Thailand: B Grimm Power in Bt50-bn push

Thailand: B Grimm Power in Bt50-bn push

B GRIMM POWER yesterday revealed a commitment to invest at least Bt10
billion per annum over the next five years to expanding its power plants
both in Thailand and other countries in the region.

President Preeyanart Soontornwata said that the company was also studying
joint-venture opportunities to set up power plants in potential markets in
Asean countries, including Laos, Cambodia, Vietnam and Malaysia.

Preeyanart said that the company was looking for opportunities with local
investors in particular countries but her company needed to control a
majority of the shares and manage the ventures.

"About 52 different power plant projects have been already committed to by
the company in the next five years, requiring at least Bt10 billion in
investment capital annually," she said.

Preeyanart added that the company would go ahead with its development plan
for power plant projects in the third and fourth quarters of this year.

The Xenamnoy 2 and Xekatam 1 hydropower plants in Laos entered commercial
operation on July 30 with better-than-expected power-generating efficiency,
with an expected return of 20 per cent.

"For Thailand, we have developed our third, fourth and fifth power plant
facilities at Amata City Rayong. The gas-fired, combined cycle power
stations will be in commercial operation respectively in February, June and
October next year, with 399 megawatts in combined capacity," said
Preeyanart.

She said that B Grimm Power was conducting feasibility studies on a number
of power projects in Thailand and overseas, including a solar energy project
with the War Veterans Organisation of Thailand and agricultural
cooperatives. This 36-megawatt project is now being finalised. The company
is also preparing to bid for a 300-megawatt renewable energy plant on the
government's SPP Hybrid Firm platform this year.

Beyond Thailand, the company is about to conclude a deal for a 180-megawatt
solar power plant in Malaysia, with more feasibility studies being conducted
on opportunities in the Philippines and Vietnam. Details are expected to be
finalised by the end of this year.

"We also plan for a 300-megawatt hydro power plant in Sekong 4 in Laos, in
partnership with Ratchaburi Electricity Generating. The plant will supply
electricity directly to Electricity Generating Authority of Thailand
(EGAT)," said Preeyanart, adding that the company is studying the
development of new 500-megawatt solar farm in Pahang, Malaysia. The company
is also looking at developing power plants at industrial estates in Phnom
Penh, as well as solar rooftop and solar farm projects in Vietnam.

B Grimm Power has currently invested in 44 power plants with a total output
capacity of 2,431 megawatts. Of these, 30 plants are in commercial operation
with a combined output capacity of 1,646 megawatts; and 14 projects are
under construction and under development with a total capacity of 785
megawatts.

Preeyanart said that in the next five years, about 70 per cent of the
company's investment would still be in the domestic market, while the other
30 per cent would be for regional expansion.

"We have plans to issue new debentures from the end of this year through to
2018 to further reduce the financial cost of our existing power plants,
which have been in operation for two-three years to the same level as we
managed to achieve in April. That could increase our total net profit in the
future," said Preeyanart. B Grimm Power has recorded first-half revenue of
Bt15.6 billion, representing 15 per cent growth compared to the same period
last year. The strong performance is mainly due to the newly operating power
plants.

The main contribution to this growth is the income from Amata B Grimm Power
5 (ABP5) on Amata Nakorn Industrial Estate, and B Grimm Power (WHA) 1
(BPWHA1) on Hemaraj Industrial Estate. The power plants, which entered
commercial operation on June 1 and November 1 respectively last year, are
selling electricity to EGAT (62 per cent) and users on the industrial
estates (29 per cent).

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Link to Original Article:
http://www.nationmultimedia.com/detail/Corporate/30323901

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com