Ratch Group Invests B15 Billion in Power Generation Expansion
The Thai energy company focuses on renewable energy assets amid business uncertainties in non-power sectors.
Ratch Group, the power generation subsidiary of the Electricity Generating Authority of Thailand, is allocating 15 billion baht (approximately $500 million) this year to expand its power generation capacity, explicitly shifting its focus away from new investments in non-power business sectors.
Chief Executive Nitus Voraphonpiput announced that the company plans to concentrate its efforts on electricity generation and power infrastructure projects due to perceived business uncertainties in its non-power ventures.
While specifics on at-risk businesses were not disclosed, Ratch confirmed that it would not pursue additional acquisitions in non-power areas, despite holding stakes in various projects.
Currently, Ratch maintains a 10% interest in two motorway projects in Thailand: the Bang Pa-in to Nakhon Ratchasima route and the Bangkok-Kanchanaburi route.
Additionally, Ratch has investments in the Pink and Yellow electric rail lines, which are key infrastructure projects, as well as a portfolio in the healthcare sector.
In the power generation domain, the company is designating 10 billion baht of its budget toward the development of new electricity generation facilities and the acquisition of renewable assets.
New power projects include a considerable interest in the 355-megawatt Xekong hydropower plant in Laos, where Ratch holds a 60% stake, and a 75-megawatt Si Bun Dong hydropower facility in Indonesia, in which it owns a 40% share.
Currently, negotiations are ongoing with Indonesian authorities regarding a power purchase agreement for the Si Bun Dong plant, located in northern Sumatra.
The remaining 5 billion baht will fund various projects that Ratch had initiated earlier, which encompass five solar farms in Thailand and four wind farms located in Vietnam and the Philippines, split evenly between the two countries.
Nitus highlighted the urgency for developing new power plants to ensure revenue growth, noting that several existing facilities are projected to reach the end of their service life between 2025 and 2027. Furthermore, Ratch anticipates an additional power generation capacity of 522 megawatts this year, which will come from two gas-fired power plants, Hin Kong and Navanakorn, alongside contributions from the NPSI solar farm in the Philippines and the Song Giang hydropower plant in Vietnam.
Chief Executive Nitus Voraphonpiput announced that the company plans to concentrate its efforts on electricity generation and power infrastructure projects due to perceived business uncertainties in its non-power ventures.
While specifics on at-risk businesses were not disclosed, Ratch confirmed that it would not pursue additional acquisitions in non-power areas, despite holding stakes in various projects.
Currently, Ratch maintains a 10% interest in two motorway projects in Thailand: the Bang Pa-in to Nakhon Ratchasima route and the Bangkok-Kanchanaburi route.
Additionally, Ratch has investments in the Pink and Yellow electric rail lines, which are key infrastructure projects, as well as a portfolio in the healthcare sector.
In the power generation domain, the company is designating 10 billion baht of its budget toward the development of new electricity generation facilities and the acquisition of renewable assets.
New power projects include a considerable interest in the 355-megawatt Xekong hydropower plant in Laos, where Ratch holds a 60% stake, and a 75-megawatt Si Bun Dong hydropower facility in Indonesia, in which it owns a 40% share.
Currently, negotiations are ongoing with Indonesian authorities regarding a power purchase agreement for the Si Bun Dong plant, located in northern Sumatra.
The remaining 5 billion baht will fund various projects that Ratch had initiated earlier, which encompass five solar farms in Thailand and four wind farms located in Vietnam and the Philippines, split evenly between the two countries.
Nitus highlighted the urgency for developing new power plants to ensure revenue growth, noting that several existing facilities are projected to reach the end of their service life between 2025 and 2027. Furthermore, Ratch anticipates an additional power generation capacity of 522 megawatts this year, which will come from two gas-fired power plants, Hin Kong and Navanakorn, alongside contributions from the NPSI solar farm in the Philippines and the Song Giang hydropower plant in Vietnam.
