Thailand: Ratch to satisfy PPA this year

Thailand: Ratch to satisfy PPA this year

Ratchaburi Electricity Generating Holding Plc (Ratch), Thailand's biggest
private power producer, is on track to complete its power purchasing
agreement (PPA) of 7,500 megawatts this year.

An additional 1,058MW of power is needed from Ratch to supply state
utilities and honour the commitment, said chief executive Rum Herabat.

To complete the PPA within this year, he said Ratch has set aside capital
expenditure of 10 billion baht for projects to increase power-generation
capacity.

Of the additional 1,058MW of power required, some 535MW has already been
secured to be sold on time.

Ratch is also in talks to acquire shares in other commercial
power-generating companies to acquire more capacity via equity-based
agreements, which are expected to bring in 500MW.

To complete the PPA Ratch will continue its six projects in Thailand and
overseas, including the 100MW small power plant at home and the 250MW
combined cycle power plant in Medco Power in Indonesia.

It will also continue operating the Xe Kong 4 hydropower plant in Laos, a
coal-fired power plant in the Philippines and the Collinsville wind and
solar farms in Australia.

In the longer term, Ratch plans to increase total power generating capacity
to 10,000MW within 2023 by investing directly in power plants and
diversifying into other power-generating businesses.

Ratch plans to double renewable power capacity to comprise 20% of total
power-generating capacity.

Last year Ratch set up a joint venture with Bangkok Mass Transit System Co,
the operator of the BTS skytrain system, and Ch. Karnchang Plc. The group
won the bid to develop and operate the Pink and Yellow mass transit lines in
Bangkok worth a combined 130 billion baht.

Ratch also plans to diversify into other related power businesses including
power storage systems and floating storage regasification units as well as
infrastructure projects such as water management, mass transit and smart
grids.

Ratch yesterday reported revenue of 52.3 billion baht in 2016, down 13% from
2015. Net profit, however, rose 93% to 6.16 billion baht.

RATCH shares closed yesterday on the Stock Exchange of Thailand at 51.50
baht, up 25 satang, in trade worth 195 million baht.

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Link to Original Article:
http://www.bangkokpost.com/business/news/1199897/ratch-to-satisfy-ppa-this-y
ear

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com