Thai green power producer BCPG to invest 45 bil. baht over 5 years for expansion in Asia
BANGKOK, NNA – BCPG Public Co., a major Thai green power producer, pledges to invest over 45 billion baht ($1.4 billion) in expansion of its power production mainly in countries in the Indochina Peninsula to cash in on growing electricity demand there.
For the next five years, the renewable energy arm of the state-backed Bangchak Corporation Public Co. will earmark most of the funds for wind and hydro power plants in Laos and transmission lines from the land-locked country to Vietnam to boost future profits, it said in a statement last Thursday.
The budget will also cover a solar power project with a total output of 14,700 kilowatts in Japan and a geothermal power plant in Indonesia, the statement said.
In Laos, the Thai firm established Impact Energy Asia Development Ltd., a joint venture, last year to develop a 600,000-kw wind power project while adding a second hydro power plant to its portfolio by acquiring an entire stake in the 45,000-kw Nam Sam 3B, a hydropower station, from Phongsubthavy Roads and Bridges Construction and Irrigation (PSG) for $113 million, according to BCPG.
Combined with the capacity of Nam Sam 3A, the company will have a total hydropower output capacity in the neighboring country of 114,000 kw, the statement said.
The renewable energy firm is also building two transmission lines in Laos to send electricity to Vietnam, with the one in northern Laos to supply power from the two hydropower stations. The other line in the southern area will be installed at a cost of $10 million to send electricity from the wind power plant to Vietnam.
The wind power farm is expected to begin operation in 2023. The Thai company is negotiating with a wind turbine firm now while finalizing a power purchase agreement with the Vietnamese government.
“The investment in hydro power projects in Laos and the Transmission Line System to Vietnam is the very first step of BCPG to enter into the high economic potential market of CLMV countries,” BCPG President Bundit Sapianchai said in a statement on Feb. 11. CLMV stands for Cambodia, Laos, Myanmar and Vietnam.
This investment will provide BCPG with more opportunities in other potential renewable energy projects in those nations in the future, which will help reinforce BCPG’s sustainability growth, he added.