EGCO future looks bright with renewable capacity increase

Electricity Generating Plc (EGCO), Thailand’s second-largest private power producer, will spend 15 billion baht this year to expand generation capacity and diversify from fossil fuels into renewable energy.

President Sahust Pratuknukul said Egco is considering both investing in new projects and acquiring power plants already operated by independent power producers (IPPs).

“We are working on proposals for new IPP and small power producer (SPP) projects. As well, we’re looking at new investments partly through joint ventures in renewable energy projects such as wind and solar power,” he said.

Mr Sahust said Egco will continue to explore new investment opportunities in neighbouring Southeast Asian countries.

Present capital expenditures are allocated to seven ongoing projects.

These include the Theppana small wind farm in Chaiyaphum, Solarco Co which itself has six solar projects in Nakhon Pathom and Suphan Buri  and a municipal waste power plant in Hat Yai.

The total capacity of just these three projects above is 37 megawatts.

Other ongoing SPP projects are TJ Cogen Co in Pathum Thani and SK Cogen Co in Ratchaburi, with combined capacity of 375 MW.

Internationally, Egco has been in negotiations for an expansion project in the Philippines’ Quezon province, with installed capacity of 500 MW.

Last year, the company invested in five solar projects  SPP2 in Saraburi, SPP3 in Si Sa Ket, SPP4 on the border between Si Sa Ket and Ubon Ratchathani, SPP5 in Roi Et and G-Power Source Co with its power plants in Nakhon Sawan, Chai Nat and Phetchabun  for combined capacity of 46 MW.

Last year, Egco posted a net profit of 11 billion baht, up by 120% from 2011.

Before foreign exchange and accounting gains, the operating profit increased by 14% to 6.06 billion baht thanks to increased power generation.

Shares of EGCO closed yesterday on the SET at 159.50 baht, down one baht, in trade worth 85.9 million.