Ratchaburi Electricity Generating Holding Plc (Ratch), Thailand's largest private power producer, aims to more than double its installed capacity to 12,000 megawatts by 2020 by expanding investments both in Thailand and abroad.
Pongdith: Myanmar is a priority market
Chief executive Pongdith Potchana, who took the helm at SET-listed Ratch last month, said half of the additional capacity will come from overseas projects with the balance from those in Thailand, which Ratch targets to develop by itself or through acquisitions.
At present, Ratch has installed capacity of 5,312 MW and previously planned to grow to 7,800 MW in three years.
"We are going to propose this new strategic plan to the board at the end of this month. The new target is quite challenging, but we are determined to achieve it," said Mr Pongdith.
He cited growing competition in the power business as the reason for the upgrade, saying both short- and long-term strategies are required to achieve business growth with financial stability.
To achieve the target, capital expenditure of 200-300 billion baht is required.
In expanding overseas investments, the company is focusing on neighbouring countries as generated electricity can be distributed to Thailand to strengthen our energy security and help maintain the tariff rate here.
Ratch anticipates investment opportunities in related businesses such as transmission systems and maintenance services that could generate steady incomes, he added.
"We view Myanmar as a priority destination due to its potential power demand from a growing economy," said Mr Pongdith, adding Indonesia is another target because of consistent economic growth and a vast coal supply.
"Japan is also on the horizon as there is more potential for acquisitions and renewable project developments with reasonable returns," he said.
The company's main income generators are Thailand, Laos and Australia, with investment expansion being planned in all three. Business negotiations and feasibility studies have been started for three projects in Laos, while three projects in Australia are being reviewed for construction permission.
In Thailand, Ratch plans to emphasise renewable energy projects and joint investments and will seek 1,000 MW more from neighbouring countries to achieve its 7,800-MW target by 2016.
Shares of RATCH closed on the Stock Exchange of Thailand at 52 baht yesterday, up 50 satang, in trade worth 13.12 million baht.
About the author
- Writer: Post Reporters