 2016, up from the current 5,300MW.

Ratch said its two wind-farm projects with 420MW capacity in total and a 20MW solar farm – all in Australia – had made significant progress.

The first 180MW wind farm is expected to be granted construction permission this quarter, with commercial operation scheduled to commence in 2015.

The second wind-power plant and the solar-farm project are expected to receive construction permission early next year.

The company is pursuing business growth in generation capacity and profitability. Short-term investment strategy has focused on international projects, which will accelerate the company’s income derived from overseas operations from around 9 per cent at present.

Focus on renewable power

In addition, the revenues from renewable power and power-generation-related businesses will be more significant to the stability and steadiness of the company’s cash flow, Peerawat said.

"With regard to potential projects this year, the company has placed more emphasis on international renewable projects. This is because many countries have clearly targeted and strongly supported development of renewable-power generation to reduce fossil [fuel] consumption in power generation, helping to ease climate-change impact. It is an attractive business with a huge potential opportunity for investment.

"At present, the company has six potential projects on hand, comprising two wind farms with 420MW total capacity in Australia and four solar farms with 65MW in total: a 20MW project in Australia and three projects with 45MW in total elsewhere. If these potential investments are accomplished, the company will generate income [from them] in 2014 and 2015. The investment will be funded by the company’s investment budget planned for this year," said the chief operating officer.

Currently, Ratch has seven projects under development. In 2014, the first unit of the 112MW Ratchaburi World Co-generation project and the 9.9MW Songkhla Biomass Power project will be completed and commence supply to the Electricity Generating Authority of Thailand.

In addition, the 1,875MW Hongsa Power project in Laos will start commissioning next year and supply electricity to the Thai grid by 2015.

The company is expected to spend Bt10 billion this year on the projects currently under development, Peerawat said.