Thailand: TSE to raise renewable power-generating capacity

Thailand: TSE to raise renewable power-generating capacity

Thai Solar Energy Plc (TSE), an MAI-listed subsidiary of Channel 3, aims to
double its renewable power-generating capacity to nearly 200 megawatts by
next year.

That would be a substantial rise from the current capacity of 108MW, and the
company would need capital expenditure of 6 billion baht to raise the
capacity to the 200MW target.

Chief executive Cathleen Maleenont said the new capacity next year is
expected to come from solar farm projects in Japan with a combined capacity
of 50MW, now under construction.

TSE is also looking for an opportunity to develop additional solar farms
next year with a combined capacity of 100MW. The projects are due to be
finalised by next year and would start operation after 2017.

Some 22MW of new additional capacity next year would derive from the
acquisition of three biomass projects in Nakhon Si Thammarat and Surat Thani
provinces.

The three biomass power plants would use wood chips as power feedstock and
are expected to start construction shortly.

In September, TSE acquired three projects from local businesses at a total
cost of 1.9 billion baht.

Another 20MW next year is expected to come from mergers and acquisitions of
domestic solar farms, whose operators prefer to gain cash by spinning off
their assets.

However, Mrs Cathleen declined to give the name of the companies.

TSE yesterday announced a strategic partnership with one of Thailand's top
three engineering, procurement and construction firms, Sino Thai Engineering
Construction Plc (Stecon).

Stecon has bought 181.5 million shares, or around 10%, from TSE's existing
shareholders, Wave Entertainment Plc, which wanted to dilute half of the 20%
share it owned in TSE. The stake was sold at 4.85 baht per share, she said.

TSE is ready to bid for a development and operation licence for renewable
power from the Energy Regulatory Commission, which plans to open bid
licences of more than 1,000MW next year.

TSE shares closed yesterday on the Market for Alternative Investment at 5.75
baht, unchanged, in trade worth 231 million baht.

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Link to Original Article:
http://www.bangkokpost.com/business/news/1131397/tse-to-raise-renewable-powe
r-generating-capacity

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com