Thailand GPSC establishes bold target of 8,000MW from renewable
Source:Bangkok Post Newspaper
From:Taiwan Trade Center, Bangkok
Update Time:2019/08/19
GPSC received this assignment on Monday from its parent company, national oil and gas conglomerate PTT Plc, following the group's strategic thinking session. The parent group aims to adapt to technological disruption by developing an S-curve growth strategy in each of its companies.
Chawalit Tippawanich, GPSC's president and chief executive, said PTT's strategy stems in part from concerns about global climate change and an average two-degree-Celsius increase in temperature.
PTT Group set a goal to cut greenhouse gas emissions by 15% in 2020, said Mr Chawalit.
GPSC is PTT's power generation arm, operating projects across Asia-Pacific from fossil fuel-based to renewable.
"The future trend of energy and power will capture electric value chain consumption," he said.
GPSC has its own ambitious goal to be one of the three largest private power producers within five years, moving up from fifth.
Ratch Group Plc has the largest power capacity of 8.02 gigawatts (GW) and Gulf Energy Development Plc follows at 5.3GW, while Electricity Generating Plc (Egco) used to be third at 4.26GW.
GPSC recently broke into the top three by acquiring power generation company Glow Energy Plc.
The acquisition is complete and GPSC has 4.99GW now, surpassing Egco.
Following the acquisition, GPSC's board of directors approved last Friday increasing the company's registered capital of 74 billion baht.
The raise will be proposed at GPSC's extraordinary general meeting for shareholders' approval on Aug 28.
Mr Chawalit said the capital increase seeks to strengthen GPSC's financial status for further business expansion.
The company also aims to create business synergy after the acquisition of Glow.
GPSC has allocated a budget from the projected increase in capital to pay off short-term loans from financial institutions and loans from major shareholders of GPSC used to acquire Glow.
He said GPSC is conducting its synergy plan with the new assets of Glow, including cost management, human resources development, power and steam generation, power plant maintenance and tools and equipment procurement.
"GPSC and Glow are working closely to create power generation services to serve the country's power demand and consumption, and support its sustainable growth in the power business," said Mr Chawalit.
GPSC's future business plan aims to expand investment and development in power projects, as well as entering new businesses in line with PTT Group.
Several domestic and international projects are under construction and have commercial operation dates this year, such as the 65MW Nam Lik 1 hydropower plant and the 1,285MW Xayaburi hydropower plant (both in Laos), in addition to the 45MW Central Utility Plant 4 Rayong.
Source:https://www.bangkokpost.com