Thailand: Banpu's BPI to furnish solar roofs

Thailand: Banpu's BPI to furnish solar roofs

SET-listed Banpu Plc, Thailand's largest coal producer, has launched a new
subsidiary to offer solar rooftop power generation services to businesses to
tap into rising domestic demand.

Chief executive Somruedee Chaimongkol said the wholly owned Banpu Infernergy
Co (BPI) started operations yesterday with registered capital of 625 million
baht.

She said the new company will be Banpu's midstream renewable business arm to
supply solar rooftops to several businesses, including factories, oil and
gas stations and offices.

The services provided comprise consultancy, engineering, procurement,
construction, operation and maintenance.

BPI will operate an energy service company model, which is a commercial
business providing a broad range of energy solutions, including design and
implementation of energy savings projects, retrofitting, energy
conservation, energy infrastructure outsourcing, power generation and energy
supply.

"Our services could help our customers cut power costs by at least 10%,
providing a return on investment within 7-9 years," said Ms Somruedee.

Term of payments for BPI vary from monthly payment, monthly instalments or
deductions from power bills shared by clients and BPI.

BPI expects to have initial service orders of a combined 20 megawatts within
the first year of operation, with the figure possibly rising shortly to 80MW
and 300MW within 2023.

Ms Somruedee said although the energy policymaker has not yet finalised the
rate that state utilities will pay for power, it will purchase power from
clients who have their own solar rooftops, as demand for solar rooftop has
already seen a strong rise.

The policymaker is expected to deregulate solar rooftop projects to allow
building owners and households to have their own solar power systems by the
end of this year, according to the incoming revision of the country's power
development plan (PDP 2015-2036).

Once the PDP is officially revised, BPI's target will be revised upward to
more than 300MW within 2023, as demand should rise after deregulation, Ms
Somruedee said.

She said that in the long run, BPI is expected to help generate around 5-10%
of Banpu's total revenue.

Meanwhile, Banpu, expects revenue this year to grow 20% from last year's
US$2.26 billion (75 billion baht), thanks to rising global coal prices,
which are expected to average $63 a tonne, up 20% from an average of $51.53
in 2016.

BANPU shares closed yesterday on the Stock Exchange of Thailand at 17.40
baht, up 20 satang, in trade worth 1.58 billion baht.

--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---

Link to Original Article:
http://www.bangkokpost.com/business/news/1314747/banpus-bpi-to-furnish-solar
-roofs

--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---

John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com