Thailand: BCPG plans private power microgrid for the community

Thailand: BCPG plans private power microgrid for the community

BCPG Plc, a renewable power business arm of state majority-owned energy firm
Bangchak Corporation Plc (BCP), has announced plans to be a private
microgrid provider in Thailand in its new business development chapter over
the next decade.

President and chief executive Bandit Sapianchai said BCPG plans to support
any pilot project to generate power in the community, similar to New York's
Brooklyn Microgrid (BMG).

BMG is a peer-to-peer energy market for locally-generated renewable energy
that is driven by the community it serves.

"The new business will be a value-added one, which requires higher
technology for smart metres and a smart grid," said Mr Bandit.

Thai energy policymakers are also planning to change the power purchasing
agreement (PPA) system from non-firm PPA to firm PPA, through which power
producers must send power to the grid constantly, as per their commitment to
state utilities.

BCPG is also in talks with several IT firms on the possibility of
establishing new business models if the policymakers launch any new pilot
projects that are similar to BMG.

Mr Bandit said opportunities to expand the business and increase
power-generating capacity in Thailand are diminishing and BCPG expects to
raise capacity by only 30 megawatts, which is due to be under a PPA soon.

BCPG was recently announced as one of 21 firms shortlisted by the War
Veterans Organization of Thailand to develop solar farm project with total
capacity of 100MW.

BCPG is still maintaining its overseas business expansion in Japan,
Indonesia and the Philippines, he said.

The company expects that committed capacity on hand to be 577MW, with 182MW
in Thailand, 192MW in Japan, 182MW in Indonesia and 20MW in the Philippines.

Mr Bandit said BCPG successfully acquired a wind farm in the Philippines in
March and a geothermal plant in Indonesia in April.

"There is strong potential to operate geothermal power plants in the two
countries [Indonesia and the Philippines] since they are located in the ring
of fire, with extremely rare resources that required technology to drill
deep into the ground. However, it is worth investing as geothermal power
plants can supply power constantly," he said.

Indonesia's geothermal development plan is aimed at increasing power
generating capacity to 6,000MW over the next several years from 1,340MW as
the Indonesian government encourages investment in many sectors, including
utility.

Mr Bandit said BCPG is being approached by many fund managers to acquire
assets at a range from 500-5,000MW.

Since BCPG started to spin off from BCP in 2015 and being listed in 2016,
its renewable power capacity has jumped from 118MW by 2013 to 577MW
currently.

BCPG shares closed on SET yesterday at 14.10 baht, down 20 satang baht, in
trade worth 141 million baht.

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Link to Original Article:
http://www.bangkokpost.com/business/news/1255866/bcpg-plans-private-power-mi
crogrid-for-the-community

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com