Ratch to invest Bt10 bn in 2016
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RATCHABURI Electricity Generating Holding Plc has set aside a Bt10 billion investment budget for 2016 to renovate its power plants and invest in new power plants domestically and abroad.
Speaking on the sidelines after the opening ceremony of the Hongsa Power Plant in Laos, chief executive Rum Herabat said the company was exploring possibilities in Australia, Japan, Myanmar, Indonesia and China for investment in both coal-fired and renewable-energy power plants.
He said that after the Hongsa Power Plant’s third generating unit begins operating in March, the company would study the possibility of investing in a hydro power plant in Laos and coal-fired power plants to support Laos’ strategy to become the “battery of Asean”.
“We are studying ways to develop coal-fired plants in Laos and renewable energy plants in other countries in Asean especially in Myanmar and Indonesia,” he said.
In Japan, the company has invested in a solar power plant slated to be operational next year. A wind power plant is being developed in Australia.
“We target achieving double-digit growth for our renewable energy capacity through projects in Thailand and overseas,” he said.
As of November, its domestic renewable energy capacity, determined by equities owned in several projects, was 75 megawatts. Overseas, its renewable projects were a combined 1,626MW.
The company is targeting a return on investment from all its new projects of between 12-15 per cent on average.
The Hongsa Power Plant is expected to have an average return on investment of 13 per cent. In 2017, it is targeted to generate a net profit of up to Bt2 billion, or 40 per cent of Hongsa Power Co Ltd’s net profit.
Ratchaburi Electricity holds a 40 per cent stake in Hongsa Power Co Ltd, with another 40 per cent held by Banpu Power Plc and the remaining 20 per cent belonging to Lao Holding State Enterprise. “Our net profit will enjoy strong growth in 2017 thanks to the Hongsa power project,” Herabat said.
Ratchaburi Electricity reported total revenue of Bt45.9 billion and a net profit Bt2.3 billion in the first nine months of the year.
