Ratchaburi Electricity Generating Holding Plc expects to complete its 100-megawatt renewable energy programme ahead of the original 2016 target and will explore more solar and wind opportunities both at home and abroad.
Through its joint venture with Yanhee Solar Power, Thailand’s largest private power producer will spend 5 billion baht this year to develop eight solar farms with a combined capacity of 34.25 megawatts.
The first 3-MW unit began operations yesterday.
Set-listed Ratchaburi owns a 49% stake in the venture, Solarta Co, with the balance belonging to Yanhee Solar Power, a unit of Yanhee Hospital Plc.
“We had planned to have 100-MW worth of renewable energy projects by 2016. But now it looks like these projects will be up and running well ahead of that target, so now we’re planning additional projects,” said Ratchaburi President Noppol Milinthanggoon.
He said that apart from a 60-MW wind farm now under construction in Phetchabun’s Khao Kho district, the company was eyeing more wind energy and biomass projects in Thailand and renewable energy investments abroad.
Solarta will complete the seven other solar projects this year to operate next year. The projects will cost a combined 4.4 billion baht, with 75% financed by loans from Kasikornbank and Bangkok Bank and the rest from equity.
All projects will be subsidised with an added tariff of 8 baht per kilowatt-hour for 10 years and supply the electricity to the Provincial Electricity Authority under non-firm power purchase agreements for small power producers.
Mr Noppol said the renewable power projects would generate returns on investment of at least 10.
Solarta’s first project, Sai Sena in Ayutthaya’s Sena district, will cut greenhouse gas emissions by 2,500 tonnes and reduce oil imports by 8,500 barrels a year.
“We will pursue new investments and gradually develop solar energy to meet the growing demand for solar energy both in this country and the rest of the world,” said Mr Noppol.
Shares of Ratchaburi (RATCH) closed yesterday on the SET at 43.25 baht, up 75 satang.
