MEA plans subsidiaries as joint ventures
The Metropolitan Electricity Authority plans to set up subsidiaries and seek partners to invest in local and overseas power systems.
"We’ll not invest alone in subsidiaries but will seek joint venture partners with manufacturers of electric equipment, such as transformers and transmission lines, to strengthen our production and management capabilities and explore business together," deputy governor Somsak Srithongwat last week.
"We expect that the plan to set up the subsidiaries, the investment plan, the business goals and business plan will be clearer at the end of this year," he said.
The subsidiaries would boost the state enterprise’s potential to enter diverse fields, especially those it has expertise in, such as power transmission lines, rooftop solar systems and electric stations for charging vehicle batteries.
The MEA is also keen to invest overseas, especially in neighbouring countries where it can provide maintenance services to their capitals, as power consumption is rising. This gives the MEA an opportunity to use its expertise to expand overseas.
Installing rooftop solar systems is the business that the MEA is most eager to enter. It will seek highly expert firms to do business together.
This plan is expected to crystallise in December. If the state enterprise and the potential partners cannot set up the JV in December, it will have the subsidiary run the business. If not, the MEA will take the lead first.
Investment in solar panels and related businesses is expected to boom after the National Energy Policy Council recently increased the target for solar power production to 3 gigawatts from 2GW and finalised the 25-year FIT for rooftop solar panels and community-based solar plants.
Of the 1GW increase in the solar-power target, 800 megawatts will come from community-based solar farms and the rest from rooftop panels.
The MEA also plans to replace the bulbs in street lights in the metropolitan area with LED bulbs due to their longer life and cost savings of 50 per cent of the power used by existing bulbs. The state enterprise can save maintenance costs. It has already completed the switch on some streets.
The state enterprise has also launched the second-year contest for energy saving in buildings. It expects over 80 entrees this year, up from 52 in the first year.
