Egco budgets more than Bt30 bn for seven new power projects

Six of the projects are under construction and scheduled to start commercial operations between this year and 2019, including three small power producer (SPPs) projects – Xayaburi in Laos and San Buenaventura and Masinloc Unit 3 in the Philippines. 
In addition, share transfers for the Salak and Darajat geothermal power plants in Indonesia are in progress and expected to be complete this quarter. 
The Bt30-billion investment budget does not include new projects Egco Group is attempting to acquire or four other overseas projects under development. 
Of the four projects under development, two are hydropower projects in Laos – the Pak Beng project, which is waiting for the Mekong River Commission’s approval, and Nam Thuen 1, which is awaiting the attorney-general’s review of the power purchase agreement.
The third overseas project under development is Units 3 and 4 of the Star Energy geothermal power plant in Indonesia, which is in the process of electricity-price negotiation with state-owned power company PLN.
The fourth project is the Quang Tri coal-fired power project in Vietnam, for which the price of electricity is also under negotiation with the Vietnamese government. 
Chanin said there were potential investment opportunities in Thailand as well. It sees renewable SPP/VSPP (very small power producer) projects as the most attractive, as these enjoy private-sector participation as well as being supported by the government. 
The group aims to grow Egco Group’s renewable-energy portfolio to 30 per cent by 2026. The group now has 16 operating renewable-source power plants with total equity contracted capacity of 751 megawatts, accounting for 18 per cent of the company’s total equity contracted capacity.
As of last December, Egco Group was operating 24 power plants with total equity contracted capacity of 4,122MW in five countries – Thailand, Laos, the Philippines, Indonesia and Australia. There are six projects under construction with total equity contracted capacity of 869MW and one project in the share-transfer process with total equity contracted capacity of 128MW. 
Last year the group completed construction of two power projects, which started commercial operations as scheduled. They were the 930MW Khanom Unit 4 power plant in Nakhon Si Thammarat and the 80MW Chaiyaphum Wind Farm. 
The company also invested in three projects overseas last year. These included the acquisition of 8.05 per cent additional indirect ownership in Masinloc Power Partners Co in the Philippines, which boosted its share ownership in Masinloc to 49 per cent.
This year, Egco Group aims for at least 10 per cent return on equity for its shareholders.
“We still focus on the power business, which is our core expertise, and we see great opportunities for business expansion, especially in overseas markets where the company has a strong presence. The Philippines will be our flagship market, followed by Laos and Indonesia. The company will also seek investment opportunities in other countries such as Vietnam and Myanmar,” Chanin said.