EGCO sells 49% of two plants to fund new energy growth

Electricity Generating Public Company Limited (EGCO Group) has announced a strategic divestment of a 49% stake in two power plants, Ban Pong and Khlong Luang, to J-Power Holdings (Thailand) Co Ltd, as part of efforts to unlock capital and expand into new energy businesses.

Tawatchai Sumranwanich, President of EGCO Group, said the move is aimed at supporting future investment in high-growth opportunities while strengthening the company’s financial flexibility.

The transaction forms part of EGCO’s “POWER4” strategy under its asset recycling approach, which focuses on portfolio optimisation. The company said the move would also allow it to leverage the expertise of its partner to enhance operational efficiency.

Following the sale, EGCO will retain a 51% stake in both companies, maintaining majority ownership and operational control.

Ban Pong Utility Co Ltd (BPU), located in Ratchaburi province, is a combined-cycle power plant with a total installed capacity of 256 megawatts. It supplies 180 megawatts of electricity to the Electricity Generating Authority of Thailand (EGAT) under a 25-year power purchase agreement (PPA).

The plant also supplies 35 megawatts of electricity and 80 tonnes of steam per hour to industrial customers. It began commercial operations on October 1, 2017.

Khlong Luang Utility Co Ltd (KLU), located in Pathum Thani province, is also a combined-cycle power plant with a total installed capacity of 122 megawatts. It supplies 90 megawatts of electricity to EGAT under a 25-year PPA.

In addition, it provides 12 megawatts of electricity and 13 tonnes of steam per hour to industrial users. The plant commenced commercial operations on July 20, 2017.

“The partial divestment of BPU and KLU represents an effective asset recycling strategy,” Thawatchai said.

“It will enhance financial flexibility and support reinvestment into projects with strong potential and better long-term returns.”