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GUNKUL, DEMCO benefit from additional solar bidding Neutral
Energy: Alternative Energy
- Additional 800 MW solar power to be purchased
The National Energy Policy Council (NEPC) has approved a purchase of
additional 800 MW from solar farms. Combined with the outstanding 576
MW, total solar power supply in December 2015 will be 1,300 MW. The state
will allow power companies to apply for the selling right by November 2014.
In addition, the NEPC has also extended the time limit for supply of power
into a rooftop solar system with 130 MW capacity for six months, to June
2015.
- Benefiting both solar power generators and contractors
The purchase of additional 800 MW power from solar farms is a new positive
factor; earlier, the state offered to purchase only outstanding solar power of
576 MW (bidding to be started by 2014 and construction to be finished by
2015). Accordingly, this will benefit both solar farm operators, e.g. GUNKUL,
EA, and SPCG, as well as solar farm contractors, e.g. DEMCO, which will
receive significantly increasing work in 2015. The conclusion about
production capacity each operator will receive will come out in late
November or early December 2014.
- Top picks are GUNKUL, DEMCO
We select GUNKUL (FV@B25 in 2014 and B27 in 2015) and DEMCO
(FV@B18 in 2014 and B21 in 2015) as top picks of the alternative energy
sector. GUNKUL has a strong point of potential for long-term growth from
solar and wind power plants in hand and a power business in Myanmar,
while DEMCO is a big power plant contractor in Thailand with promising
profit growth in the next three years from the government’s projects of
constructions of power transmission wires, power substations, and
alternative power plants.
