BCPG Plc, the renewable energy arm of Bangchak Petroleum Plc (BCP), says its projects in Japan are on track to start commercial operations this year, slightly earlier than anticipated.
President and chief executive Bundit Sapianchai said BCPG started investing in renewable energy last year by acquiring four solar farm projects from SunEdison Japan through BCPG Japan Corporation, a subsidiary of BCPG Plc. The solar farms have a combined power-generating capacity of 13 megawatts.
In addition, BCPG Japan Corporation began construction of other renewable energy project last year.
"We've focused on new technology to expedite the construction period and cut costs, helping us kick off operations and start bringing in revenue as fast as we can," said Mr Bundit.
As a result, the company began operations of another solar farm in Akita prefecture with power-generating capacity of 13.16MW. It also began operating a solar farm in Okayama prefecture with power-generating capacity of 14.38MW one month ahead of schedule.
Mr Bundit said the company remains focused on plans to expand in Japan and will develop other types of renewable energy too. He said BCPG is conducting a feasibility study on other suitable renewable power projects.
For domestic business, BCPG began commercial operations for two solar farms under a government scheme with local agriculture cooperatives boasting combined capacity of 7MW. The project was done via BCPG's subsidiary, Bangchak Solar Energy (Prachinburi) Co. One solar farm is in Ang Thong province with power-generating capacity of 5MW and another is in Ayutthaya province with 2MW.
The two solar farms were granted an eight-year tax exemption. They operate under a power purchasing agreement with the Electricity Generating Authority of Thailand with a feed-in tariff rate of 5.66 baht per kilowatt-hour for 25 years.
In January, BCPG entered a process to acquire a 40% stake in Petro Wind Energy Inc in the Philippines.
BCPG posted a net profit of 1.2 billion baht in the first nine months of 2016, down from 1.6 billion year-on-year.
Shares of BCPG closed unchanged yesterday on the Stock Exchange of Thailand at 13.30 baht in light trade worth 32.6 million baht.