Ratchaburi Electricity Generating Holding Plc (RATCH), Thailand’s largest independent power producer, believes its capacity may outstrip the target of 7,800 megawatts in 2016 thanks to its rapidly growing new supply.
“Our capacity expansion may be closer to 10,000 MW in 2016, as we have several new projects in the pipeline excluding many others now pending negotiation for mergers and acquisitions (M&As),” said chief executive Noppol Milinthanggoon.
Ratch will add 5,500 MW of capacity to its present 5,312 MW this year.
The company has also earmarked 30 billion baht for M&As and new projects.
Of that amount, 8 billion will come from cash on hand, 7.5 billion from recently issued debentures and the rest from new debentures that are awaiting shareholder approval.
Mr Nopporn said new capacity from Thailand will stem mainly from renewable energy such as biomass, solar power and fuel algae.
Internationally, Ratch plans M&As on several fossil electricity projects and renewable energy.
Last month, the company acquired half of Cambodia-based KK Power Co Ltd for US$500,000 as part of its bid to expand its international operations.
More investment opportunities are seen in the neighbouring country, where infrastructure demand, especially for electricity capacity, is rising.
In Laos, Ratch is constructing the 126-billion-baht Hongsa Lignite coal-fired power plant and two hydropower plants - the 34-billion-baht Nam Ngum 3 and 28.2-billion-baht Xe Pien Xe Nam Noy facilities.
The Hongsa Lignite facility will start operations next year, while the latter two will start up in 2015 and 2018, respectively.
Domestically, Ratch is developing three gas-fired small power producer projects on licences granted by the Energy Ministry worth a combined 15 billion baht for capacity of 354 MW; a wind turbine project of 30.6 MW worth 2.75 billion baht; and solar farm of 16.78 MW capacity worth 1.51 billion baht.
All of these projects in Thailand will begin operating next year.
Ratch recently signed a 50:50 joint venture deal with Chana Cooperation in Songkhla province for a biomass project to generate electricity from para wood and para wood root.
The 800-million-baht project is in the design stage and will soon open bidding to contractors for construction. It will have electricity capacity of 99 MW.
“Our rapid capacity expansion will tap into the great rising demand in this region, which will only increase more quickly after the Asean Economic Community kicks off in 2015,” said Mr Noppol.
RATCH shares closed on Friday on the Stock Exchange of Thailand at 42 baht, up one baht, in trade worth 92.9 million baht.
