Thailand: B Grimm Power earmarks B59bn to treble capacity by 2021

Thailand: B Grimm Power earmarks B59bn to treble capacity by 2021

B Grimm Power Co plans to treble its power-generating capacity to 5,000
megawatts with capital expenditure of 59 billion baht within five years, up
from the current 1,627MW.

President Preeyanart Soontornwata said the company, the power business arm
of Thailand's oldest industrial conglomerate B Grimm Group, expects growth
at an average of 19% a year until 2021.

The capex will be used on committed and ongoing projects, which account for
2,383MW that will be developed between this year and 2021, ranging from
fossil to renewable energy, she said.

Around 25 billion baht of the total capex has already been allocated to
finance projects that are under development with power purchase agreements
already sealed for the coming years.

The projects are Amata B Grimm Power Rayong (units 3-5), Bowin power plant
and Xenamnoy Xekatum hydroelectric plant in Laos.

There are seven projects that are under negotiations for purchase agreement
and feasibility studies, including four hydropower plants in Laos -- Nam
Che, Tadsakhoi, Xe Kong 4 and Nam Khao.

The others include a project to replace two expired units of SPP and a wind
farm in Mukdahan.

"We are looking for new capacity expansion in every kind of fuel in both the
domestic and Asean markets," said Mrs Preeyanart.

She said revenue from overseas is expected to account for 20% of total
revenue by 2020, up from 1% currently. The remaining 80% is due to come from
the domestic market.

On the domestic front, she said the company will focus on small power
producing schemes and renewable energy projects.

Since the establishment of B Grimm Power Co in 1992, the company has
developed and operated 25 power plants with a combined power-generating
capacity of almost 1,500MW.

The company plans to switch to developing large-scale renewable-energy
plants over the next five years.

In the short term, the company expects to raise its power-generating
capacity to 1,662MW next year and to 2,100MW in 2018.

The proportion of renewable energy is expected to rise to 24% over the next
five years, up from the current 7%.

"We set a high target of trebling our capacity to stimulate ourselves,
making us feel enthusiastic about achieving the goal. However, it all
depends on business feasibility and returns of investment," said Mrs
Preeyanart.

During 2015-16, B Grimm was granted 15 licences by the energy policymaker to
develop solar farms with a total power-generating capacity of 114.2MW.

In order to achieve the goal, the company plans to list on the Stock
Exchange of Thailand by early next year and is looking for a financial
adviser.

In the first half of this year, B Grimm Group reported revenue of 13.4
billion baht, an increase of 21% from the same period of last year.

Net profit rose 150% to 1.84 billion baht year-on-year, thanks to the
increase in power-generating capacity, which rose from 1,242MW last year to
1,627MW this year.

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Ref:
http://www.bangkokpost.com/business/news/1080848/b-grimm-power-earmarks-b59b
n-to-treble-capacity-by-2021

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com