LISTED FIRM Ratchaburi Electricity Generation Holding Plc (Ratch) is planning to establish a start-up business focused on renewable energy in the second half of this year, according to the company’s chief executive officer, Kijja Sripatthangkura.
The company has an investment budget of up to Bt8 billion available, which is part of a total investment budget of Bt10 billion for this year. The money can be used to invest in existing projects such as the 144.4 megawatt (MW) Mount Emerald wind farm in Australia and in plans for Laos, Myanmar, and China. The budget will also allow for spending on four merger and acquisition of projects with a combined 1,002MW. One project is located in Thailand, with the other three in Asean countries. The investment budget also allows for investing in start-up business, Kijja said.
“We will set up the new start-up business in the second half of this year, by focusing on renewable energy businesses such as batteries. We are negotiating with a start-up firm that has this technology. We are also open to start-ups that do technology related to renewable energy to purpose their projects for our new company,” Kijja said.
He added that the company will also focus on overseas business to boost its overseas income to 40 per cent as soon as possible, up from its current 29.6 per cent income from overseas.
The company now has business in Indonesia, Laos, Philippines, China and Myanmar. It has expanded its investment in an Australian wind farm that is scheduled for commercial operation in the year 2018. As well, Ratchaburi Electricity is also studying to expand investment in Cambodia this year and next, he added.
Kijja said that in the first half of this year, the company has spent only Bt2 billion of its investment budget, with the remainder of deals in the Bt10 billion investment plan expected to close throughout the rest of this year.
Already, the three investment projects from the first half have succeeded in increasing electricity generation by a combined 360MW equivalent. Those projects include the 191MW yellow and pink lines of the monorail projects, 134.75MW Riau power plant in Indonesia, and the 34MW Collinsville Solar PV project in Australia. This drives total equity capacity to 7,373MW equivalent.
The company is confident it can increase total equity capacity to 7,500MW equivalent by the end of this year following its business plan, Kijja said.
Meanwhile, the company yesterday also announced its financial results for the first half of this year achieved recorded total revenue of Bt23.1 billion, a drop of 15.6 per cent from the same period last year due to a decline in income from electricity sales.
Still, the company showed net profit of Bt3.6 billion, up 51 per cent from the same period last year, thanks to overseas income including a Laos payback to the company in the first half of this year, Kijja added.
“Although our total revenue in the first half of this year dropped compared with the same period of last year, we are confident that in the rest of this year we will generate total revenue and net profit to achieve our early estimation,” he said.