Thai renewables company BCPG looks homeward for $1 billion spending budget

Thai renewables company BCPG looks homeward for $1 billion spending budget

BCPG, the renewable energy spin-off of Thailand's Bangchak Corp. plans to
invest $1 billion over the next five years with 40 percent of that planned
for domestic power projects after years of overseas spending, the company's
president said in an interview on Wednesday.

BCPG previously spent $1 billion over the past two years mainly on
geothermal projects in Indonesia, solar power in Japan and wind generation
in the Philippines. The company's focus will shift to Thailand, with a
particular focus on constructing small, self-contained power grids known as
microgrids.

"Two-thirds of the company's revenue is from overseas projects. It is time
to go home. We spent almost two years outside, so now our focus is more in
Thailand," BCPG's President and Chief Executive Bundit Sapianchai told
Reuters.

To reach its target of owning 1,000 megawatts (MW) of renewable generation
capacity by 2020, BCPG will have to acquire an additional 400 MW of
capacity, he said.

BCPG intends to build 150 MW of the new 400 MW capacity in Thailand,
focusing on biomass and rooftop solar power investments, he said, adding
that the remaining capacity would likely be investments in wind power
projects in the region.

"Regional plays, mergers and acquisitions (M&A) opportunities are still on
but we have slowed down. We are now focused more on greenfield (projects)
rather than M&A," he said.

BCPG plans to use the rooftop solar projects as a way to bring the microgrid
concept to Thailand. The photovoltaic panels on residential and industrial
properties in an area will produce renewable electricity that will then be
sold back to nearby consumers connected via the local power distribution
grid.

"The industry is shifting... It is moving from a centralised generation to a
distributed energy (model) where technology such as the internet of energy
or blockchain will be in place for the distribution," Sapianchai said.

BCPG hopes to have a microgrid project implemented within the year, he said,
declining to provide specific details as it is still being developed.

Still, technical issues surrounding microgrids must be overcome,
particularly around the selling of surplus power from the microgrid to the
larger national power distribution grid.

"We will need to redesign and talk to the government on the regulatory
constraints. (But) it is a win-win. because the government will not have to
pay for a big centralised generator for the country," Sapianchai said.

BCPG still sees renewable energy opportunities overseas in India, but
particularly in China, he said.

"There are some challenges in China, which basically is from the
transmission lines because the grid is jammed... We are keeping a close eye
on China, if this situation improves we will consider going to China."

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Link to Original Article:
http://uk.reuters.com/article/thailand-bcpg-renewables-idUKL3N1KI238

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com