German-based windfarm operator Pro Ventum International says it is planning to develop a windpower generating capacity in Thailand of about 300 megawatts.
It will begin construction of its first wind farm in the Thep Sathit district of Chaiyaphum province next year. The farm will have a generating capacity of 90MW, making it the largest wind farm in Southeast Asia when it commences operation in 2012.
Pro Ventum's managing director Reiner Zoller said yesterday his company had partnered with GE Energy to establish the first wind farm, which will cost Bt5.8 billion. Pro Ventum and GE Energy will invest 50 per cent of the project's total cost, and they are courting a Thai energy company to take the remaining stake.
He said between 30 and 35 per cent of the investment would come from the companies' equity. The rest would come from syndicated loans from Thai banks and the Asian Development Bank (ADB).
"We chose to invest in Thailand because the government has a strong supportive policy in the renewableenergy industry. We plan to make further investments in Thailand and other Asean countries," Zoller said.
GE Energy's wind product line leader for Asia Pacific Michael Roeder said the factors that his company considered before deciding to invest in renewable energy in any country were the government's policy to support the industry, a clear target for the amount of renewable energy required for the country and a legal framework that investors could rely upon.
GE Energy's country executive for Thailand and Indochina Kovit Kantapasara said the company expected to generate revenue of Bt1.2 billion per year from the Thep Sathit wind farm.
Although the company is interested in investing in windfarm projects in Asean countries, it has no plans to establish a plant in Thailand to manufacture wind turbines.
"Southeast Asian countries may have windfarm projects soon, but the region's [geographic] location is not strong enough for wind farms, when compared with other regions. So, it is not economical to establish a plant here," he said.
Energy Minister Wannarat Charnnukul said his ministry aimed to purchase 80MW of electricity generated by wind farms by 2020. However, it seems the ministry will achieve that target before 2020 because windfarm projects with a combined capacity of 1,400MW had been submitted for the ministry's approval, he said.
The ministry is expecting to sign powerpurchase agreements soon with three investors, including Pro Ventum, offering a combined generating capacity of 330MW.
Pro Ventum plans to begin construction of its 90MW Thep Sathit wind farm in the second quarter of next year and commence operations in December, 2012. GE Energy will supply 36 2.3MW wind turbines to the Thep Sathit farm.
Zoller said Pro Ventum would "consider later" whether it would partner with GE Energy for future projects in Thailand.
According to the company's website, it has three subsidiaries that will each be responsible for different windfarm projects. Thep Sathit Wind Farm will construct and manage the first 90MW farm. Chaiyaphum Wind Farm will be responsible for a 190MW farm that will cost Bt11 billion, and Theppana Wind Farm will generate 27.6MW from a farm costing Bt1.53 billion. All will be in Chaiyaphum province.